Taking everything into account, VFF scores 5 out of 10 in our fundamental rating. VFF was compared to 87 industry peers in the Food Products industry. VFF is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. VFF has a decent growth rate and is not valued too expensively.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

VFF had positive earnings in the past year.
In the past year VFF had a positive cash flow from operations.
VFF had negative earnings in 4 of the past 5 years.
In multiple years VFF reported negative operating cash flow during the last 5 years.

1.2 Ratios

VFF's Return On Assets of 5.11% is fine compared to the rest of the industry. VFF outperforms 78.16% of its industry peers.
VFF's Return On Equity of 7.24% is fine compared to the rest of the industry. VFF outperforms 65.52% of its industry peers.
VFF has a Return On Invested Capital (1.37%) which is in line with its industry peers.

		Industry Rank	Sector Rank
ROA	5.11%
ROE	7.24%
ROIC	1.37%

ROA(3y)-12.81%

ROA(5y)-7.35%

ROE(3y)-19.13%

ROE(5y)-10.78%

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

VFF has a Profit Margin of 7.47%. This is amongst the best in the industry. VFF outperforms 82.76% of its industry peers.
The Operating Margin of VFF (2.19%) is comparable to the rest of the industry.
VFF's Gross Margin of 25.34% is fine compared to the rest of the industry. VFF outperforms 60.92% of its industry peers.
VFF's Gross Margin has declined in the last couple of years.

		Industry Rank	Sector Rank
OM	2.19%
PM (TTM)	7.47%
GM	25.34%

OM growth 3YN/A

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y-5.8%

GM growth 5YN/A

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so VFF is destroying value.
The number of shares outstanding for VFF has been increased compared to 1 year ago.
The number of shares outstanding for VFF has been increased compared to 5 years ago.
The debt/assets ratio for VFF is higher compared to a year ago.

2.2 Solvency

An Altman-Z score of 2.55 indicates that VFF is not a great score, but indicates only limited risk for bankruptcy at the moment.
VFF has a Altman-Z score (2.55) which is comparable to the rest of the industry.
The Debt to FCF ratio of VFF is 1.08, which is an excellent value as it means it would take VFF, only 1.08 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of VFF (1.08) is better than 89.66% of its industry peers.
A Debt/Equity ratio of 0.10 indicates that VFF is not too dependend on debt financing.
VFF has a better Debt to Equity ratio (0.10) than 74.71% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.1
Debt/FCF	1.08
Altman-Z	2.55

ROIC/WACC0.18

WACC7.58%

2.3 Liquidity

VFF has a Current Ratio of 2.78. This indicates that VFF is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of VFF (2.78) is better than 81.61% of its industry peers.
A Quick Ratio of 2.17 indicates that VFF has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 2.17, VFF belongs to the best of the industry, outperforming 89.66% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	2.78
Quick Ratio	2.17

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 157.58% over the past year.
VFF shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -12.68%.
VFF shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 18.38% yearly.

EPS 1Y (TTM)157.58%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%900%

Revenue 1Y (TTM)-12.68%

Revenue growth 3Y7.85%

Revenue growth 5Y18.38%

Sales Q2Q%-19.94%

3.2 Future

VFF is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 46.87% yearly.
The Revenue is expected to decrease by -0.01% on average over the next years.

EPS Next Y163.13%

EPS Next 2Y60.25%

EPS Next 3Y46.87%

EPS Next 5YN/A

Revenue Next Year-27.83%

Revenue Next 2Y-13.19%

Revenue Next 3Y-3.38%

Revenue Next 5Y-0.01%

3.3 Evolution

The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 17.79, the valuation of VFF can be described as rather expensive.
The rest of the industry has a similar Price/Earnings ratio as VFF.
VFF is valuated rather cheaply when we compare the Price/Earnings ratio to 28.39, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 18.59, which indicates a rather expensive current valuation of VFF.
62.07% of the companies in the same industry are more expensive than VFF, based on the Price/Forward Earnings ratio.
VFF is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.72, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	17.79
Fwd PE	18.59

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as VFF.
Based on the Price/Free Cash Flow ratio, VFF is valued cheaper than 81.61% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	12.19
EV/EBITDA	15.09

4.3 Compensation for Growth

VFF's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
VFF's earnings are expected to grow with 46.87% in the coming years. This may justify a more expensive valuation.