3 Reasons We’re Fans of Vita Coco (COCO)

COCO Cover Image

In a sliding market, Vita Coco has defied the odds, trading up to $49.58 per share. Its 16.1% gain since October 2025 has outpaced the S&P 500’s 2.8% drop. This was partly due to its solid quarterly results, and the run-up might have investors contemplating their next move.

Is it too late to buy COCO? Find out in our full research report, it’s free.

Why Are We Positive On COCO?

Founded in 2004 followed by a 2021 IPO, The Vita Coco Company (NASDAQ: COCO) offers coconut water products that are a natural way to quench thirst.

1. Elevated Demand Drives Higher Sales Volumes

Revenue growth can be broken down into changes in price and volume (the number of units sold). While both are important, volume is the lifeblood of a successful staples business as there’s a ceiling to what consumers will pay for everyday goods; they can always trade down to non-branded products if the branded versions are too expensive.

Vita Coco’s average quarterly volume growth was a robust 9.9% over the last two years. This is good because meaningful volume growth is hard to come by in the stable consumer staples sector. Vita Coco Year-On-Year Volume Growth

2. Outstanding Long-Term EPS Growth

We track the long-term change in earnings per share (EPS) because it highlights whether a company’s growth is profitable.

Vita Coco’s EPS grew at 70.9% compounded annual growth rate over the last three years, higher than its 12.5% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.

Vita Coco Trailing 12-Month EPS (Non-GAAP)

3. Stellar ROIC Showcases Lucrative Growth Opportunities

Growth gives us insight into a company’s long-term potential, but how capital-efficient was that growth? A company’s ROIC explains this by showing how much operating profit it makes compared to the money it has raised (debt and equity).

Vita Coco’s five-year average ROIC was 36.9%, placing it among the best consumer staples companies. This illustrates its management team’s ability to invest in highly profitable ventures and produce tangible results for shareholders.

Vita Coco Trailing 12-Month Return On Invested Capital

Final Judgment

These are just a few reasons why Vita Coco ranks highly on our list, and with its shares beating the market recently, the stock trades at 29.8× forward P/E (or $49.58 per share). Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.

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