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Village Farms International (VFF)
NASDAQ:VFF
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Village Farms International
(NASDAQ:VFF)
Rating:58Neutral
Price Target:
$1.50
▲( 23.97% Upside)
Village Farms International (VFF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$135.93M
Dividend YieldN/A
Average Volume (3M)1.08M
Price to Earnings (P/E)―
Beta (1Y)1.65
Revenue Growth12.09%
EPS Growth-40.10%
CountryUS
Employees1,400
SectorConsumer Defensive
Sector Strength72
IndustryAgricultural Farm Products
Share Statistics
EPS (TTM)-0.06
Shares Outstanding112,337,050
10 Day Avg. Volume2,473,454
30 Day Avg. Volume1,078,838
Financial Highlights & Ratios
PEG Ratio0.31
Price to Book (P/B)0.47
Price to Sales (P/S)0.00
P/FCF Ratio-17.34
Enterprise Value/Market Cap1.16
Enterprise Value/Revenue0.15
Enterprise Value/Gross Profit3.64
Enterprise Value/Ebitda-1.82
Forecast
1Y Price Target
$2.50Price Target Upside106.61% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
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 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 facing significant financial challenges with declining revenues and profitability issues. Despite a manageable debt level, cash flows are under pressure, requiring strategic improvements in operational efficiency and revenue generation to stabilize its financial health.Income Statement
The income statement shows a concerning trend of declining revenues with a TTM drop to $267.5M from $336.2M in 2024. Margins are weak with a negative gross profit and net profit margin, indicating profitability challenges. Revenue growth has been negative, and the EBIT and EBITDA margins are also negative, suggesting operational inefficiencies.35
Negative
Balance Sheet
The balance sheet reflects a moderate financial position. The debt-to-equity ratio is relatively stable at 0.22, showing controlled leverage. However, a declining stockholders' equity and total assets signal potential long-term sustainability concerns. The equity ratio remains healthy, but decreasing equity raises caution.50
Neutral
Cash Flow
Cash flow analysis reveals a volatile cash position. The free cash flow has declined sharply to -$6.8M TTM from $107K in 2024, highlighting cash management issues. The operating cash flow to net income ratio is positive but weak, and the free cash flow to net income ratio is negative, indicating potential liquidity constraints.40
Negative
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 267.52M | 336.18M | 285.60M | 293.57M | 268.02M | 170.09M | Gross Profit |
| 43.23M | 47.40M | 49.43M | 27.50M | 45.18M | 10.96M | EBIT |
| -28.21M | -23.65M | -16.07M | -44.68M | -8.77M | -17.39M | EBITDA |
| -23.66M | -15.09M | -6.80M | -77.55M | -1.21M | 16.81M | Net Income Common Stockholders |
| -39.70M | -35.85M | -31.80M | -98.75M | -8.82M | 11.61M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 15.13M | 24.63M | 30.29M | 16.68M | 53.42M | 21.64M | Total Assets |
| 377.10M | 389.31M | 466.99M | 465.29M | 566.91M | 354.03M | Total Debt |
| 54.69M | 47.49M | 65.50M | 70.75M | 77.27M | 85.39M | Net Debt |
| 39.56M | 22.86M | 30.21M | 54.08M | 23.85M | 63.75M | Total Liabilities |
| 119.15M | 125.35M | 148.05M | 145.29M | 142.07M | 148.75M | Stockholders Equity |
| 248.34M | 254.00M | 302.63M | 303.06M | 408.40M | 205.28M |
| Cash Flow | Free Cash Flow | ||||
| -6.80M | 107.00K | -1.20M | -34.18M | -61.22M | 2.17M | Operating Cash Flow |
| 4.02M | 10.35M | 5.32M | -19.89M | -39.57M | 5.68M | Investing Cash Flow |
| -11.17M | -10.24M | -6.23M | -20.90M | -63.47M | -51.23M | Financing Cash Flow |
| -8.43M | -9.53M | 14.14M | 4.50M | 135.88M | 58.61M |
Village Farms International Technical Analysis
Positive
1.21
Price Trends
0.70
Positive
0.72
Positive
0.81
Positive
Market Momentum
0.12
Negative
77.40
Negative
78.92
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VFF, the sentiment is Positive. The current price of 1.21 is above the 20-day moving average (MA) of 0.83, above the 50-day MA of 0.70, and above the 200-day MA of 0.81, indicating a bullish trend. The MACD of 0.12 indicates Negative momentum. The RSI at 77.40 is Negative, neither overbought nor oversold. The STOCH value of 78.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 2 New Risks
1.
We face risks associated with the use of debt, including refinancing risk. Q4, 2024
2.
