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VITL

Vital Farms NasdaqGM:VITL Stock Report

Last Price

US$13.54

Market Cap

US$550.8m

7D

14.7%

1Y

-20.5%

Updated

06 Aug, 2022

Data

Company Financials +
VITL fundamental analysis
Snowflake Score
Valuation3/6
Future Growth4/6
Past Performance0/6
Financial Health6/6
Dividends0/6

VITL Stock Overview

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

Rewards

Trading at 87.7% below our estimate of its fair value

Earnings are forecast to grow 105.38% per year

Risk Analysis

No risks detected for VITL from our risk checks.

Vital Farms Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Vital Farms
Historical stock prices
Current Share PriceUS$13.54
52 Week HighUS$20.17
52 Week LowUS$7.89
Beta0.78
1 Month Change42.98%
3 Month Change7.89%
1 Year Change-20.54%
3 Year Changen/a
5 Year Changen/a
Change since IPO-61.60%

Recent News & Updates

Aug 03

Vital Farms Q2 2022 Earnings Preview

Vital Farms (NASDAQ:VITL) is scheduled to announce Q2 earnings results on Thursday, August 4th, before market open. The consensus EPS Estimate is -$0.03 (vs. $0.09 last year) and the consensus Revenue Estimate is $79.61M (+32.0% Y/Y). Over the last 3 months, EPS estimates have seen 3 upward revisions and 2 downward. Revenue estimates have seen 1 upward revision and 0 downward.

May 30

Vital Farms: Taking Market Share In The Egg Distribution Space

Today, we take our first in-depth look at Vital Farms Inc. This ethical food company is rapidly taking market share in egg distribution thanks to its business model and changing customer preferences. A full investment analysis follows in the paragraphs below.

Shareholder Returns

VITLUS FoodUS Market
7D14.7%0.7%1.0%
1Y-20.5%6.9%-12.9%

Return vs Industry: VITL underperformed the US Food industry which returned 6.9% over the past year.

Return vs Market: VITL underperformed the US Market which returned -12.8% over the past year.

Price Volatility

Is VITL's price volatile compared to industry and market?
VITL volatility
VITL Average Weekly Movement10.6%
Food Industry Average Movement6.1%
Market Average Movement7.9%
10% most volatile stocks in US Market17.1%
10% least volatile stocks in US Market3.2%

Stable Share Price: VITL is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: VITL's weekly volatility (11%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2007288Russell Diez-Cansecohttps://www.vitalfarms.com

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. Vital Farms, Inc. was founded in 2007 and is headquartered in Austin, Texas.

Vital Farms Fundamentals Summary

How do Vital Farms's earnings and revenue compare to its market cap?
VITL fundamental statistics
Market CapUS$550.81m
Earnings (TTM)-US$6.31m
Revenue (TTM)US$301.96m

1.8x

P/S Ratio

-87.3x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
VITL income statement (TTM)
RevenueUS$301.96m
Cost of RevenueUS$214.68m
Gross ProfitUS$87.28m
Other ExpensesUS$93.59m
Earnings-US$6.31m

Last Reported Earnings

Jun 26, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-0.16
Gross Margin28.90%
Net Profit Margin-2.09%
Debt/Equity Ratio0%

How did VITL perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is VITL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for VITL?

Other financial metrics that can be useful for relative valuation.

VITL key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.5x
Enterprise Value/EBITDA-156.2x
PEG Ration/a

Price to Sales Ratio vs Peers

How does VITL's PS Ratio compare to its peers?

VITL PS Ratio vs Peers
The above table shows the PS ratio for VITL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average1.1x
SENE.A Seneca Foods
0.4xn/aUS$501.9m
TTCF Tattooed Chef
2.7x19.8%US$630.0m
CVGW Calavo Growers
0.6x3.1%US$732.9m
DOLE Dole
0.1x4.2%US$859.6m
VITL Vital Farms
1.8x18.3%US$550.8m

Price-To-Sales vs Peers: VITL is expensive based on its Price-To-Sales Ratio (1.8x) compared to the peer average (1.1x).


Price to Earnings Ratio vs Industry

How does VITL's PE Ratio compare vs other companies in the US Food Industry?

Price-To-Sales vs Industry: VITL is expensive based on its Price-To-Sales Ratio (1.8x) compared to the US Food industry average (1.2x)


Price to Sales Ratio vs Fair Ratio

What is VITL's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

VITL PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.8x
Fair PS Ratio2.1x

Price-To-Sales vs Fair Ratio: VITL is good value based on its Price-To-Sales Ratio (1.8x) compared to the estimated Fair Price-To-Sales Ratio (2.1x).


Share Price vs Fair Value

What is the Fair Price of VITL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: VITL ($13.54) is trading below our estimate of fair value ($110.08)

Significantly Below Fair Value: VITL is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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Future Growth

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

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


105.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VITL is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).

Earnings vs Market: VITL is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: VITL is expected to become profitable in the next 3 years.

Revenue vs Market: VITL's revenue (18.3% per year) is forecast to grow faster than the US market (7.9% per year).

High Growth Revenue: VITL's revenue (18.3% per year) is forecast to grow slower 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 (7.1%).


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Past Performance

How has Vital Farms performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-4.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: VITL is currently unprofitable.

Growing Profit Margin: VITL is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: VITL is unprofitable, and losses have increased over the past 5 years at a rate of 4.7% per year.

Accelerating Growth: Unable to compare VITL's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: VITL is unprofitable, making it difficult to compare its past year earnings growth to the Food industry (5.4%).


Return on Equity

High ROE: VITL has a negative Return on Equity (-4.15%), as it is currently unprofitable.


Discover strong past performing companies

Financial Health

How is Vital Farms's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: VITL's short term assets ($143.3M) exceed its short term liabilities ($46.0M).

Long Term Liabilities: VITL's short term assets ($143.3M) exceed its long term liabilities ($1.6M).


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


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

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.


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as VITL has not reported any payouts.


Discover strong dividend paying companies

Management

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

1.5yrs

Average management tenure


CEO

Russell Diez-Canseco (49 yo)

3.25yrs

Tenure

US$1,553,728

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 ($USD1.55M) is below average for companies of similar size in the US market ($USD2.70M).

Compensation vs Earnings: Russell's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: VITL's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

Experienced Board: VITL's board of directors are not considered experienced ( 2.7 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: VITL insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Vital Farms, Inc.'s 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
  • Implied Market Cap: US$550.808m
  • Shares outstanding: 40.68m
  • Website: https://www.vitalfarms.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/06 00:00
End of Day Share Price2022/08/05 00:00
Earnings2022/06/26
Annual Earnings2021/12/26


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.