MISSION PRODUCE INC (AVO) Stock Fundamental Analysis
NASDAQ:AVO - Nasdaq - US60510V1089 - Common Stock - Currency: USD
Taking everything into account, AVO scores 4 out of 10 in our fundamental rating. AVO was compared to 89 industry peers in the Food Products industry. Both the profitability and the financial health of AVO get a neutral evaluation. Nothing too spectacular is happening here. While showing a medium growth rate, AVO is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
AVO had positive earnings in the past year.
AVO had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: AVO reported negative net income in multiple years.
AVO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 3.63%, AVO is doing good in the industry, outperforming 64.04% of the companies in the same industry.
AVO has a Return On Equity of 6.64%. This is comparable to the rest of the industry: AVO outperforms 59.55% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.01%, AVO is in line with its industry, outperforming 57.30% of the companies in the same industry.
AVO had an Average Return On Invested Capital over the past 3 years of 2.39%. This is significantly below the industry average of 7.60%.
The last Return On Invested Capital (5.01%) for AVO is above the 3 year average (2.39%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.63% | ||
| ROE | 6.64% | ||
| ROIC | 5.01% |
ROA(3y)-0.15%
ROA(5y)1.68%
ROE(3y)-0.25%
ROE(5y)2.75%
ROIC(3y)2.39%
ROIC(5y)3.88%
1.3 Margins
With a Profit Margin value of 2.63%, AVO perfoms like the industry average, outperforming 57.30% of the companies in the same industry.
AVO's Profit Margin has declined in the last couple of years.
AVO has a Operating Margin of 4.47%. This is comparable to the rest of the industry: AVO outperforms 57.30% of its industry peers.
In the last couple of years the Operating Margin of AVO has declined.
Looking at the Gross Margin, with a value of 11.01%, AVO is doing worse than 70.79% of the companies in the same industry.
AVO's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.47% | ||
| PM (TTM) | 2.63% | ||
| GM | 11.01% |
OM growth 3Y-8.38%
OM growth 5Y-15.09%
PM growth 3Y-16.11%
PM growth 5Y-18.2%
GM growth 3Y-4%
GM growth 5Y-6.75%
2. Health
2.1 Basic Checks
AVO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, AVO has more shares outstanding
AVO has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, AVO has an improved debt to assets ratio.
2.2 Solvency
AVO has an Altman-Z score of 3.35. This indicates that AVO is financially healthy and has little risk of bankruptcy at the moment.
AVO's Altman-Z score of 3.35 is fine compared to the rest of the industry. AVO outperforms 73.03% of its industry peers.
AVO has a debt to FCF ratio of 6.87. This is a slightly negative value and a sign of low solvency as AVO would need 6.87 years to pay back of all of its debts.
The Debt to FCF ratio of AVO (6.87) is better than 70.79% of its industry peers.
AVO has a Debt/Equity ratio of 0.30. This is a healthy value indicating a solid balance between debt and equity.
AVO has a better Debt to Equity ratio (0.30) than 64.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 6.87 | ||
| Altman-Z | 3.35 |
ROIC/WACC0.5
WACC9.95%
2.3 Liquidity
A Current Ratio of 1.98 indicates that AVO should not have too much problems paying its short term obligations.
The Current ratio of AVO (1.98) is better than 61.80% of its industry peers.
AVO has a Quick Ratio of 1.23. This is a normal value and indicates that AVO is financially healthy and should not expect problems in meeting its short term obligations.
AVO has a better Quick ratio (1.23) than 68.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.98 | ||
| Quick Ratio | 1.23 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 48.98% over the past year.
Measured over the past years, AVO shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -12.88% on average per year.
AVO shows a strong growth in Revenue. In the last year, the Revenue has grown by 29.50%.
Measured over the past years, AVO shows a small growth in Revenue. The Revenue has been growing by 6.93% on average per year.
EPS 1Y (TTM)48.98%
EPS 3Y0%
EPS 5Y-12.88%
EPS Q2Q%-14.29%
Revenue 1Y (TTM)29.5%
Revenue growth 3Y11.46%
Revenue growth 5Y6.93%
Sales Q2Q%27.79%
3.2 Future
AVO is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -12.57% yearly.
AVO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.32% yearly.
EPS Next Y-25.61%
EPS Next 2Y-12.57%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year8.36%
Revenue Next 2Y3.32%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 17.18, AVO is valued on the expensive side.
Based on the Price/Earnings ratio, AVO is valued a bit cheaper than the industry average as 62.92% of the companies are valued more expensively.
