Village Farms International (VFF) AI Stock Analysis

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Village Farms International

(NASDAQ:VFF)

45Neutral

Village Farms International exhibits strong revenue growth and international expansion potential, particularly in the cannabis market. However, significant challenges remain, including profitability issues, negative cash flow, and bearish technical indicators. These factors weigh heavily on the overall stock score.

Village Farms International (VFF) vs. S&P 500 (SPY)

Market Cap

$57.09M

Dividend YieldN/A

Average Volume (3M)387.84K

Price to Earnings (P/E)―

Beta (1Y)1.00

Revenue Growth17.71%

EPS Growth-10.34%

CountryUS

Employees1,400

SectorConsumer Defensive

Sector Strength94

IndustryAgricultural Farm Products

Share Statistics

EPS (TTM)-0.32

Shares Outstanding112,337,050

10 Day Avg. Volume494,673

30 Day Avg. Volume387,837

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.24

Price to Cash Flow (P/CF)48.00

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$1.75

Price Target Upside250.00% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering1

Village Farms International Business Overview & Revenue Model

Company DescriptionVillage Farms International (VFF) is a vertically integrated greenhouse grower based in North America, specializing in the production, marketing, and distribution of fresh produce and cannabis products. The company operates in the agricultural sector, leveraging advanced greenhouse technology to cultivate a variety of crops, including tomatoes, cucumbers, and peppers, under its produce business. Additionally, through its subsidiaries, Village Farms has expanded into the cannabis industry, producing high-quality cannabis for medicinal and recreational markets in Canada and the United States.

How the Company Makes MoneyVillage Farms International generates revenue through its two main business segments: produce and cannabis. The produce segment involves growing and selling greenhouse-grown vegetables, which are distributed to retail grocers and food service providers across North America. This segment relies on long-term supply agreements with major retailers to secure consistent revenue streams. The cannabis segment, on the other hand, involves the cultivation and sale of cannabis products through its subsidiaries, such as Pure Sunfarms, which operates one of the largest cannabis-growing facilities in Canada. This segment capitalizes on the growing demand for both medicinal and recreational cannabis, contributing significantly to the company’s earnings. Village Farms also benefits from strategic partnerships and joint ventures, enhancing its market reach and operational efficiency in both segments.

Village Farms International Financial Statement Overview

Summary

Village Farms International is experiencing revenue growth but faces significant profitability and cash flow challenges. The company maintains a reasonable debt level but has declining equity and asset values, raising potential risk concerns.

Income Statement

Neutral

Village Farms International has experienced revenue growth from $285.6M in 2023 to $336.2M in 2024, indicating a positive trend. However, the company is facing major profitability challenges, as evidenced by negative EBIT and EBITDA margins, and a negative net profit margin. The gross profit margin declined slightly from 17.3% in 2023 to 14.1% in 2024, pointing towards cost pressures or inefficiencies.

Balance Sheet

Neutral

The company maintains a relatively stable financial position, with a debt-to-equity ratio of approximately 0.22 in 2024, down from 0.25 in 2023, suggesting effective leverage management. However, the decline in stockholders' equity from $302.6M to $254M, along with a drop in total assets, highlights potential risk exposures. The equity ratio remains healthy at 65.2%.

Cash Flow

Negative

Village Farms International's cash flow performance is concerning, with zero operating and free cash flow in 2024, compared to a positive but small free cash flow in 2023. The lack of positive cash flow generation is a significant risk, as it limits financial flexibility and could impact future operations.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
336.18M	285.60M	293.57M	268.02M	170.09M
	Gross Profit
47.40M	49.43M	27.50M	45.18M	10.96M
	EBIT
-23.65M	-16.07M	-44.68M	-8.77M	-17.39M
	EBITDA
-15.10M	-6.80M	-77.55M	-1.21M	16.81M
	Net Income Common Stockholders
-35.85M	-31.80M	-98.75M	-8.82M	11.61M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
24.63M	30.29M	16.68M	53.42M	21.64M
	Total Assets
389.31M	466.99M	465.29M	566.91M	354.03M
	Total Debt
47.49M	65.50M	70.75M	77.27M	85.39M
	Net Debt
22.86M	30.21M	54.08M	23.85M	63.75M
	Total Liabilities
125.35M	148.05M	145.29M	142.07M	148.75M
	Stockholders Equity
254.00M	302.63M	303.06M	408.40M	205.28M
Cash Flow		Free Cash Flow
107.00K	-1.20M	-34.18M	-61.22M	2.17M
	Operating Cash Flow
10.35M	5.32M	-19.89M	-39.57M	5.68M
	Investing Cash Flow
-10.24M	-6.23M	-20.90M	-63.47M	-51.23M
	Financing Cash Flow
-9.53M	14.14M	4.50M	135.88M	58.61M

Village Farms International Technical Analysis

Technical Analysis Sentiment

Negative

Last Price0.50

Price Trends

50DMA

0.68

Negative

100DMA

0.73

Negative

200DMA

0.85

Negative

Market Momentum

MACD

-0.03

Positive

RSI

33.87

Neutral

STOCH

2.04

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VFF, the sentiment is Negative. The current price of 0.5 is below the 20-day moving average (MA) of 0.61, below the 50-day MA of 0.68, and below the 200-day MA of 0.85, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 33.87 is Neutral, neither overbought nor oversold. The STOCH value of 2.04 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VFF.

