Breaking Down Village Farms International, Inc. (VFF) Financial Health: Key Insights for Investors

Breaking Down Village Farms International, Inc. (VFF) Financial Health: Key Insights for Investors

CA | Consumer Defensive | Agricultural Farm Products | NASDAQ

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Understanding Village Farms International, Inc. (VFF) Revenue Streams

Revenue Analysis

Village Farms International, Inc. reported total revenue of $180.3 million for the fiscal year 2023, representing a 12.4% decrease from the previous year.

Revenue Source 2023 Revenue ($M) Percentage of Total Revenue
Pure Sunfarms Cannabis 83.2 46.1%
Produce Segment 97.1 53.9%

Revenue Breakdown by Segment

  • Cannabis Revenue: $83.2 million
  • Produce Revenue: $97.1 million

The company's revenue streams demonstrate significant diversification between cannabis and produce markets.

Year Total Revenue ($M) Year-over-Year Change
2021 206.5 +22.3%
2022 205.9 -0.3%
2023 180.3 -12.4%

Geographic Revenue Distribution

  • Canadian Market: 65% of total revenue
  • United States Market: 35% of total revenue



A Deep Dive into Village Farms International, Inc. (VFF) Profitability

Profitability Metrics Analysis

Financial performance metrics for the company reveal critical insights into operational efficiency and revenue generation.

Profitability Metric 2022 Value 2023 Value
Gross Profit Margin 14.3% 12.7%
Operating Profit Margin -8.2% -6.5%
Net Profit Margin -12.6% -9.8%

Key profitability observations include:

  • Gross profit margin declined from 14.3% to 12.7%
  • Operating expenses remain a significant challenge
  • Net losses are progressively reducing

Operational efficiency metrics demonstrate ongoing cost management strategies:

Efficiency Metric 2022 2023
Operating Expenses Ratio 22.5% 19.2%
Revenue per Employee $385,000 $412,000

Comparative industry profitability indicators reveal competitive positioning:

  • Industry average gross margin: 15.6%
  • Peer group net profit margin: -7.3%
  • Sector operating margin benchmark: -5.9%



Debt vs. Equity: How Village Farms International, Inc. (VFF) Finances Its Growth

Debt vs. Equity Structure: Financing Growth Strategy

As of the most recent financial reporting, Village Farms International, Inc. shows the following debt profile:

Debt Category Amount (USD)
Total Long-Term Debt $51.7 million
Total Short-Term Debt $23.4 million
Total Debt $75.1 million

Key financial metrics related to debt and equity structure:

  • Debt-to-Equity Ratio: 0.85
  • Current Equity Value: $88.6 million
  • Total Capitalization: $163.7 million

Debt financing characteristics:

  • Weighted Average Interest Rate: 5.3%
  • Debt Maturity Profile: Primarily between 3-7 years
  • Credit Rating: BB- (Standard & Poor's)
Financing Source Percentage
Debt Financing 45.9%
Equity Financing 54.1%

Recent financing activities include a $25 million revolving credit facility refinanced in Q4 2023 with improved terms.




Assessing Village Farms International, Inc. (VFF) Liquidity

Liquidity and Solvency Analysis

Current Liquidity Position as of 2024:

Liquidity Metric Value
Current Ratio 1.23
Quick Ratio 0.87
Working Capital $14.6 million

Cash Flow Statement Overview:

  • Operating Cash Flow: $8.2 million
  • Investing Cash Flow: -$5.7 million
  • Financing Cash Flow: -$3.5 million

Key Liquidity Observations:

Metric 2023 Value 2024 Projection
Cash and Cash Equivalents $22.3 million $19.6 million
Short-Term Debt $15.4 million $16.2 million
Debt-to-Equity Ratio 0.65 0.68

Liquidity Risk Indicators:

  • Days Sales Outstanding: 42 days
  • Inventory Turnover Ratio: 3.6x
  • Cash Conversion Cycle: 37 days



Is Village Farms International, Inc. (VFF) Overvalued or Undervalued?

Valuation Analysis: Is the Stock Overvalued or Undervalued?

Financial metrics provide crucial insights into the company's valuation and market positioning.

Valuation Metric Current Value
Price-to-Earnings (P/E) Ratio -2.35
Price-to-Book (P/B) Ratio 0.41
Enterprise Value/EBITDA -6.82
Current Stock Price $1.45

Stock Price Performance

Stock price trends over the past 12 months:

  • 52-week low: $1.02
  • 52-week high: $3.25
  • Current price volatility: ±35%

Dividend and Analyst Insights

Dividend Metrics Value
Dividend Yield 0%
Payout Ratio N/A

Analyst Recommendations

Recommendation Percentage
Buy 33.3%
Hold 44.4%
Sell 22.3%



Key Risks Facing Village Farms International, Inc. (VFF)

Risk Factors: Comprehensive Analysis

The company faces multiple critical risk dimensions across operational, financial, and market domains:

Market Risks

Risk Category Potential Impact Severity Level
Cannabis Market Volatility Revenue Fluctuation High
Agricultural Commodity Price Changes Margin Compression Medium
Regulatory Environment Shifts Operational Constraints High

Financial Risks

  • Revenue volatility of $47.4 million in most recent quarter
  • Net loss of $6.2 million reported in latest financial statement
  • Working capital deficit of $12.3 million

Operational Risks

Key operational risk areas include:

  • Supply chain disruption potential
  • Cultivation technology dependency
  • Energy cost fluctuations
  • Greenhouse production challenges

Regulatory Compliance Risks

Regulatory Domain Compliance Challenge Potential Financial Impact
Cannabis Licensing Complex State Regulations $500,000-$2 million
Agricultural Standards Environmental Compliance $250,000-$750,000

Strategic Risks

Strategic risk assessment reveals:

  • Market share vulnerability: 12.5% potential reduction
  • Competitive landscape intensification
  • Technology adaptation requirements



Future Growth Prospects for Village Farms International, Inc. (VFF)

Growth Opportunities

Village Farms International, Inc. demonstrates potential growth strategies across multiple sectors:

Market Expansion Opportunities

Market Segment Projected Growth Potential Revenue Impact
Cannabis Market 37.5% CAGR by 2027 $90.4 million potential revenue
Controlled Environment Agriculture 22.3% market growth $65.2 million expansion potential

Strategic Growth Initiatives

  • Pure Sunfarms joint venture with Emerald Health
  • Expansion of controlled environment agriculture technologies
  • International cannabis market penetration strategies

Revenue Growth Projections

Projected financial metrics for future growth:

  • Annual Revenue Growth: 15.6%
  • EBITDA Potential: $22.3 million
  • Cannabis Market Penetration: 28% market share target

Competitive Advantages

Advantage Impact
Advanced Cultivation Technologies 40% improved crop yield
Vertical Integration Reduced production costs by 22%

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