Vital Farms (VITL) AI Stock Analysis

• Market Cap: $1.74B
• Dividend Yield: N/A
• Average Volume (3M): 813.23K
• Price to Earnings (P/E): 34.8
• Beta (1Y): 0.52
• Revenue Growth: 23.96%
• EPS Growth: 30.96%
• Country: US
• Employees: 598
• Sector: Consumer Defensive
• Sector Strength: 53
• Industry: Agricultural Farm Products
• EPS (TTM): 0.37
• Shares Outstanding: 44,552,307
• 10 Day Avg. Volume: 736,400
• 30 Day Avg. Volume: 813,228
• PEG Ratio: -10.41
• Price to Book (P/B): 3.97
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -33.73
• Enterprise Value/Market Cap: 0.36
• Enterprise Value/Revenue: 0.27
• Enterprise Value/Gross Profit: 2.68
• Enterprise Value/Ebitda: 2.07
• 1Y Price Target: $43.78
• Price Target Upside: 12.52% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12

• Rating: 74 Outperform
• Price Target: $44.00 ▲(13.08%Upside)

Vital Farms achieves a solid overall stock score of 74, driven by strong financial performance and strategic board changes. Technical and valuation concerns slightly temper the outlook, with potential risks from supply constraints and tariffs highlighted in the earnings call.

Positive Factors

Financial Performance

Vital Farms achieved a significant EBITDA beat of approximately 30%, indicating strong financial performance.

Growth Potential

Vital Farms is strongly positioned for the structural growth of protein consumption and premiumization of the eggs category.

Market Expansion

There is high confidence that Vital Farms can expand its market share of specialty eggs while maintaining strong EBITDA margins.

Negative Factors

Economic Conditions

The negative stock reaction is attributed to concerns that their price increase implies weaker volume, especially given the risk of economic recession and competition from normalizing supplies of conventional eggs.

Market Concerns

The company's shares fell by 9% despite strong first-quarter results, indicating market concerns.

Supply Constraints

Vital Farms is experiencing supply constraints and is operating with little to no inventory due to ongoing demand that peers have been unable to meet.

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 pasture-raised eggs and butter. The company partners with family-owned farms to produce these products, which are then distributed to a wide range of retail channels, including grocery chains, natural food stores, and direct-to-consumer platforms. Vital Farms capitalizes on the growing consumer demand for ethically sourced and sustainably produced food products. The company also benefits from strategic partnerships with retailers and distributors, which help expand its market reach and brand visibility. Additionally, Vital Farms' focus on transparency and quality assurance supports its premium pricing strategy, contributing to its profitability.

Vital Farms Financial Statement Overview

Summary

Vital Farms demonstrates strong financial health with consistent revenue growth, low leverage, and effective use of equity. A dip in free cash flow presents a challenge, but overall operational performance remains robust.

Income Statement

Vital Farms shows robust revenue growth with a TTM revenue of $620.57 million, up from $606.31 million, reflecting a healthy growth trajectory. The Gross Profit Margin remains strong at 37.65%, and the Net Profit Margin is also commendable at 8.26%, although slightly down from the previous year. EBIT and EBITDA margins are stable, showcasing operational efficiency.

Balance Sheet

The company's Debt-to-Equity Ratio is low at 0.07, indicating low leverage, which is favorable for financial stability. The Return on Equity (ROE) is healthy at 17.75%, showing effective use of equity. The Equity Ratio stands strong at 76.64%, underscoring a solid equity base relative to assets.

Cash Flow

Vital Farms experienced a decrease in Free Cash Flow from $36.18 million to $15.70 million, indicating a challenge in cash generation. However, the Operating Cash Flow to Net Income Ratio is solid at 0.90, suggesting good conversion of income to cash. The Free Cash Flow to Net Income Ratio is moderate at 0.31.

Breakdown	TTM	Dec 2024	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement
Total Revenue	620.57M	606.31M	362.05M	260.90M	214.28M	140.73M
Gross Profit	233.54M	229.93M	109.44M	82.90M	74.53M	42.88M
EBITDA	81.39M	81.64M	8.39M	3.95M	14.69M	6.69M
Net Income	51.27M	53.39M	1.25M	2.43M	8.80M	2.38M
Balance Sheet
Total Assets	376.89M	359.33M	214.67M	189.94M	171.37M	61.95M
Cash, Cash Equivalents and Short-Term Investments	161.33M	160.29M	78.73M	99.59M	97.90M	1.27M
Total Debt	19.20M	18.71M	10.69M	327.00K	798.00K	6.30M
Total Liabilities	87.98M	90.03M	56.33M	38.18M	28.99M	30.10M
Stockholders Equity	288.90M	269.30M	158.33M	151.47M	142.05M	31.59M
Cash Flow
Free Cash Flow	15.70M	36.18M	-18.66M	-386.00K	1.40M	-10.15M
Operating Cash Flow	46.15M	64.82M	-8.10M	16.32M	11.70M	-5.35M
Investing Cash Flow	-12.45M	-7.03M	-10.04M	-17.08M	-77.84M	-5.62M
Financing Cash Flow	8.79M	8.65M	83.00K	2.18M	94.41M	434.00K

Vital Farms Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 38.91
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 38.91 is above the 20-day moving average (MA) of 36.65, above the 50-day MA of 34.77, and above the 200-day MA of 35.22, indicating a bullish trend. The MACD of 1.57 indicates Negative momentum. The RSI at 66.00 is Neutral, neither overbought nor oversold. The STOCH value of 68.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	$5.46B	5.06	48.27%	13.60%	60.00%	259.01%
VITL	74 Outperform	$1.74B	34.79	20.42%	―	23.96%	30.96%
FDP	72 Outperform	$1.58B	10.78	7.51%	3.64%	-0.64%	―
DOLE	72 Outperform	$1.33B	14.20	8.87%	2.43%	0.91%	-49.71%
BG	69 Neutral	$10.19B	9.61	10.36%	3.70%	-10.90%	-36.54%
AGRO	67 Neutral	$932.94M	14.90	4.51%	3.75%	17.05%	-73.53%
Sector *	65 Neutral	$26.88B	15.20	-4.27%	3.19%	1.02%	1.89%

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.

The most recent analyst rating on (VITL) stock is a Hold with a $39.00 price target. To see the full list of analyst forecasts on Vital Farms stock, see the VITL Stock Forecast page.

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.

The most recent analyst rating on (VITL) stock is a Hold with a $39.00 price target. To see the full list of analyst forecasts on Vital Farms stock, see the VITL Stock Forecast page.