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Village Farms International (VFF)
NASDAQ:VFF
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Village Farms International
(NASDAQ:VFF)
58Neutral
Village Farms International (VFF) vs. S&P 500 (SPY)
Market Cap
$77.51M
Dividend YieldN/A
Average Volume (3M)369.72K
Price to Earnings (P/E)―
Beta (1Y)0.90
Revenue Growth16.74%
EPS Growth28.44%
CountryUS
Employees1,400
SectorConsumer Defensive
Sector Strength79
IndustryConsumer Products - Foods
Share Statistics
EPS (TTM)-0.45
Shares Outstanding112,337,050
10 Day Avg. Volume336,696
30 Day Avg. Volume369,724
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.25
Price to Cash Flow (P/CF)3.40
P/FCF Ratio5.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$1.75Price Target Upside153.62% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Village Farms International Business Overview & Revenue Model
Company DescriptionVillage Farms International (VFF) is a vertically integrated company focused on the production, marketing, and distribution of fresh produce and cannabis products. The company operates in the agriculture and cannabis sectors, leveraging its extensive experience in greenhouse farming to supply premium quality fruits, vegetables, and cannabis. Village Farms is recognized for its sustainable and efficient cultivation methods, providing a range of products from tomatoes, cucumbers, and bell peppers to high-quality cannabis strains.
How the Company Makes MoneyVillage Farms International makes money through several key revenue streams. Primarily, it generates income from the sale of fresh produce cultivated in its greenhouse facilities, which are distributed to retailers and wholesalers across North America. Additionally, the company has diversified into the cannabis market through its wholly-owned subsidiary, Pure Sunfarms, which contributes to its revenue by producing and selling cannabis products in various forms, including dried flower and oils, to both medical and recreational markets. Significant partnerships, such as joint ventures and licensing agreements, enhance its market reach and product offerings. The company's strategic focus on high-margin cannabis products and efficient production techniques helps maximize profitability and drive earnings growth.
Village Farms International Financial Statement Overview
Summary
Village Farms International shows improvement in gross profit margin and a stable equity structure, but faces challenges with persistent net losses, negative profit margins, and inconsistent revenue growth.Income Statement
Village Farms International has shown some improvement in gross profit margin, rising from $10.96M in 2020 to $51.48M in TTM 2024. However, the company continues to record negative net income, with the net profit margin remaining negative. Revenue growth has been inconsistent, with recent figures showing a decline. The EBIT and EBITDA margins are also negative, indicating ongoing operational challenges.48
Neutral
Balance Sheet
The company's debt-to-equity ratio has improved slightly, reflecting a lower reliance on debt relative to equity, although it remains a potential risk factor. The equity ratio is strong, showing that a significant portion of the company's assets are financed by equity. However, return on equity is negative due to persistent losses, which is a key area of concern.55
Neutral
Cash Flow
Operating cash flow has improved from negative figures in earlier years, indicating better cash generation from operations. However, free cash flow remains negative, primarily due to capital expenditures. The operating cash flow to net income ratio suggests more cash is generated than reported income, but the free cash flow to net income ratio is unfavorable.50
Neutral
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 260.19M | 285.60M | 293.57M | 268.02M | 170.09M | 144.57M | Gross Profit |
| 51.48M | 49.43M | 27.50M | 45.18M | 10.96M | -7.34M | EBIT |
| -16.64M | -16.07M | -44.68M | -8.77M | -17.39M | -27.52M | EBITDA |
| -22.31M | -6.80M | -77.55M | -1.21M | 16.81M | -7.34M | Net Income Common Stockholders |
| -49.70M | -31.80M | -98.75M | -8.82M | 11.61M | -11.45M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 35.29M | 30.29M | 16.68M | 53.42M | 21.64M | 11.99M | Total Assets |
| 466.99M | 466.99M | 465.29M | 566.91M | 354.03M | 183.41M | Total Debt |
| 65.50M | 65.50M | 70.75M | 77.27M | 85.39M | 38.05M | Net Debt |
| 30.21M | 30.21M | 54.08M | 23.85M | 63.75M | 26.06M | Total Liabilities |
| 148.05M | 148.05M | 145.29M | 142.07M | 148.75M | 56.95M | Stockholders Equity |
| 302.63M | 302.63M | 303.06M | 408.40M | 205.28M | 126.46M |
| Cash Flow | Free Cash Flow | ||||
| -1.86M | -1.20M | -34.18M | -61.22M | 2.17M | -16.67M | Operating Cash Flow |
| 8.37M | 5.32M | -19.89M | -39.57M | 5.68M | -14.39M | Investing Cash Flow |
| -10.83M | -6.23M | -20.90M | -63.47M | -51.23M | -16.84M | Financing Cash Flow |
| -9.50M | 14.14M | 4.50M | 135.88M | 58.61M | 31.39M |
Village Farms International Technical Analysis
Negative
0.69
Price Trends
0.75
Negative
0.79
Negative
0.90
Negative
Market Momentum
-0.02
Positive
42.15
Neutral
22.81
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VFF, the sentiment is Negative. The current price of 0.69 is below the 20-day moving average (MA) of 0.72, below the 50-day MA of 0.75, and below the 200-day MA of 0.90, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 42.15 is Neutral, neither overbought nor oversold. The STOCH value of 22.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VFF.
