Vital Farms (VITL) AI Stock Analysis

• Market Cap: $1.87B
• Dividend Yield: N/A
• Average Volume (3M): 1.08M
• Price to Earnings (P/E): 36.2
• Beta (1Y): 0.77
• Revenue Growth: 21.49%
• EPS Growth: 4.13%
• Country: US
• Employees: 598
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Agricultural Farm Products
• EPS (TTM): 0.36
• Shares Outstanding: 44,685,980
• 10 Day Avg. Volume: 902,073
• 30 Day Avg. Volume: 1,078,882
• PEG Ratio: 0.29
• Price to Book (P/B): 5.91
• Price to Sales (P/S): 2.63
• P/FCF Ratio: 44.01
• Enterprise Value/Market Cap: 0.88
• Enterprise Value/Revenue: 2.49
• Enterprise Value/Gross Profit: 6.63
• Enterprise Value/Ebitda: 19.49
• 1Y Price Target: $53.60
• Price Target Upside: 31.18% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11

• Rating: 67 Neutral
• Price Target: $44.00 ▲(7.68% Upside)

Vital Farms' strong financial performance and positive earnings call guidance are offset by technical analysis indicators suggesting bearish momentum and valuation concerns due to a high P/E ratio. The company's cash flow challenges and increased capital expenditures also weigh on the overall score.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for Vital Farms' products and effective pricing strategies, supporting long-term expansion.

Market Position

Expanding farm partnerships enhances supply chain resilience and strengthens Vital Farms' market position in sustainable food production.

Board Expertise

Adding experienced leadership to the board can drive strategic growth and improve governance, enhancing long-term company value.

Negative Factors

Cash Flow Management

Poor cash flow management may hinder future investments and operational flexibility, posing risks to long-term financial health.

Internal Controls

Weak internal controls can lead to financial inaccuracies and regulatory issues, impacting investor confidence and operational integrity.

Capital Expenditures

Increased capital spending may strain financial resources, affecting cash reserves and potentially leading to higher debt levels.

Vital Farms Business Overview & Revenue Model

Company Description

Vital Farms, Inc., an ethical food company, provides pasture-raised products in the United States. It offers shell eggs, butter, hard-boiled eggs, ghee, liquid whole eggs, and egg bite products. Vital Farms, Inc. was founded in 2007 and is headquartered in Austin, Texas.

How the Company Makes Money

Vital Farms generates revenue primarily through the sale of its pasture-raised eggs and butter products. The company markets its products to a diverse array of retail channels, including grocery stores, specialty food retailers, and online platforms. Key revenue streams include direct sales to consumers and partnerships with major retailers that emphasize ethical sourcing. Additionally, Vital Farms benefits from brand loyalty and a premium pricing strategy, capitalizing on the increasing consumer demand for organic and humanely raised food products. The company's commitment to sustainability and animal welfare enhances its market position, allowing it to attract and retain customers willing to pay a premium for quality and ethics.

Vital Farms Financial Statement Overview

Summary

Vital Farms demonstrates strong revenue growth and profitability, supported by a solid balance sheet with low leverage. However, cash flow management remains a concern, with negative free cash flow growth and insufficient operating cash flow coverage.

Income Statement

Vital Farms has shown consistent revenue growth, with a TTM revenue growth rate of 6.02%. The company maintains strong profitability with a gross profit margin of 37.64% and a net profit margin of 7.84% in the TTM. The EBIT and EBITDA margins are also healthy at 11.02% and 12.80%, respectively, indicating efficient operations. However, the slight decline in net profit margin from the previous year suggests potential cost pressures.

Balance Sheet

The company has a strong balance sheet with a low debt-to-equity ratio of 0.06, indicating low financial leverage. The return on equity is robust at 18.39%, reflecting effective use of equity to generate profits. The equity ratio stands at 71.91%, showcasing a solid equity base. However, the slight increase in debt levels compared to the previous period could be monitored for future leverage trends.

