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Vita Coco Company (COCO)
NASDAQ:COCO
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Vita Coco Company
(NASDAQ:COCO)
70Outperform
Positive Factors
Financial Guidance
Management raised its FY24 net sales guidance, implying strong growth in Q4, which is expected to be achievable given improving container availability and likely restocking at distributors and retail.
Market Demand
Brand demand remains solid as evidenced by recent Vita Coco consumption growth of 20%, reflecting underlying category growth and improved product supply and in-stocks.
Sales Growth
Vita Coco Coconut Water sales showed robust growth of +30%.
Negative Factors
Cost Challenges
Ocean freight rates were up +138% year-over-year and there is low visibility for medium-term rates, which doesn't bode well for 2025 gross margins.
Freight Costs
Margins remain pressured over the near term as high-cost inventory flows through the system.
Retail Impact
Shelf resets at Walmart resulted in significant reduction in SKUs and shelf space, translating into mid-teen percentage year-over-year declines in weekly store sales at Walmart.
Vita Coco Company (COCO) vs. S&P 500 (SPY)
Market Cap
$1.76B
Dividend YieldN/A
Average Volume (3M)812.22K
Price to Earnings (P/E)32.6
Beta (1Y)1.00
Revenue Growth4.54%
EPS Growth19.37%
CountryUS
Employees319
SectorConsumer Defensive
Sector Strength90
IndustryBeverages - Non-Alcoholic
Share Statistics
EPS (TTM)0.94
Shares Outstanding56,986,195
10 Day Avg. Volume581,877
30 Day Avg. Volume812,219
Financial Highlights & Ratios
PEG Ratio1.68
Price to Book (P/B)N/A
Price to Sales (P/S)3.92
Price to Cash Flow (P/CF)73.10
P/FCF Ratio73.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$38.00Price Target Upside23.30% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
Vita Coco Company Business Overview & Revenue Model
Company DescriptionThe Vita Coco Company, Inc. develops, markets, and distributes coconut water products under the Vita Coco brand name in the United States, Canada, Europe, the Middle East, and the Asia Pacific. The company offers coconut oil and coconut milk; Hydration Drink Mix, a powdered form of flavored coconut water; sparkling water; Runa, a plant-based energy drink; purified water under the Ever & Ever brand name; and PWR LIFT, a protein-infused fitness drink. It distributes its products through club, food, drug, mass, convenience, e-commerce, and foodservice channels. In addition, the company supplies coconut water and coconut oil categories to retailers. The company was formerly known as All Market Inc. and changed its name to The Vita Coco Company, Inc. in September 2021.The Vita Coco Company, Inc. was founded in 2004 and is headquartered in New York, New York.
How the Company Makes MoneyVita Coco Company generates revenue primarily through the sale of its coconut water and related beverage products. The company distributes its products through a variety of channels, including retail stores, e-commerce platforms, and foodservice channels. Key revenue streams include wholesale sales to retailers and distributors, direct-to-consumer sales via their online store, and strategic partnerships with major retail chains that help expand product reach. The company's earnings are bolstered by strong brand recognition, effective marketing strategies, and a growing consumer preference for healthier beverage alternatives. Additionally, Vita Coco continually explores new markets and product innovations to drive further revenue growth.
Vita Coco Company Financial Statement Overview
Summary
Vita Coco Company exhibits strong financial health, characterized by consistent revenue and profit growth, a solid balance sheet with low leverage, and improving cash flow performance. The company's stability and efficient operations position it well within the non-alcoholic beverage industry. While past cash flow fluctuations posed challenges, recent improvements highlight a positive outlook.Income Statement
The company has demonstrated strong revenue growth over the years, with a notable increase from $283.9M in 2019 to $516M in 2024. The gross profit margin in 2024 was approximately 38.53%, showing consistent profitability. The net profit margin also improved, reaching 10.84% in 2024. EBIT and EBITDA margins were stable and healthy at 14.31%. This indicates efficient operations and cost management. The consistent upward trajectory in revenue and profits reflects a strong performance in the non-alcoholic beverage sector.85
Very Positive
Balance Sheet
The company maintains a solid balance sheet with a low debt-to-equity ratio of 0.05 in 2024, demonstrating financial prudence and low leverage risk. The equity ratio stands at 71.42%, indicating a strong equity base compared to total assets. Return on equity in 2024 was 21.62%, showcasing effective use of shareholders' equity to generate profits. The company has a robust cash position, enhancing financial stability and flexibility.80
Positive
Cash Flow
The free cash flow grew significantly from negative figures in 2022 to positive $42.9M in 2024, indicating improved cash generation capability. The operating cash flow to net income ratio was robust at 0.76 in 2024, suggesting healthy cash conversion from earnings. The free cash flow to net income ratio also signifies effective cash management. Despite past fluctuations, the current trajectory shows strong cash flow performance, supporting potential growth opportunities.75
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 516.01M | 493.61M | 427.79M | 379.51M | 310.64M | Gross Profit |
| 198.78M | 180.73M | 103.36M | 113.15M | 104.86M | EBIT |
| 73.82M | 56.49M | 3.06M | 24.59M | 30.86M | EBITDA |
| 71.53M | 58.61M | 14.06M | 26.66M | 46.52M | Net Income Common Stockholders |
| 55.95M | 46.63M | 7.81M | 19.02M | 32.66M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 164.67M | 132.54M | 19.63M | 28.69M | 72.18M | Total Assets |
| 362.38M | 285.68M | 197.76M | 197.48M | 183.86M | Total Debt |
| 435.00K | 1.22M | 48.00K | 76.00K | 25.06M | Net Debt |
| -164.23M | -131.32M | -19.58M | -28.61M | -47.13M | Total Liabilities |
| 103.56M | 83.25M | 56.66M | 74.31M | 81.56M | Stockholders Equity |
| 258.82M | 202.44M | 141.09M | 123.17M | 102.22M |
| Cash Flow | Free Cash Flow | |||
| 42.90M | 106.56M | -11.92M | -16.72M | 32.93M | Operating Cash Flow |
| 42.90M | 107.16M | -10.94M | -16.17M | 33.32M | Investing Cash Flow |
| -974.00K | -594.00K | -982.00K | -557.00K | -375.00K | Financing Cash Flow |
| -8.30M | 6.29M | 3.03M | -26.80M | 2.05M |
Vita Coco Company Technical Analysis
Negative
30.82
Price Trends
33.24
Negative
34.82
Negative
31.74
Negative
Market Momentum
-0.54
Negative
46.37
Neutral
47.26
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For COCO, the sentiment is Negative. The current price of 30.82 is above the 20-day moving average (MA) of 30.27, below the 50-day MA of 33.24, and below the 200-day MA of 31.74, indicating a neutral trend. The MACD of -0.54 indicates Negative momentum. The RSI at 46.37 is Neutral, neither overbought nor oversold. The STOCH value of 47.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for COCO.
