CALAVO GROWERS INC (CVGW) Stock Fundamental Analysis
NASDAQ:CVGW - US1282461052 - Common Stock
27.79 USD
-0.05 (-0.18%)
27.79 USD
0 (0%)
Overall CVGW gets a fundamental rating of 5 out of 10. We evaluated CVGW against 89 industry peers in the Food Products industry. While CVGW has a great health rating, there are worries on its profitability. CVGW has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
CVGW had positive earnings in the past year.
In the past year CVGW had a positive cash flow from operations.
CVGW had negative earnings in each of the past 5 years.
CVGW had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
CVGW has a Return On Assets of 3.23%. This is comparable to the rest of the industry: CVGW outperforms 59.55% of its industry peers.
The Return On Equity of CVGW (5.07%) is comparable to the rest of the industry.
CVGW's Return On Invested Capital of 8.55% is fine compared to the rest of the industry. CVGW outperforms 79.78% 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 29.14%.
The 3 year average ROIC (3.99%) for CVGW is below the current ROIC(8.55%), indicating increased profibility in the last year.
| 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 has a Profit Margin of 1.50%. This is comparable to the rest of the industry: CVGW outperforms 53.93% of its industry peers.
CVGW has a Operating Margin (3.75%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of CVGW has declined.
CVGW's Gross Margin of 10.11% is on the low side compared to the rest of the industry. CVGW is outperformed by 71.91% of its industry peers.
In the last couple of years the Gross Margin of CVGW has remained more or less at the same level.
| 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.
The number of shares outstanding for CVGW has been increased compared to 1 year ago.
The number of shares outstanding for CVGW has been increased compared to 5 years ago.
The debt/assets ratio for CVGW has been reduced compared to a year ago.
2.2 Solvency
CVGW has an Altman-Z score of 5.43. This indicates that CVGW is financially healthy and has little risk of bankruptcy at the moment.
CVGW's Altman-Z score of 5.43 is amongst the best of the industry. CVGW outperforms 88.76% of its industry peers.
CVGW has a debt to FCF ratio of 0.14. This is a very positive value and a sign of high solvency as it would only need 0.14 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.14, CVGW belongs to the best of the industry, outperforming 93.26% of the companies in the same industry.
CVGW has a Debt/Equity ratio of 0.02. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of CVGW (0.02) is better than 80.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.14 | ||
| Altman-Z | 5.43 |
ROIC/WACC0.97
WACC8.84%
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 66.29% of its industry peers.
A Quick Ratio of 1.54 indicates that CVGW should not have too much problems paying its short term obligations.
CVGW has a better Quick ratio (1.54) than 79.78% of its industry peers.
| 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.
CVGW shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -18.14% yearly.
The Revenue for CVGW has decreased by -14.58% in the past year. This is quite bad
The Revenue for CVGW have been decreasing by -11.17% on average. This is quite bad
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
Based on estimates for the next years, CVGW will show a small growth in Revenue. The Revenue will grow by 7.34% on average per year.
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.
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
The Price/Earnings ratio is 20.59, which indicates a rather expensive current valuation of CVGW.
The rest of the industry has a similar Price/Earnings ratio as CVGW.
The average S&P500 Price/Earnings ratio is at 27.24. CVGW is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 13.27, which indicates a correct valuation of CVGW.
Based on the Price/Forward Earnings ratio, CVGW is valued a bit cheaper than 77.53% of the companies in the same industry.
CVGW's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.59 | ||
| Fwd PE | 13.27 |
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 a bit cheaper when compared to the industry. CVGW is cheaper than 74.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.21 | ||
| EV/EBITDA | 13.01 |
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 30.13% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.37
PEG (5Y)N/A
EPS Next 2Y37.34%
EPS Next 3Y30.13%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.87%, CVGW has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.62, CVGW pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.32, CVGW pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.87% |
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.
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
CVGW pays out 120.27% of its income as dividend. This is not a sustainable payout ratio.
DP120.27%
EPS Next 2Y37.34%
EPS Next 3Y30.13%
27.79
-0.05 (-0.18%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners68.14%
Inst Owner Change-0.84%
Ins Owners2.75%
Ins Owner Change7.29%
Market Cap495.77M
Analysts82.5
Price Target35.7 (28.46%)
Short Float %3.69%
Short Ratio1.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.87% |
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%
EPS NQ rev (3m)5.83%
EPS NY rev (1m)0%
EPS NY rev (3m)-7.69%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)8.33%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.59 | ||
| Fwd PE | 13.27 | ||
| P/S | 0.71 | ||
| P/FCF | 15.21 | ||
| P/OCF | 14.78 | ||
| P/B | 2.42 | ||
| P/tB | 2.55 | ||
| EV/EBITDA | 13.01 |
EPS(TTM)1.35
EY4.86%
EPS(NY)2.09
Fwd EY7.53%
FCF(TTM)1.83
FCFY6.58%
OCF(TTM)1.88
OCFY6.76%
SpS38.93
BVpS11.49
TBVpS10.92
PEG (NY)0.37
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 | 5.43 |
F-Score8
WACC8.84%
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 Year59.19%
EBIT Next 3Y26.52%
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%