The Vita Coco Company, Inc. (COCO): fair value, margin of safety and Wheel Score

Is COCO undervalued?

COCO closed at 57.67 on 16 Oct 2026 against a GLS average fair value of 54.79 - 5.3% above fair value, which our screens read as "fairly priced". 3 of 8 models are above the current price. There is no discount to lean on here, so the margin of safety is not the reason to look at the stock.

The 8 models disagree widely: Graham Number gives 17.38 while GLS Growth gives 117.18. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.

The nightly engine files COCO under High Growth: revenue and earnings growing fast enough that the growth-based models carry the valuation.

Nine valuation models for COCO

Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.

Quality and financial health

Financial health is average - COCO passes 5 of the nine Piotroski tests, which falls one point short of the Sunday Scan's "6 or more" rule. The Financials tab on the Quote page shows which tests fail. The GLS Moat score is 8.0 out of 10, built from ten years of revenue, earnings, margins, cash flow, share count and returns on capital scored for consistency - a high reading that points to a durable business.

Returns on capital are high - ROIC 20.6%, ROE 21.5%, ROA 15.5% - with debt at 0.04 times equity and a free-cash-flow yield of 3.8%.

The Vita Coco Company, Inc. pays no dividend, so the DDM model does not apply and a covered-call holder earns only the premium and any price gain. Revenue comes mainly from Vita Coco Coconut Water 79%, Private Label 18%, Product and Service, Other 4% (quarter Q2 FY2026).

Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 10/10 on the GLS smart-money scales; the last recorded Congressional buy was on 17 Sep 2026.

Wheel Score 70: Good

COCO scores 70 out of 100 on the Wheel Score (Good band, 65-79). The score blends the margin of safety (Value, 10/25), Piotroski health (11/20), the GLS moat (12/15), the option premium on offer (20/20) and how easily the stock trades (16/20). Value (10/25) is the part holding the score back.

Implied volatility is 58% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is 8,520 contracts across all expiries - enough for the wheel at normal size.

Volume runs at 991k shares a day on a market cap of $3.3B, with a beta of 0.75 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 16 of 20.

The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.

Upcoming events

The Vita Coco Company, Inc. reports earnings on 22 Oct 2026 (before the open) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.

Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.

Similar stocks in Beverages - Non-Alcoholic

The 12 companies below are the closest to The Vita Coco Company, Inc. by market cap within the Beverages - Non-Alcoholic industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.

⚖ Compare COCO with 7 of them   All Consumer Defensive stocks →