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1. Company Snapshot

1.a. Company Description

The Vita Coco Company, Inc.develops, markets, and distributes coconut water products under the Vita Coco brand name in the United States, Canada, Europe, the Middle East, and the Asia Pacific.The company offers coconut oil and coconut milk; Hydration Drink Mix, a powdered form of flavored coconut water; sparkling water; Runa, a plant-based energy drink; purified water under the Ever & Ever brand name; and PWR LIFT, a protein-infused fitness drink.


It distributes its products through club, food, drug, mass, convenience, e-commerce, and foodservice channels.In addition, the company supplies coconut water and coconut oil categories to retailers.The company was formerly known as All Market Inc.


and changed its name to The Vita Coco Company, Inc.in September 2021.The Vita Coco Company, Inc.was founded in 2004 and is headquartered in New York, New York.

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1.b. Last Insights on COCO

The recent stock performance of The Vita Coco Company, Inc. was negatively driven by a decline in market sentiment. Despite strong Q4 earnings and revenue beat, the company's stock has underperformed the market. However, the Q4 earnings release showed a positive surprise with earnings per share of $0.12, beating the consensus estimate of $0.08.

1.c. Company Highlights

2. Vita Coco's Strong Q3 Earnings Beat Expectations

Vita Coco reported a robust third quarter, with net sales reaching $182 million, a 37% year-over-year increase. The company's gross profit was $69 million, up $17 million from the prior year, while gross margins finished at 38%, down 110 basis points from the previous year. Earnings per share (EPS) came in at $0.4, surpassing estimates of $0.32. The strong performance was driven by the growth of Vita Coco Coconut Water, which rose 42% year-over-year, and improved inventory position. As Corey Baker noted, "Consolidated gross profit was $69 million, an increase of $17 million versus the prior year."

Publication Date: Nov -29

📋 Highlights
  • Net Sales Growth:: Q3 net sales increased 37% YoY to $182 million, driven by 42% growth in Vita Coco Coconut Water and 6% in private label.
  • Geographic Retail Growth:: Vita Coco Coconut Water grew 21% in the U.S., 32% in the U.K., and over 200% in Germany, reflecting strong international expansion.
  • Tariff Impact:: Brazil tariffs are expected to cost $14–$16 million in 2025, with a blended 23% rate in 2026, but mitigated by pricing increases and logistics cost reductions.
  • Full-Year Guidance Raised:: Net sales guidance lifted to $580–$595 million for 2025, with gross margins projected at ~36% despite rising costs.
  • Financial Position:: Consolidated gross profit rose to $69 million (+$17M YoY), and cash balance exceeds $200 million, supporting M&A, innovation, and buybacks.

Revenue Growth Drivers

The company's revenue growth was driven by strong retail performance, with Vita Coco Coconut Water growing 21% in retail dollars in the U.S., 32% in the U.K., and over 200% in Germany. The growth was also fueled by the impact of two price increases taken in the U.S. this year and strong volume growth. The company's private label business also saw a 6% growth, despite challenging timing of private label sales.

Tariff Impact and Mitigation

Vita Coco is closely monitoring the impact of tariffs on its business, with a blended tariff rate of 23% expected in 2026. The company is working to mitigate the impact of tariffs, including efforts to exclude coconut water from tariffs and rerouting shipments. According to Martin Roper, "We're working to exclude coconut water from tariffs like other coconut products." The company expects a $14-16 million tariff impact this year, with a significant increase expected in 2026.

Valuation and Growth Expectations

Given the company's strong performance and growth prospects, its valuation metrics appear reasonable. The P/E Ratio stands at 43.9, while the P/S Ratio is 4.99. The company's ROE is 23.9%, indicating a strong return on equity. Analysts estimate next year's revenue growth at 13.7%, which suggests a continued strong performance. With a cash balance of over $200 million, the company is well-positioned to invest in growth initiatives and return value to shareholders.

Future Outlook

Vita Coco is confident in its ability to execute and deliver its plans for the balance of 2025 and 2026. The company is raising its full-year net sales guidance to between $580 million and $595 million and expects full-year gross margins of approximately 36%. With a strong brand and healthy category, the company is well-positioned for continued growth and success.

3. NewsRoom

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Buy These 3 Consumer Staple Stocks to Navigate Market Volatility

Dec -02

Source: zacks.com

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Coca-Cola vs Vita Coco: Who Will Dominate Better-For-You Drinks Race?

