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Village Farms International (Otc) (VFF)
:VFF
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Village Farms International (VFF) AI Stock Analysis

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VFF

Village Farms International

(NASDAQ:VFF)

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Neutral 54 (OpenAI - 4o)
Rating:54Neutral
Price Target:
$3.00
▼(-1.96% Downside)
Village Farms International's overall stock score is driven by a positive earnings call that highlights strong profitability and strategic growth plans. However, mixed financial performance and high valuation concerns weigh on the score. Technical indicators suggest a neutral market outlook.

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 agricultural company focused on the production and distribution of high-quality, greenhouse-grown produce. With a commitment to sustainable farming practices, the company operates in the sectors of fresh produce, including tomatoes, cucumbers, and bell peppers, as well as cannabis cultivation. Village Farms is known for leveraging advanced greenhouse technology to enhance crop yield and quality, serving both domestic and international markets.
How the Company Makes MoneyVillage Farms International generates revenue primarily through the sale of its greenhouse-grown produce, which includes a variety of high-demand vegetables and fruits. The company has established distribution channels that allow it to supply products to major retailers and grocery chains across North America. Additionally, Village Farms has ventured into the cannabis sector, where it cultivates and sells cannabis products, contributing to its diversified revenue streams. Key partnerships with retail distributors and other agricultural firms enhance its market reach and operational efficiency. The company's focus on innovation and sustainable practices also positions it favorably in a competitive market, driving profitability.

Village Farms International Earnings Call Summary

Earnings Call Date:Aug 11, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 10, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant achievements in profitability and international sales growth, strategic partnerships, and expansion plans in the Netherlands and Canada. Despite challenges in the U.S. cannabis market and constraints on meeting demand, the overall sentiment is positive due to the company's strong financial performance and strategic positioning.
Q2-2025 Updates
Positive Updates
Record Profitability and Revenue Growth
Village Farms reported record levels of profitability, with consolidated sales increasing by 12% year-over-year. Consolidated net income from continuing operations improved to $9.9 million, or $0.09 per share. Adjusted EBITDA from continuing operations was $17.1 million, reflecting a record performance and improved sustainability.
Transformational Quarter with Strategic Partnerships
The company announced and quickly closed a transaction to privatize about one-third of its produce assets, forming a new partnership with proven private investment partners. This transaction generated $40 million in cash proceeds, strengthening the balance sheet.
International Cannabis Sales Surge
International exports increased almost 700% year-over-year and were up over 120% sequentially from the first quarter. The company has achieved its full-year target of tripling 2024 international export sales at the halfway point of the year.
Expansion in the Netherlands and Canada
The company announced the conversion of the remaining 550,000 square feet of its Delta 2 greenhouse in British Columbia to cannabis cultivation, with an expected full production by the first quarter of 2027. Additionally, the Phase 2 facility in the Netherlands is expected to be operational during the first quarter of next year, quadrupling annual production capacity.
Successful Market Penetration in the Netherlands
The company now has product in 66 of the 80 participating coffee shops, reflecting a market penetration of 82.5% in the Netherlands.
Negative Updates
U.S. Cannabis Business Challenges
The U.S. cannabis business continues to face challenges due to various state actions restricting all intoxicating hemp-based products, resulting in a small positive adjusted EBITDA despite improved gross margins.
Constraints on Meeting Demand
The company is currently unable to fulfill all its commitments, leaving approximately $50 million of revenue on the table due to limitations in supply capacity.
Company Guidance
During the Village Farms International Second Quarter 2025 Financial Results Call, the company highlighted its transformational quarter with record profitability and strong growth, particularly in its global cannabis operations. Key metrics reported include a 12% year-over-year increase in consolidated sales to $59.9 million, and a significant improvement in net income from continuing operations to $9.9 million, or $0.09 per share. Adjusted EBITDA from continuing operations reached a record $17.1 million, or approximately 29% of sales, with an adjusted EBITDA margin up over 2,300 basis points. The Canadian cannabis segment saw a 10% sales increase to CAD 61.4 million, with international exports up 690% year-over-year. The gross margin for Canadian cannabis improved to 39%, at the top of their target range. The company also completed a transaction generating $40 million in cash proceeds, further strengthening their balance sheet to support growth investments.

Village Farms International Financial Statement Overview

Summary
Village Farms International shows a mixed financial performance. Improvements in profitability and leverage are offset by challenges in revenue growth and cash flow generation. The balance sheet is strong, but operational inefficiencies and declining sales are concerns.
Income Statement
45
Neutral
The income statement shows a mixed performance. The TTM gross profit margin improved to 23.94% from 14.10% in the previous year, indicating better cost management. However, the net profit margin is low at 4.40%, and revenue has declined by 12.07% in the TTM, reflecting challenges in maintaining sales growth. The EBIT margin remains negative, highlighting ongoing operational inefficiencies.
Balance Sheet
60
Neutral
The balance sheet is relatively stable with a low debt-to-equity ratio of 0.13 in the TTM, suggesting conservative leverage. Return on equity improved to 3.90% in the TTM from negative figures, indicating better profitability. The equity ratio is healthy, showing a strong equity base relative to total assets.
Cash Flow
40
Negative
Cash flow analysis reveals weaknesses, with a significant decline in free cash flow growth by 346.18% in the TTM. The operating cash flow to net income ratio is 0.52, indicating moderate cash generation relative to earnings. The free cash flow to net income ratio is 0.61, suggesting some challenges in converting earnings into free cash flow.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue235.24M336.18M285.60M293.57M268.02M170.09M
Gross Profit56.32M47.40M49.43M27.50M45.18M10.96M
EBITDA10.60M-15.09M-6.80M-77.55M-1.21M16.81M
Net Income10.35M-35.85M-31.80M-98.75M-8.82M11.61M
Balance Sheet
Total Assets403.74M389.31M466.99M465.29M566.91M354.03M
Cash, Cash Equivalents and Short-Term Investments59.99M24.63M30.29M16.68M53.42M21.64M
Total Debt35.97M55.63M65.50M70.75M77.27M85.39M
Total Liabilities109.55M125.35M148.05M145.29M142.07M148.75M
Stockholders Equity284.34M254.00M302.63M303.06M408.40M205.28M
Cash Flow
Free Cash Flow16.55M107.00K-1.20M-34.18M-61.22M2.17M
Operating Cash Flow27.00M10.35M5.32M-19.89M-39.57M5.68M
Investing Cash Flow28.75M-10.24M-6.23M-20.90M-63.47M-51.23M
Financing Cash Flow-12.79M-9.53M14.14M4.50M135.88M58.61M

