Vita Coco Company (COCO) AI Stock Analysis

• Market Cap: $2.33B
• Dividend Yield: N/A
• Average Volume (3M): 1.05M
• Price to Earnings (P/E): 38.1
• Beta (1Y): 1.08
• Revenue Growth: 11.97%
• EPS Growth: 16.10%
• Country: US
• Employees: 319
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Beverages - Non-Alcoholic
• EPS (TTM): 0.38
• Shares Outstanding: 56,822,983
• 10 Day Avg. Volume: 1,514,190
• 30 Day Avg. Volume: 1,053,381
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.86
• Enterprise Value/Revenue: 3.57
• Enterprise Value/Gross Profit: 9.89
• Enterprise Value/Ebitda: 27.59
• 1Y Price Target: $42.17
• Price Target Upside: 4.64% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 77 Outperform
• Price Target: $40.00 ▼(-0.74% Downside)

Vita Coco Company demonstrates strong financial performance with robust growth and profitability metrics, contributing significantly to the overall score. The optimistic outlook from the earnings call further supports the stock's potential, despite valuation concerns and technical indicators suggesting caution. The absence of notable corporate events maintains focus on core financial and strategic factors.

Positive Factors

International Expansion

The significant growth in international markets, particularly in the U.K. and Germany, demonstrates Vita Coco's successful expansion strategy, enhancing its global market position and providing a diversified revenue stream that can sustain long-term growth.

Healthy Balance Sheet

A strong balance sheet with substantial cash reserves and no debt provides Vita Coco with financial flexibility to invest in growth opportunities, navigate economic uncertainties, and sustain operations without the burden of financial leverage.

Product Innovation

The launch of Vita Coco Treats reflects the company's commitment to product innovation, which can drive sales growth and enhance brand loyalty by meeting evolving consumer preferences in the competitive beverage market.

Negative Factors

Gross Margin Pressure

The decline in gross margins due to inflationary costs and tariffs indicates potential challenges in maintaining profitability. This pressure could affect the company's ability to invest in growth initiatives and sustain competitive pricing.

Tariff Uncertainty

Ongoing tariff uncertainties pose a risk to cost structures and pricing strategies, potentially impacting profitability and financial planning. This could hinder long-term strategic initiatives and market competitiveness.

Private Label Decline

A significant decline in private label sales suggests challenges in this segment, which could impact overall revenue growth and market share if not addressed through strategic adjustments or product differentiation.

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 generates revenue primarily through the sale of its coconut water and related beverage products. The company distributes its products through various channels, including supermarkets, convenience stores, health food stores, and e-commerce platforms. Key revenue streams include direct sales to retailers and distributors, as well as partnerships with major grocery chains and food service providers. Additionally, the company benefits from brand loyalty and recognition, allowing it to maintain a premium pricing strategy. Significant partnerships with beverage distributors and collaborations with health-oriented brands further enhance its market reach and profitability.

Vita Coco Company Financial Statement Overview

Summary

Vita Coco Company exhibits strong financial health with impressive growth and profitability metrics. The low leverage and high return on equity highlight financial stability and efficient use of resources. Cash flow management is adequate, though there is room for improvement in operational cash generation.

Income Statement

The Vita Coco Company shows robust revenue growth, with TTM revenue increasing by 8.52% from the previous annual period. Gross profit margins are strong at 36.12%, indicating efficient production processes. The net profit margin of 11.50% reflects effective cost management. Both EBIT and EBITDA margins are healthy, at 12.37% and 12.91% respectively, demonstrating solid operational efficiency.

Balance Sheet

The balance sheet is strong, with a low debt-to-equity ratio of 0.05, indicating minimal leverage and financial risk. Return on Equity is impressive at 21.69%, showcasing efficient use of shareholder funds to generate profits. The equity ratio of 70.50% underscores a solid capital structure with substantial equity backing.

Cash Flow

Operating cash flow is positive, although it has decreased compared to the previous period, resulting in an operating cash flow to net income ratio of 0.44. Free cash flow growth is solid, with a slight decline, but the free cash flow to net income ratio is strong at 0.42, indicating good cash generation relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	559.88M	516.01M	493.61M	427.79M	379.51M	310.64M
Gross Profit	202.22M	198.78M	180.73M	103.36M	113.15M	104.86M
EBITDA	72.49M	71.53M	58.61M	14.06M	26.66M	46.52M
Net Income	64.41M	55.95M	46.63M	7.81M	19.02M	32.66M
Balance Sheet
Total Assets	421.08M	362.38M	285.68M	197.76M	197.48M	183.86M
Cash, Cash Equivalents and Short-Term Investments	168.31M	164.67M	132.54M	19.63M	28.69M	72.18M
Total Debt	14.77M	435.00K	1.22M	48.00K	76.00K	25.06M
Total Liabilities	124.14M	103.56M	83.25M	56.66M	74.31M	81.56M
Stockholders Equity	296.94M	258.82M	202.44M	141.09M	123.17M	102.22M
Cash Flow
Free Cash Flow	27.14M	41.92M	106.56M	-11.92M	-16.72M	32.93M
Operating Cash Flow	28.26M	42.90M	107.16M	-10.94M	-16.17M	33.32M
Investing Cash Flow	-2.07M	-974.00K	-594.00K	-982.00K	-557.00K	-375.00K
Financing Cash Flow	-8.81M	-8.30M	6.29M	3.03M	-26.80M	2.05M

Vita Coco Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 40.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For COCO, the sentiment is Positive. The current price of 40.3 is above the 20-day moving average (MA) of 38.62, above the 50-day MA of 36.69, and above the 200-day MA of 35.37, indicating a bullish trend. The MACD of 1.38 indicates Negative momentum. The RSI at 59.58 is Neutral, neither overbought nor oversold. The STOCH value of 57.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for COCO.

Vita Coco Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
COCO	77 Outperform	$2.33B	38.15	24.35%	―	11.97%	16.10%
COKE	72 Outperform	9.94B	19.10	35.92%	5.19%	3.22%	23.88%
KOF	71 Outperform	4.41B	15.03	16.54%	3.98%	-4.05%	-3.69%
FIZZ	63 Neutral	3.44B	18.51	42.08%	―	0.46%	0.91%
ZVIA	54 Neutral	188.87M	-10.96	―	―	-1.08%	54.50%
OTLY	52 Neutral	547.41M	-2.79	-192.91%	―	4.47%	42.22%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Vita Coco Company Corporate Events

Vita Coco Extends Key Agreement with Century Pacific

On June 12, 2025, Vita Coco’s subsidiary, All Market Singapore PTE Ltd., amended its Manufacturing and Purchasing Agreement with Century Pacific Agricultural Ventures, Inc. The amendment extends the agreement to December 31, 2030, revises pricing and volume terms, and imposes sustainability obligations on Century Pacific, including adherence to ethical trade audits.

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.