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Village Farms International (Otc) (VFF)
:VFF

Village Farms International (VFF) AI Stock Analysis

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Village Farms International

(NASDAQ:VFF)

Rating:59Neutral
Price Target:
$1.50
▲(18.11%Upside)
The overall stock score of 59 reflects Village Farms International's mixed outlook. Positive technical indicators and strategic initiatives, including corporate events and earnings call highlights, improve the outlook. However, significant financial challenges and valuation concerns temper the optimism.

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

Village Farms International Business Overview & Revenue Model

Company DescriptionVillage Farms International (VFF) is a leading North American greenhouse grower, focusing on the production and distribution of premium-quality horticultural products. The company operates in two primary sectors: produce and cannabis. In the produce sector, Village Farms grows and markets fresh produce, such as tomatoes, bell peppers, and cucumbers, leveraging its advanced greenhouse technology. In the cannabis sector, the company, through its subsidiary Pure Sunfarms, is involved in the cultivation and sale of high-quality cannabis products for both the medical and recreational markets in Canada.
How the Company Makes MoneyVillage Farms International generates revenue through the sale of its fresh produce and cannabis products. The produce segment makes money by supplying grocery chains and food distributors with fresh vegetables grown in its greenhouses, capitalizing on its year-round growing capabilities. The cannabis segment, primarily through Pure Sunfarms, contributes to revenue by cultivating, processing, and selling cannabis products directly to consumers and through wholesale channels. Significant partnerships, such as those with Canadian provincial cannabis boards, and strategic investments in expanding production capacity and product lines further bolster the company's earnings. Additionally, Village Farms may also engage in licensing and consulting agreements related to its greenhouse technologies.

Village Farms International Earnings Call Summary

Earnings Call Date:May 12, 2025
(Q1-2025)
|
% Change Since: 81.43%|
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 Financial Statement Overview

Summary
Village Farms International faces significant financial challenges, with declining revenues and profitability issues. Despite manageable debt levels, cash flows are under pressure, requiring strategic improvements in operational efficiency and revenue generation to stabilize its financial health.
Income Statement
35
Negative
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.
Balance Sheet
50
Neutral
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.
Cash Flow
40
Negative
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue267.52M336.18M285.60M293.57M268.02M170.09M
Gross Profit43.23M47.40M49.43M27.50M45.18M10.96M
EBITDA-23.66M-15.09M-6.80M-77.55M-1.21M16.81M
Net Income-39.70M-35.85M-31.80M-98.75M-8.82M11.61M
Balance Sheet
Total Assets377.10M389.31M466.99M465.29M566.91M354.03M
Cash, Cash Equivalents and Short-Term Investments15.13M24.63M30.29M16.68M53.42M21.64M
Total Debt54.69M47.49M65.50M70.75M77.27M85.39M
Total Liabilities119.15M125.35M148.05M145.29M142.07M148.75M
Stockholders Equity248.34M254.00M302.63M303.06M408.40M205.28M
Cash Flow
Free Cash Flow-6.80M107.00K-1.20M-34.18M-61.22M2.17M
Operating Cash Flow4.02M10.35M5.32M-19.89M-39.57M5.68M
Investing Cash Flow-11.17M-10.24M-6.23M-20.90M-63.47M-51.23M
Financing Cash Flow-8.43M-9.53M14.14M4.50M135.88M58.61M

Village Farms International Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.27
Price Trends
50DMA
1.00
Positive
100DMA
0.83
Positive
200DMA
0.83
Positive
Market Momentum
MACD
0.04
Negative
RSI
68.54
Neutral
STOCH
93.15
Negative
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 1.27 is above the 20-day moving average (MA) of 1.12, above the 50-day MA of 1.00, and above the 200-day MA of 0.83, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 68.54 is Neutral, neither overbought nor oversold. The STOCH value of 93.15 is Negative, 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 0 New Risks

Village Farms International Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
$27.33B15.36-4.01%3.14%1.00%1.98%
VFVFF
59
Neutral
$142.67M-14.58%12.09%-40.10%
53
Neutral
$66.00M-2448.28%41.44%-1.20%
48
Neutral
$7.18M-580.71%-8.72%94.96%
AQAQB
43
Neutral
$2.96M-53.80%-46.91%-174.16%
42
Neutral
$4.70M-59.79%-45.02%-7.27%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
VFF
Village Farms International
1.27
0.31
32.29%
SANW
S&W Seed Company
2.19
-3.05
-58.21%
AQB
AquaBounty Technologies
0.76
-0.93
-55.03%
LOCL
Local Bounti Corporation
3.04
0.28
10.14%
EDBL
Edible Garden AG , Inc.
2.60
-28.15
-91.54%

Village Farms International Corporate Events

Executive/Board ChangesShareholder Meetings
Village Farms International Holds Annual Shareholder Meeting
Neutral
Jun 20, 2025

On June 20, 2025, Village Farms International held its Annual Meeting of Shareholders, where key proposals were voted on. The election of the Board of Directors saw high approval rates, with Kathleen M. Mahoney receiving the highest percentage of votes. The compensation of executive officers was approved on an advisory basis, and KPMG LLP was re-appointed as the independent auditor for the fiscal year ending December 31, 2025.

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.

Delistings and Listing ChangesRegulatory Filings and Compliance
Village Farms Regains Nasdaq Compliance, Secures Listing
Positive
Jun 9, 2025

On June 9, 2025, Village Farms International announced it had regained compliance with Nasdaq’s minimum bid price requirement, closing the matter. This development is significant for the company’s market positioning, as it ensures continued listing on Nasdaq, which can positively impact investor confidence and the company’s future growth strategies.

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.

M&A TransactionsBusiness Operations and Strategy
Village Farms Completes Asset Transaction with Vanguard
Positive
Jun 5, 2025

On May 30, 2025, Village Farms International completed a significant transaction with Vanguard Food and other investors, involving the contribution of its produce business assets to Vanguard. The transaction resulted in Village Farms receiving $40 million and equity in Vanguard, while also entering into several agreements to govern the partnership and ensure continuity of operations. This strategic move positions Village Farms to maintain its market presence without future cash contributions to Vanguard, while retaining rights to expand its greenhouse operations and secure its ownership interests.

The most recent analyst rating on (VFF) stock is a Buy with a $2.50 price target. To see the full list of analyst forecasts on Village Farms International stock, see the VFF Stock Forecast page.

M&A TransactionsBusiness Operations and Strategy
Village Farms Completes Fresh Produce Privatization Shift
Positive
Jun 2, 2025

On May 30, 2025, Village Farms International completed the privatization of its fresh produce business, marking a strategic shift to focus on its cannabis operations. This move positions the company as a global cannabis leader, leveraging its greenhouse facilities and international market presence. The transaction is expected to enhance Village Farms’ financial position and operational focus, with implications for increased market competitiveness and stakeholder value.

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 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
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.Date of analysis: Jul 03, 2025