VITAL FARMS INC (VITL) Stock Fundamental Analysis
NASDAQ:VITL - Nasdaq - US92847W1036 - Common Stock - Currency: USD
We assign a fundamental rating of 7 out of 10 to VITL. VITL was compared to 91 industry peers in the Food Products industry. VITL has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. VITL shows excellent growth, but is valued quite expensive already. This makes VITL very considerable for growth and quality investing!
1. Profitability
1.1 Basic Checks
VITL had positive earnings in the past year.
VITL had a positive operating cash flow in the past year.
VITL had positive earnings in each of the past 5 years.
Of the past 5 years VITL 4 years had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 13.51%, VITL belongs to the best of the industry, outperforming 97.80% of the companies in the same industry.
VITL has a better Return On Equity (17.63%) than 91.21% of its industry peers.
Looking at the Return On Invested Capital, with a value of 16.15%, VITL belongs to the top of the industry, outperforming 95.60% of the companies in the same industry.
VITL had an Average Return On Invested Capital over the past 3 years of 10.84%. This is significantly below the industry average of 28.40%.
The last Return On Invested Capital (16.15%) for VITL is above the 3 year average (10.84%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.51% | ||
| ROE | 17.63% | ||
| ROIC | 16.15% |
ROA(3y)8.25%
ROA(5y)6.23%
ROE(3y)11.3%
ROE(5y)8.34%
ROIC(3y)10.84%
ROIC(5y)7.84%
1.3 Margins
Looking at the Profit Margin, with a value of 8.21%, VITL belongs to the top of the industry, outperforming 80.22% of the companies in the same industry.
VITL's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 9.83%, VITL is in the better half of the industry, outperforming 73.63% of the companies in the same industry.
In the last couple of years the Operating Margin of VITL has grown nicely.
VITL has a Gross Margin of 37.63%. This is amongst the best in the industry. VITL outperforms 83.52% of its industry peers.
In the last couple of years the Gross Margin of VITL has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.83% | ||
| PM (TTM) | 8.21% | ||
| GM | 37.63% |
OM growth 3Y549.09%
OM growth 5Y34.11%
PM growth 3Y112.33%
PM growth 5Y38.86%
GM growth 3Y6.07%
GM growth 5Y4.46%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), VITL is creating some value.
Compared to 1 year ago, VITL has more shares outstanding
The number of shares outstanding for VITL has been increased compared to 5 years ago.
VITL has a better debt/assets ratio than last year.
2.2 Solvency
VITL has an Altman-Z score of 14.95. This indicates that VITL is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 14.95, VITL belongs to the top of the industry, outperforming 97.80% of the companies in the same industry.
VITL has a debt to FCF ratio of 0.76. This is a very positive value and a sign of high solvency as it would only need 0.76 years to pay back of all of its debts.
The Debt to FCF ratio of VITL (0.76) is better than 92.31% of its industry peers.
A Debt/Equity ratio of 0.03 indicates that VITL is not too dependend on debt financing.
VITL has a Debt to Equity ratio of 0.03. This is amongst the best in the industry. VITL outperforms 80.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.76 | ||
| Altman-Z | 14.95 |
ROIC/WACC1.8
WACC8.97%
2.3 Liquidity
A Current Ratio of 3.35 indicates that VITL has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.35, VITL belongs to the top of the industry, outperforming 83.52% of the companies in the same industry.
VITL has a Quick Ratio of 2.91. This indicates that VITL is financially healthy and has no problem in meeting its short term obligations.
VITL's Quick ratio of 2.91 is amongst the best of the industry. VITL outperforms 90.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.35 | ||
| Quick Ratio | 2.91 |
3. Growth
3.1 Past
VITL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 31.76%, 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 81.54% on average per year.
Looking at the last year, VITL shows a very strong growth in Revenue. The Revenue has grown by 23.98%.
VITL shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 33.93% yearly.
EPS 1Y (TTM)31.76%
EPS 3Y186.84%
EPS 5Y81.54%
EPS Q2Q%-13.95%
Revenue 1Y (TTM)23.98%
Revenue growth 3Y32.46%
Revenue growth 5Y33.93%
Sales Q2Q%9.64%
3.2 Future
VITL is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.55% yearly.
Based on estimates for the next years, VITL will show a very strong growth in Revenue. The Revenue will grow by 20.73% on average per year.
EPS Next Y10.93%
EPS Next 2Y15.63%
EPS Next 3Y20.55%
EPS Next 5YN/A
Revenue Next Year23.97%
Revenue Next 2Y21.67%
Revenue Next 3Y20.73%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 34.74, which means the current valuation is very expensive for VITL.
Compared to the rest of the industry, the Price/Earnings ratio of VITL is on the same level as its industry peers.
When comparing the Price/Earnings ratio of VITL to the average of the S&P500 Index (27.45), we can say VITL is valued slightly more expensively.
Based on the Price/Forward Earnings ratio of 24.66, the valuation of VITL can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VITL is on the same level as its industry peers.
VITL is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.74 | ||
| Fwd PE | 24.66 |
4.2 Price Multiples
VITL's Enterprise Value to EBITDA is on the same level as the industry average.
