NasdaqGM:VITL

Stock Analysis Report

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Market Cap

US$839.7m

Last Updated

2021/06/19 23:43 UTC

Data Sources

Company Financials +

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 48.34% per year

Earnings grew by 705.6% over the past year

Risk Analysis

No risks detected for VITL from our risk checks.


Snowflake Analysis

Flawless balance sheet with high growth potential.


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: VITL's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

-3.0%

VITL

-4.7%

US Food

-1.9%

US Market


1 Year Return

n/a

VITL

15.6%

US Food

38.2%

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-3.0%-4.7%-1.9%
30 Day2.8%-3.3%1.1%
90 Day-21.0%1.2%4.3%
1 Yearn/a18.4%15.6%40.4%38.2%
3 Yearn/a27.4%17.1%57.5%47.8%
5 Yearn/a20.7%4.1%127.2%101.7%

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?

65.12x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: VITL ($21.01) is trading above our estimate of fair value ($17.62)

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 (65.1x) compared to the US Food industry average (22.4x).

PE vs Market: VITL is poor value based on its PE Ratio (65.1x) compared to the US market (19.4x).


Price to Earnings Growth Ratio

PEG Ratio: VITL is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: VITL is overvalued based on its PB Ratio (5.7x) compared to the US Food industry average (2.3x).


Future Growth

How is Vital Farms forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

48.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VITL's forecast earnings growth (48.3% per year) is above the savings rate (2%).

Earnings vs Market: VITL's earnings (48.3% per year) are forecast to grow faster than the US market (15.7% per year).

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

Revenue vs Market: VITL's revenue (20.5% per year) is forecast to grow faster than the US market (9.4% per year).

High Growth Revenue: VITL's revenue (20.5% 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 (6.2%).


Past Performance

How has Vital Farms performed over the past 5 years?

54.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VITL has high quality earnings.

Growing Profit Margin: VITL's current net profit margins (4.6%) are higher than last year (0.8%).


Past Earnings Growth Analysis

Earnings Trend: VITL's earnings have grown significantly by 54.5% per year over the past 5 years.

Accelerating Growth: VITL's earnings growth over the past year (705.6%) exceeds its 5-year average (54.5% per year).

Earnings vs Industry: VITL earnings growth over the past year (705.6%) exceeded the Food industry 23.6%.


Return on Equity

High ROE: VITL's Return on Equity (7.1%) is considered low.


Financial Health

How is Vital Farms's financial position?


Financial Position Analysis

Short Term Liabilities: VITL's short term assets ($136.9M) exceed its short term liabilities ($23.5M).

Long Term Liabilities: VITL's short term assets ($136.9M) exceed its long term liabilities ($3.1M).


Debt to Equity History and Analysis

Debt Level: VITL is debt free.

Reducing Debt: VITL had no debt 5 years ago.

Debt Coverage: VITL has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: VITL has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


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?

0.6yrs

Average management tenure


CEO

Russell Diez-Canseco (47 yo)

2.08yrs

Tenure

US$1,185,344

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 ($USD1.19M) is below average for companies of similar size in the US market ($USD2.38M).

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


Leadership Team

Experienced Management: VITL's management team is not considered experienced ( 0.6 years average tenure), which suggests a new team.


Board Members

Experienced Board: VITL's board of directors are not considered experienced ( 1.5 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$839.668m
  • Shares outstanding: 39.97m
  • Website: https://www.vitalfarms.com

Number of Employees


Location

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

Listings


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 Analysis2021/06/19 23:43
End of Day Share Price2021/06/18 00:00
Earnings2021/03/28
Annual Earnings2020/12/27


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.