CALAVO GROWERS INC (CVGW) Stock Fundamental Analysis
NASDAQ:CVGW - Nasdaq - US1282461052 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to CVGW. CVGW was compared to 89 industry peers in the Food Products industry. No worries on liquidiy or solvency for CVGW as it has an excellent financial health rating, but there are worries on the profitability. CVGW has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year CVGW was profitable.
In the past year CVGW had a positive cash flow from operations.
CVGW had negative earnings in each of the past 5 years.
Of the past 5 years CVGW 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.21%, CVGW is in line with its industry, outperforming 55.06% of the companies in the same industry.
The Return On Equity of CVGW (4.77%) is comparable to the rest of the industry.
CVGW's Return On Invested Capital of 8.52% is fine compared to the rest of the industry. CVGW outperforms 77.53% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CVGW is significantly below the industry average of 9.00%.
The 3 year average ROIC (3.99%) for CVGW is below the current ROIC(8.52%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.21% | ||
| ROE | 4.77% | ||
| ROIC | 8.52% |
ROA(3y)-1.38%
ROA(5y)-1.99%
ROE(3y)-2.45%
ROE(5y)-3.59%
ROIC(3y)3.99%
ROIC(5y)3.92%
1.3 Margins
With a Profit Margin value of 1.40%, CVGW perfoms like the industry average, outperforming 44.94% of the companies in the same industry.
The Operating Margin of CVGW (3.72%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of CVGW has declined.
Looking at the Gross Margin, with a value of 10.53%, CVGW is doing worse than 69.66% of the companies in the same industry.
CVGW's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.72% | ||
| PM (TTM) | 1.4% | ||
| GM | 10.53% |
OM growth 3Y137.14%
OM growth 5Y-13.23%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y23.52%
GM growth 5Y-0.88%
2. Health
2.1 Basic Checks
CVGW has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
CVGW has more shares outstanding than it did 1 year ago.
CVGW has more shares outstanding than it did 5 years ago.
The debt/assets ratio for CVGW has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 6.01 indicates that CVGW is not in any danger for bankruptcy at the moment.
CVGW has a better Altman-Z score (6.01) than 89.89% of its industry peers.
CVGW has a debt to FCF ratio of 0.28. This is a very positive value and a sign of high solvency as it would only need 0.28 years to pay back of all of its debts.
CVGW has a better Debt to FCF ratio (0.28) than 93.26% of its industry peers.
A Debt/Equity ratio of 0.02 indicates that CVGW is not too dependend on debt financing.
CVGW's Debt to Equity ratio of 0.02 is amongst the best of the industry. CVGW outperforms 82.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.28 | ||
| Altman-Z | 6.01 |
ROIC/WACC0.96
WACC8.91%
2.3 Liquidity
CVGW has a Current Ratio of 2.23. This indicates that CVGW is financially healthy and has no problem in meeting its short term obligations.
CVGW has a better Current ratio (2.23) than 68.54% of its industry peers.
CVGW has a Quick Ratio of 1.67. This is a normal value and indicates that CVGW is financially healthy and should not expect problems in meeting its short term obligations.
CVGW has a Quick ratio of 1.67. This is in the better half of the industry: CVGW outperforms 79.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.23 | ||
| Quick Ratio | 1.67 |
3. Growth
3.1 Past
CVGW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 2316.67%, which is quite impressive.
CVGW shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -18.14% yearly.
CVGW shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -21.19%.
CVGW shows a very negative growth in Revenue. Measured over the last years, the Revenue has been decreasing by -11.17% yearly.
EPS 1Y (TTM)2316.67%
EPS 3Y46.92%
EPS 5Y-18.14%
EPS Q2Q%3400%
Revenue 1Y (TTM)-21.19%
Revenue growth 3Y-14.43%
Revenue growth 5Y-11.17%
Sales Q2Q%20.99%
3.2 Future
The Earnings Per Share is expected to grow by 39.25% on average over the next years. This is a very strong growth
CVGW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.04% yearly.
EPS Next Y70%
EPS Next 2Y39.25%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.69%
Revenue Next 2Y5.04%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 18.72, CVGW is valued on the expensive side.
The rest of the industry has a similar Price/Earnings ratio as CVGW.
CVGW's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.22.
A Price/Forward Earnings ratio of 12.61 indicates a correct valuation of CVGW.
Based on the Price/Forward Earnings ratio, CVGW is valued a bit cheaper than 78.65% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CVGW to the average of the S&P500 Index (20.86), we can say CVGW is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.72 | ||
| Fwd PE | 12.61 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CVGW is on the same level as its industry peers.
CVGW's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.22 | ||
| EV/EBITDA | 13.05 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
CVGW's earnings are expected to grow with 39.25% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.27
PEG (5Y)N/A
EPS Next 2Y39.25%
EPS Next 3YN/A
5. Dividend
5.1 Amount
CVGW has a Yearly Dividend Yield of 2.93%.
CVGW's Dividend Yield is a higher than the industry average which is at 4.44.
