Investors should take note of NASDAQ:VITL, a growth stock that remains attractively priced.

Consider VITAL FARMS INC (NASDAQ:VITL) as an affordable growth stock, identified by our stock screening tool. NASDAQ:VITL is showcasing impressive growth figures and is well-positioned in terms of profitability, solvency, and liquidity. Moreover, it seems to be priced reasonably. Let's dive deeper into the analysis.

Growth Analysis for NASDAQ:VITL

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NASDAQ:VITL has achieved a 9 out of 10:

• VITL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 186.49%, 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 26.61%.
• The Revenue has been growing by 34.63% on average over the past years. This is a very strong growth!
• Based on estimates for the next years, VITL will show a very strong growth in Earnings Per Share. The EPS will grow by 35.50% on average per year.
• VITL is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 20.11% yearly.

Analyzing Valuation Metrics

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NASDAQ:VITL boasts a 5 out of 10:

• 61.54% of the companies in the same industry are more expensive than VITL, based on the Price/Free Cash Flow ratio.
• The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• The excellent profitability rating of VITL may justify a higher PE ratio.
• VITL's earnings are expected to grow with 35.50% in the coming years. This may justify a more expensive valuation.

Unpacking NASDAQ:VITL's Health Rating

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NASDAQ:VITL scores a 8 out of 10:

• VITL has an Altman-Z score of 12.72. This indicates that VITL is financially healthy and has little risk of bankruptcy at the moment.
• With an excellent Altman-Z score value of 12.72, VITL belongs to the best of the industry, outperforming 98.90% of the companies in the same industry.
• VITL has a debt to FCF ratio of 0.23. This is a very positive value and a sign of high solvency as it would only need 0.23 years to pay back of all of its debts.
• The Debt to FCF ratio of VITL (0.23) is better than 95.60% of its industry peers.
• A Debt/Equity ratio of 0.04 indicates that VITL is not too dependend on debt financing.
• VITL has a better Debt to Equity ratio (0.04) than 83.52% of its industry peers.
• VITL has a Current Ratio of 3.50. This indicates that VITL is financially healthy and has no problem in meeting its short term obligations.
• Looking at the Current ratio, with a value of 3.50, VITL belongs to the top of the industry, outperforming 87.91% of the companies in the same industry.
• A Quick Ratio of 3.03 indicates that VITL has no problem at all paying its short term obligations.
• Looking at the Quick ratio, with a value of 3.03, VITL belongs to the top of the industry, outperforming 93.41% of the companies in the same industry.

Profitability Analysis for NASDAQ:VITL

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:VITL, the assigned 8 is noteworthy for profitability:

• VITL has a better Return On Assets (14.69%) than 94.51% of its industry peers.
• With an excellent Return On Equity value of 19.74%, VITL belongs to the best of the industry, outperforming 87.91% of the companies in the same industry.
• Looking at the Return On Invested Capital, with a value of 13.41%, VITL belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
• The last Return On Invested Capital (13.41%) for VITL is above the 3 year average (3.76%), which is a sign of increasing profitability.
• VITL's Profit Margin of 8.69% is amongst the best of the industry. VITL outperforms 82.42% of its industry peers.
• VITL has a Operating Margin of 10.27%. This is in the better half of the industry: VITL outperforms 76.92% of its industry peers.
• VITL's Operating Margin has improved in the last couple of years.
• VITL has a better Gross Margin (36.65%) than 87.91% of its industry peers.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

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

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.