Despite its growth, NASDAQ:VITL remains within the realm of affordability.

Last update: Nov 28, 2024

Discover VITAL FARMS INC (NASDAQ:VITL), an undervalued growth gem identified by our stock screener. NASDAQ:VITL is shining in terms of growth metrics, and it's also displaying strong financial health and profitability. What's more, it retains an appealing valuation. We'll break it down further.

Looking at the Growth

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 148.89% over the past year.
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 29.15%.
The Revenue has been growing by 34.63% on average over the past years. This is a very strong growth!
VITL is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 43.73% yearly.
VITL is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 22.08% yearly.
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.

How We Gauge Valuation for NASDAQ:VITL

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NASDAQ:VITL has achieved a 5 out of 10:

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.
A more expensive valuation may be justified as VITL's earnings are expected to grow with 43.73% in the coming years.

How do we evaluate the Health for NASDAQ:VITL?

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:VITL has achieved a 8 out of 10:

VITL has an Altman-Z score of 12.45. This indicates that VITL is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of VITL (12.45) is better than 96.70% of its industry peers.
VITL has a debt to FCF ratio of 0.21. This is a very positive value and a sign of high solvency as it would only need 0.21 years to pay back of all of its debts.
VITL has a better Debt to FCF ratio (0.21) than 93.41% 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.
The Debt to Equity ratio of VITL (0.04) is better than 82.42% of its industry peers.
VITL has a Current Ratio of 3.24. This indicates that VITL is financially healthy and has no problem in meeting its short term obligations.
VITL's Current ratio of 3.24 is amongst the best of the industry. VITL outperforms 86.81% of its industry peers.
A Quick Ratio of 2.81 indicates that VITL has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 2.81, VITL belongs to the best of the industry, outperforming 91.21% of the companies in the same industry.

Exploring NASDAQ:VITL's Profitability

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:

The Return On Assets of VITL (14.51%) is better than 93.41% of its industry peers.
VITL has a better Return On Equity (19.74%) than 86.81% of its industry peers.
The Return On Invested Capital of VITL (13.66%) is better than 91.21% of its industry peers.
The last Return On Invested Capital (13.66%) for VITL is above the 3 year average (3.76%), which is a sign of increasing profitability.
The Profit Margin of VITL (8.68%) is better than 80.22% of its industry peers.
VITL has a Operating Margin of 10.35%. This is in the better half of the industry: VITL outperforms 74.73% of its industry peers.
In the last couple of years the Operating Margin of VITL has grown nicely.
With an excellent Gross Margin value of 37.36%, VITL belongs to the best of the industry, outperforming 83.52% of the companies in the same industry.

More Affordable Growth stocks can be found in our Affordable Growth screener.

For an up to date full fundamental analysis you can check the fundamental report of VITL

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.