Village Farms International Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price3.06
Price Trends
50DMA
2.98
Negative
100DMA
2.36
Positive
200DMA
1.58
Positive
Market Momentum
MACD
>-0.01
Positive
RSI
46.21
Neutral
STOCH
26.56
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 3.06 is below the 20-day moving average (MA) of 3.16, above the 50-day MA of 2.98, and above the 200-day MA of 1.58, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 46.21 is Neutral, neither overbought nor oversold. The STOCH value of 26.56 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

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
62
Neutral
$20.33B14.63-3.31%3.23%1.93%-12.26%
58
Neutral
$249.43M-4.88%2.16%-14.97%-278.36%
55
Neutral
$369.88M15.126.28%3.32%0.32%-42.97%
54
Neutral
$334.55M32.46-2.13%-3.53%
50
Neutral
$251.88M-82.35%0.61%-4.72%-700.99%
43
Neutral
$55.75M-0.1839.74%16.76%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
VFF
Village Farms International
2.96
2.18
279.49%
ALCO
Alico
32.94
6.41
24.16%
LMNR
Limoneira Co
13.89
-14.07
-50.32%
AFRI
Forafric Global
9.41
-1.13
-10.72%
LND
BrasilAgro Cia Brasileira de Propriedades Agricolas
3.66
-0.31
-7.81%
LOCL
Local Bounti Corporation
2.67
0.27
11.25%

Village Farms International Corporate Events

Business Operations and StrategyExecutive/Board Changes
Village Farms International Appoints New Chief Information and Technology Officer
Positive
Nov 6, 2025

Village Farms International has appointed Brian Ellis as the Chief Information and Technology Officer, a newly created role to support the company’s global expansion and transformation initiatives. With over 25 years of IT experience, Ellis is expected to enhance the company’s capabilities, particularly in managing the complexities of its global supply chain, as Village Farms continues to scale its operations and explore new markets in the cannabis industry.

The most recent analyst rating on (VFF) stock is a Hold with a $3.50 price target. To see the full list of analyst forecasts on Village Farms International stock, see the VFF Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Village Farms to Announce Q3 2025 Financial Results and Host Conference Call
Positive
Oct 26, 2025

Village Farms International announced it will release its third quarter 2025 financial results on November 10, 2025, followed by a conference call for analysts. The company continues to strengthen its position in the cannabis industry, leveraging its extensive greenhouse capacity in Canada and expanding its international reach. This announcement underscores Village Farms’ strategic focus on growth within the cannabis sector and its commitment to investor engagement.

The most recent analyst rating on (VFF) stock is a Hold with a $3.50 price target. To see the full list of analyst forecasts on Village Farms International stock, see the VFF Stock Forecast page.

Business Operations and StrategyStock Buyback
Village Farms Announces $10 Million Share Buyback
Positive
Sep 29, 2025

On September 29, 2025, Village Farms International announced a $10 million share buyback program authorized by its Board of Directors, allowing for the repurchase of up to 5,687,000 common shares. This move reflects the company’s confidence in its financial strength and aims to create long-term value for shareholders. The repurchase will be funded from existing cash and future cash flows, complementing ongoing growth initiatives in Canada and the Netherlands. The program’s execution will depend on market conditions and other factors, with no obligation to acquire a specific amount of shares.

The most recent analyst rating on (VFF) stock is a Hold with a $3.00 price target. To see the full list of analyst forecasts on Village Farms International stock, see the VFF Stock Forecast page.

Village Farms International Reports Record Profitability and Growth
Sep 1, 2025

Village Farms International’s recent earnings call painted a positive picture, highlighting significant achievements in profitability and international sales growth. The company showcased strategic partnerships and expansion plans in the Netherlands and Canada, despite facing challenges in the U.S. cannabis market and constraints on meeting demand. Overall, the sentiment was optimistic, driven by strong financial performance and strategic positioning.

Village Farms International Reports Record Q2 Profitability
Aug 12, 2025

Village Farms International, Inc. is a vertically-integrated supplier of plant-based consumer packaged goods, focusing on high-growth cannabinoid opportunities internationally, with a strong foundation in controlled environment agriculture.

Business Operations and StrategyFinancial Disclosures
Village Farms International Achieves Record Q2 Profitability Amid Strategic Expansion
Positive
Aug 11, 2025

Village Farms International reported record profitability in Q2 2025, with significant improvements in income and EBITDA from continuing operations. The company’s strategic initiatives, including the privatization of certain produce assets and expansion into international markets, have positioned it for continued growth. The successful alignment of its product portfolio towards higher-margin SKUs and the expansion projects in Canada and the Netherlands are expected to drive further profitability. The company is benefiting from global trends in cannabis regulation and aims to leverage its strong balance sheet for future growth investments.

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.

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: Nov 07, 2025