Village Farms International Risk Analysis
Village Farms International disclosed 65 risk factors in its most recent earnings report. Village Farms International reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Village Farms International Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $400.90M | ― | -8.73% | ― | -2.41% | 52.78% | |
68 Neutral | $1.04B | 18.40 | 3.80% | ― | 35.87% | ― | |
63 Neutral | $20.77B | 13.59 | -10.67% | 7.41% | 1.48% | 9.07% | |
58 Neutral | $77.51M | ― | -16.71% | ― | 16.74% | 28.44% | |
53 Neutral | C$343.57M | 27.40 | 4.78% | ― | 16.39% | -98.10% | |
44 Neutral | $571.59M | ― | -7.28% | ― | 18.38% | 86.59% | |
32 Underperform | C$290.12M | ― | -84.50% | ― | -16.27% | 76.17% |
* Consumer Defensive Sector Average
Performance Comparison
VFF
Village Farms International
0.69
-0.01
-1.43%
TLRY
Tilray
0.64
-1.03
-61.68%
SNDL
SNDL
1.54
0.20
14.93%
TSE:WEED
Canopy Growth
1.61
-2.36
-59.45%
TSE:CRON
Cronos Group
2.70
-0.02
-0.74%
TSE:ACB
Aurora Cannabis
6.37
2.39
60.05%
Village Farms International Earnings Call Summary
Earnings Call Date: Nov 7, 2024 | % Change Since: -13.75% | Next Earnings Date: Mar 13, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong performance in fresh produce and Canadian cannabis, with significant international expansion. However, issues with out-of-stock inventory, challenges in the U.S. market, and high excise taxes in Canada present operational hurdles.Highlights
Strong Outperformance in Fresh Produce
Fresh produce sales increased by 20% to nearly $43 million, with a gross margin improvement of 400 basis points year-over-year. The segment delivered positive adjusted EBITDA and net income of $2.3 million and $0.4 million respectively.
Canadian Cannabis Growth
Total net sales grew 29% year-over-year to approximately CAD 50 million, with branded resale sales increasing by 22%. The segment achieved positive adjusted EBITDA of $6.5 million.
International Medical Sales Expansion
International medical sales doubled year-over-year with increases in sales to Germany, Australia, and the U.K. The company holds a strong market position in these regions.
Market Leadership in Canada
Village Farms maintained #1 market share in Ontario and achieved #1 market share in Quebec, holding the leading position in Canada's two most populous provinces.
Launch of Leli Holland Subsidiary
Construction of the indoor cultivation facility in Drachten, Netherlands was completed, and cultivation began in October, with first sales expected in Q1 2025.
Positive Consolidated Financial Performance
Total sales grew 20% year-over-year to $83.4 million. Net loss narrowed to $800,000 from $1.3 million last year, with positive net income contributions from both Canadian cannabis and Fresh Produce.
Lowlights
Impact of Out-of-Stock Inventory
Out-of-stock inventory in several popular SKUs led to an estimated lower sales impact of approximately $2.5 million during the third quarter.
Challenges in the U.S. Cannabis Market
The U.S. cannabis business faced challenges due to the proliferation of unregulated hemp-derived products, leading to a negative adjusted EBITDA of $159,000.
High Excise Tax in Canada
The Canadian cannabis segment was impacted by a significant excise tax, paying CAD 24 million in Q3, which remains a substantial expenditure affecting profitability.
Company Guidance
During Village Farms International's Q3 2024 earnings call, the company provided robust guidance across multiple metrics. The fresh produce segment saw a sales increase of 20% to nearly $43 million, with a gross margin improvement of 400 basis points, leading to an adjusted EBITDA of $2.3 million and a net income of $0.4 million. In Canadian cannabis, net sales grew 29% year-over-year to about CAD 50 million, with branded resale sales up 22%. The segment achieved a positive adjusted EBITDA of $6.5 million and cash flow from operations of CAD 6.1 million. International medical sales doubled year-over-year, with strong growth in Germany, Australia, and the U.K. Village Farms maintained the #2 LP position in Canada, gaining market share in flower by 2.7% and pre-rolls by 2.3%. The company also expressed optimism about its initiatives in the Netherlands, estimating potential revenues of EUR 12 million annually with its new indoor cultivation facility. Overall, Village Farms highlighted a strategic focus on profitability, market share expansion, and international growth opportunities.Village Farms International Corporate Events
Business Operations and StrategyFinancial Disclosures
Village Farms International Plans 2024 Q3 Financial Release
Positive
Oct 23, 2024
Village Farms International is set to release its third quarter 2024 financial results on November 7, 2024, with a conference call scheduled for the same day. The company, a leader in plant-based consumer goods and cannabis, is leveraging its extensive greenhouse operations in Canada and the US to explore high-growth opportunities in the cannabis and CBD markets. With a focus on strategic expansion, Village Farms is positioning itself for significant growth in North America and internationally.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.