Compared to an average S&P500 Dividend Yield of 2.44, CVGW has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.93% |
5.2 History
The dividend of CVGW decreases each year by -12.87%.
CVGW has paid a dividend for at least 10 years, which is a reliable track record.
CVGW has decreased its dividend in the last 3 years.
Dividend Growth(5Y)-12.87%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
111.46% of the earnings are spent on dividend by CVGW. This is not a sustainable payout ratio.
DP111.46%
EPS Next 2Y39.25%
EPS Next 3YN/A
27.15
+0.13 (+0.48%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners77.37%
Inst Owner Change-0.27%
Ins Owners2.92%
Ins Owner Change9.23%
Market Cap484.36M
Analysts80
Price Target32.64 (20.22%)
Short Float %2.68%
Short Ratio2.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.93% |
Yearly Dividend0.5
Dividend Growth(5Y)-12.87%
DP111.46%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-35.76%
Min EPS beat(2)-83.48%
Max EPS beat(2)11.95%
EPS beat(4)3
Avg EPS beat(4)-1.22%
Min EPS beat(4)-83.48%
Max EPS beat(4)36.29%
EPS beat(8)4
Avg EPS beat(8)-56.64%
EPS beat(12)5
Avg EPS beat(12)-57.24%
EPS beat(16)6
Avg EPS beat(16)-65.91%
Revenue beat(2)1
Avg Revenue beat(2)-1.29%
Min Revenue beat(2)-5.49%
Max Revenue beat(2)2.9%
Revenue beat(4)2
Avg Revenue beat(4)2.17%
Min Revenue beat(4)-5.49%
Max Revenue beat(4)12.66%
Revenue beat(8)2
Avg Revenue beat(8)-8.89%
Revenue beat(12)4
Avg Revenue beat(12)-11.63%
Revenue beat(16)7
Avg Revenue beat(16)-8.3%
PT rev (1m)0%
PT rev (3m)-8.57%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.05%
EPS NY rev (1m)0%
EPS NY rev (3m)4.92%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.16%
Revenue NY rev (1m)-1.39%
Revenue NY rev (3m)-1.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.72 | ||
| Fwd PE | 12.61 | ||
| P/S | 0.7 | ||
| P/FCF | 27.22 | ||
| P/OCF | 24.3 | ||
| P/B | 2.4 | ||
| P/tB | 2.53 | ||
| EV/EBITDA | 13.05 |
EPS(TTM)1.45
EY5.34%
EPS(NY)2.15
Fwd EY7.93%
FCF(TTM)1
FCFY3.67%
OCF(TTM)1.12
OCFY4.12%
SpS38.58
BVpS11.29
TBVpS10.72
PEG (NY)0.27
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.21% | ||
| ROE | 4.77% | ||
| ROCE | 11.22% | ||
| ROIC | 8.52% | ||
| ROICexc | 10.82% | ||
| ROICexgc | 11.47% | ||
| OM | 3.72% | ||
| PM (TTM) | 1.4% | ||
| GM | 10.53% | ||
| FCFM | 2.58% |
ROA(3y)-1.38%
ROA(5y)-1.99%
ROE(3y)-2.45%
ROE(5y)-3.59%
ROIC(3y)3.99%
ROIC(5y)3.92%
ROICexc(3y)4.7%
ROICexc(5y)4.36%
ROICexgc(3y)5.14%
ROICexgc(5y)4.83%
ROCE(3y)5.25%
ROCE(5y)5.28%
ROICexcg growth 3Y147.48%
ROICexcg growth 5Y-14.29%
ROICexc growth 3Y152.41%
ROICexc growth 5Y-14.22%
OM growth 3Y137.14%
OM growth 5Y-13.23%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y23.52%
GM growth 5Y-0.88%
F-Score8
Asset Turnover2.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.28 | ||
| Debt/EBITDA | 0.12 | ||
| Cap/Depr | 26.81% | ||
| Cap/Sales | 0.31% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 59.33% | ||
| Profit Quality | 185.22% | ||
| Current Ratio | 2.23 | ||
| Quick Ratio | 1.67 | ||
| Altman-Z | 6.01 |
F-Score8
WACC8.91%
ROIC/WACC0.96
Cap/Depr(3y)49.34%
Cap/Depr(5y)56.72%
Cap/Sales(3y)0.79%
Cap/Sales(5y)0.9%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)2316.67%
EPS 3Y46.92%
EPS 5Y-18.14%
EPS Q2Q%3400%
EPS Next Y70%
EPS Next 2Y39.25%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-21.19%
Revenue growth 3Y-14.43%
Revenue growth 5Y-11.17%
Sales Q2Q%20.99%
Revenue Next Year5.69%
Revenue Next 2Y5.04%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y471.31%
EBIT growth 3Y102.92%
EBIT growth 5Y-22.92%
EBIT Next Year70.78%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-38.77%
FCF growth 3Y116.08%
FCF growth 5Y-17.22%
OCF growth 1Y-52.5%
OCF growth 3Y21.63%
OCF growth 5Y-19.47%