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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on VITL

Negative drivers behind Vital Farms' recent performance include a decline in stock price, with shares closing at $32.99 on April 17, indicating a -0.12% move from the prior day's close. Additionally, the company's stock price has been volatile, with a -0.1% shift from the previous trading day on March 19. Furthermore, the recent publication of the 2025 Impact Report on April 16 may have drawn attention away from the company's core business, potentially impacting investor sentiment.

1.c. Company Highlights

2. Vital Farms' Q4 2025 Earnings: Strong Growth and Strategic Investments

Vital Farms reported a robust fourth quarter and full year 2025, with net revenue growing 25.3% to $759.4 million, and Adjusted EBITDA reaching $114 million, up 31.6%. The company's actual EPS came in at $0.35, slightly below estimates of $0.38. The revenue growth was driven by a combination of volume and price increases, with the company gaining 25 basis points of volume share in premium shell egg brands. The Adjusted EBITDA margin expanded to 15%, demonstrating the company's ability to maintain profitability despite a challenging environment.

Publication Date: Mar -08

📋 Highlights
  • Revenue and EBITDA Growth:: Net revenue surged 25.3% to $759.4M, Adjusted EBITDA rose 31.6% to $114M.
  • 2026 Guidance:: Projects $900M–$920M revenue (20%+ growth) and $105M–$115M Adjusted EBITDA, with $140M–$150M in CapEx.
  • Market Share Expansion:: Gained 25 basis points in premium shell egg volume share, outpacing broader market growth.
  • Brand Awareness:: Achieved 34% brand awareness, up 800 basis points YoY, driven by marketing and promotions.
  • Long-Term Targets:: Aims for $2B revenue by 2030, 15–17% EBITDA margin, supported by 600+ small farm partnerships.

Operational Highlights and Guidance

The company successfully completed several major initiatives in 2025, including adding a third production line at ECS, implementing a new ERP system, and transitioning to a new cold storage facility. For 2026, Vital Farms guides for net revenue of $900 million-$920 million, representing over 20% growth, and Adjusted EBITDA of $105 million-$115 million. The company plans to invest $140 million-$150 million in CapEx, focusing on disciplined capital deployment and free cash flow generation.

Growth Prospects and Brand Awareness

Vital Farms has established itself as a leader in the pasture-raised egg category, with brand awareness reaching 34%. The company's efforts to convert awareness into trial and household penetration have been successful, with brand awareness levels up 800 basis points year-over-year. The company's panel data shows positive trends in loyalty and repeat business, indicating a strong brand reputation.

Valuation and Return Metrics

Using the current stock price, the company's P/S Ratio stands at 1.17, while the EV/EBITDA ratio is 7.98. Return metrics such as ROE and ROIC are 20.69% and 15.75%, respectively, indicating a strong ability to generate returns on equity and invested capital. Analysts estimate next year's revenue growth at 18.9%, which is slightly below this year's growth rate but still indicates a strong growth trajectory.

Share Repurchase Program and Capital Allocation

The company has announced a $100 million share repurchase program, its first since the IPO, demonstrating its commitment to creating shareholder value. With a strong balance sheet, featuring over $100 million in cash and no debt, the company is well-positioned to execute on its growth plans while also returning capital to shareholders.

Long-term Targets and Outlook

Vital Farms remains confident in its long-term growth prospects, with a goal of $2 billion in net revenue by 2030, and an EBITDA margin of 15%-17%. The company's pasture-raised category continues to be a strength, with opportunities for incremental growth with partners like Amazon and Whole Foods. The company's focus on building brand awareness and converting it into trial and household penetration is expected to drive long-term growth.

3. NewsRoom

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Vital Farms (VITL) Registers a Bigger Fall Than the Market: Important Facts to Note

Mar -20

Source: zacks.com

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VITL Investor News: If You Have Suffered Losses in Vital Farms, Inc. (NASDAQ: VITL), You Are Encouraged to Contact The Rosen Law Firm About Your Rights

Mar -20

Source: globenewswire.com

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ROSEN, A LONGSTANDING INVESTOR RIGHTS FIRM, Encourages Vital Farms, Inc. Investors to Inquire About Securities Class Action Investigation - VITL

Mar -19

Source: newsfilecorp.com

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VITL Investor News: If You Have Suffered Losses in Vital Farms, Inc. (NASDAQ: VITL), You Are Encouraged to Contact The Rosen Law Firm About Your Rights

Mar -17

Source: globenewswire.com

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Rosen Law Firm Encourages Vital Farms, Inc. Investors to Inquire About Securities Class Action Investigation - VITL

Mar -16

Source: prnewswire.com

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ROSEN, A LEADING INVESTOR RIGHTS LAW FIRM, Encourages Vital Farms, Inc. Investors to Inquire About Securities Class Action Investigation - VITL