AVO is valuated rather cheaply when we compare the Price/Earnings ratio to 26.34, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 22.17, the valuation of AVO can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AVO is on the same level as its industry peers.
AVO's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.19.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.18 | ||
| Fwd PE | 22.17 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as AVO.
AVO's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.65 | ||
| EV/EBITDA | 10.57 |
4.3 Compensation for Growth
AVO's earnings are expected to decrease with -12.57% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-12.57%
EPS Next 3YN/A
5. Dividend
5.1 Amount
AVO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
12.54
+0.16 (+1.29%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners34.77%
Inst Owner Change6.15%
Ins Owners22%
Ins Owner Change4.36%
Market Cap891.22M
Analysts80
Price Target17.34 (38.28%)
Short Float %2.44%
Short Ratio3.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)206.03%
Min EPS beat(2)116.02%
Max EPS beat(2)296.04%
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)21.54%
Min Revenue beat(2)15.9%
Max Revenue beat(2)27.19%
Revenue beat(4)4
Avg Revenue beat(4)35.3%
Min Revenue beat(4)15.9%
Max Revenue beat(4)59.21%
Revenue beat(8)7
Avg Revenue beat(8)24.36%
Revenue beat(12)10
Avg Revenue beat(12)16.75%
Revenue beat(16)10
Avg Revenue beat(16)11.48%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)-6.45%
EPS NQ rev (3m)-6.45%
EPS NY rev (1m)0%
EPS NY rev (3m)10.1%
Revenue NQ rev (1m)3.74%
Revenue NQ rev (3m)3.74%
Revenue NY rev (1m)0%
Revenue NY rev (3m)7.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.18 | ||
| Fwd PE | 22.17 | ||
| P/S | 0.64 | ||
| P/FCF | 35.65 | ||
| P/OCF | 13.2 | ||
| P/B | 1.61 | ||
| P/tB | 1.74 | ||
| EV/EBITDA | 10.57 |
EPS(TTM)0.73
EY5.82%
EPS(NY)0.57
Fwd EY4.51%
FCF(TTM)0.35
FCFY2.81%
OCF(TTM)0.95
OCFY7.57%
SpS19.6
BVpS7.77
TBVpS7.22
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.63% | ||
| ROE | 6.64% | ||
| ROCE | 7.24% | ||
| ROIC | 5.01% | ||
| ROICexc | 5.23% | ||
| ROICexgc | 5.5% | ||
| OM | 4.47% | ||
| PM (TTM) | 2.63% | ||
| GM | 11.01% | ||
| FCFM | 1.79% |
ROA(3y)-0.15%
ROA(5y)1.68%
ROE(3y)-0.25%
ROE(5y)2.75%
ROIC(3y)2.39%
ROIC(5y)3.88%
ROICexc(3y)2.57%
ROICexc(5y)4.41%
ROICexgc(3y)2.71%
ROICexgc(5y)4.89%
ROCE(3y)3.47%
ROCE(5y)5.61%
ROICexcg growth 3Y-3.05%
ROICexcg growth 5Y-16.85%
ROICexc growth 3Y-1%
ROICexc growth 5Y-15.2%
OM growth 3Y-8.38%
OM growth 5Y-15.09%
PM growth 3Y-16.11%
PM growth 5Y-18.2%
GM growth 3Y-4%
GM growth 5Y-6.75%
F-Score7
Asset Turnover1.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 6.87 | ||
| Debt/EBITDA | 1.72 | ||
| Cap/Depr | 122.13% | ||
| Cap/Sales | 3.05% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 69.52% | ||
| Profit Quality | 68.12% | ||
| Current Ratio | 1.98 | ||
| Quick Ratio | 1.23 | ||
| Altman-Z | 3.35 |
F-Score7
WACC9.95%
ROIC/WACC0.5
Cap/Depr(3y)161.34%
Cap/Depr(5y)243.13%
Cap/Sales(3y)4.56%
Cap/Sales(5y)5.94%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)48.98%
EPS 3Y0%
EPS 5Y-12.88%
EPS Q2Q%-14.29%
EPS Next Y-25.61%
EPS Next 2Y-12.57%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)29.5%
Revenue growth 3Y11.46%
Revenue growth 5Y6.93%
Sales Q2Q%27.79%
Revenue Next Year8.36%
Revenue Next 2Y3.32%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y61.82%
EBIT growth 3Y2.12%
EBIT growth 5Y-9.21%
EBIT Next Year176.31%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y219.62%
FCF growth 3YN/A
FCF growth 5Y-0.55%
OCF growth 1Y46.42%
OCF growth 3Y25.72%
OCF growth 5Y0.17%