NASDAQ:VITL—Positioned as a High-Growth Stock, Ready for a Potential Breakout.

Groth investors are looking for stocks showing high revenue and EPS growth. We will have a look here to see if VITAL FARMS INC (NASDAQ:VITL) is suited for growth investing, while it is forming a base and may be ready to breakout. Investors should of course do their own research, but we spotted VITAL FARMS INC showing up in our growth with base formation screen, so it may be worth spending some more time on it.

Analyzing Growth Metrics

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NASDAQ:VITL was assigned a score of 10 for growth:

• 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.
• VITL shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 31.52% yearly.
• 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 42.00% on average over the next years. This is a very strong growth
• The Revenue is expected to grow by 22.09% on average over the next years. This is a very strong growth
• The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

Evaluating Health: NASDAQ:VITL

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

• An Altman-Z score of 15.04 indicates that VITL is not in any danger for bankruptcy at the moment.
• VITL has a Altman-Z score of 15.04. This is amongst the best in the industry. VITL outperforms 96.67% 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.
• Looking at the Debt to FCF ratio, with a value of 0.23, VITL belongs to the top of the industry, outperforming 94.44% of the companies in the same industry.
• A Debt/Equity ratio of 0.04 indicates that VITL is not too dependend on debt financing.
• Looking at the Debt to Equity ratio, with a value of 0.04, VITL belongs to the top of the industry, outperforming 81.11% of the companies in the same industry.
• A Current Ratio of 3.50 indicates that VITL has no problem at all paying its short term obligations.
• VITL's Current ratio of 3.50 is amongst the best of the industry. VITL outperforms 86.67% of its industry peers.
• A Quick Ratio of 3.03 indicates that VITL has no problem at all paying its short term obligations.
• VITL has a Quick ratio of 3.03. This is amongst the best in the industry. VITL outperforms 92.22% of its industry peers.

Profitability Assessment of 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:

• With an excellent Return On Assets value of 14.69%, VITL belongs to the best of the industry, outperforming 93.33% of the companies in the same industry.
• VITL has a better Return On Equity (19.74%) than 86.67% of its industry peers.
• The Return On Invested Capital of VITL (13.41%) is better than 91.11% of its industry peers.
• 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.
• With an excellent Profit Margin value of 8.69%, VITL belongs to the best of the industry, outperforming 81.11% of the companies in the same industry.
• VITL has a better Operating Margin (10.27%) than 75.56% of its industry peers.
• In the last couple of years the Operating Margin of VITL has grown nicely.
• VITL has a Gross Margin of 36.65%. This is amongst the best in the industry. VITL outperforms 84.44% of its industry peers.

Looking at the Setup

Besides the Technical Rating, ChartMill assigns a Setup Rating to every stock to determine the degree of consolidation. This rating, ranging from 0 to 10, is updated daily and evaluates various short-term technical indicators. NASDAQ:VITL currently holds a 7 as its setup rating, suggesting a particular level of consolidation in the stock.

VITL has an excellent technical rating, but the quality of the setup is only medium at the moment. Price movement has been a little bit too volatile to find a nice entry and exit point. It is probably a good idea to wait for a consolidation first.

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

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

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

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.