Vital Farms (VITL) AI Stock Analysis

• Market Cap: $1.37B
• Dividend Yield: N/A
• Average Volume (3M): 1.39M
• Price to Earnings (P/E): 23.2
• Beta (1Y): 0.61
• Revenue Growth: 23.56%
• EPS Growth: 15.06%
• Country: US
• Employees: 598
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Agricultural Farm Products
• EPS (TTM): 0.36
• Shares Outstanding: 44,774,520
• 10 Day Avg. Volume: 1,213,249
• 30 Day Avg. Volume: 1,391,494
• PEG Ratio: 0.29
• Price to Book (P/B): 5.91
• Price to Sales (P/S): 2.63
• P/FCF Ratio: 44.52
• Enterprise Value/Market Cap: 1.36
• Enterprise Value/Revenue: 2.62
• Enterprise Value/Gross Profit: 6.93
• Enterprise Value/Ebitda: 18.63
• 1Y Price Target: $54.63
• Price Target Upside: 65.70% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: $34.00 ▲(3.12% Upside)

Vital Farms' strong financial performance and positive earnings call sentiment are key strengths, driving the overall score. However, technical analysis indicates bearish momentum, and cash flow challenges could impact future growth. The stock's moderate valuation and lack of dividend yield are additional considerations.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for Vital Farms' products, enhancing market position and supporting long-term financial health.

Supply Chain Expansion

Expanding the supply chain ensures capacity to meet growing demand, supporting sustained revenue growth and market expansion.

Financial Position

A strong cash position with no debt enhances financial flexibility, enabling strategic investments and resilience against market fluctuations.

Negative Factors

Cash Flow Challenges

Negative free cash flow can limit the company's ability to invest in growth opportunities and may strain liquidity over time.

Increased Overhead Costs

Rising overhead costs can pressure margins, potentially impacting profitability if not managed effectively in the long term.

Production Slowdown

Production slowdowns, even if temporary, can disrupt supply and affect revenue, highlighting the need for efficient system implementations.

Vital Farms Business Overview & Revenue Model

Company Description

Vital Farms (VITL) is a leading producer of pasture-raised eggs and butter in the United States, focused on providing ethically sourced and high-quality products. The company operates in the food sector, emphasizing sustainable farming practices and animal welfare. Vital Farms is known for its commitment to transparency and traceability, allowing consumers to understand the source of their food. Its core products include pasture-raised eggs, which are sold under the Vital Farms brand, and cultured butter, both of which cater to the growing demand for humane and sustainable food options.

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 shows strong revenue growth and profitability with a solid balance sheet. However, cash flow management is a concern due to 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 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	711.88M	606.31M	471.86M	362.05M	260.90M	214.28M
Gross Profit	269.13M	229.93M	162.33M	109.44M	82.90M	74.53M
EBITDA	100.17M	81.64M	40.91M	8.39M	3.95M	14.69M
Net Income	60.54M	53.39M	25.57M	1.25M	2.43M	8.80M
Balance Sheet
Total Assets	481.50M	359.33M	275.18M	214.67M	189.94M	171.37M
Cash, Cash Equivalents and Short-Term Investments	145.05M	160.29M	116.82M	78.73M	99.59M	97.90M
Total Debt	56.28M	18.71M	22.56M	10.69M	327.00K	798.00K
Total Liabilities	150.29M	90.03M	82.50M	56.33M	38.18M	28.99M
Stockholders Equity	331.22M	269.30M	192.68M	158.33M	151.47M	142.05M
Cash Flow
Free Cash Flow	-19.47M	35.76M	39.37M	-18.66M	971.00K	1.40M
Operating Cash Flow	42.72M	64.41M	50.91M	-8.10M	17.68M	11.70M
Investing Cash Flow	-99.72M	-7.03M	22.38M	-10.04M	-18.44M	-77.84M
Financing Cash Flow	1.26M	9.07M	-2.05M	83.00K	2.18M	94.41M

Vital Farms Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 32.97
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 32.97 is above the 20-day moving average (MA) of 32.47, below the 50-day MA of 36.75, and below the 200-day MA of 37.08, indicating a bearish trend. The MACD of -1.53 indicates Negative momentum. The RSI at 36.33 is Neutral, neither overbought nor oversold. The STOCH value of 33.40 is Neutral, 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	$3.95B	3.13	55.20%	10.50%	65.80%	197.95%
FDP	69 Neutral	$1.74B	22.25	3.95%	3.26%	1.11%	414.23%
VITL	68 Neutral	$1.37B	23.25	20.71%	―	23.56%	15.06%
DOLE	63 Neutral	$1.38B	47.53	8.75%	2.40%	7.09%	-83.75%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
AGRO	52 Neutral	$807.94M	34.60	1.69%	4.36%	-7.37%	-84.53%
LND	48 Neutral	$365.55M	―	-1.12%	3.25%	-3.22%	-108.24%

Vital Farms Corporate Events

Vital Farms Reports Strong Q3 2025 Results

Vital Farms, Inc., a Certified B Corporation, is a leading U.S. brand in the ethically produced food sector, primarily known for its pasture-raised eggs and other dairy products. The company collaborates with a network of family farms to prioritize humane animal treatment and sustainable farming practices.

Vital Farms’ Earnings Call: Record Growth and Raised Guidance

Vital Farms’ recent earnings call revealed a positive sentiment, underscored by record-breaking revenue growth and an expansion in both supply and brand awareness. The company also raised its financial guidance for the year. However, it faced temporary challenges with a production slowdown and increased overhead costs.