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COCO

Vita Coco Company NasdaqGS:COCO Stock Report

Last Price

US$15.36

Market Cap

US$854.8m

7D

22.0%

1Y

n/a

Updated

15 Aug, 2022

Data

Company Financials +
COCO fundamental analysis
Snowflake Score
Valuation2/6
Future Growth4/6
Past Performance0/6
Financial Health4/6
Dividends0/6

COCO Stock Overview

The Vita Coco Company, Inc. develops, markets, and distributes coconut water products under the Vita Coco brand name in the United States, Canada, Europe, the Middle East, and the Asia Pacific.

The Vita Coco Company, Inc. Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Vita Coco Company
Historical stock prices
Current Share PriceUS$15.36
52 Week HighUS$18.61
52 Week LowUS$7.51
Beta0
1 Month Change31.17%
3 Month Change44.77%
1 Year Changen/a
3 Year Changen/a
5 Year Changen/a
Change since IPO13.61%

Recent News & Updates

Aug 09

Vita Coco Stock Now Looks Overpriced

The Vita Coco Company has done really well recently, thanks to improved sales and sentiment surrounding the company's situation. Vita Coco is still struggling from a profitability perspective and guidance for the year is far from excellent. In all, COCO stock looks overpriced at this time and investors should be cautious about it. The fun thing about the market is that it can be incredibly volatile. This is true both broadly speaking and when it comes to individual companies. Although this can be stressful when the volatility works against you, it can be exciting and rewarding when it works in your favor. One company that has recently experienced a tremendous amount of upside, despite some continued pressures regarding profitability, is The Vita Coco Company (COCO). Although the company, which focuses on products like coconut water, was not terribly priced before, shares certainly didn't deserve to soar higher as they have. Now, the stock does look truly overpriced in the current environment. And because of this, I've decided to downgrade the company from a 'hold' to a 'buy', reflecting my sentiment that it is likely to underperform the market moving forward. Vito Coco stock has skyrocketed Back in March of this year, I wrote an article about Vita Coco wherein I acknowledged that it was an excellent company but one that was trading at a lofty price. The company had been doing extraordinarily well growing its top line in recent years, even though margins had been impacted by issues outside of the company's control. This led me to conclude that shares were probably more or less fairly valued, essentially balancing out the quality of the operation from its fundamental weaknesses. As a result, I rated the business, at that time, as a 'hold'. So far, the performance of the company has blown away my expectations. While the S&P 500 is down by 1.5% since I wrote about the company, its shares have generated a return for investors of 51%. This is an astronomical move higher in such a short timeframe. Normally, it would be reserved for a buyout or merger or something of that nature. Instead, it seems to have been driven by a couple of factors. Analysts, for instance, are becoming more bullish about the company's prospects. Most recently, Bank of America (BAC) citing decreased transportation costs coming around the corner, said that shares of the company were well positioned to outperform even in the event of a recession thanks to the company's decision earlier this year to still appeal to price-conscious consumers during these difficult and high-priced times. The company achieved this by increasing costs only marginally so far. The analyst of the firm ultimately increased their target on the company from $10 per share to $12. Another interesting development for the company came in early July when it and Diageo (DEO) announced a collaboration to launch a line of premium canned cocktails crafted with a blend of Captain Morgan rum and Vita Coco coconut water. This further increases the company's exposure to the ready-to-drink category all across the U.S. market. Author - SEC EDGAR Data Meanwhile, fundamentals for the company have been somewhat mixed. Revenue has done nicely, with sales in the first quarter of the year totaling $96.4 million. This represents an increase of 27.7% over the $75.5 million the company reported the same quarter one year earlier. Growth for the company was particularly strong in the Vita Coco Coconut Water category of its Americas segment, with sales skyrocketing 39.5% year over year. This was driven by a 35.1% rise in shipment volume, but the company it did take some pricing actions to help offset costs. For the business as a whole, total volume grew by 27.1%. This echoes Bank of America's assessment that more consumers have gravitated toward Vita Coco's offerings as pricing actions have been minimal and as consumers still want coconut water and other related products. Profitability, meanwhile, has been somewhat mixed. In the first quarter of the year, net income came in at $2.2 million. That was higher than the $1.6 million reported one year earlier. At the same time, operating cash flow fell from negative $15.8 million to negative $22.5 million. Even if we adjust for changes in working capital, it would have fallen from $4 million to negative $3.3 million. And over that same window of time, EBITDA went from a positive $5.8 million to a negative $2.9 million. Higher transportation costs and input costs associated with its products made an impact here. When it comes to the 2022 fiscal year as a whole, management does expect sales to come in between $440 million and $455 million. That would represent a year-over-year increase of between 16% and 20%. At the same time, however, EBITDA should come in at between $27 million and $32 million. This compares unfavorably to the $36.9 million generated in 2021. No guidance was given when it came to other profitability metrics. But if we assume that they will change at the same rate that EBITDA should, then we should anticipate net income of around $15.2 million and adjusted operating cash flow of roughly $16.8 million. Author - SEC EDGAR Data Taking this data, we can see that shares of the company are very pricey at this moment. The forward price to earnings multiple comes in at 48.2. This compares to the 38.6 reading that we get using 2021 results. The price to adjusted operating cash flow multiple should rise from 34.9 using 2021 results to 43.6 using our forward estimates. Meanwhile, the EV to EBITDA multiple should increase from 19.7 to 24.6. From a valuation perspective, the company is aided by the fact that it has cash in excess of debt in the amount of $5.9 million. That does reduce the risk of adverse credit events. But I wouldn't say that it warrants the kind of multiples that the company is trading for.

