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Village Farms International (Otc) (VFF)
:VFF
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Village Farms International
(NASDAQ:VFF)
58Neutral
Village Farms International (VFF) vs. S&P 500 (SPY)
Market Cap
$77.48M
Dividend YieldN/A
Average Volume (3M)374.35K
Price to Earnings (P/E)―
Beta (1Y)0.79
Revenue Growth16.74%
EPS Growth28.44%
CountryUS
Employees1,400
SectorConsumer Defensive
Sector Strength79
IndustryConsumer Products - Foods
Share Statistics
EPS (TTM)-0.45
Shares Outstanding112,337,050
10 Day Avg. Volume359,057
30 Day Avg. Volume374,349
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.25
Price to Cash Flow (P/CF)3.40
P/FCF Ratio5.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$1.75Price Target Upside153.62% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Village Farms International Business Overview & Revenue Model
Company DescriptionVillage Farms International, Inc. engages in the management and operation of agricultural greenhouse facilities. It operates through the Produce Business, and Energy Business segments. The Produce Business segment produces, markets, and sells the product group which consists of premium quality tomatoes, bell peppers and cucumber. The Energy Business segment offers power that it sells per a long-term contract to its one customer. The company was founded by Michael A. DeGiglio and Albert W. Vanzeyst in November 1990 and is headquartered in Delta, Canada.
How the Company Makes MoneyVillage Farms International makes money through several key revenue streams. Primarily, it generates income from the sale of fresh produce cultivated in its greenhouse facilities, which are distributed to retailers and wholesalers across North America. Additionally, the company has diversified into the cannabis market through its wholly-owned subsidiary, Pure Sunfarms, which contributes to its revenue by producing and selling cannabis products in various forms, including dried flower and oils, to both medical and recreational markets. Significant partnerships, such as joint ventures and licensing agreements, enhance its market reach and product offerings. The company's strategic focus on high-margin cannabis products and efficient production techniques helps maximize profitability and drive earnings growth.
Village Farms International Financial Statement Overview
Summary
Village Farms International shows improvement in gross profit margin and a stable equity structure, but faces challenges with persistent net losses, negative profit margins, and inconsistent revenue growth.Income Statement
Village Farms International has shown some improvement in gross profit margin, rising from $10.96M in 2020 to $51.48M in TTM 2024. However, the company continues to record negative net income, with the net profit margin remaining negative. Revenue growth has been inconsistent, with recent figures showing a decline. The EBIT and EBITDA margins are also negative, indicating ongoing operational challenges.48
Neutral
Balance Sheet
The company's debt-to-equity ratio has improved slightly, reflecting a lower reliance on debt relative to equity, although it remains a potential risk factor. The equity ratio is strong, showing that a significant portion of the company's assets are financed by equity. However, return on equity is negative due to persistent losses, which is a key area of concern.55
Neutral
Cash Flow
Operating cash flow has improved from negative figures in earlier years, indicating better cash generation from operations. However, free cash flow remains negative, primarily due to capital expenditures. The operating cash flow to net income ratio suggests more cash is generated than reported income, but the free cash flow to net income ratio is unfavorable.50
Neutral
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 260.19M | 285.60M | 293.57M | 268.02M | 170.09M | 144.57M | Gross Profit |
| 51.48M | 49.43M | 27.50M | 45.18M | 10.96M | -7.34M | EBIT |
| -16.64M | -16.07M | -44.68M | -8.77M | -17.39M | -27.52M | EBITDA |
| -22.31M | -6.80M | -77.55M | -1.21M | 16.81M | -7.34M | Net Income Common Stockholders |
| -49.70M | -31.80M | -98.75M | -8.82M | 11.61M | -11.45M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 35.29M | 30.29M | 16.68M | 53.42M | 21.64M | 11.99M | Total Assets |
| 466.99M | 466.99M | 465.29M | 566.91M | 354.03M | 183.41M | Total Debt |
| 65.50M | 65.50M | 70.75M | 77.27M | 85.39M | 38.05M | Net Debt |
| 30.21M | 30.21M | 54.08M | 23.85M | 63.75M | 26.06M | Total Liabilities |
| 148.05M | 148.05M | 145.29M | 142.07M | 148.75M | 56.95M | Stockholders Equity |
| 302.63M | 302.63M | 303.06M | 408.40M | 205.28M | 126.46M |
| Cash Flow | Free Cash Flow | ||||
| -1.86M | -1.20M | -34.18M | -61.22M | 2.17M | -16.67M | Operating Cash Flow |
| 8.37M | 5.32M | -19.89M | -39.57M | 5.68M | -14.39M | Investing Cash Flow |
| -10.83M | -6.23M | -20.90M | -63.47M | -51.23M | -16.84M | Financing Cash Flow |
| -9.50M | 14.14M | 4.50M | 135.88M | 58.61M | 31.39M |
Village Farms International Technical Analysis
Negative
0.69
Price Trends
0.75
Negative
0.79
Negative
0.90
Negative
Market Momentum
-0.02
Positive
42.15
Neutral
22.81
Neutral
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 0.69 is below the 20-day moving average (MA) of 0.72, below the 50-day MA of 0.75, and below the 200-day MA of 0.90, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 42.15 is Neutral, neither overbought nor oversold. The STOCH value of 22.81 is Neutral, 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 65 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
Performance Comparison
VFF
Village Farms International
0.69
0.00
0.00%
CGC
Canopy Growth
1.05
-1.72
-62.09%
ACB
Aurora Cannabis
4.40
1.51
52.25%
CRON
Cronos Group
1.89
-0.09
-4.55%
TLRY
Tilray
0.64
-0.96
-60.00%
SNDL
SNDL
1.54
0.23
17.56%
Village Farms International Earnings Call Summary
Earnings Call Date: Mar 13, 2025 | % Change Since: -13.75% | 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.