VITL's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 110.8 | ||
| EV/EBITDA | 21.03 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates VITL does not grow enough to justify the current Price/Earnings ratio.
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 20.55% in the coming years.
PEG (NY)3.18
PEG (5Y)0.43
EPS Next 2Y15.63%
EPS Next 3Y20.55%
5. Dividend
5.1 Amount
No dividends for VITL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
38.91
-0.63 (-1.59%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners89.44%
Inst Owner Change5.22%
Ins Owners3.59%
Ins Owner Change-0.53%
Market Cap1.73B
Analysts85
Price Target45.9 (17.96%)
Short Float %22.48%
Short Ratio9.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)39.12%
Min EPS beat(2)36.66%
Max EPS beat(2)41.58%
EPS beat(4)4
Avg EPS beat(4)45.43%
Min EPS beat(4)30.72%
Max EPS beat(4)72.76%
EPS beat(8)8
Avg EPS beat(8)74.81%
EPS beat(12)11
Avg EPS beat(12)91.85%
EPS beat(16)15
Avg EPS beat(16)141.82%
Revenue beat(2)1
Avg Revenue beat(2)-0.46%
Min Revenue beat(2)-2.43%
Max Revenue beat(2)1.51%
Revenue beat(4)2
Avg Revenue beat(4)0.33%
Min Revenue beat(4)-2.43%
Max Revenue beat(4)4.39%
Revenue beat(8)4
Avg Revenue beat(8)0.69%
Revenue beat(12)8
Avg Revenue beat(12)2.44%
Revenue beat(16)10
Avg Revenue beat(16)2.19%
PT rev (1m)-0.98%
PT rev (3m)-3.37%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.18%
EPS NY rev (1m)0%
EPS NY rev (3m)1.25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.03%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.74 | ||
| Fwd PE | 24.66 | ||
| P/S | 2.79 | ||
| P/FCF | 110.8 | ||
| P/OCF | 37.6 | ||
| P/B | 6 | ||
| P/tB | 6.24 | ||
| EV/EBITDA | 21.03 |
EPS(TTM)1.12
EY2.88%
EPS(NY)1.58
Fwd EY4.05%
FCF(TTM)0.35
FCFY0.9%
OCF(TTM)1.03
OCFY2.66%
SpS13.93
BVpS6.48
TBVpS6.24
PEG (NY)3.18
PEG (5Y)0.43
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.51% | ||
| ROE | 17.63% | ||
| ROCE | 20.38% | ||
| ROIC | 16.15% | ||
| ROICexc | 35.01% | ||
| ROICexgc | 38.07% | ||
| OM | 9.83% | ||
| PM (TTM) | 8.21% | ||
| GM | 37.63% | ||
| FCFM | 2.52% |
ROA(3y)8.25%
ROA(5y)6.23%
ROE(3y)11.3%
ROE(5y)8.34%
ROIC(3y)10.84%
ROIC(5y)7.84%
ROICexc(3y)24.11%
ROICexc(5y)16.14%
ROICexgc(3y)25.69%
ROICexgc(5y)17.15%
ROCE(3y)13.68%
ROCE(5y)9.9%
ROICexcg growth 3Y774.04%
ROICexcg growth 5Y39.7%
ROICexc growth 3Y760.69%
ROICexc growth 5Y40.74%
OM growth 3Y549.09%
OM growth 5Y34.11%
PM growth 3Y112.33%
PM growth 5Y38.86%
GM growth 3Y6.07%
GM growth 5Y4.46%
F-Score6
Asset Turnover1.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.76 | ||
| Debt/EBITDA | 0.1 | ||
| Cap/Depr | 216.72% | ||
| Cap/Sales | 4.91% | ||
| Interest Coverage | 67.64 | ||
| Cash Conversion | 61.41% | ||
| Profit Quality | 30.72% | ||
| Current Ratio | 3.35 | ||
| Quick Ratio | 2.91 | ||
| Altman-Z | 14.95 |
F-Score6
WACC8.97%
ROIC/WACC1.8
Cap/Depr(3y)185.61%
Cap/Depr(5y)286.56%
Cap/Sales(3y)3.35%
Cap/Sales(5y)4.25%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)31.76%
EPS 3Y186.84%
EPS 5Y81.54%
EPS Q2Q%-13.95%
EPS Next Y10.93%
EPS Next 2Y15.63%
EPS Next 3Y20.55%
EPS Next 5YN/A
Revenue 1Y (TTM)23.98%
Revenue growth 3Y32.46%
Revenue growth 5Y33.93%
Sales Q2Q%9.64%
Revenue Next Year23.97%
Revenue Next 2Y21.67%
Revenue Next 3Y20.73%
Revenue Next 5YN/A
EBIT growth 1Y31.81%
EBIT growth 3Y759.76%
EBIT growth 5Y79.61%
EBIT Next Year71.25%
EBIT Next 3Y36.97%
EBIT Next 5YN/A
FCF growth 1Y287.59%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y1957.95%
OCF growth 3Y58.34%
OCF growth 5YN/A