Vital Farms, Inc. cash flow to debt ratio of 63.03% indicates that the company generates enough cash to cover its debts. This level indicates strong financial health.

Vital Farms, Inc.'s free cash flow has decreased 234.87% from $35.76M last year to $-48.23M, signaling decreasing performance

Vital Farms, Inc.'s debt to equity ratio is 0.38, which means that the company's assets are healthy financed, signaling financial stability.

Vital Farms, Inc.'s debt has increased relative to shareholder equity from 0.07 last year to 0.38 today, signaling weakened financials

Vital Farms, Inc. has a net cash position, so leverage is healthy.

Vital Farms, Inc. earns at least as much interest as it pays. Interest obligations are fully covered.

Vital Farms, Inc.'s profit margin has decreased (99.77%) in the last year from 8.81% to 0.02%, signaling decreasing performance

Vital Farms, Inc.'s short-term assets of $262.55M exceed its short-term liabilities of $121.58M

Vital Farms, Inc.'s return on assets of 0.03% is lower than the 5.00% threshold, indicating inefficient asset utilization

Vital Farms, Inc.'s return on equity of 0.05%, is lower than 15.00%, indicating bad performance

Vital Farms, Inc.'s operating cash flow is lower than its net income, indicating that earnings may not be fully backed by cash generation

Vital Farms, Inc. had positive net income in 5 out of 5 years, indicating stable and consistent earnings

Vital Farms, Inc. has negative free cash flow, indicating the company is burning cash rather than generating it

Vital Farms, Inc. has negative free cash flow, indicating cash burn

Vital Farms, Inc.'s yearly earnings has increased 24.15% since last year from $53.39M to $66.28M, signaling increasing performance

Vital Farms, Inc.'s yearly revenue has increased 25.26% since last year from $606.31M to $759.44M, signaling increasing performance

ROIC 0.01% (Source: FMP key-metrics). Below the 5% partial-credit threshold. Score: 0 of 2. The 5% and 10% cutoffs anchor to typical US weighted-average cost of capital. Below 5% indicates the company is not generating returns above its likely cost of capital under this definition of invested capital. Invested capital here includes equity, non-current liabilities (pension obligations, deferred taxes, lease obligations), and short-term debt. Cash is not subtracted. Companies with substantial float, lease portfolios, or cash holdings will score lower under this definition than under narrower operating-capital definitions. See methodology.

Vital Farms, Inc.'s 3-year revenue CAGR of 28.01% is positive, indicating growing revenue over the past 3 years

Vital Farms, Inc. had revenue growth in 5 out of 5 years, indicating consistent revenue performance

Vital Farms, Inc. had positive ROE in 5 out of 5 years, indicating consistent and reliable returns on equity

Vital Farms, Inc. has insufficient data to evaluate this check.

Vital Farms, Inc. has an earnings yield of 0.03%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings

Vital Farms, Inc. is undervalued relative to its fair value price of 16.46 based on EBITDA multiple model

Vital Farms, Inc. has an EV/EBITDA ratio of 3.96x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

Vital Farms, Inc. is undervalued relative to its fair value price of 22.15 based on Earnings Fair Value model

Vital Farms, Inc. has a PEG-ratio over 1 which is considered overvalued

Vital Farms, Inc. has a price-to-book ratio of 1.70x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

Vital Farms, Inc. has a price-to-sales ratio of 0.63x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue