Is Vita Coco Company Worth Investing In?

Investors are constantly on the lookout for the next big thing in the market. However, it’s important to be cautious when considering high-risk investments without any revenue or profit. Companies like Vita Coco Company (NASDAQ:COCO), which generate consistent profits, are often seen as a more reliable option for investors.

Over the past three years, Vita Coco Company has shown an impressive 13% growth in earnings per share (EPS) annually. This growth rate is considered positive by long-term investors. In addition, the company’s revenue and earnings before interest and tax (EBIT) margins have been steadily increasing. EBIT margins have grown from 2.9% to 8.3% in the last 12 months, indicating improved profitability.

Insider buying is often seen as a strong indicator of a company’s potential. In the case of Vita Coco Company, insiders have spent US$121k more buying shares than selling them in the past year. Co-Founder & Director Ira Liran made the largest insider purchase, buying US$122k worth of shares. The fact that insiders, as a group, hold a significant stake of 13% in the company adds further confidence.

Another positive aspect of Vita Coco Company is the CEO’s modest compensation compared to CEOs of similar-sized companies. The CEO received only US$560k in total compensation for the year ending December 2022, well below the industry average. This suggests a focus on shareholder value and good governance.

While it’s important to note that valuation analysis can be complex, the overall picture of Vita Coco Company is encouraging. The company is showing growth, insiders are buying shares, and the CEO’s compensation is aligned with shareholder interests. All of these factors make Vita Coco Company an interesting prospect for investors to keep an eye on.

In conclusion, investors looking for a company with consistent profits and insider confidence may find Vita Coco Company worth considering for their investment portfolio.

Sources:
– Simply Wall St