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Village Farms International (Otc) (VFF)
NASDAQ:VFF
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Village Farms International
(NASDAQ:VFF)
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Select Model
Rating:75Outperform
Price Target:
$4.50
▲(12.50% Upside)
Village Farms International demonstrates strong financial performance and positive technical indicators, supported by favorable earnings call insights and strategic corporate actions. The stock is fairly valued, with growth potential driven by international expansion and cannabis market success.
Positive Factors
Strong Cash Flow Generation
Strong cash flow generation supports operational and strategic initiatives, providing financial flexibility for future investments and expansions.
International Expansion
Significant growth in international markets, particularly in Europe, enhances revenue diversification and strengthens global market position.
Canadian Cannabis Growth
Robust growth in the Canadian cannabis market indicates strong demand and effective market penetration, supporting long-term revenue growth.
Negative Factors
U.S. Cannabis Market Challenges
Regulatory challenges in the U.S. cannabis market could hinder growth and profitability, impacting overall segment performance.
Produce Segment Sales Decline
Declining sales in the produce segment may indicate market saturation or competitive pressures, affecting revenue stability.
Operational Margin Improvement Needed
Low operational margins suggest inefficiencies, which could limit profitability and competitiveness if not addressed.
Village Farms International (VFF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$396.23M
Dividend YieldN/A
Average Volume (3M)2.54M
Price to Earnings (P/E)19.0
Beta (1Y)1.56
Revenue Growth-12.68%
EPS GrowthN/A
CountryUS
Employees1,400
SectorConsumer Defensive
Sector Strength42
IndustryAgricultural Farm Products
Share Statistics
EPS (TTM)0.08
Shares Outstanding115,517,770
10 Day Avg. Volume1,022,883
30 Day Avg. Volume2,544,426
Financial Highlights & Ratios
PEG Ratio-0.23
Price to Book (P/B)0.34
Price to Sales (P/S)0.26
P/FCF Ratio802.49
Enterprise Value/Market Cap0.86
Enterprise Value/Revenue1.18
Enterprise Value/Gross Profit4.67
Enterprise Value/Ebitda11.05
Forecast
1Y Price Target
$5.00Price Target Upside25.00% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Village Farms International Business Overview & Revenue Model
Company DescriptionVillage Farms International, Inc., together with its subsidiaries, produces, markets, and distributes greenhouse-grown tomatoes, bell peppers, and cucumbers in North America. It operates through four segments: Produce, Cannabis-Canada, Cannabis-U.S., and Energy. The company also owns and operates a power plant that generates and sells electricity, and provides thermal heat to British Columbia Hydro and Power Authority; produces and supplies cannabis products to other licensed providers and provincial governments in Canada and internationally; and develops and sells cannabinoid-based health and wellness products, including ingestible, edibles, and topical applications. It markets and distributes its products under the Village Farms brand name to retail supermarkets and fresh food distribution companies, as well as products produced under exclusive arrangements with other greenhouse producers. The company was formerly known as Village Farms Canada Inc. and changed its name to Village Farms International, Inc. in December 2009. Village Farms International, Inc. was founded in 1989 and is headquartered in Delta, Canada.
How the Company Makes MoneyVillage Farms generates revenue primarily through the sale of its greenhouse-grown produce to grocery retailers, food service providers, and wholesalers. Key revenue streams include the direct sale of fresh vegetables, as well as potential partnerships with major retailers that help secure long-term supply agreements. The company also benefits from its investment in vertical farming and innovative agricultural technologies, which enhance productivity and reduce costs. Additionally, strategic collaborations with other agricultural firms and participation in joint ventures contribute to its revenue by expanding its market reach and diversifying its product offerings.
Village Farms International Earnings Call Summary
Earnings Call Date:Nov 10, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 18, 2026
Earnings Call Sentiment Positive
The earnings call highlighted strong growth and financial performance across key segments, particularly in Canadian cannabis and international markets, despite some challenges in the U.S. cannabis sector and produce segment. The overall outlook is positive with continued expansion plans and a strong cash position.Q3-2025 Updates
Positive Updates
Record Net Sales and Income Growth
Consolidated net sales increased 21% year over year in Q3, and net income from continuing operations was $10.8 million or $0.09 a share, an increase of almost 10% sequentially.
Canadian Cannabis Success
The Canadian cannabis business delivered 29% year-over-year growth in net sales, reaching $64.1 million, driven by strong performance in targeted channels and an improvement in sales mix.
International Expansion and Market Share
The international medical export division grew more than 750% year over year, with Germany being a key driver. Village Farms is now the largest exporter of medical cannabis to Europe.
Strong Financial Performance
Adjusted EBITDA from continuing operations was $20.7 million, and cash flow from operations reached $24.4 million, setting new records for Village Farms International.
Share Repurchase Program and Strong Balance Sheet
The company closed the quarter with $88 million in cash, leading the Board to implement a share repurchase program in September.
Negative Updates
Challenges in U.S. Cannabis Market
Sales in the U.S. Cannabis segment continue to reflect the impact of state actions on unregulated hemp products, resulting in a small negative adjusted EBITDA for the quarter.
Produce Segment Sales Decline
Produce segment sales decreased by 10% year over year to $12.8 million due to sales commission impacts.
