We assign a fundamental rating of 4 out of 10 to AVO. AVO was compared to 87 industry peers in the Food Products industry. While AVO has a great health rating, its profitability is only average at the moment. AVO has a expensive valuation and it also scores bad on growth.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year AVO was profitable.
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.
Each year in the past 5 years AVO had a positive operating cash flow.

1.2 Ratios

AVO has a better Return On Assets (3.84%) than 67.82% of its industry peers.
Looking at the Return On Equity, with a value of 6.42%, AVO is in the better half of the industry, outperforming 62.07% of the companies in the same industry.
With a Return On Invested Capital value of 5.16%, AVO perfoms like the industry average, outperforming 59.77% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for AVO is significantly below the industry average of 27.79%.
The 3 year average ROIC (3.69%) for AVO is below the current ROIC(5.16%), indicating increased profibility in the last year.

		Industry Rank	Sector Rank
ROA	3.84%
ROE	6.42%
ROIC	5.16%

ROA(3y)2.44%

ROA(5y)1.7%

ROE(3y)4.19%

ROE(5y)2.82%

ROIC(3y)3.69%

ROIC(5y)3.49%

1.3 Margins

AVO's Profit Margin of 2.71% is in line compared to the rest of the industry. AVO outperforms 59.77% of its industry peers.
In the last couple of years the Profit Margin of AVO has declined.
With a Operating Margin value of 4.70%, AVO perfoms like the industry average, outperforming 58.62% of the companies in the same industry.
AVO's Operating Margin has declined in the last couple of years.
AVO's Gross Margin of 11.57% is on the low side compared to the rest of the industry. AVO is outperformed by 62.07% of its industry peers.
AVO's Gross Margin has declined in the last couple of years.

		Industry Rank	Sector Rank
OM	4.7%
PM (TTM)	2.71%
GM	11.57%

OM growth 3Y58.71%

OM growth 5Y-9.93%

PM growth 3YN/A

PM growth 5Y-4.09%

GM growth 3Y10.44%

GM growth 5Y-4.36%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AVO is destroying value.
AVO has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, AVO has about the same amount of shares outstanding.
The debt/assets ratio for AVO has been reduced compared to a year ago.

2.2 Solvency

AVO has an Altman-Z score of 3.72. This indicates that AVO is financially healthy and has little risk of bankruptcy at the moment.
AVO has a Altman-Z score of 3.72. This is in the better half of the industry: AVO outperforms 75.86% of its industry peers.
The Debt to FCF ratio of AVO is 3.40, which is a good value as it means it would take AVO, 3.40 years of fcf income to pay off all of its debts.
AVO's Debt to FCF ratio of 3.40 is amongst the best of the industry. AVO outperforms 80.46% of its industry peers.
A Debt/Equity ratio of 0.20 indicates that AVO is not too dependend on debt financing.
AVO has a better Debt to Equity ratio (0.20) than 71.26% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.2
Debt/FCF	3.4
Altman-Z	3.72

ROIC/WACC0.62

WACC8.34%

2.3 Liquidity

A Current Ratio of 1.95 indicates that AVO should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.95, AVO is doing good in the industry, outperforming 64.37% of the companies in the same industry.
A Quick Ratio of 1.35 indicates that AVO should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.35, AVO is doing good in the industry, outperforming 73.56% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	1.95
Quick Ratio	1.35

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 6.76% over the past year.
AVO shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.21% yearly.
AVO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.68%.
AVO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.04% yearly.

EPS 1Y (TTM)6.76%

EPS 3Y43.03%

EPS 5Y5.21%

EPS Q2Q%10.71%

Revenue 1Y (TTM)12.68%

Revenue growth 3Y9.98%

Revenue growth 5Y10.04%

Sales Q2Q%-9.99%

3.2 Future

AVO is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -1.75% yearly.
The Revenue is expected to decrease by -5.35% on average over the next years.

EPS Next Y-10.93%

EPS Next 2Y-1.75%

EPS Next 3YN/A

EPS Next 5YN/A

Revenue Next Year-10.93%

Revenue Next 2Y-5.35%

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 decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.

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4. Valuation

4.1 Price/Earnings Ratio

AVO is valuated rather expensively with a Price/Earnings ratio of 17.18.
Based on the Price/Earnings ratio, AVO is valued a bit cheaper than 60.92% of the companies in the same industry.
AVO's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.25.
AVO is valuated rather expensively with a Price/Forward Earnings ratio of 19.29.
The rest of the industry has a similar Price/Forward Earnings ratio as AVO.
The average S&P500 Price/Forward Earnings ratio is at 25.98. AVO is valued slightly cheaper when compared to this.

		Industry Rank	Sector Rank
PE	17.18
Fwd PE	19.29

4.2 Price Multiples

AVO's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as AVO.