CALAVO GROWERS INC (CVGW) Stock Fundamental Analysis
NASDAQ:CVGW - Nasdaq - US1282461052 - Common Stock - Currency: USD
Overall CVGW gets a fundamental rating of 5 out of 10. We evaluated CVGW against 91 industry peers in the Food Products industry. CVGW has an excellent financial health rating, but there are some minor concerns on its profitability. CVGW is not valued too expensively and it also shows a decent growth rate.
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.
In the past 5 years CVGW always reported negative net income.
CVGW had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
CVGW has a Return On Assets (3.23%) which is comparable to the rest of the industry.
CVGW has a Return On Equity of 5.07%. This is comparable to the rest of the industry: CVGW outperforms 46.15% of its industry peers.
The Return On Invested Capital of CVGW (8.55%) is better than 80.22% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CVGW is significantly below the industry average of 28.19%.
The last Return On Invested Capital (8.55%) for CVGW is above the 3 year average (3.99%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.23% | ||
| ROE | 5.07% | ||
| ROIC | 8.55% |
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
CVGW's Profit Margin of 1.50% is in line compared to the rest of the industry. CVGW outperforms 42.86% of its industry peers.
CVGW has a Operating Margin (3.75%) which is in line with its industry peers.
CVGW's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 10.11%, CVGW is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
CVGW's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.75% | ||
| PM (TTM) | 1.5% | ||
| GM | 10.11% |
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.
Compared to 5 years ago, CVGW has more shares outstanding
Compared to 1 year ago, CVGW has an improved debt to assets ratio.
2.2 Solvency
CVGW has an Altman-Z score of 5.30. This indicates that CVGW is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of CVGW (5.30) is better than 89.01% of its industry peers.
The Debt to FCF ratio of CVGW is 0.14, which is an excellent value as it means it would take CVGW, only 0.14 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of CVGW (0.14) is better than 93.41% of its industry peers.
A Debt/Equity ratio of 0.02 indicates that CVGW is not too dependend on debt financing.
CVGW has a Debt to Equity ratio of 0.02. This is amongst the best in the industry. CVGW outperforms 81.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.14 | ||
| Altman-Z | 5.3 |
ROIC/WACC0.97
WACC8.81%
2.3 Liquidity
A Current Ratio of 2.00 indicates that CVGW should not have too much problems paying its short term obligations.
CVGW has a better Current ratio (2.00) than 65.93% of its industry peers.
A Quick Ratio of 1.54 indicates that CVGW should not have too much problems paying its short term obligations.
With an excellent Quick ratio value of 1.54, CVGW belongs to the best of the industry, outperforming 81.32% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2 | ||
| Quick Ratio | 1.54 |
3. Growth
3.1 Past
CVGW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 136.84%, which is quite impressive.
The earnings per share for CVGW have been decreasing by -18.14% on average. This is quite bad
The Revenue for CVGW has decreased by -14.58% in the past year. This is quite bad
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)136.84%
EPS 3Y46.92%
EPS 5Y-18.14%
EPS Q2Q%-20%
Revenue 1Y (TTM)-14.58%
Revenue growth 3Y-14.43%
Revenue growth 5Y-11.17%
Sales Q2Q%3.34%
3.2 Future
The Earnings Per Share is expected to grow by 30.13% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 7.34% on average over the next years.
EPS Next Y55.94%
EPS Next 2Y37.34%
EPS Next 3Y30.13%
EPS Next 5YN/A
Revenue Next Year8.99%
Revenue Next 2Y6.64%
Revenue Next 3Y7.34%
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 accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 19.50, CVGW is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of CVGW indicates a somewhat cheap valuation: CVGW is cheaper than 61.54% of the companies listed in the same industry.
CVGW is valuated rather cheaply when we compare the Price/Earnings ratio to 26.82, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 12.57 indicates a correct valuation of CVGW.
CVGW's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CVGW is cheaper than 76.92% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.21, CVGW is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.5 | ||
| Fwd PE | 12.57 |
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.
Based on the Price/Free Cash Flow ratio, CVGW is valued a bit cheaper than the industry average as 74.73% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.4 | ||
| EV/EBITDA | 12.23 |
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.
A more expensive valuation may be justified as CVGW's earnings are expected to grow with 30.13% in the coming years.
PEG (NY)0.35
PEG (5Y)N/A
EPS Next 2Y37.34%
EPS Next 3Y30.13%
5. Dividend
5.1 Amount
CVGW has a Yearly Dividend Yield of 2.96%.
