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

Last update: Sep 5, 2024

Uncover the potential of VITAL FARMS INC (NASDAQ:VITL), a growth stock that our stock screener found to be reasonably priced. NASDAQ:VITL is excelling in growth aspects, maintaining a healthy financial position, and still offers an attractive valuation. We'll examine each aspect in detail.

What does the Growth looks like for NASDAQ:VITL

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NASDAQ:VITL, the assigned 9 reflects its growth potential:

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.
Measured over the past years, VITL shows a very strong growth in Earnings Per Share. The EPS has been growing by 31.52% on average per year.
Looking at the last year, VITL shows a very strong growth in Revenue. The Revenue has grown by 26.61%.
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.
The Earnings Per Share is expected to grow by 36.58% on average over the next years. This is a very strong growth
VITL is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 21.45% yearly.

Valuation Analysis for NASDAQ:VITL

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NASDAQ:VITL scores a 5 out of 10:

Compared to the rest of the industry, the Price/Free Cash Flow ratio of VITL indicates a somewhat cheap valuation: VITL is cheaper than 64.13% of the companies listed in the same industry.
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 36.58% in the coming years. This may justify a more expensive valuation.

Understanding NASDAQ:VITL's Health

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 12.58. This indicates that VITL is financially healthy and has little risk of bankruptcy at the moment.
VITL's Altman-Z score of 12.58 is amongst the best of the industry. VITL outperforms 95.65% of its industry peers.
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.
VITL has a better Debt to FCF ratio (0.23) than 94.57% of its industry peers.
VITL has a Debt/Equity ratio of 0.04. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.04, VITL belongs to the top of the industry, outperforming 82.61% of the companies in the same industry.
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.
VITL's Current ratio of 3.50 is amongst the best of the industry. VITL outperforms 86.96% of its industry peers.
VITL has a Quick Ratio of 3.03. This indicates that VITL is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 3.03, VITL belongs to the best of the industry, outperforming 92.39% of the companies in the same industry.

How do we evaluate the Profitability for NASDAQ:VITL?

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NASDAQ:VITL was assigned a score of 8 for profitability:

VITL's Return On Assets of 14.69% is amongst the best of the industry. VITL outperforms 94.57% of its industry peers.
Looking at the Return On Equity, with a value of 19.74%, VITL belongs to the top of the industry, outperforming 88.04% 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 92.39% 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 has a better Profit Margin (8.69%) than 81.52% of its industry peers.
VITL has a better Operating Margin (10.27%) than 76.09% of its industry peers.
VITL's Operating Margin has improved in the last couple of years.
VITL has a Gross Margin of 36.65%. This is amongst the best in the industry. VITL outperforms 85.87% of its industry peers.

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

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

Keep in mind

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.