Today’s Stock: The Vita Coco Company Inc. (COCO)Today’s Stock: The Vita Coco Company Inc. (COCO)
The Vita Coco Company, Inc. develops, markets, and distributes coconut water products under the Vita Coco brand name in the United States, Canada, Europe, the Middle East, Africa, and the Asia Pacific. It offers coconut oil, coconut juice, and coconut milk; packaged water under the Ever & Ever brand name; and PWR LIFT, a protein-infused fitness drink. The company also supplies private label products to retailers.
My Thoughts 💭My Thoughts 💭
I always saw this coconut branded water in stores even bought a few cartons of it. I like the water it is very tasty but the high caloric content keeps me from drinking this all the time. Robinhood offered this stock via its IPO offerings. I didn’t get any shares but it is one of the few stocks that has done very well.
At 55.1k sats per share ($95,570), and no dividend. One must ask will this growth stock grow faster than bitcoin? At 55k sats the cost is reasonable to help Vita grow. If you so choose.
The company trades at a PE 43 which means investors are paying $43 to access $1 of earnings. This stock is pretty expensive by historical estimates. They must have tremendous growth potential if the market is charging this premium.
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The fundamentals of this company are very strong. The balance sheet is flawless. They are growing revenues, free cash flow, and projected to grow at a 20% clip.
Value investors will flock from this stock. Won’t like the high premium and with most of the float owned by institutions any chink in the growth prospects this stock will sink like a rock and since it doesn’t pay a dividend it I am unsure if 50k sats is worth the risk. The returns on this stock since they went public have been magnificent.
Food and beverage is a very competitive space. Pepsi or coke can compete for market share quite easily. But coco is building a strong brand and with the nation trying to eat healthier coconut water might be a healthier alternative than soda.
This is a great company. I won’t buy any shares but I will definitely keep my eyes on it.