We cannot predict when, if ever, cannabis will be federally legal in the United States and any rescheduling of U.S. Schedule I cannabis to Schedule III would have an uncertain impact on our business. Q4, 2024
Village Farms International Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | $8.78B | 14.55 | 4.78% | 173.91% | 3.39% | 2.17% | |
58 Neutral | $135.93M | ― | -14.58% | ― | 12.09% | -40.10% | |
54 Neutral | $6.47M | ― | -580.71% | ― | -8.72% | 94.96% | |
47 Neutral | $11.09M | ― | -59.79% | ― | -45.02% | -7.27% | |
43 Neutral | $3.27M | ― | -53.80% | ― | -46.91% | -174.16% | |
34 Underperform | $22.05M | ― | -2448.28% | ― | 41.44% | -1.20% | |
| $4.41M | ― | -170.63% | ― | ― | ― |
* Consumer Defensive Sector Average
Performance Comparison
VFF
Village Farms International
1.21
0.06
5.22%
SANW
S&W Seed Company
5.70
-0.21
-3.55%
AQB
AquaBounty Technologies
0.85
-1.02
-54.55%
LOCL
Local Bounti Corporation
2.02
-1.08
-34.84%
AGRI
AgriFORCE Growing Systems
1.53
-12.82
-89.34%
EDBL
Edible Garden AG , Inc.
3.91
-53.09
-93.14%
Village Farms International Earnings Call Summary
Earnings Call Date:May 12, 2025
(Q1-2025)
| % Change Since: 72.86%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Positive
The earnings call highlighted a significant strategic initiative with the Vanguard Foods transaction, which positions Village Farms for future growth and expansion in the cannabis market. Strong performance in the Canadian cannabis segment and the initial success in the Netherlands are positive indicators. However, challenges remain in the fresh produce segment due to environmental factors and a decline in US cannabis sales. Overall, the positive developments in cannabis outweigh the setbacks, suggesting a promising outlook.Q1-2025 Updates
Positive Updates
Transformative Transaction with Vanguard Foods
Village Farms has signed an agreement to privatize its fresh produce division into a joint venture called Vanguard Foods LP, retaining a 37.9% stake and receiving $40 million in cash. This is expected to unlock long-term value for both the cannabis and produce businesses.
Strong Growth in Canadian Cannabis Segment
Canadian cannabis gross margin expanded from 25% to 36%, with adjusted EBITDA up 75% year-over-year. International medical export sales grew 285% year-over-year, contributing to the momentum.
Netherlands Operations Begin Contribution
Leli Holland subsidiary in the Netherlands reported its first revenue contribution of nearly half a million dollars, with adjusted EBITDA at breakeven within the first month of operations.
Positive Cash Flow and Strong Financial Performance
Adjusted EBITDA and net income increased by 75% and 291% respectively, with another quarter of positive cash flow from operations.
Negative Updates
Impact of Dust Storms on Fresh Produce Segment
Dust storms in Texas led to a significant impact on produce operations, resulting in a 31% increase in cost per pound and a $4.3 million non-cash charge, contributing to a consolidated net loss of $6.7 million.
Decline in US Cannabis Sales
US cannabis sales decreased to $3.9 million due to state-level actions affecting unregulated hemp products, although gross margin remained healthy at 66%.
Company Guidance
During Village Farms International's first quarter 2025 financial results conference call, CEO Michael DeGiglio announced a transformative transaction involving the privatization of the majority of their fresh produce division into a new joint venture, Vanguard Foods LP, backed by private investment firms including Sweat Equities. Village Farms will retain a 37.9% ownership interest in Vanguard, receiving $40 million in cash proceeds. This strategic move aims to unlock long-term value for both their cannabis and produce businesses. The company reported that Canadian cannabis gross margin expanded from 25% in Q1 2024 to 36% in Q1 2025, driven by higher-margin medical export sales, which grew 285% year-over-year. The transaction is expected to close in the second quarter, further enhancing cash flow and financial performance visibility.Village Farms International Corporate Events
Private Placements and FinancingBusiness Operations and Strategy
Village Farms Enters Agreement to Restructure Business
Positive
May 16, 2025
On May 12, 2025, Village Farms International entered into a Framework Agreement with Vanguard Food and other investors to restructure its produce business. This agreement involves the contribution of assets and a $55 million investment into Vanguard, with Village Farms receiving $40 million and equity in Vanguard. The transaction, expected to close in the second quarter of 2025, will see Village Farms maintaining ownership of certain facilities and entering into supply and transition agreements with Vanguard, positioning the company for future expansion and operational independence.
The most recent analyst rating on (VFF) stock is a Buy with a $1.75 price target. To see the full list of analyst forecasts on Village Farms International stock, see the VFF Stock Forecast page.
Private Placements and FinancingBusiness Operations and Strategy
Village Farms Amends Credit Agreement for Growth
Positive
Apr 15, 2025
On April 10, 2025, Village Farms International amended its credit agreement with Farm Credit Canada, enhancing financial flexibility and aligning with its strategic focus on cannabis. The amendment introduces improved financial covenants, reflecting the company’s growth and expansion in the cannabis sector, and supports future growth investments.
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.