Why NASDAQ:VITL Is a Promising High-Growth Stock in the Midst of Consolidation.

Last update: Dec 27, 2024

For growth-minded investors, high revenue and EPS growth are key criteria. Today, we'll examine whether VITAL FARMS INC (NASDAQ:VITL) fits the bill for growth investing, particularly as it forms a base and hints at a potential breakout. Remember, due diligence is essential, but VITAL FARMS INC has caught our attention on our screen for growth with base formation. It may warrant additional investigation.

How We Gauge Growth for NASDAQ:VITL

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 148.89%, 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 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 41.62% yearly.
VITL is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 22.26% 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.

Evaluating Health: 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 14.00. This indicates that VITL is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 14.00, 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 0.21. 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.
Looking at the Debt to FCF ratio, with a value of 0.21, VITL belongs to the top of the industry, outperforming 93.41% of the companies in the same industry.
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 81.32% of its industry peers.
A Current Ratio of 3.24 indicates that VITL has no problem at all paying its short term obligations.
VITL has a better Current ratio (3.24) than 85.71% of its industry peers.
VITL has a Quick Ratio of 2.81. This indicates that VITL is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of VITL (2.81) is better than 91.21% of its industry peers.

What does the Profitability looks like 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:

The Return On Assets of VITL (14.51%) is better than 94.51% of its industry peers.
VITL has a better Return On Equity (19.74%) than 87.91% of its industry peers.
Looking at the Return On Invested Capital, with a value of 13.66%, VITL belongs to the top of the industry, outperforming 91.21% of the companies in the same industry.
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 82.42% of its industry peers.
VITL's Operating Margin of 10.35% is fine compared to the rest of the industry. VITL outperforms 74.73% of its industry peers.
VITL's Operating Margin has improved in the last couple of years.
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.

How do we evaluate the setup for NASDAQ:VITL?

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 7:

VITL has an excellent technical rating and also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is very little resistance above the current price. Another positive sign is the recent Pocket Pivot signal.

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

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

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

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.