Last Updated: 15 Sep 2024
Executive Summary
Vital Farms Inc. (VITL) is an ethical food company that offers free-range products in the United States. The company has a strong financial performance, with revenue growth and profitability improving in recent quarters. Analysts are bullish on the stock, with a consensus target price of $41.83 and a majority rating of "Buy." The latest stock price of $31.35 represents a potential upside of 33%.
Company Overview
Vital Farms was founded in 2007 and is headquartered in Austin, Texas. The company's mission is to provide consumers with ethically sourced, high-quality food products. Vital Farms' products include eggs, butter, ghee, and pasture-raised meat. The company's products are sold in over 20,000 retail locations nationwide.
Fundamental Analysis
Vital Farms has a strong financial performance. The company's revenue has grown by an average of 20% over the past three years. In the most recent quarter, Vital Farms reported revenue of $541.5 million, an increase of 0.385% year-over-year. The company's gross profit margin is 20.4%, and its operating margin is 11.6%. Vital Farms is also profitable, with a net income margin of 8.7%.
The company's financial strength is reflected in its balance sheet. Vital Farms has $110.4 million in cash and equivalents and $157.9 million in total debt. The company's debt-to-equity ratio is 0.36, which is considered to be a manageable level of debt.
Technical Analysis
Vital Farms' stock price has been trending higher in recent months. The stock is currently trading above its 50-day and 200-day moving averages, which is a bullish sign. The stock's relative strength index (RSI) is also in bullish territory, indicating that the stock is not overbought.
Short Term Outlook
In the short term, Vital Farms' stock is expected to continue to trend higher. The company's strong financial performance and positive analyst sentiment are likely to drive the stock price higher. The stock's technical indicators also suggest that the stock is in a bullish trend.
Long Term Outlook
In the long term, Vital Farms is expected to continue to grow its business. The company's ethical sourcing practices and high-quality products are likely to continue to appeal to consumers. The company's expansion into new product categories is also likely to drive growth in the future.
Analyst Recommendations
Analysts are bullish on Vital Farms' stock. The consensus target price is $41.83, which represents a potential upside of 33% from the current stock price. Two analysts have a "Strong Buy" rating on the stock, three analysts have a "Buy" rating, and three analysts have a "Hold" rating. No analysts have a "Sell" or "Strong Sell" rating on the stock.