Village Farms International Risk Analysis

Village Farms International disclosed 67 risk factors in its most recent earnings report. Village Farms International reported the most risks in the “Legal & Regulatory” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Village Farms International Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRON	68 Neutral	$887.47M	16.37	3.80%	―	35.87%	―
Sector *	63 Neutral	$20.84B	14.17	-16.36%	3.22%	1.30%	4.55%
SNDL	59 Neutral	$352.50M	―	-8.00%	―	-2.89%	47.06%
ACB	47 Neutral	$313.39M	25.51	4.78%	―	16.39%	-98.10%
TLRY	46 Neutral	$508.68M	―	-31.06%	―	11.22%	-108.58%
VFF	45 Neutral	$57.09M	―	-12.88%	―	17.71%	-10.34%
WEED	42 Neutral	$215.50M	―	-84.50%	―	-16.27%	―

* Consumer Defensive Sector Average

Performance Comparison

VFF

Village Farms International

0.50

-0.89

-64.03%

TLRY

Tilray

0.49

-1.29

-72.47%

SNDL

1.36

-0.56

-29.17%

TSE:WEED

Canopy Growth

1.30

-8.29

-86.44%

TSE:CRON

Cronos Group

2.43

-0.92

-27.46%

TSE:ACB

Aurora Cannabis

5.93

-2.70

-31.29%

Village Farms International Earnings Call Summary

Earnings Call Date: Mar 13, 2025 | % Change Since: -27.54% | Next Earnings Date: May 7, 2025

Earnings Call Sentiment Positive

The earnings call highlighted significant revenue growth, strong Canadian cannabis market positioning, and successful international expansion, particularly in the Netherlands. However, challenges such as a substantial inventory impairment and potential tariff impacts on fresh produce were noted.

Highlights

Strong Revenue Growth

Total fourth quarter revenues of $83 million increased 11% year-over-year. Full year revenues increased 18% year-over-year to $336 million.

Canadian Cannabis Market Leadership

Total net sales in Canadian cannabis for 2024 grew 31%. Village Farms held the #3 market share position overall in Canada and was the second fastest growing LP organically during 2024.

Successful International Expansion

Q4 exports to international medical markets were up 113% year-over-year. The company expects to at least triple international medicinal export sales in 2025.

Netherlands Market Entry

Commenced sales in the Dutch recreational market in February, and initial feedback from coffee shops has been positive. The company is expanding production capabilities in the Netherlands.

Innovative Product Launches

The launch of Super Toast all-in-one vapes quickly became the #6 ranked vape offerings nationally and #2 in Ontario over the past three months.

Lowlights

Inventory Impairment

A $10.5 million non-cash write-down of non-flower manufactured inventory in Canadian cannabis impacted fourth quarter performance.

Challenges in Fresh Produce

Potential impact of proposed Canadian and Mexican tariffs, which have been delayed until April 2nd, could affect the fresh produce business.

U.S. Cannabis Market Challenges

Q4 sales in U.S. Cannabis continue to be impacted by state restrictions on all intoxicating hemp-based products.

Company Guidance

During the Village Farms International Fourth Quarter and Year-End 2024 Financial Results Conference Call, the company reported significant financial metrics and future guidance. Total fourth-quarter revenues increased by 11% year-over-year to $83 million, with full-year revenues rising by 18% to $336 million. The Canadian cannabis segment saw a 31% increase in net sales, with a notable 120 basis point gain in national market share for Dried Flower categories. The company emphasized its strategic focus on profitable sales growth, moving away from low-margin businesses, and highlighted the launch of the Super Toast vapes, which quickly became the #6 ranked vape offering nationally. Despite a $10.5 million non-cash inventory write-down, adjusted EBITDA for Canadian cannabis excluding this impact was positive, with gross margins returning to the 30% to 40% target range. International cannabis exports soared by 113% year-over-year, with plans to triple international medicinal export sales in 2025. The company also announced Phase 2 expansion in the Netherlands, set to quadruple production, with a favorable market outlook due to zero restrictions on vertical integration and better pricing compared to Canada. Village Farms aims to capitalize on growth opportunities in 2025, leveraging operational efficiencies and international expansion to drive profitable growth.

Village Farms International Corporate Events

Business Operations and StrategyFinancial Disclosures

Village Farms International Plans 2024 Q3 Financial Release

Positive

Oct 23, 2024

Village Farms International is set to release its third quarter 2024 financial results on November 7, 2024, with a conference call scheduled for the same day. The company, a leader in plant-based consumer goods and cannabis, is leveraging its extensive greenhouse operations in Canada and the US to explore high-growth opportunities in the cannabis and CBD markets. With a focus on strategic expansion, Village Farms is positioning itself for significant growth in North America and internationally.

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.