MISSION PRODUCE INC (AVO) Stock Fundamental Analysis
NASDAQ:AVO - Nasdaq - US60510V1089 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to AVO. AVO was compared to 89 industry peers in the Food Products industry. AVO has only an average score on both its financial health and profitability. AVO is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year AVO was profitable.
In the past year AVO had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: AVO reported negative net income in multiple years.
In the past 5 years AVO always reported a positive cash flow from operatings.
1.2 Ratios
AVO has a better Return On Assets (4.07%) than 60.67% of its industry peers.
AVO has a Return On Equity (7.37%) which is in line with its industry peers.
AVO's Return On Invested Capital of 5.64% is in line compared to the rest of the industry. AVO outperforms 53.93% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AVO is significantly below the industry average of 9.00%.
The last Return On Invested Capital (5.64%) for AVO is above the 3 year average (2.39%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.07% | ||
| ROE | 7.37% | ||
| ROIC | 5.64% |
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
AVO has a Profit Margin of 3.10%. This is comparable to the rest of the industry: AVO outperforms 55.06% of its industry peers.
In the last couple of years the Profit Margin of AVO has declined.
AVO has a Operating Margin (5.15%) which is in line with its industry peers.
AVO's Operating Margin has declined in the last couple of years.
AVO has a Gross Margin of 11.89%. This is in the lower half of the industry: AVO underperforms 67.42% of its industry peers.
AVO's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.15% | ||
| PM (TTM) | 3.1% | ||
| GM | 11.89% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AVO is destroying value.
The number of shares outstanding for AVO has been increased compared to 1 year ago.
The number of shares outstanding for AVO has been increased compared to 5 years ago.
AVO has a better debt/assets ratio than last year.
2.2 Solvency
AVO has an Altman-Z score of 3.13. This indicates that AVO is financially healthy and has little risk of bankruptcy at the moment.
AVO's Altman-Z score of 3.13 is fine compared to the rest of the industry. AVO outperforms 70.79% of its industry peers.
The Debt to FCF ratio of AVO is 3.12, which is a good value as it means it would take AVO, 3.12 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 3.12, AVO is doing good in the industry, outperforming 76.40% of the companies in the same industry.
AVO has a Debt/Equity ratio of 0.25. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.25, AVO is doing good in the industry, outperforming 61.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 3.12 | ||
| Altman-Z | 3.13 |
ROIC/WACC0.68
WACC8.33%
2.3 Liquidity
AVO has a Current Ratio of 1.75. This is a normal value and indicates that AVO is financially healthy and should not expect problems in meeting its short term obligations.
AVO's Current ratio of 1.75 is in line compared to the rest of the industry. AVO outperforms 58.43% of its industry peers.
A Quick Ratio of 1.03 indicates that AVO should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.03, AVO is doing good in the industry, outperforming 61.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.75 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 108.33% over the past year.
The earnings per share for AVO have been decreasing by -12.88% on average. This is quite bad
The Revenue has grown by 31.14% in the past year. This is a very strong growth!
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)108.33%
EPS 3Y0%
EPS 5Y-12.88%
EPS Q2Q%11.11%
Revenue 1Y (TTM)31.14%
Revenue growth 3Y11.46%
Revenue growth 5Y6.93%
Sales Q2Q%29.18%
3.2 Future
Based on estimates for the next years, AVO will show a very negative growth in Earnings Per Share. The EPS will decrease by -12.57% on average per year.
The Revenue is expected to grow by 3.32% on average over the next years.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
The Price/Earnings ratio is 14.04, which indicates a correct valuation of AVO.
67.42% of the companies in the same industry are more expensive than AVO, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of AVO to the average of the S&P500 Index (28.22), we can say AVO is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 18.62, the valuation of AVO can be described as rather expensive.
67.42% of the companies in the same industry are more expensive than AVO, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.86, AVO is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.04 | ||
| Fwd PE | 18.62 |
4.2 Price Multiples
AVO's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. AVO is cheaper than 70.79% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AVO indicates a somewhat cheap valuation: AVO is cheaper than 67.42% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.41 | ||
| EV/EBITDA | 8.42 |
4.3 Compensation for Growth
A cheap valuation may be justified as AVO's earnings are expected to decrease with -12.57% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-12.57%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for AVO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
10.53
+0.13 (+1.25%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners32.65%
Inst Owner Change2.21%
Ins Owners22.64%
Ins Owner Change3.52%
Market Cap748.37M
Analysts80
Price Target17.34 (64.67%)
Short Float %2.65%
Short Ratio3.61
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)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
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)37.55%
Min Revenue beat(2)15.9%
Max Revenue beat(2)59.21%
Revenue beat(4)4
Avg Revenue beat(4)37.79%
Min Revenue beat(4)15.9%
Max Revenue beat(4)59.21%
Revenue beat(8)7
Avg Revenue beat(8)21.01%
Revenue beat(12)9
Avg Revenue beat(12)14.38%
Revenue beat(16)10
Avg Revenue beat(16)10.15%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-26.67%
EPS NY rev (1m)0%
EPS NY rev (3m)10.1%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)9.85%
Revenue NY rev (1m)0%
Revenue NY rev (3m)7.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.04 | ||
| Fwd PE | 18.62 | ||
| P/S | 0.57 | ||
| P/FCF | 16.41 | ||
| P/OCF | 9.05 | ||
| P/B | 1.36 | ||
| P/tB | 1.46 | ||
| EV/EBITDA | 8.42 |
EPS(TTM)0.75
EY7.12%
EPS(NY)0.57
Fwd EY5.37%
FCF(TTM)0.64
FCFY6.09%
OCF(TTM)1.16
OCFY11.05%
SpS18.44
BVpS7.75
TBVpS7.2
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.07% | ||
| ROE | 7.37% | ||
| ROCE | 8.15% | ||
| ROIC | 5.64% | ||
| ROICexc | 5.93% | ||
| ROICexgc | 6.24% | ||
| OM | 5.15% | ||
| PM (TTM) | 3.1% | ||
| GM | 11.89% | ||
| FCFM | 3.48% |
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 Turnover1.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 3.12 | ||
| Debt/EBITDA | 1.36 | ||
| Cap/Depr | 110.75% | ||
| Cap/Sales | 2.83% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 81.88% | ||
| Profit Quality | 112.32% | ||
| Current Ratio | 1.75 | ||
| Quick Ratio | 1.03 | ||
| Altman-Z | 3.13 |
F-Score7
WACC8.33%
ROIC/WACC0.68
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)108.33%
EPS 3Y0%
EPS 5Y-12.88%
EPS Q2Q%11.11%
EPS Next Y-25.61%
EPS Next 2Y-12.57%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)31.14%
Revenue growth 3Y11.46%
Revenue growth 5Y6.93%
Sales Q2Q%29.18%
Revenue Next Year8.36%
Revenue Next 2Y3.32%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y170%
EBIT growth 3Y2.12%
EBIT growth 5Y-9.21%
EBIT Next Year176.31%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y162.07%
FCF growth 3YN/A
FCF growth 5Y-0.55%
OCF growth 1Y9.83%
OCF growth 3Y25.72%
OCF growth 5Y0.17%