Village Farms Operating Margin vs. Return On Asset

VFF Stock  USD 0.84  0.02  2.60%   
Based on Village Farms' profitability indicators, Village Farms International may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess Village Farms' ability to earn profits and add value for shareholders.

Village Farms Operating Profit Margin

(0.0591)

The Village Farms' current Sales General And Administrative To Revenue is estimated to increase to 0.24, while Price To Sales Ratio is projected to decrease to 0.28. At this time, Village Farms' Change To Netincome is most likely to increase significantly in the upcoming years. The Village Farms' current Net Income Per E B T is estimated to increase to 1.91, while Operating Income is forecasted to increase to (15.3 M).
For Village Farms profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Village Farms to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Village Farms International utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Village Farms's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Village Farms International over time as well as its relative position and ranking within its peers.
  
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Is Agricultural Products & Services space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Village Farms. If investors know Village will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Village Farms listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.78)
Earnings Share
(0.45)
Revenue Per Share
2.958
Quarterly Revenue Growth
0.199
Return On Assets
(0.02)
The market value of Village Farms Intern is measured differently than its book value, which is the value of Village that is recorded on the company's balance sheet. Investors also form their own opinion of Village Farms' value that differs from its market value or its book value, called intrinsic value, which is Village Farms' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Village Farms' market value can be influenced by many factors that don't directly affect Village Farms' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Village Farms' value and its price as these two are different measures arrived at by different means. Investors typically determine if Village Farms is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Village Farms' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Village Farms Intern Return On Asset vs. Operating Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Village Farms's current stock value. Our valuation model uses many indicators to compare Village Farms value to that of its competitors to determine the firm's financial worth.
Village Farms International is rated below average in operating margin category among its peers. It is rated below average in return on asset category among its peers . At this time, Village Farms' Operating Profit Margin is most likely to increase slightly in the upcoming years. Comparative valuation analysis is a catch-all technique that is used if you cannot value Village Farms by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Village Return On Asset vs. Operating Margin

Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

Village Farms

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
(0.01) %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

Village Farms

Return On Asset

 = 

Net Income

Total Assets

 = 
-0.0232
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.

Village Return On Asset Comparison

Village Farms is currently under evaluation in return on asset category among its peers.

Village Farms Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Village Farms, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Village Farms will eventually generate negative long term returns. The profitability progress is the general direction of Village Farms' change in net profit over the period of time. It can combine multiple indicators of Village Farms, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-3.5 M-3.4 M
Operating Income-16.1 M-15.3 M
Income Before Tax-27.4 M-26 M
Total Other Income Expense Net-11.3 M-10.7 M
Net Loss-31.8 M-30.2 M
Income Tax Expense4.5 M4.7 M
Net Loss-58.2 M-55.3 M
Net Loss-91 M-86.5 M
Interest Income819 K1.3 M
Non Operating Income Net Other-4.3 M-4.1 M
Net Interest Income-3.6 M-3.8 M
Change To Netincome68.5 M72 M
Net Loss(0.29)(0.28)
Income Quality(0.17)(0.18)
Net Income Per E B T 1.16  1.91 

Village Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Village Farms. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Village Farms position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Village Farms' important profitability drivers and their relationship over time.

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When determining whether Village Farms Intern is a strong investment it is important to analyze Village Farms' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Village Farms' future performance. For an informed investment choice regarding Village Stock, refer to the following important reports:
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You can also try the Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
To fully project Village Farms' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Village Farms Intern at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Village Farms' income statement, its balance sheet, and the statement of cash flows.
Potential Village Farms investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Village Farms investors may work on each financial statement separately, they are all related. The changes in Village Farms's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Village Farms's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.