Is Vital Farms, Inc. (VITL) Halal?

NASDAQ Consumer Defensive United States $589M
✓ HALAL
Confidence: 95/100
Vital Farms, Inc. (VITL) is Halal under all 5 major Shariah screening standards. With a debt ratio of just 6.0% against the AAOIFI threshold of 30%, Vital Farms, Inc. comfortably passes the key financial ratio tests. The company operates in the Consumer Defensive sector (Farm Products), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 6.0%
/ 30%
12.7%
/ 30%
7.8%
/ 30%
0.66%
/ 5%
✓ HALAL
DJIM 6.0%
/ 33%
12.7%
/ 33%
7.8%
/ 33%
0.66%
/ 5%
✓ HALAL
MSCI 10.3%
/ 33%
21.9%
/ 33%
13.4%
/ 33%
0.66%
/ 5%
✓ HALAL
S&P 6.0%
/ 33%
12.7%
/ 33%
7.8%
/ 33%
0.66%
/ 5%
✓ HALAL
FTSE 10.3%
/ 33%
21.9%
/ 33%
13.4%
/ 50%
0.66%
/ 5%
✓ HALAL

Financial Highlights

P/E Ratio
9.1
Forward: 9.1
EPS
$1.44
P/B Ratio
1.7
EV/EBITDA
5.1
EV: $529M
Revenue
$759M
Growth: 28.7%
Beta
1.2
High volatility
Current Ratio
2.2

Profitability

Gross Margin 37.6%
Operating Margin 10.0%
Net Margin 8.7%
Return on Equity (ROE) 21.4%
Return on Assets (ROA) 12.6%

Cash Flow & Balance Sheet

Operating Cash Flow$34M
Free Cash Flow-$48M
Total Debt$53M
Debt-to-Equity15.2
Current Ratio2.2
Total Assets$519M

Price & Trading

Last Close$13.01
50-Day MA$22.86
200-Day MA$34.53
Avg Volume2.0M
Beta1.2
52-Week Range
$12.80
$53.12

About Vital Farms, Inc. (VITL)

CEO
Mr. Russell Diez-Canseco
Employees
739
Sector
Consumer Defensive
Industry
Farm Products
Country
United States
Exchange
NASDAQ
Market Cap
$589M
Currency
USD

Vital Farms, Inc., a food company, packages, markets, and distributes shell eggs, butter, and other products in the United States. The company produces products sourced from animals raised on family farms, including shell eggs, stick butter, hard-boiled eggs, and liquid whole eggs under the Vital Farms brand and other trade names. It offers its products through third parties and direct to retailers, and commercial and non-commercial foodservice operators. The company was founded in 2007 and is headquartered in Austin, Texas.

Purification Calculator

As a halal stock with 0.66% impermissible income, you need to purify your dividends.

Enter your dividends to calculate purification amount

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Frequently Asked Questions

Is Vital Farms, Inc. (VITL) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), Vital Farms, Inc. is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is Vital Farms, Inc.'s debt ratio?

Vital Farms, Inc.'s debt ratio is 6.0% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 10.3%.

Does Vital Farms, Inc. require dividend purification?

Yes, Vital Farms, Inc. has an impermissible income ratio of 0.66%, which means 0.66% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.

What are Vital Farms, Inc.'s key financial metrics?

Vital Farms, Inc. has a market capitalization of $589M, trailing P/E ratio of 9.1, and revenue of $759M. The company maintains a gross margin of 37.6% and a net margin of 8.7%. Return on equity stands at 21.4%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.