Vital Farms, Inc. VITL

Vital Farms couples a mission-driven, premium brand with a cash-rich balance sheet and rising double-digit returns on capital—ingredients for compounding if execution stays crisp. Yet its advantages are still mostly soft (brand and farmer relationships) and capex demands will soak up cash for the next two years, leaving slim room for operational mis-steps at a share price already pricing in smooth sailing. It is a promising, but not bullet-proof, compounder candidate.