Nov -27

Source: zacks.com

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Low-Beta Winners: Why USAC, COCO, NGS & AEM are Must-Buy Stocks Now

Nov -26

Source: zacks.com

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Rare Bullish Signals Send Vita Coco Shares Higher

Nov -26

Source: fxempire.com

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Overlooked Stock: COCO Charges to New High

Nov -24

Source: youtube.com

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Envestnet Asset Management Inc. Increases Stake in Vita Coco Company, Inc. $COCO

Nov -21

Source: defenseworld.net

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Artisan Partners Limited Partnership Trims Stock Position in Vita Coco Company, Inc. $COCO

Nov -21

Source: defenseworld.net

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Breakfast News: Bitcoin Falls Below $90k

Nov -18

Source: fool.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.63%)

6. Segments

Americas

Expected Growth: 7.5%

Vita Coco's 7.5% growth in Americas is driven by increasing demand for healthy beverages, expanding distribution channels, and growing popularity of coconut water. Strong brand recognition, innovative products, and effective marketing strategies also contribute to the growth. Additionally, the company's focus on e-commerce and digital sales has helped to boost revenue in the region.

International

Expected Growth: 8.5%

Vita Coco's international segment growth of 8.5% is driven by increasing demand for healthy beverages, expansion into new markets, and strategic partnerships. Growing middle-class populations in emerging markets, such as Asia and Latin America, are driving demand for coconut water and other natural beverages. Vita Coco's strong brand recognition and distribution network are also key contributors to its international growth.

7. Detailed Products

Coconut Water

A natural, electrolyte-rich beverage that helps replenish fluids and rehydrate the body

Coconut Oil

A premium, cold-pressed oil for cooking, beauty, and wellness uses

Coconut Milk

A creamy, dairy-free alternative for cooking, baking, and smoothies

Coconut Water with a Twist

Flavored coconut water with natural essences and no added sugars

Coconut Oil Capsules

A convenient, supplement form of coconut oil for digestive health and wellness

8. The Vita Coco Company, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Vita Coco is medium because while there are some substitutes available in the market, they are not very close to coconut water in terms of taste, nutrition, and convenience.

Bargaining Power Of Customers

The bargaining power of customers is low because Vita Coco has a strong brand image and customer loyalty, making it difficult for customers to negotiate prices or demand better services.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium because while Vita Coco has some control over its supply chain, it still relies on a few large suppliers for its coconut water, giving them some bargaining power.

Threat Of New Entrants

The threat of new entrants is high because the coconut water market is growing rapidly, and new companies are entering the market, attracted by the high demand and profit margins.

Intensity Of Rivalry

The intensity of rivalry is high because the coconut water market is highly competitive, with many established brands competing for market share, and new entrants increasing competition.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 0.60%
Debt Cost 3.95%
Equity Weight 99.40%
Equity Cost 4.79%
WACC 4.79%
Leverage 0.60%

11. Quality Control: The Vita Coco Company, Inc. passed 8 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
National Beverage

A-Score: 5.5/10

Value: 4.0

Growth: 5.6

Quality: 7.8

Yield: 5.0

Momentum: 2.0

Volatility: 8.3

1-Year Total Return ->

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SpartanNash

A-Score: 5.3/10

Value: 7.3

Growth: 3.3

Quality: 2.1

Yield: 7.0

Momentum: 8.5

Volatility: 3.3

1-Year Total Return ->

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Stock-Card
Vita Coco

A-Score: 5.2/10

Value: 1.6

Growth: 7.7

Quality: 7.8

Yield: 0.0

Momentum: 9.5

Volatility: 4.7

1-Year Total Return ->

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Zevia

A-Score: 4.9/10

Value: 8.0

Growth: 5.0

Quality: 4.5

Yield: 0.0

Momentum: 10.0

Volatility: 1.7

1-Year Total Return ->

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Mama's Creations

A-Score: 4.6/10

Value: 0.6

Growth: 8.8

Quality: 5.9

Yield: 0.0

Momentum: 8.5

Volatility: 3.7

1-Year Total Return ->

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Lifeway Foods

A-Score: 4.2/10

Value: 2.2

Growth: 8.2

Quality: 6.2

Yield: 0.0

Momentum: 5.0

Volatility: 3.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

54.56$

Current Price

54.56$

Potential

-0.00%

Expected Cash-Flows