Vital Farms, Inc.
Vital Farms, Inc. Fundamental Analysis
Vital Farms, Inc. (VITL) shows moderate financial fundamentals with a PE ratio of 7.87, profit margin of 6.10%, and ROE of 14.47%. The company generates $0.8B in annual revenue with strong year-over-year growth of 25.26%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 63.2/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze VITL's fundamental strength across five key dimensions:
Efficiency Score
WeakVITL struggles to generate sufficient returns from assets.
Valuation Score
ExcellentVITL trades at attractive valuation levels.
Growth Score
ExcellentVITL delivers strong and consistent growth momentum.
Financial Health Score
ExcellentVITL maintains a strong and stable balance sheet.
Profitability Score
WeakVITL struggles to sustain strong margins.
Key Financial Metrics
Is VITL Expensive or Cheap?
P/E Ratio
VITL trades at 7.87 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, VITL's PEG of -1.02 indicates potential undervaluation.
Price to Book
The market values Vital Farms, Inc. at 1.14 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.84 times EBITDA. This is generally considered low.
How Well Does VITL Make Money?
Net Profit Margin
For every $100 in sales, Vital Farms, Inc. keeps $6.10 as profit after all expenses.
Operating Margin
Core operations generate 8.19 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $14.47 in profit for every $100 of shareholder equity.
ROA
Vital Farms, Inc. generates $9.71 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Vital Farms, Inc. generates limited operating cash flow of $9.50M, signaling weaker underlying cash strength.
Free Cash Flow
Vital Farms, Inc. generates weak or negative free cash flow of $-86.19M, restricting financial flexibility.
FCF Per Share
Each share generates $-2.01 in free cash annually.
FCF Yield
VITL converts -25.24% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
7.87
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.02
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.14
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.46
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.16
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.77
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.14
vs 25 benchmark
ROA
Return on assets percentage
0.10
vs 25 benchmark
ROCE
Return on capital employed
0.17
vs 25 benchmark
How VITL Stacks Against Its Sector Peers
| Metric | VITL Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 7.87 | 21.18 | Better (Cheaper) |
| ROE | 14.47% | 1130.00% | Weak |
| Net Margin | 6.10% | -2195.00% (disorted) | Weak |
| Debt/Equity | 0.16 | 0.82 | Strong (Low Leverage) |
| Current Ratio | 1.77 | 2.53 | Neutral |
| ROA | 9.71% | -611087.00% (disorted) | Weak |
VITL outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Vital Farms, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
127.87%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
384.27%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
85.24%
Industry Style: Defensive, Dividend, Low Volatility
High Growth