Cash Flow

Vital Farms faces challenges in cash flow management, with a negative free cash flow growth rate of -115.74% in the TTM. The operating cash flow to net income ratio is 0.26, suggesting that operating cash flows are not fully covering net income. The negative free cash flow to net income ratio indicates that the company is not generating sufficient free cash flow relative to its net income, which could impact future investments or debt repayments.

Breakdown	TTM	Dec 2024	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement
Total Revenue	657.95M	606.31M	362.05M	260.90M	214.28M	140.73M
Gross Profit	247.65M	229.93M	109.44M	82.90M	74.53M	42.88M
EBITDA	84.19M	81.64M	8.39M	3.95M	14.69M	6.69M
Net Income	51.56M	53.39M	1.25M	2.43M	8.80M	2.38M
Balance Sheet
Total Assets	430.75M	359.33M	214.67M	189.94M	171.37M	61.95M
Cash, Cash Equivalents and Short-Term Investments	155.00M	160.29M	78.73M	99.59M	97.90M	1.27M
Total Debt	17.59M	18.71M	10.69M	327.00K	798.00K	6.30M
Total Liabilities	120.97M	90.03M	56.33M	38.18M	28.99M	30.10M
Stockholders Equity	309.78M	269.30M	158.33M	151.47M	142.05M	31.59M
Cash Flow
Free Cash Flow	-2.47M	36.18M	-18.66M	-386.00K	1.40M	-10.15M
Operating Cash Flow	29.25M	64.82M	-8.10M	16.32M	11.70M	-5.35M
Investing Cash Flow	-58.69M	-7.03M	-10.04M	-17.08M	-77.84M	-5.62M
Financing Cash Flow	4.48M	8.65M	83.00K	2.18M	94.41M	434.00K

Vital Farms Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 40.86
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VITL, the sentiment is Negative. The current price of 40.86 is below the 20-day moving average (MA) of 47.26, below the 50-day MA of 44.59, and above the 200-day MA of 37.75, indicating a neutral trend. The MACD of -1.03 indicates Positive momentum. The RSI at 32.70 is Neutral, neither overbought nor oversold. The STOCH value of 5.45 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VITL.

Vital Farms Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CALM	84 Outperform	4.71B	3.90	―	8.53%	83.19%	339.22%
FDP	71 Outperform	1.67B	11.15	7.30%	3.35%	1.41%	―
LND	71 Outperform	380.53M	15.90	―	6.49%	0.32%	-42.97%
VITL	67 Neutral	$1.87B	36.23	18.81%	―	21.49%	4.13%
DOLE	62 Neutral	1.27B	53.59	1.75%	2.51%	4.75%	-88.74%
AGRO	59 Neutral	824.94M	23.08	2.60%	4.32%	19.45%	-82.38%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Vital Farms Corporate Events

Vital Farms Appoints William Cyr to Board of Directors

On June 29, 2025, Vital Farms‘ Board of Directors expanded from eight to nine members and appointed William Cyr to the Board and Audit Committee, effective July 1, 2025. Cyr, an experienced executive in the consumer packaged goods industry, brings over 40 years of expertise, including his role as CEO of Freshpet, Inc. His appointment is expected to enhance Vital Farms’ mission to become America’s most trusted food company, as he brings valuable insights to the board. Cyr’s addition to the board reflects the company’s commitment to growth and stakeholder value, with implications for strengthening its industry positioning.

Vital Farms Stockholders Approve Key Governance Proposals

On June 11, 2025, Vital Farms, Inc. held its annual meeting of stockholders where several key proposals were voted on. The stockholders elected three directors to serve until 2028, ratified KPMG LLP as the independent auditor for 2025, approved executive compensation, preferred annual advisory votes on executive compensation, and approved an Officer Exculpation Amendment. These decisions reflect the company’s ongoing governance and operational strategies.