Vita Coco Company (COCO) AI Stock Analysis

• Market Cap: $1.89B
• Dividend Yield: N/A
• Average Volume (3M): 730.21K
• Price to Earnings (P/E): 32.6
• Beta (1Y): 1.03
• Revenue Growth: 8.01%
• EPS Growth: 11.26%
• Country: US
• Employees: 319
• Sector: Consumer Defensive
• Sector Strength: 63
• Industry: Beverages - Non-Alcoholic
• EPS (TTM): 0.31
• Shares Outstanding: 56,733,570
• 10 Day Avg. Volume: 431,911
• 30 Day Avg. Volume: 730,213
• PEG Ratio: -1.68
• Price to Book (P/B): 5.46
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -64.63
• Enterprise Value/Market Cap: 0.39
• Enterprise Value/Revenue: 0.36
• Enterprise Value/Gross Profit: 3.66
• Enterprise Value/Ebitda: 2.49
• 1Y Price Target: $40.00
• Price Target Upside: 20.26% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 76 Outperform
• Price Target: $38.00 ▲(14.25%Upside)

The Vita Coco Company scores well due to its strong financial performance and positive earnings call insights, particularly in sales growth and market expansion. However, technical analysis and valuation present concerns with mixed signals and a high P/E ratio. Challenges from tariffs and distribution issues also temper the outlook.

Positive Factors

Brand Recognition

Vita Coco's brand is gaining recognition, which could lead to increased customer loyalty.

Product Offerings Expansion

Vita Coco is expanding its product offerings, which is likely to enhance its market presence.

Sales Performance

First-quarter sales growth of 17% was aided by Vita Coco branded coconut water.

Negative Factors

Freight Rates

From a cost perspective, ocean freight rates are expected to be a headwind, particularly early in the year, as the company works through inventory sourced at higher freight rates.

Rising Costs

There are concerns about rising costs impacting profit margins.

Shelf Space Reduction

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 Business Overview & Revenue Model

Company Description

The 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 Money

Vita Coco Company generates revenue through the sale of its coconut-based beverages and products. The company's primary revenue stream comes from its flagship product, Vita Coco coconut water, which is distributed through various retail channels, including grocery stores, convenience stores, and online platforms. Vita Coco leverages a global supply chain to source coconuts and produce its products, ensuring a steady supply to meet consumer demand. The company focuses on expanding its market presence through strategic partnerships with retailers and distributors, as well as marketing initiatives to increase brand visibility and consumer engagement. Additionally, Vita Coco explores new product innovations and extensions to capture market share in the growing natural and organic beverage sector.

Vita Coco Company Financial Statement Overview

Summary

The Vita Coco Company demonstrates strong financial health with notable revenue growth, improved profitability, low leverage, and effective cash management. However, a decline in free cash flow growth suggests room for improvement.

Income Statement

The Vita Coco Company has demonstrated strong revenue growth, with a TTM revenue increase of 3.72% over the previous annual report. The gross profit margin stands at 37.27% for TTM, indicating effective management of production costs. A notable improvement is seen in the EBIT margin at 13.85% for TTM, up from the previous periods, showcasing enhanced operational efficiency. The net profit margin has also improved to 11.32%, reflecting better profitability. These metrics suggest a positive trajectory in income statement performance.

Balance Sheet

The company maintains a healthy balance sheet with a low debt-to-equity ratio of 0.05, indicating minimal reliance on debt financing. The TTM equity ratio of 72.36% underscores strong capitalization, with a significant portion of assets financed by equity. Return on equity has improved to 21.80% in TTM, demonstrating efficient use of equity to generate profits. These factors point to financial stability and low-risk exposure.

Cash Flow

Vita Coco's cash flow performance is robust, with a free cash flow growth rate of -22.45% in the latest TTM period, although it remains positive. The operating cash flow to net income ratio is 0.55, indicating efficient conversion of earnings into cash. With a free cash flow to net income ratio of 0.54, the company sustains its ability to generate cash relative to net income. These metrics reflect solid cash flow management, despite a slight decline in free cash flow growth.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
535.24M	516.01M	493.61M	427.79M	379.51M	310.64M
	Gross Profit
199.51M	198.78M	180.73M	103.36M	113.15M	104.86M
	EBIT
74.15M	73.82M	56.49M	3.06M	24.59M	30.86M
	EBITDA
72.85M	71.53M	58.61M	14.06M	26.66M	46.52M
	Net Income Common Stockholders
60.60M	55.95M	46.63M	7.81M	19.02M	32.66M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
153.61M	164.67M	132.54M	19.63M	28.69M	72.18M
	Total Assets
383.97M	362.38M	285.68M	197.76M	197.48M	183.86M
	Total Debt
12.59M	435.00K	1.22M	48.00K	76.00K	25.06M
	Net Debt
-141.01M	-164.23M	-131.32M	-19.58M	-28.61M	-47.13M
	Total Liabilities
106.11M	103.56M	83.25M	56.66M	74.31M	81.56M
	Stockholders Equity
277.86M	258.82M	202.44M	141.09M	123.17M	102.22M
Cash Flow		Free Cash Flow
31.96M	41.92M	106.56M	-11.92M	-16.72M	32.93M
	Operating Cash Flow
33.37M	42.90M	107.16M	-10.94M	-16.17M	33.32M
	Investing Cash Flow
-1.41M	-974.00K	-594.00K	-982.00K	-557.00K	-375.00K
	Financing Cash Flow
-309.00K	-8.30M	6.29M	3.03M	-26.80M	2.05M

Vita Coco Company Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 33.26
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For COCO, the sentiment is Neutral. The current price of 33.26 is below the 20-day moving average (MA) of 35.17, above the 50-day MA of 33.00, and above the 200-day MA of 33.11, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 40.70 is Neutral, neither overbought nor oversold. The STOCH value of 4.35 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for COCO.

Vita Coco Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AKO.A	80 Outperform	$3.51B	12.59	23.07%	4.20%	13.22%	11.37%
FIZZ	77 Outperform	$4.34B	23.37	40.81%	―	0.34%	9.48%
COCO	76 Outperform	$1.89B	32.60	24.86%	―	8.01%	11.26%
Sector *	65 Neutral	$8.92B	15.03	4.68%	6.11%	3.59%	-2.49%
ZVIA	54 Neutral	$189.26M	―	-28.87%	―	-6.83%	19.09%
OTLY	53 Neutral	$372.30M	―	-85.68%	―	4.56%	57.03%
BRFH	39 Underperform	$47.20M	―	-117.82%	―	22.04%	-21.72%

Vita Coco Company Corporate Events

Vita Coco Company Holds Annual Stockholders Meeting

On June 3, 2025, The Vita Coco Company held its Annual Meeting of Stockholders, where 89% of the voting power was represented. During the meeting, Aishetu Fatima Dozie, Martin Roper, and John Zupo were elected as Class I directors, and the appointment of Deloitte & Touche LLP as the independent registered public accounting firm for 2025 was ratified. Additionally, an advisory vote on executive compensation was approved.

The most recent analyst rating on (COCO) stock is a Hold with a $33.00 price target. To see the full list of analyst forecasts on Vita Coco Company stock, see the COCO Stock Forecast page.

Vita Coco Refutes Short Seller Claims, Reaffirms Outlook

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.