The Vita Coco Company, Inc. Fundamental Analysis (NASDAQ: COCO)
The Vita Coco Company, Inc. Fundamental Analysis (NASDAQ: COCO)
The Vita Coco Company, Inc. (NASDAQ: COCO) shows moderate financial fundamentals with a PE ratio of 34.43, profit margin of 15.50%, and ROE of 31.09%. The company generates $0.7B in annual revenue with strong year-over-year growth of 18.17%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 83.0/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze COCO's fundamental strength across five key dimensions:
Efficiency Score
ExcellentCOCO demonstrates superior asset utilization.
Valuation Score
ModerateCOCO shows balanced valuation metrics.
Growth Score
ExcellentCOCO delivers strong and consistent growth momentum.
Financial Health Score
ExcellentCOCO maintains a strong and stable balance sheet.
Profitability Score
ExcellentCOCO achieves industry-leading margins.
Key Financial Metrics
Is COCO Expensive or Cheap?
P/E Ratio
COCO trades at 34.43 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, COCO's PEG of 0.49 indicates potential undervaluation.
Price to Book
The market values The Vita Coco Company, Inc. at 9.41 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 28.14 times EBITDA. This signals the market has high growth expectations.
How Well Does COCO Make Money?
Net Profit Margin
For every $100 in sales, The Vita Coco Company, Inc. keeps $15.50 as profit after all expenses.
Operating Margin
Core operations generate 19.10 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $31.09 in profit for every $100 of shareholder equity.
ROA
The Vita Coco Company, Inc. generates $19.10 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
The Vita Coco Company, Inc. produces operating cash flow of $142.06M, showing steady but balanced cash generation.
Free Cash Flow
The Vita Coco Company, Inc. generates strong free cash flow of $135.43M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.37 in free cash annually.
FCF Yield
COCO converts 3.60% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
34.43
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.49
vs 25 benchmark
P/B Ratio
Price to book value ratio
9.41
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.34
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.03
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.36
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.31
vs 25 benchmark
ROA
Return on assets percentage
0.19
vs 25 benchmark
ROCE
Return on capital employed
0.33
vs 25 benchmark
How COCO Stacks Against Its Sector Peers
| Metric | COCO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 34.43 | 19.57 | Worse (Expensive) |
| ROE | 31.09% | 675.00% | Weak |
| Net Margin | 15.50% | -3840.00% (disorted) | Strong |
| Debt/Equity | 0.03 | 0.77 | Strong (Low Leverage) |
| Current Ratio | 3.36 | 2.39 | Strong Liquidity |
| ROA | 19.10% | 1251.00% | Weak |
COCO outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews The Vita Coco Company, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
91.41%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
112.93%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
38.04%
Industry Style: Defensive, Dividend, Low Volatility
High Growth