Vita Coco Company (COCO) AI Stock Analysis

• Market Cap: $2.09B
• Dividend Yield: N/A
• Average Volume (3M): 816.02K
• Price to Earnings (P/E): 33.9
• Beta (1Y): 1.05
• Revenue Growth: 11.97%
• EPS Growth: 16.10%
• Country: US
• Employees: 319
• Sector: Consumer Defensive
• Sector Strength: 48
• Industry: Beverages - Non-Alcoholic
• EPS (TTM): 0.38
• Shares Outstanding: 56,822,983
• 10 Day Avg. Volume: 839,228
• 30 Day Avg. Volume: 816,020
• 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: 0.96
• Enterprise Value/Revenue: 3.57
• Enterprise Value/Gross Profit: 9.89
• Enterprise Value/Ebitda: 27.59
• 1Y Price Target: $41.57
• Price Target Upside: 11.60% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 77 Outperform
• Price Target: $40.00 ▲(7.38% Upside)

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

Pricing Power

Revised tariffs look manageable given sourcing flexibility, pricing power.

Product Expansion

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

Sales Growth

COCO's US retail sales growth remains strong even with 5-6% retail pricing now in place, up +17.0% for the 12 weeks 7/13/25.

Negative Factors

Gross Margins

Management continues to expect FY25 gross margins of 35% to 37%, representing around 250 basis points of gross margin contraction at the midpoint.

Profit Margins

There are concerns about rising costs impacting profit margins.

Vita Coco Company Business Overview & Revenue Model

Company Description

Vita Coco Company (COCO) is a leading beverage company that primarily operates within the natural and organic beverage sector. The company is best known for its flagship product, Vita Coco coconut water, which has gained popularity as a hydrating and refreshing drink. In addition to coconut water, the company offers a range of coconut-based products, including coconut milk and coconut oil, catering to health-conscious consumers seeking natural alternatives to traditional beverages and cooking ingredients.

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

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: 37.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 37.25 is above the 20-day moving average (MA) of 34.51, above the 50-day MA of 35.91, and above the 200-day MA of 35.08, indicating a bullish trend. The MACD of 0.32 indicates Negative momentum. The RSI at 61.23 is Neutral, neither overbought nor oversold. The STOCH value of 89.88 is Negative, 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
AKO.A	80 Outperform	$3.44B	11.70	24.18%	7.72%	17.01%	11.63%
COCO	77 Outperform	$2.09B	33.94	24.35%	―	11.97%	16.10%
FIZZ	63 Neutral	$3.85B	20.70	37.23%	―	0.81%	5.51%
Sector *	63 Neutral	$20.49B	14.78	-2.88%	3.11%	1.86%	-5.76%
ZVIA	54 Neutral	$203.11M	―	-22.11%	―	-1.08%	54.50%
OTLY	52 Neutral	$519.53M	―	-114.20%	―	4.47%	42.22%
BRFH	39 Underperform	$49.02M	―	-161.48%	―	24.52%	-7.31%

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.