Mar -15

Source: newsfilecorp.com

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ROSEN, LEADING INVESTOR COUNSEL, Encourages Vital Farms, Inc. Investors to Inquire About Securities Class Action Investigation - VITL

Mar -13

Source: newsfilecorp.com

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ROSEN, GLOBAL INVESTOR COUNSEL, Encourages Vital Farms, Inc. Investors to Inquire About Securities Class Action Investigation - VITL

Mar -12

Source: newsfilecorp.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (14.95%)

6. Segments

Egg and Egg-related Products

Expected Growth: 15%

Vital Farms, Inc.'s 15% growth in egg and egg-related products is driven by increasing consumer demand for organic and pasture-raised eggs, expanding distribution channels, and strategic partnerships. Additionally, the company's commitment to animal welfare, sustainability, and transparency resonates with environmentally conscious consumers, contributing to its growth momentum.

Butter and Butter-related Products

Expected Growth: 14%

Vital Farms' 14% growth in butter and butter-related products is driven by increasing demand for premium, high-quality, and sustainable dairy products. Consumers are willing to pay a premium for products with humane and environmentally friendly practices, driving sales. Additionally, the company's strong online presence, expanding distribution channels, and innovative product offerings contribute to its growth momentum.

7. Detailed Products

Pasture-Raised Eggs

Vital Farms offers a range of pasture-raised eggs from hens that are raised on small, family-owned farms. These eggs are rich in omega-3 fatty acids and vitamins A and E.

Butter and Ghee

Vital Farms produces high-quality, grass-fed butter and ghee from the milk of pasture-raised cows. These products are rich in nutrients and have a rich, creamy flavor.

Cream and Half-and-Half

Vital Farms offers a range of cream and half-and-half products from the milk of pasture-raised cows. These products are rich in fat and have a rich, creamy flavor.

Grass-Fed Cheese

Vital Farms produces a range of artisanal, grass-fed cheeses from the milk of pasture-raised cows. These cheeses are rich in flavor and nutrients.

8. Vital Farms, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Vital Farms, Inc. operates in the organic dairy products market, which has a moderate threat of substitutes. While there are some substitutes available, such as non-organic dairy products, the company's focus on organic and sustainable products differentiates it from competitors.

Bargaining Power Of Customers

Vital Farms, Inc. has a diverse customer base, including retailers, distributors, and consumers. The company's products are widely available, and customers have limited bargaining power due to the lack of concentration in the market.

Bargaining Power Of Suppliers

Vital Farms, Inc. relies on a network of dairy farmers and suppliers for its organic milk. While the company has some bargaining power due to its scale, suppliers also have some bargaining power due to the limited availability of organic milk.

Threat Of New Entrants

The organic dairy products market has a high threat of new entrants due to the growing demand for organic and sustainable products. New entrants can easily enter the market, and Vital Farms, Inc. faces competition from new and existing players.

Intensity Of Rivalry

The organic dairy products market is highly competitive, with many players competing for market share. Vital Farms, Inc. faces intense competition from established players and new entrants, which can lead to pricing pressure and reduced market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 0.00%
Debt Cost 7.89%
Equity Weight 100.00%
Equity Cost 7.89%
WACC 7.89%
Leverage 0.00%

11. Quality Control: Vital Farms, Inc. passed 7 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
CHS

A-Score: 6.7/10

Value: 6.3

Growth: 5.2

Quality: 3.6

Yield: 10.0

Momentum: 5.0

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
Limoneira

A-Score: 5.0/10

Value: 8.5

Growth: 5.9

Quality: 4.9

Yield: 4.0

Momentum: 0.0

Volatility: 7.0

1-Year Total Return ->

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Stock-Card
Vital Farms

A-Score: 5.0/10

Value: 4.8

Growth: 9.6

Quality: 6.5

Yield: 0.0

Momentum: 6.0

Volatility: 3.3

1-Year Total Return ->

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Stock-Card
Alico

A-Score: 4.9/10

Value: 5.7

Growth: 2.3

Quality: 2.7

Yield: 3.0

Momentum: 8.0

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
Local Bounti

A-Score: 4.6/10

Value: 9.4

Growth: 4.2

Quality: 5.1

Yield: 0.0

Momentum: 8.5

Volatility: 0.3

1-Year Total Return ->

View Full Report
Stock-Card
S&W Seed

A-Score: 2.5/10

Value: 10.0

Growth: 2.0

Quality: 2.2

Yield: 0.0

Momentum: 0.5

Volatility: 0.0

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

14.51$

Current Price

14.51$

Potential

-0.00%

Expected Cash-Flows