📊 COCO Key Takeaways
Investment Thesis
Vita Coco demonstrates strong fundamental health with robust revenue growth of 18.2% YoY and exceptional net income growth of 27.5% YoY, indicating operating leverage expansion. The company maintains a fortress balance sheet with zero long-term debt, exceptional liquidity (3.62x current ratio), and substantial cash reserves of $196.9M, while generating solid free cash flow of $39.0M.
COCO Strengths
- Strong profitability metrics: 36.5% gross margin, 13.5% operating margin, and 11.7% net margin demonstrate pricing power and operational efficiency
- Accelerating earnings growth: Net income growth of 27.5% YoY outpaces revenue growth of 18.2%, showing margin expansion and improved operational leverage
- Exceptional financial fortress: Zero debt, $196.9M cash position, 3.62x current ratio, and 0.00x debt-to-equity ratio provide maximum financial flexibility
- Strong returns on capital: 21.5% ROE and 15.5% ROA indicate efficient capital deployment and value creation
- Solid cash generation: $39.0M free cash flow with 6.4% FCF margin supports dividends, buybacks, or strategic investments
COCO Risks
- Decelerating FCF conversion: Free cash flow margin of 6.4% lags net margin of 11.7%, suggesting working capital challenges or capital intensity increasing
- Limited debt capacity optimization: Zero debt may indicate underutilized financial leverage for growth acceleration or shareholder returns
- Modest FCF to net income ratio: $39.0M FCF on $71.3M net income (54.7%) warrants monitoring of cash conversion quality and potential receivables/inventory buildup
- Competitive beverage market: Operates in intensely competitive coconut water segment vulnerable to larger beverage competitors and alternative products
- Commodity exposure: Coconut sourcing subject to agricultural volatility and currency fluctuations in growing regions
Key Metrics to Watch
- Net income growth sustainability and gross margin trends as revenue scales
- Free cash flow conversion and working capital management efficiency
- Operating margin expansion trajectory in relation to revenue growth rate
- Debt capacity utilization and capital allocation strategy deployment
- Revenue growth deceleration signals given market maturity
COCO Financial Metrics
💡 AI Analyst Insight
Strong liquidity with a 3.62x current ratio provides a solid financial cushion.
COCO Profitability Ratios
COCO vs Default Sector
How Vita Coco Company, Inc. compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
COCO Balance Sheet & Liquidity
COCO 5-Year Financial Trend
5-Year Trend Summary: Vita Coco Company, Inc.'s revenue has grown significantly by 61% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.79 reflects profitable operations.
COCO Growth Metrics (YoY)
COCO Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $132.9M | $19.3M | $0.32 |
| Q2 2025 | $144.1M | $19.1M | $0.32 |
| Q1 2025 | $111.7M | $14.2M | $0.24 |
| Q3 2024 | $132.9M | $15.2M | $0.26 |
| Q2 2024 | $139.6M | $18.0M | $0.31 |
| Q1 2024 | $109.8M | $6.7M | $0.12 |
| Q3 2023 | $124.0M | $7.3M | $0.13 |
| Q2 2023 | $115.3M | $1.1M | $0.02 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
COCO Capital Allocation
COCO SEC Filings
Access official SEC EDGAR filings for Vita Coco Company, Inc. (CIK: 0001482981)
📋 Recent SEC Filings
❓ Frequently Asked Questions about COCO
What is the AI rating for COCO?
Vita Coco Company, Inc. (COCO) has an AI rating of BUY with 78% confidence, based on fundamental analysis of SEC EDGAR filings.
What are COCO's key strengths?
Strong profitability metrics: 36.5% gross margin, 13.5% operating margin, and 11.7% net margin demonstrate pricing power and operational efficiency. Accelerating earnings growth: Net income growth of 27.5% YoY outpaces revenue growth of 18.2%, showing margin expansion and improved operational leverage.
What are the risks of investing in COCO?
Decelerating FCF conversion: Free cash flow margin of 6.4% lags net margin of 11.7%, suggesting working capital challenges or capital intensity increasing. Limited debt capacity optimization: Zero debt may indicate underutilized financial leverage for growth acceleration or shareholder returns.
What is COCO's revenue and growth?
Vita Coco Company, Inc. reported revenue of $609.8M.
Does COCO pay dividends?
Vita Coco Company, Inc. does not currently pay dividends.
Where can I find COCO SEC filings?
Official SEC filings for Vita Coco Company, Inc. (CIK: 0001482981) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is COCO's EPS?
Vita Coco Company, Inc. has a diluted EPS of $1.19.
How is the AI analysis conducted?
Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.