Vital Farms, Inc. (VITL) | Investment Case

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.

Show Full description

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

Last Price	31.73
Change Percentage	0.86%
Open	32.19
Previous Close	31.46
Market Cap ( Millions)	1421
Volume	1722808
Year High	53.12
Year Low	28.87
M A 50	36.55
M A 200	37.06

FCF Yield	-1.37%
Dividend Yield	0.00%
ROE	20.19%
Debt / Equity	16.99%
Net Debt / EBIDTA	-37.45%
Price To Book	4.28
Price Earnings Ratio	23.44
Price To FCF	-72.95
Price To sales	2.0
EV / EBITDA	13.81

2. Vital Farms' Q3 2025 Earnings: A Strong Quarter with Record Financial Results

Vital Farms delivered a robust third quarter with net revenue reaching $198.9 million, a 37.2% increase from the prior-year period. Gross margin came in at 37.7%, and adjusted EBITDA was $27.4 million, an 81.3% increase compared to the same period last year. Earnings per share (EPS) was $0.36, beating analyst estimates of $0.3. The strong financial performance was driven by continued volume growth and favorable price mix.

Publication Date: Nov -25

                                    📋 Highlights
                                    Record Revenue Growth::
                                                Q3 2025 net revenue hit $198.9M (+37.2% YoY), driven by volume and price/mix improvements.
EBITDA Surge::
                                                Adjusted EBITDA rose to $27.4M (+81.3% YoY), reflecting improved margins and cost control.
Supply Chain Expansion::
                                                Added 75 new family farms (total 575) and 10M+ hens under contract, boosting production capacity.
Seymour Facility Outlook::
                                                Expected to add $900M annual revenue by 2027 with 2 production lines and cold storage.

                                

Revenue Growth Drivers

The company's revenue growth was driven by a 19% increase in volume, which management stated was "all sustainable volume growth, driven by demand and not filling retailer channels." The price/mix was slightly better than initially planned due to channel mix and SKU mix. As Russell Diez-Canseco noted, "our brand awareness is now up 8 percentage points since the third quarter of last year, demonstrating that our message is clearly winning with consumers."

Operational Highlights

Vital Farms made significant progress in expanding its supply chain, adding 75 new family farms during the quarter, bringing the total to 575 family farms. The company now has more than 10 million hens under contract. The Seymour facility remains on track to open in early 2027, with an estimated annual revenue capacity of $900 million. The company's digital transformation project went live, enhancing operational capabilities and underpinning its ability to scale efficiently.

Valuation Metrics

With a P/E Ratio of 22.66 and an EV/EBITDA ratio of 13.33, Vital Farms' valuation appears reasonable considering its strong growth prospects. Analysts estimate next year's revenue growth at 20.2%. The company's return on equity (ROE) is 20.19%, indicating a strong ability to generate profits from shareholder equity.

Outlook and Guidance

Vital Farms raised its full-year 2025 net revenue guidance to at least $775 million, representing growth of at least 28% versus 2024. The company also raised its adjusted EBITDA guidance to at least $115 million for the full year 2025. Management expects to fund its current plans with existing cash and operating cash flow.

3. NewsRoom

Vital Farms, Inc. (VITL) Presents at Morgan Stanley Global Consumer & Retail Conference 2025 Transcript

Dec -03

Source: seekingalpha.com

Advisors Asset Management Inc. Buys 1,563 Shares of Vital Farms, Inc. $VITL

Dec -01

Source: defenseworld.net

Vital Farms to Host Investor Day on December 16, 2025

Nov -18

Source: businesswire.com

Aviva PLC Has $531,000 Stock Position in Vital Farms, Inc. $VITL

Nov -14

Source: defenseworld.net

Vital Farms: Eggs, Earnings, And Expansion - Growth Story Continues

Nov -07

Source: seekingalpha.com

Vital Farms Now Offers More Growth At A Lower Price

Nov -07

Source: seekingalpha.com

Looking for a Growth Stock? 3 Reasons Why Vital Farms (VITL) is a Solid Choice

Nov -05

Source: zacks.com

Here's Why Vital Farms (VITL) Is a Great 'Buy the Bottom' Stock Now

Nov -05

Source: zacks.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

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

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Inefficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

CHS

A-Score: 6.2/10

Value: 6.2

Growth: 3.7

Quality: 3.6

Yield: 10.0

Momentum: 3.5

Volatility: 10.0

1-Year Total Return ->

Limoneira

A-Score: 4.9/10

Value: 8.4

Growth: 6.0

Quality: 4.9

Yield: 4.0

Momentum: 0.0

Volatility: 6.3

1-Year Total Return ->

Vital Farms

A-Score: 4.9/10

Value: 4.5

Growth: 9.6

Quality: 6.6

Yield: 0.0

Momentum: 5.0

Volatility: 3.7

1-Year Total Return ->

Alico

A-Score: 4.5/10

Value: 5.0

Growth: 0.9

Quality: 2.0

Yield: 3.0

Momentum: 8.0

Volatility: 8.0

1-Year Total Return ->

Local Bounti

A-Score: 4.1/10

Value: 9.4

Growth: 4.2

Quality: 5.1

Yield: 0.0

Momentum: 5.5

Volatility: 0.3

1-Year Total Return ->

S&W Seed

A-Score: 2.4/10

Value: 10.0

Growth: 2.0

Quality: 2.2

Yield: 0.0

Momentum: 0.0

Volatility: 0.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

32.53%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

7.89%

Vital Farms, Inc. - US92847W1036

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.

1.b. Last Insights on VITL

1.c. Company Highlights

Higher Growth

Expensive

Strong Momentum

Earnings Beats

Revenues Beats

Better Quality

Revenues Miss

Average Yield

Weak Momentum

Lower Yield

Average Quality

2. Vital Farms' Q3 2025 Earnings: A Strong Quarter with Record Financial Results

Revenue Growth Drivers

Operational Highlights

Valuation Metrics

Outlook and Guidance

3. NewsRoom

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%

Butter and Butter-related Products

Expected Growth: 14%

7. Detailed Products

Pasture-Raised Eggs

Butter and Ghee

Cream and Half-and-Half

Grass-Fed Cheese

8. Vital Farms, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

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

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

31.73$

Current Price

31.73$

Potential

-0.00%

Expected Cash-Flows

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.

12.e Scoring ^Insights

12.f DCF ^BETA