The Vita Coco Company Inc. Common Stock (COCO)

FairStock Score: 52/100 — MIXED

Key Financials

Strengths

• Generates $19 million in annual free cash flow (0.7% yield on market cap)
• High return on equity of 24.2% demonstrating efficient capital deployment
• Conservative balance sheet with debt-to-equity of just 0.04, providing financial flexibility
• Altman Z-Score of 14.5 confirms minimal bankruptcy risk and strong solvency

Concerns

• Trades significantly above Graham Number ($12) with negative 283% margin of safety—limited downside protection
• Weak Piotroski F-Score of 2/9 suggests deteriorating financial quality across multiple dimensions
• No meaningful dividend despite modest growth—total return depends entirely on multiple expansion

AI Analysis

The Vita Coco Company Inc. Common Stock is a small-cap consumer defensive company valued at $2.7 billion. The business generates $610 million in annual revenue with a 0.9% net margin and $19 million in free cash flow. From a quality standpoint, The shows weak Piotroski F-Score of 2/9 signaling deteriorating fundamentals and Altman Z-Score of 14.5 confirms fortress-level solvency. On valuation, the stock is trading at a premium 39.9x earnings, with trades far above its Graham Number ($12) with no margin of safety. Growth dynamics show revenue growing at 0.4% and profit growth of 64.0%. Our composite FairStock Score of 52/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $19 million in annual free cash flow (0.7% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 40x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer