Returns Breakdown
0.039
Return on Assets
0.0595
Return on Equity
0.0267
Return on Sales
| Return on Assets | 0.039 | |
| Return on Equity | 0.0595 | |
| Return Capital | 0.0893 | |
| Return on Sales | 0.0267 |
What can we learn from Vita Coco (USA Stocks:COCO) recent price fluctuation
 | By Ellen Johnson | Macroaxis Story |
With a current EPS estimate of $0.7 for the year and a projected EPS of $0.89 for the next year, Vita Coco, a leading player in the Beverages-Non-Alcoholic industry, is showing promising signs of growth. Despite a 52-week high of $30.88, the company's valuation market value stands at $25.07, slightly below the naive expected forecast value of $26.99. However, Wall Street's target price for the stock is $27.14, indicating potential for upside. The stock's 200-day moving average is $18.2952, and with a short percent of 0.1344, there are currently 3.8M shares short. Given these factors, it may be time to reconsider your investment in Vita Coco. The company's strong performance in the Consumer Defensive category and the overall analyst consensus of 'Buy' suggest that this stock has the potential to provide good returns. However, investors should also consider the possible downside price of $24.25. Vita Coco's Earnings per Basic Share currently demonstrate stability compared to the previous year. Last year, Vita Coco reported Earnings per Basic Share at 0.14. As of August 2nd, 2023, the Earnings per Diluted Share are projected to increase to 0.20, while the Free Cash Flow is expected to decrease to -12.2 million. The main reason for this outlook is to analyze Vita Coco's potential for September. Our focus will be on determining whether Vita Coco is reasonably priced as we enter September.
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Reviewed by Michael Smolkin
Vita Coco, a prominent player in the Beverages-Non-Alcoholic industry, has been experiencing some turbulence in the market with a high coefficient of variation at 1.2K and a maximum drawdown of 21.9. The company's shares short have slightly increased from 3.7M to 3.8M within a month, indicating a bearish sentiment among investors. However, the EPS estimate for the next year stands at $0.89, and for the current quarter, it's $0.07, suggesting potential profitability. Despite the market risk adjusted performance showing a loss of 3.29, the company's stock price remains steady at $25.07. Given these data points, it may be time to reassess your investment strategy with Vita Coco.
Rigorous look
Vita Coco is currently overvalued, trading at $23.63 per share, with only modest future projections. A significant 63.0% of Vita Coco's shares are held by institutions such as insurance companies. The term 'institutional ownership' refers to the portion of Vita Coco's equity owned by large entities that manage funds on behalf of others. These entities include mutual funds, pension funds, insurance companies, investment firms, and foundations. For a comprehensive analysis of Vita Coco, including its current ownership structure, please refer to our latest ownership diagnostics.There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Vita Coco. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.
Predictive Modules for Vita Coco
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Vita Coco's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
How important is Vita Coco's Liquidity
Vita Coco financial leverage refers to using borrowed capital as a funding source to finance Vita Coco ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Vita Coco financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Vita Coco's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Vita Coco's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Vita Coco's total debt and its cash.
Vita Coco Gross Profit
Vita Coco Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Vita Coco previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Vita Coco Gross Profit growth over the last 10 years. Please check Vita Coco's gross profit and other fundamental indicators for more details.
Is Vita Coco valued appropriately by the market?
Vita Coco currently demonstrates below-average downside deviation. It has Information Ratio of 0.05 and Jensen Alpha of 0.28. However, we advise investors to further question Vita Coco expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Vita Coco's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Vita Coco's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
Vita Coco, a leading name in the Consumer Defensive sector, specifically Beverages, has been experiencing significant market volatility. With a Beta of 2.6, the stock is considerably more volatile than the market. However, the company's financials show some strength. With a Current Ratio of 2.99X, the company is well-equipped to meet its short-term liabilities, and its Net Assets stand at a healthy $197.76 million.Despite a low Operating Margin of 0.05%, the company managed to generate a Net Income of $7.81 million. The EPS Estimate for the Current Year is 0.7, indicating potential growth. The company's PE Ratio is 119.95, and the Price to Earnings to Growth is 1.07X, suggesting that the company is overvalued compared to its growth. Vita Coco's stock has been shorted by 3.81 million shares, accounting for 0.1344% of the total shares. The Short Ratio stands at 6.40X. The company's Market Capitalization is $1.49 billion, and the Wall Street Target Price is $27.14, slightly above the 50-day MA of $26.36. However, investors should be cautious. The Probability of Bankruptcy is 53.60%, and the Value at Risk is -3.74. Given these factors, investors may want to reconsider their position in Vita Coco. Despite some positive signs, the potential risks may outweigh the potential returns. .
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