Village Farms International, Inc. Fundamental Analysis (NASDAQ: VFF)
Village Farms International, Inc. Fundamental Analysis (NASDAQ: VFF)
Village Farms International, Inc. (NASDAQ: VFF) shows weak financial fundamentals with a PE ratio of 12.80, profit margin of 9.85%, and ROE of 7.56%. The company generates $0.2B in annual revenue with weak year-over-year growth of -35.77%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 7.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze VFF's fundamental strength across five key dimensions:
Efficiency Score
WeakVFF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentVFF trades at attractive valuation levels.
Growth Score
WeakVFF faces weak or negative growth trends.
Financial Health Score
ExcellentVFF maintains a strong and stable balance sheet.
Profitability Score
WeakVFF struggles to sustain strong margins.
Key Financial Metrics
Is VFF Expensive or Cheap?
P/E Ratio
VFF trades at 12.80 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, VFF's PEG of 0.10 indicates potential undervaluation.
Price to Book
The market values Village Farms International, Inc. at 0.94 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.75 times EBITDA. This is generally considered low.
How Well Does VFF Make Money?
Net Profit Margin
For every $100 in sales, Village Farms International, Inc. keeps $9.85 as profit after all expenses.
Operating Margin
Core operations generate 16.09 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.56 in profit for every $100 of shareholder equity.
ROA
Village Farms International, Inc. generates $5.30 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Village Farms International, Inc. produces operating cash flow of $27.48M, showing steady but balanced cash generation.
Free Cash Flow
Village Farms International, Inc. generates weak or negative free cash flow of $-2.23M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.02 in free cash annually.
FCF Yield
VFF converts -0.69% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
12.80
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.10
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.94
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.33
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.15
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.17
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How VFF Stacks Against Its Sector Peers
| Metric | VFF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 12.80 | 20.64 | Better (Cheaper) |
| ROE | 7.56% | 720.00% | Weak |
| Net Margin | 9.85% | -2883.00% (disorted) | Weak |
| Debt/Equity | 0.15 | 0.76 | Strong (Low Leverage) |
| Current Ratio | 3.17 | 2.28 | Strong Liquidity |
| ROA | 5.30% | 4053.00% | Weak |
VFF outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Village Farms International, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-34.27%
Industry Style: Defensive, Dividend, Low Volatility
DecliningEPS CAGR
44.70%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
353.41%
Industry Style: Defensive, Dividend, Low Volatility
High Growth