📊 COCO Key Takeaways
Is Vita Coco Company, Inc. (COCO) a Good Investment?
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.
Vita Coco shows strong fundamental momentum with double-digit revenue growth, faster net income growth, and healthy margin expansion at a profitable scale. The balance sheet is exceptionally strong, with substantial cash, no long-term debt, and high liquidity, which gives the company flexibility and resilience. Growth quality is solid overall, though free cash flow conversion is notably weaker than earnings and should be monitored.
Why Buy Vita Coco Company, Inc. Stock? COCO 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
- 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
- Strong top-line and bottom-line growth, with revenue up 18.2% and net income up 27.5% YoY
- Healthy profitability profile, including 36.5% gross margin, 13.5% operating margin, and 11.7% net margin
- Very strong financial health, supported by $196.87M in cash, no long-term debt, and a 3.62x current ratio
COCO Stock Risks: Vita Coco Company, Inc. Investment 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
- Free cash flow conversion is weaker than net income, which may indicate working capital pressure or less efficient cash realization
- Profitability could be vulnerable to input cost, freight, or supply chain volatility typical in beverages
- Sustaining high growth may become harder as the business scales and faces category competition
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
- Operating cash flow and free cash flow conversion relative to net income
- Gross margin and operating margin trends
Vita Coco Company, Inc. (COCO) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 3.62x current ratio provides a solid financial cushion.
COCO Profit Margin, ROE & Profitability Analysis
COCO vs Consumer Sector: How Vita Coco Company, Inc. Compares
How Vita Coco Company, Inc. compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Vita Coco Company, Inc. Stock Overvalued? COCO Valuation Analysis 2026
Based on fundamental analysis, Vita Coco Company, Inc. has mixed fundamental signals relative to the Consumer sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Vita Coco Company, Inc. Balance Sheet: COCO Debt, Cash & Liquidity
COCO Revenue & Earnings Growth: 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 Revenue Growth, EPS Growth & YoY Performance
COCO Quarterly Earnings & 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.
Vita Coco Company, Inc. Dividends, Buybacks & Capital Allocation
COCO SEC Filings: Latest 10-K & 10-Q Analysis
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 a Combined AI Rating of BUY from Claude (BUY) and ChatGPT (BUY) with 80% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are COCO's key strengths?
Claude: 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. ChatGPT: Strong top-line and bottom-line growth, with revenue up 18.2% and net income up 27.5% YoY. Healthy profitability profile, including 36.5% gross margin, 13.5% operating margin, and 11.7% net margin.
What are the risks of investing in COCO?
Claude: 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. ChatGPT: Free cash flow conversion is weaker than net income, which may indicate working capital pressure or less efficient cash realization. Profitability could be vulnerable to input cost, freight, or supply chain volatility typical in beverages.
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?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is COCO a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Vita Coco Company, Inc. has a BUY rating with 80% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is COCO stock overvalued or undervalued?
Valuation metrics for COCO: ROE of 21.5% (sector avg: 18%), net margin of 11.7% (sector avg: 8%). Higher ROE suggests strong returns relative to peers.
Should I buy COCO stock in 2026?
Our dual AI analysis gives Vita Coco Company, Inc. a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is COCO's free cash flow?
Vita Coco Company, Inc.'s operating cash flow is $47.2M, with capital expenditures of $8.1M. FCF margin is 6.4%.
How does COCO compare to other Consumer stocks?
Vs Consumer sector averages: Net margin 11.7% (avg: 8%), ROE 21.5% (avg: 18%), current ratio 3.62 (avg: 1.5).