NASDAQ:VITL qualifies as a high growth stock and is consolidating.

For growth-minded investors, high revenue and EPS growth are key criteria. Today, we'll examine whether VITAL FARMS INC (NASDAQ:VITL) fits the bill for growth investing, particularly as it forms a base and hints at a potential breakout. Remember, due diligence is essential, but VITAL FARMS INC has caught our attention on our screen for growth with base formation. It may warrant additional investigation.

Looking at the Growth

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NASDAQ:VITL scores a 9 out of 10:

• VITL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 286.36%, which is quite impressive.
• The Earnings Per Share has been growing by 31.52% on average over the past years. This is a very strong growth
• Looking at the last year, VITL shows a very strong growth in Revenue. The Revenue has grown by 23.83%.
• Measured over the past years, VITL shows a very strong growth in Revenue. The Revenue has been growing by 34.63% on average per year.
• Based on estimates for the next years, VITL will show a very strong growth in Earnings Per Share. The EPS will grow by 33.29% on average per year.
• The Revenue is expected to grow by 19.04% on average over the next years. This is quite good.

Looking at the Health

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:VITL has received a 8 out of 10:

• An Altman-Z score of 16.20 indicates that VITL is not in any danger for bankruptcy at the moment.
• VITL's Altman-Z score of 16.20 is amongst the best of the industry. VITL outperforms 97.80% of its industry peers.
• The Debt to FCF ratio of VITL is 0.24, which is an excellent value as it means it would take VITL, only 0.24 years of fcf income to pay off all of its debts.
• Looking at the Debt to FCF ratio, with a value of 0.24, VITL belongs to the top of the industry, outperforming 95.60% of the companies in the same industry.
• VITL has a Debt/Equity ratio of 0.05. This is a healthy value indicating a solid balance between debt and equity.
• With an excellent Debt to Equity ratio value of 0.05, VITL belongs to the best of the industry, outperforming 82.42% of the companies in the same industry.
• A Current Ratio of 3.10 indicates that VITL has no problem at all paying its short term obligations.
• VITL's Current ratio of 3.10 is amongst the best of the industry. VITL outperforms 83.52% of its industry peers.
• A Quick Ratio of 2.66 indicates that VITL has no problem at all paying its short term obligations.
• The Quick ratio of VITL (2.66) is better than 91.21% of its industry peers.

Looking at the Profitability

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:VITL, the assigned 7 is a significant indicator of profitability:

• VITL's Return On Assets of 12.47% is amongst the best of the industry. VITL outperforms 91.21% of its industry peers.
• VITL has a better Return On Equity (17.55%) than 84.62% of its industry peers.
• The Return On Invested Capital of VITL (12.36%) is better than 91.21% of its industry peers.
• The last Return On Invested Capital (12.36%) for VITL is above the 3 year average (3.76%), which is a sign of increasing profitability.
• Looking at the Profit Margin, with a value of 7.48%, VITL is in the better half of the industry, outperforming 74.73% of the companies in the same industry.
• Looking at the Operating Margin, with a value of 9.28%, VITL is in the better half of the industry, outperforming 75.82% of the companies in the same industry.
• In the last couple of years the Operating Margin of VITL has grown nicely.
• VITL has a better Gross Margin (35.68%) than 86.81% of its industry peers.

Why is NASDAQ:VITL a setup?

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the extent of consolidation in the stock based on multiple short-term technical indicators. Currently, NASDAQ:VITL has a 7 as its setup rating:

VITL has an excellent technical rating and also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is a support zone below the current price at 45.23, a Stop Loss order could be placed below this zone.

Our Strong Growth screener lists more Strong Growth stocks and is updated daily.

Our latest full fundamental report of VITL contains the most current fundamental analsysis.

Check the latest full technical report of VITL for a complete technical analysis.

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.