Company Guidance
During the Village Farms International third quarter 2025 earnings call, strong financial guidance was provided, showcasing significant growth and profitability. The company reported a 21% year-over-year increase in consolidated net sales, reaching $66.7 million. Net income from continuing operations was $10.8 million, or $0.09 per share, marking a notable improvement from a net loss in the same quarter last year. Canadian cannabis sales rose by 29% year-over-year, driven by a robust performance in targeted channels and a 750% increase in international medical exports. The international expansion, particularly in Germany, was highlighted as a key growth driver, with the company now positioned as a leading exporter of medical cannabis to Europe. Additionally, adjusted EBITDA from continuing operations hit a record $20.7 million, representing 31% of sales, and cash flow from operations reached $24.4 million. The company also emphasized its strategic capacity expansion plans, including a 40 metric ton increase in Canadian production, expected to be fully operational by early 2027, and a fivefold capacity increase in The Netherlands by Q1 2026. Village Farms International concluded the quarter with a strong cash position of $88 million, enabling further investment in growth initiatives and a share repurchase program.Village Farms International Financial Statement Overview
Summary
Village Farms International shows a positive financial trajectory with strong improvements in profitability and cash flow generation. The income statement reflects enhanced profitability with a positive net profit margin and robust revenue growth. The balance sheet is stable with low leverage, and cash flow metrics indicate strong cash generation capabilities. However, operational margins remain an area for improvement.Income Statement
Village Farms International has shown a strong improvement in its income statement metrics over the TTM period. The gross profit margin has increased to 25.34%, and the net profit margin has turned positive at 7.47%, indicating enhanced profitability. Revenue growth is robust at 21.69%, reflecting a positive trajectory. However, the EBIT and EBITDA margins, while improved, remain relatively low at 4.81% and 7.39%, respectively, suggesting room for operational efficiency improvements.Balance Sheet
The balance sheet of Village Farms International indicates a stable financial position with a low debt-to-equity ratio of 0.13, suggesting prudent leverage management. The return on equity has improved to 7.90%, showcasing better utilization of equity. However, the equity ratio is not provided, which limits a full assessment of asset financing. The company has shown resilience in maintaining a strong equity base.Cash Flow
The cash flow statement reveals significant improvement, with a free cash flow growth rate of 169.47% in the TTM period, indicating strong cash generation capabilities. The operating cash flow to net income ratio is high at 0.95, and the free cash flow to net income ratio is 0.83, reflecting efficient cash conversion. These metrics highlight the company's strong cash flow position, supporting its operational and strategic initiatives.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 286.27M | 336.18M | 285.60M | 293.57M | 268.02M | 170.09M |
| Gross Profit | 72.55M | 47.40M | 49.43M | 27.50M | 45.18M | 10.96M |
| EBITDA | 30.68M | -15.10M | -6.93M | -77.77M | 3.20M | 16.69M |
| Net Income | 21.38M | -35.85M | -34.80M | -101.15M | -9.08M | 11.61M |
Balance Sheet | ||||||
| Total Assets | 418.38M | 389.31M | 466.99M | 465.29M | 566.91M | 354.03M |
| Cash, Cash Equivalents and Short-Term Investments | 87.56M | 24.63M | 30.29M | 16.68M | 53.42M | 21.64M |
| Total Debt | 39.19M | 47.49M | 67.62M | 61.10M | 65.85M | 75.22M |
| Total Liabilities | 113.02M | 125.35M | 148.05M | 145.29M | 142.07M | 148.75M |
| Stockholders Equity | 295.37M | 254.00M | 302.63M | 303.06M | 408.40M | 205.28M |
Cash Flow | ||||||
| Free Cash Flow | 32.64M | 107.00K | -1.20M | -34.18M | -61.22M | 2.17M |
| Operating Cash Flow | 41.88M | 10.35M | 5.32M | -19.89M | -39.57M | 5.68M |
| Investing Cash Flow | 30.06M | -10.24M | -6.23M | -20.90M | -63.47M | -51.23M |
| Financing Cash Flow | -9.13M | -9.53M | 14.14M | 4.50M | 135.88M | 58.61M |
Village Farms International Technical Analysis
Neutral
4.00
Price Trends
3.60
Negative
3.28
Positive
2.22
Positive
Market Momentum
-0.05
Positive
44.93
Neutral
20.76
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VFF, the sentiment is Neutral. The current price of 4 is above the 20-day moving average (MA) of 3.74, above the 50-day MA of 3.60, and above the 200-day MA of 2.22, indicating a neutral trend. The MACD of -0.05 indicates Positive momentum. The RSI at 44.93 is Neutral, neither overbought nor oversold. The STOCH value of 20.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for VFF.
Village Farms International Risk Analysis
Village Farms International disclosed 68 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
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $396.23M | 18.99 | 1.88% | ― | -12.68% | ― | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
58 Neutral | $277.32M | -1.92 | -83.19% | 0.55% | -5.52% | -2194.72% | |
48 Neutral | $244.61M | -14.76 | -4.88% | 1.99% | -14.97% | -278.36% | |
48 Neutral | $371.56M | -82.20 | -1.12% | 3.39% | -3.22% | -108.24% | |
43 Neutral | $49.89M | -0.20 | ― | ― | 31.61% | 37.02% |
* Consumer Defensive Sector Average
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.