Exploring the Growth Potential of NASDAQ:VITL as It Nears a Breakout.

Last update: Nov 6, 2024

In this article, we'll take a closer look at VITAL FARMS INC (NASDAQ:VITL) as a potential candidate for growth investing. While it's important for investors to conduct their own research, VITAL FARMS INC has piqued our interest by appearing on our strong growth and breakout radar. Let's explore further.

Assessing Growth for NASDAQ:VITL

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:VITL has received a 10 out of 10:

The Earnings Per Share has grown by an impressive 186.49% over the past year.
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.
The Revenue has grown by 26.61% in the past year. This is a very strong growth!
VITL shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 34.63% yearly.
The Earnings Per Share is expected to grow by 43.73% on average over the next years. This is a very strong growth
Based on estimates for the next years, VITL will show a very strong growth in Revenue. The Revenue will grow by 22.08% on average per year.
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

Health Assessment of NASDAQ:VITL

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NASDAQ:VITL, the assigned 8 reflects its health status:

VITL has an Altman-Z score of 14.35. This indicates that VITL is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 14.35, VITL belongs to the best of the industry, outperforming 97.80% 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.
VITL has a Debt to FCF ratio of 0.23. This is amongst the best in the industry. VITL outperforms 94.51% of its industry peers.
A Debt/Equity ratio of 0.04 indicates that VITL is not too dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.04, VITL belongs to the best of the industry, outperforming 82.42% 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.
The Current ratio of VITL (3.50) is better than 85.71% 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.
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 Assessment of NASDAQ:VITL

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NASDAQ:VITL has earned a 8 out of 10:

With an excellent Return On Assets value of 14.69%, VITL belongs to the best of the industry, outperforming 93.41% of the companies in the same industry.
With an excellent Return On Equity value of 19.74%, VITL belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
VITL has a Return On Invested Capital of 13.41%. This is amongst the best in the industry. VITL outperforms 92.31% of its industry peers.
The 3 year average ROIC (3.76%) for VITL is below the current ROIC(13.41%), indicating increased profibility in the last year.
Looking at the Profit Margin, with a value of 8.69%, VITL belongs to the top of the industry, outperforming 80.22% of the companies in the same industry.
VITL has a Operating Margin of 10.27%. This is in the better half of the industry: VITL outperforms 75.82% of its industry peers.
In the last couple of years the Operating Margin of VITL has grown nicely.
VITL has a better Gross Margin (36.65%) than 85.71% of its industry peers.

Looking at the Setup

ChartMill incorporates a Setup Rating in its analysis, which measures the extent of consolidation in a stock over recent days and weeks. This rating, ranging from 0 to 10, is updated daily and takes into account multiple short-term technical indicators. The current setup rating for NASDAQ:VITL is 8:

Although the technical rating is only medium, VITL does present a nice setup opportunity. Prices have been consolidating lately. A pullback is taking place, which may present a nice opportunity for an entry. There is very little resistance above the current price. There is a support zone below the current price at 35.43, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for VITL in the last couple of days, which is a good sign.

More Strong Growth stocks can be found 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.

Disclaimer

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.