Compared to an average industry Dividend Yield of 4.67, CVGW pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.35, CVGW pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.96% |
5.2 History
The dividend of CVGW decreases each year by -12.87%.
CVGW has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of CVGW decreased in the last 3 years.
Dividend Growth(5Y)-12.87%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
120.27% of the earnings are spent on dividend by CVGW. This is not a sustainable payout ratio.
DP120.27%
EPS Next 2Y37.34%
EPS Next 3Y30.13%
26.32
+0.02 (+0.08%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners74.83%
Inst Owner Change-0.2%
Ins Owners2.75%
Ins Owner Change7.29%
Market Cap469.55M
Analysts82.5
Price Target35.7 (35.64%)
Short Float %4.38%
Short Ratio2.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.96% |
Yearly Dividend0.5
Dividend Growth(5Y)-12.87%
DP120.27%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-7.33%
Min EPS beat(2)-26.61%
Max EPS beat(2)11.95%
EPS beat(4)2
Avg EPS beat(4)-16.94%
Min EPS beat(4)-83.48%
Max EPS beat(4)30.36%
EPS beat(8)4
Avg EPS beat(8)-46.77%
EPS beat(12)4
Avg EPS beat(12)-63.16%
EPS beat(16)6
Avg EPS beat(16)-67.25%
Revenue beat(2)0
Avg Revenue beat(2)-6.38%
Min Revenue beat(2)-7.28%
Max Revenue beat(2)-5.49%
Revenue beat(4)1
Avg Revenue beat(4)-2.81%
Min Revenue beat(4)-7.28%
Max Revenue beat(4)2.9%
Revenue beat(8)2
Avg Revenue beat(8)-8.61%
Revenue beat(12)3
Avg Revenue beat(12)-12.45%
Revenue beat(16)6
Avg Revenue beat(16)-8.85%
PT rev (1m)0%
PT rev (3m)9.38%
EPS NQ rev (1m)-0.73%
EPS NQ rev (3m)5.83%
EPS NY rev (1m)0%
EPS NY rev (3m)-8.27%
Revenue NQ rev (1m)6.76%
Revenue NQ rev (3m)8.33%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.5 | ||
| Fwd PE | 12.57 | ||
| P/S | 0.68 | ||
| P/FCF | 14.4 | ||
| P/OCF | 14 | ||
| P/B | 2.29 | ||
| P/tB | 2.41 | ||
| EV/EBITDA | 12.23 |
EPS(TTM)1.35
EY5.13%
EPS(NY)2.09
Fwd EY7.95%
FCF(TTM)1.83
FCFY6.94%
OCF(TTM)1.88
OCFY7.14%
SpS38.93
BVpS11.49
TBVpS10.92
PEG (NY)0.35
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.23% | ||
| ROE | 5.07% | ||
| ROCE | 11.27% | ||
| ROIC | 8.55% | ||
| ROICexc | 11.57% | ||
| ROICexgc | 12.31% | ||
| OM | 3.75% | ||
| PM (TTM) | 1.5% | ||
| GM | 10.11% | ||
| FCFM | 4.69% |
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 Turnover2.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.14 | ||
| Debt/EBITDA | 0.11 | ||
| Cap/Depr | 11.94% | ||
| Cap/Sales | 0.13% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 99.13% | ||
| Profit Quality | 313.69% | ||
| Current Ratio | 2 | ||
| Quick Ratio | 1.54 | ||
| Altman-Z | 5.3 |
F-Score8
WACC8.81%
ROIC/WACC0.97
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)136.84%
EPS 3Y46.92%
EPS 5Y-18.14%
EPS Q2Q%-20%
EPS Next Y55.94%
EPS Next 2Y37.34%
EPS Next 3Y30.13%
EPS Next 5YN/A
Revenue 1Y (TTM)-14.58%
Revenue growth 3Y-14.43%
Revenue growth 5Y-11.17%
Sales Q2Q%3.34%
Revenue Next Year8.99%
Revenue Next 2Y6.64%
Revenue Next 3Y7.34%
Revenue Next 5YN/A
EBIT growth 1Y75.36%
EBIT growth 3Y102.92%
EBIT growth 5Y-22.92%
EBIT Next Year70.78%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y205.29%
FCF growth 3Y116.08%
FCF growth 5Y-17.22%
OCF growth 1Y33.48%
OCF growth 3Y21.63%
OCF growth 5Y-19.47%