Aug 04
Are Investors Undervaluing The Vita Coco Company, Inc. (NASDAQ:COCO) By 47%?

Are Investors Undervaluing The Vita Coco Company, Inc. (NASDAQ:COCO) By 47%?

How far off is The Vita Coco Company, Inc. ( NASDAQ:COCO ) from its intrinsic value? Using the most recent financial...

Shareholder Returns

COCOUS BeverageUS Market
7D22.0%3.0%3.6%
1Yn/a10.9%-9.6%

Return vs Industry: Insufficient data to determine how COCO performed against the US Beverage industry.

Return vs Market: Insufficient data to determine how COCO performed against the US Market.

Price Volatility

Is COCO's price volatile compared to industry and market?
COCO volatility
COCO Average Weekly Movement9.1%
Beverage Industry Average Movement7.2%
Market Average Movement7.7%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market3.2%

Stable Share Price: COCO is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: COCO's weekly volatility (9%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2004281Mike Kirbanhttps://thevitacococompany.com

The Vita Coco Company, Inc. develops, markets, and distributes coconut water products under the Vita Coco brand name in the United States, Canada, Europe, the Middle East, and the Asia Pacific. The company offers coconut oil and coconut milk; Hydration Drink Mix, a powdered form of flavored coconut water; sparkling water; Runa, a plant-based energy drink; purified water under the Ever & Ever brand name; and PWR LIFT, a protein-infused fitness drink. It distributes its products through club, food, drug, mass, convenience, e-commerce, and foodservice channels.

The Vita Coco Company, Inc. Fundamentals Summary

How do Vita Coco Company's earnings and revenue compare to its market cap?
COCO fundamental statistics
Market CapUS$854.85m
Earnings (TTM)US$12.94m
Revenue (TTM)US$414.01m

66.1x

P/E Ratio

2.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
COCO income statement (TTM)
RevenueUS$414.01m
Cost of RevenueUS$305.57m
Gross ProfitUS$108.44m
Other ExpensesUS$95.50m
EarningsUS$12.94m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.23
Gross Margin26.19%
Net Profit Margin3.13%
Debt/Equity Ratio16.9%

How did COCO perform over the long term?

See historical performance and comparison