NasdaqGM:VITL

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Executive Summary

Vital Farms, Inc., an ethical food company, provides pasture-raised products in the United States. More Details

Rewards

Earnings are forecast to grow 50.29% per year

Earnings grew by 62.7% over the past year

Risk Analysis

No risks detected for VITL from our risk checks.


Snowflake Analysis

High growth potential with excellent balance sheet.


Similar Companies

Share Price & News

How has Vital Farms's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: VITL is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: Insufficient data to determine VITL's volatility change over the past year.


Market Performance


7 Day Return

-1.1%

VITL

0.8%

US Food

2.8%

US Market


1 Year Return

n/a

VITL

5.0%

US Food

20.9%

US Market

Return vs Industry: Insufficient data to determine how VITL performed against the US Food industry.

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


Shareholder returns

VITLIndustryMarket
7 Day-1.1%0.8%2.8%
30 Day-14.8%6.0%12.8%
90 Day-25.3%-1.3%6.6%
1 Yearn/a7.6%5.0%23.6%20.9%
3 Yearn/a5.7%-3.0%47.3%37.6%
5 Yearn/a20.2%4.0%94.3%72.9%

Long-Term Price Volatility Vs. Market

How volatile is Vital Farms's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Vital Farms undervalued compared to its fair value and its price relative to the market?

154.55x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: VITL ($29.43) is trading above our estimate of fair value ($17.89)

Significantly Below Fair Value: VITL is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: VITL is poor value based on its PE Ratio (154.5x) compared to the US Food industry average (25.4x).

PE vs Market: VITL is poor value based on its PE Ratio (154.5x) compared to the US market (19.7x).


Price to Earnings Growth Ratio

PEG Ratio: VITL is poor value based on its PEG Ratio (3.1x)


Price to Book Ratio

PB vs Industry: VITL is overvalued based on its PB Ratio (8.2x) compared to the US Food industry average (2.2x).


Next Steps

Future Growth

How is Vital Farms forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

50.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VITL's forecast earnings growth (50.3% per year) is above the savings rate (2.2%).

Earnings vs Market: VITL's earnings (50.3% per year) are forecast to grow faster than the US market (22% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: VITL's revenue (23% per year) is forecast to grow faster than the US market (10.3% per year).

High Growth Revenue: VITL's revenue (23% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: VITL's Return on Equity is forecast to be low in 3 years time (1%).


Next Steps

  • Explore growth companies in the Food, Beverage & Tobacco industry.

Past Performance

How has Vital Farms performed over the past 5 years?

62.7%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: VITL has high quality earnings.

Growing Profit Margin: VITL's current net profit margins (2.6%) are higher than last year (2.5%).


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if VITL's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Insufficient data to compare VITL's past year earnings growth to its 5-year average.

Earnings vs Industry: VITL earnings growth over the past year (62.7%) exceeded the Food industry -6.3%.


Return on Equity

High ROE: VITL's Return on Equity (3.7%) is considered low.


Next Steps

Financial Health

How is Vital Farms's financial position?


Financial Position Analysis

Short Term Liabilities: VITL's short term assets ($145.9M) exceed its short term liabilities ($26.1M).

Long Term Liabilities: VITL's short term assets ($145.9M) exceed its long term liabilities ($9.5M).


Debt to Equity History and Analysis

Debt Level: VITL's debt to equity ratio (5.3%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if VITL's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: VITL's debt is well covered by operating cash flow (126.4%).

Interest Coverage: VITL's interest payments on its debt are well covered by EBIT (34.8x coverage).


Balance Sheet


Next Steps

Dividend

What is Vital Farms's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate VITL's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate VITL's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if VITL's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if VITL's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of VITL's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.2yrs

Average management tenure


CEO

Russell Diez-Canseco (48 yo)

1.5yrs

Tenure

US$2,820,651

Compensation

Mr. Russell Diez-Canseco has been President and Chief Executive Officer of Vital Farms, Inc. since May 1, 2019 and as a Member of Board of Directors since December 2019 and served as Chief Operating Office...


CEO Compensation Analysis

Compensation vs Market: Russell's total compensation ($USD2.82M) is about average for companies of similar size in the US market ($USD2.56M).

Compensation vs Earnings: Insufficient data to compare Russell's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Matthew O'Hayer
Founder & Executive Chairman1.5yrsUS$261.10k27.01%
$ 313.4m
Russell Diez-Canseco
President1.5yrsUS$2.82mno data
Scott Marcus
Chief Marketing Officer1.5yrsUS$1.03m0%
$ 0
Daniel Jones
Vice President of Financeno dataUS$1.49m0%
$ 0
Jason Dale
COO & CFO0.83yrno data0.00062%
$ 7.2k
Peter Pappas
Chief Sales Officer0.083yrno datano data
Randy Jennings
Controllerno datano datano data

1.2yrs

Average Tenure

49yo

Average Age

Experienced Management: VITL's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Matthew O'Hayer
Founder & Executive Chairman1.5yrsUS$261.10k27.01%
$ 313.4m
Russell Diez-Canseco
President1.5yrsUS$2.82mno data
Denny Post
Lead Independent Directorno dataUS$145.37k0%
$ 0
Glenda Flanagan
Director0.33yrno datano data
Kelly Kennedy
Independent Director0.92yrUS$145.37k0%
$ 0
Karl Khoury
Independent Director5.83yrsno data0.010%
$ 117.7k
Gisel Ruiz
Independent Director0.50yrno data0.023%
$ 264.8k
Brent Drever
Independent Director1.67yrsno data3.89%
$ 45.1m

0.9yrs

Average Tenure

51.5yo

Average Age

Experienced Board: VITL's board of directors are not considered experienced ( 0.9 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: VITL only recently listed within the past 12 months.


Top Shareholders

Company Information

Vital Farms, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Vital Farms, Inc.
  • Ticker: VITL
  • Exchange: NasdaqGM
  • Founded: 2007
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: US$1.160b
  • Shares outstanding: 39.43m
  • Website: https://www.vitalfarms.com

Number of Employees


Location

  • Vital Farms, Inc.
  • 3601 South Congress Avenue
  • Suite C100
  • Austin
  • Texas
  • 78704
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
5KHDB (Deutsche Boerse AG)YesCommon StockDEEURJul 2020
VITLNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDJul 2020

Biography

Vital Farms, Inc., an ethical food company, provides pasture-raised products in the United States. It offers shell eggs, butter, hard-boiled eggs, ghee, liquid whole eggs, and egg bite products. The compan...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/29 23:46
End of Day Share Price2020/11/27 00:00
Earnings2020/09/27
Annual Earnings2019/12/29


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.