Vita Coco Company Risk Analysis
Vita Coco Company disclosed 42 risk factors in its most recent earnings report. Vita Coco Company reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Vita Coco Company Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $3.50B | 12.31 | 24.99% | 4.39% | 10.23% | 19.07% | |
74 Outperform | $4.07B | 21.94 | 40.81% | ― | 0.34% | 9.48% | |
70 Outperform | $1.76B | 32.59 | 24.26% | ― | 4.54% | 19.37% | |
64 Neutral | $9.18B | 14.52 | 4.32% | 185.59% | 3.96% | 5.53% | |
58 Neutral | $166.13M | ― | -25.77% | ― | -6.83% | 19.09% | |
46 Neutral | $278.33M | ― | -91.64% | ― | 4.71% | 52.27% | |
41 Neutral | $43.64M | ― | -183.38% | ― | 31.88% | 9.47% |
* Consumer Defensive Sector Average
Performance Comparison
COCO
Vita Coco Company
30.82
5.73
22.84%
AKO.A
Embotelladora Andina SA
18.60
6.09
48.68%
FIZZ
National Beverage
43.52
2.72
6.67%
BRFH
Barfresh Food Group
2.76
1.19
75.80%
OTLY
Oatly Group
9.30
-10.70
-53.50%
ZVIA
Zevia PBC
2.26
1.29
132.99%
Vita Coco Company Earnings Call Summary
Earnings Call Date: Feb 26, 2025 | % Change Since: -19.23% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Positive
The earnings call highlighted the company's strong financial performance and growth in the coconut water category, as well as successful product launches and improved inventory management. However, challenges remain with high freight costs, private label declines, and distribution issues at Walmart.Highlights
Record Annual Financial Performance
The Vita Coco Company reported record annual net sales, net income, and adjusted EBITDA for 2024, with net sales increasing by 5% year over year to $516 million and adjusted EBITDA reaching $84 million.
Strong Growth in Vita Coco Coconut Water
Vita Coco Coconut Water saw a net sales growth of 10% for the year, with the US brand growing 9% in retail dollars and 21% in the UK. The introduction of the one-liter pack into a key convenience store chain was notably successful.
Expansion of International Markets
International segment net sales grew by 16%, with Vita Coco Coconut Water increasing by 20%. The category grew over 40% in Germany, making Vita Coco the leading brand in coconut water in that market.
Successful Product Launches and Innovations
Vita Coco Juice saw a 42% increase in US scans, and Vita Coco Treats began its national roll-out with strong retailer commitments. The company also plans to emphasize active hydration, positioning Vita Coco as an alternative to traditional sports drinks.
Improved Inventory Management
The company overcame previous supply chain challenges, with inventory levels significantly improved, allowing for better distributor and retail inventories. This positions the company for strong growth in 2025.
Lowlights
Supply Chain and Freight Cost Challenges
Ocean freight costs remain elevated, impacting gross margins in the first half of 2025. The company faces ongoing high container costs and potential disruption from tariffs.
Private Label Business Declines
Private label net sales decreased by 10% due to the transition of private label coconut oil, and the company expects to lose some regions with private label retailers in 2025.
Distribution Challenges at Walmart
Vita Coco's movement to the conventional shelf-stable juice set at Walmart resulted in significant SKU reductions and mid-teen declines in weekly store sales, impacting overall US scan performance.
Company Guidance
During The Vita Coco Company's fourth quarter 2024 earnings call, the management provided optimistic guidance for 2025, expecting net sales to range between $555 million and $570 million. The company anticipates gross margins for the full year to be between 35% and 37%, with adjusted EBITDA projected to be between $86 million and $92 million. In 2024, Vita Coco Coconut Water saw a 10% increase in net sales, contributing to a total net sales increase of 5% year over year, reaching $516 million. Despite challenges such as ocean freight costs and supply chain constraints, the company is positioning itself for growth by securing additional production capacity and emphasizing marketing efforts on active hydration. The coconut water category is expected to continue its strong momentum, with mid-teens growth anticipated for the brand in 2025.Vita Coco Company Corporate Events
Business Operations and StrategyFinancial Disclosures
Vita Coco Refutes Short Seller Claims, Reaffirms Outlook
Neutral
Mar 26, 2025
On March 26, 2025, The Vita Coco Company issued a press release addressing a short seller report by NINGI Research, which held a short position in the company’s stock. The company refuted the report’s claims, citing inaccuracies and reaffirmed its fiscal year 2025 outlook and long-term growth strategy. Despite past inventory constraints affecting private label service levels, the company remains confident in its governance and financial practices, with no material changes since its last earnings call.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.