The Vita Coco Company, Inc. (COCO) AI Stock Analysis
COCO AI stock analysis summary
AI ResearchThe Vita Coco Company, Inc. (COCO) is a global beverage company focused on coconut water and functional wellness drinks. Trailing twelve months revenue stands at $706.0M with an operating margin of 29.2%. The company maintains a strong liquidity profile, holding $264.6M in net cash as of June 30, 2026.
- Market cap
- $3.40B
- Revenue (TTM)
- $706.0M
- P/E
- 32.4x fwd 28.8x
- 1Y return
- 42.2% S&P 500 16.8%
- Avg. target
- $78.60 33.9% vs last close
Bull case
- Quarterly revenue rose 28.1% year-over-year in the quarter ended June 30, 2026, alongside a 115.8% surge in quarterly earnings.
- The company maintains strong financial flexibility with $264.6M in net cash and a conservative debt-to-equity ratio of 0.04.
- Return on equity reached 31.4% over the trailing twelve months, supported by an operating margin of 29.2%.
Bear case
- Valuation is elevated relative to sector peers, with a trailing P/E of 32.4x compared to the US-listed Consumer Defensive median of 18.6x.
- Short interest stands high, with short percent of float at 15.9%.
- The stock traded at -4.6% relative to its 200-day moving average and remains well below its 52-week high of $85.83.
What Vita Coco does
The Vita Coco Company, Inc. is a leading player in the global coconut water market, developing, marketing, and distributing coconut-based products under the Vita Coco brand. Founded in 2004 and headquartered in New York, New York, the company sells its products across the United States, Canada, Europe, the Middle East, and Asia Pacific. Its portfolio includes coconut water, coconut oil, coconut milk, Hydration Drink Mix, sparkling water, Runa plant-based energy drinks, and PWR LIFT protein-infused fitness drinks. Products are distributed through club stores, food retailers, drugstores, convenience stores, e-commerce platforms, and foodservice outlets.
Growth and profitability
Vita Coco generated a 5-year revenue CAGR of 14.4% between FY2020 and FY2025. Annual revenue rose from $379.5M in FY2021 to $609.8M in FY2025, with revenue growth reaching 18.2% in FY2025. Over the same period, gross margin improved from 29.8% to 36.3%, and net income expanded from $19.0M to $71.3M, representing a net margin of 11.7% and EPS of $1.22 in FY2025. In the latest quarter ended June 30, 2026, quarterly revenue grew 28.1% year-over-year, while quarterly earnings grew 115.8% year-over-year. Trailing twelve months revenue reached $706.0M with EPS of $1.81.
Balance sheet and cash flow
As of June 30, 2026, Vita Coco held $278.6M in cash and short-term investments against $14.1M in total debt, resulting in a net cash position of $264.6M. The company reported a current ratio of 3.36 and a debt-to-equity ratio of 0.04 on $400.9M in shareholders' equity. In FY2025, operating cash flow was $47.2M, and free cash flow reached $39.0M. Capital deployment in FY2025 included $8.1M in capital expenditures and $11.3M in share buybacks.
Valuation and performance
Vita Coco trades at a trailing P/E of 32.4x and a forward P/E of 28.8x, compared to medians of 18.6x and 14.3x for its US-listed Consumer Defensive peers. Its enterprise value to EBITDA ratio is 22.6x against the peer median of 11.7x, and its price-to-sales multiple is 4.8x compared to the peer median of 0.7x. Over the past year, the stock gained 42.2%, outperforming the S&P 500 (SPY) return of 16.8%.
What analysts expect
Wall Street coverage includes 8 Strong Buy, 1 Buy, and 3 Hold ratings, with zero Sell or Strong Sell ratings. The mean price target is $78.60, representing a 33.9% premium to the last close of $58.69. For the fiscal year ending December 31, 2026, analysts estimate revenue of $802.7M and EPS of $2.03, reflecting 53.0% earnings growth. Over the last 4 quarters, the company beat EPS estimates 3 times. The next earnings date is October 22, 2026.
Key risks and what to watch
- A high short interest of 15.9% of float indicates sustained market skepticism or hedging activity.
- Premium valuation multiples, including an EV to EBITDA of 22.6x versus the peer median of 11.7x, leave little room for operational missteps.
- Maintaining the trailing operating margin of 29.2% may prove difficult given historic annual operating margins of 13.6% in FY2025 and 14.3% in FY2024.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this COCO AI stock analysis
This page is an AI-written research summary of The Vita Coco Company, Inc. (COCO). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: COCO income statement, COCO balance sheet, COCO key metrics, COCO analyst forecast, COCO chart. See the COCO stock overview for the latest quote and news.
COCO AI stock analysis FAQ
Does The Vita Coco Company pay a dividend?
No, Vita Coco does not pay a dividend. In FY2025, capital returns were conducted via $11.3M in share buybacks.
What is Vita Coco's debt position?
As of June 30, 2026, Vita Coco had $14.1M in total debt against $278.6M in cash and short-term investments, resulting in net cash of $264.6M. Its debt-to-equity ratio is 0.04.
How fast is Vita Coco growing its earnings and revenue?
In the latest quarter ended June 30, 2026, revenue increased 28.1% and earnings grew 115.8% year-over-year. For FY2026, analysts expect full-year EPS to grow 53.0% to $2.03 on revenue of $802.7M.
What are analysts' price targets for COCO stock?
Analysts have an average price target of $78.60 for COCO, which is 33.9% above its October 16, 2026 closing price of $58.69.