Why VITAL FARMS INC (NASDAQ:VITL) Is a Standout High-Growth Stock in a Consolidation Phase.

Exploring Growth Potential: VITAL FARMS INC (NASDAQ:VITL) and Its Base Formation. Growth investors seek promising revenue and EPS growth, and VITAL FARMS INC has come under our scrutiny for potential growth investing. While it's crucial to do your own research, we've detected VITAL FARMS INC on our screen for growth with base formation, suggesting it merits a closer look.

Unpacking VITL's Growth Rating

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. VITL was assigned a score of 9 for growth:

• The Earnings Per Share has grown by an impressive 103.45% over the past year.
• VITL shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 81.54% yearly.
• Looking at the last year, VITL shows a very strong growth in Revenue. The Revenue has grown by 28.51%.
• VITL shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 33.93% yearly.
• Based on estimates for the next years, VITL will show a very strong growth in Earnings Per Share. The EPS will grow by 20.28% on average per year.
• VITL is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 20.73% yearly.

Understanding VITL's Health Score

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For VITL, the assigned 9 for health provides valuable insights:

• An Altman-Z score of 13.07 indicates that VITL is not in any danger for bankruptcy at the moment.
• VITL has a better Altman-Z score (13.07) than 97.73% of its industry peers.
• VITL has a debt to FCF ratio of 0.33. This is a very positive value and a sign of high solvency as it would only need 0.33 years to pay back of all of its debts.
• VITL has a better Debt to FCF ratio (0.33) than 92.05% of its industry peers.
• VITL has a Debt/Equity ratio of 0.03. This is a healthy value indicating a solid balance between debt and equity.
• VITL has a Debt to Equity ratio of 0.03. This is amongst the best in the industry. VITL outperforms 80.68% of its industry peers.
• VITL has a Current Ratio of 3.13. This indicates that VITL is financially healthy and has no problem in meeting its short term obligations.
• With an excellent Current ratio value of 3.13, VITL belongs to the best of the industry, outperforming 84.09% of the companies in the same industry.
• VITL has a Quick Ratio of 2.83. This indicates that VITL is financially healthy and has no problem in meeting its short term obligations.
• VITL has a Quick ratio of 2.83. This is amongst the best in the industry. VITL outperforms 90.91% of its industry peers.

Profitability Examination for VITL

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of VITL, the assigned 9 is noteworthy for profitability:

• With an excellent Return On Assets value of 14.86%, VITL belongs to the best of the industry, outperforming 94.32% of the companies in the same industry.
• VITL's Return On Equity of 19.82% is amongst the best of the industry. VITL outperforms 88.64% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 17.93%, VITL belongs to the top of the industry, outperforming 96.59% of the companies in the same industry.
• The last Return On Invested Capital (17.93%) for VITL is above the 3 year average (10.84%), which is a sign of increasing profitability.
• VITL has a Profit Margin of 8.81%. This is amongst the best in the industry. VITL outperforms 82.95% of its industry peers.
• In the last couple of years the Profit Margin of VITL has grown nicely.
• VITL has a better Operating Margin (10.48%) than 75.00% of its industry peers.
• In the last couple of years the Operating Margin of VITL has grown nicely.
• VITL's Gross Margin of 37.92% is amongst the best of the industry. VITL outperforms 82.95% of its industry peers.
• VITL's Gross Margin has improved in the last couple of years.

How does the Setup look for VITL

ChartMill assigns a Setup Rating to every stock to determine the degree of consolidation. This rating, ranging from 0 to 10, is updated daily and evaluates various short-term technical indicators. VITL currently holds a 7 as its setup rating, suggesting a particular level of consolidation in the stock.

VITL has only a medium technical rating, but it does show a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is a resistance zone just above the current price starting at 33.86. Right above this resistance zone may be a good entry point. Another positive sign is the recent Pocket Pivot signal.

Every day, new Strong Growth stocks can be found on ChartMill in our Strong Growth screener.

Our latest full fundamental report of VITL contains the most current fundamental analsysis.

Check the latest full technical report of VITL for a complete technical analysis.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.