CALAVO GROWERS INC (CVGW) Stock Fundamental Analysis
NASDAQ:CVGW - Nasdaq - US1282461052 - Common Stock - Currency: USD
CVGW gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 89 industry peers in the Food Products industry. CVGW is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. 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.
CVGW had a positive operating cash flow in the past year.
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
CVGW has a better Return On Assets (3.23%) than 60.67% of its industry peers.
Looking at the Return On Equity, with a value of 5.07%, CVGW is in line with its industry, outperforming 48.31% of the companies in the same industry.
CVGW's Return On Invested Capital of 8.55% is amongst the best of the industry. CVGW outperforms 82.02% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CVGW is below the industry average of 7.61%.
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
Looking at the Profit Margin, with a value of 1.50%, CVGW is in line with its industry, outperforming 42.70% of the companies in the same industry.
Looking at the Operating Margin, with a value of 3.75%, CVGW is in line with its industry, outperforming 52.81% of the companies in the same industry.
In the last couple of years the Operating Margin of CVGW has declined.
The Gross Margin of CVGW (10.11%) is worse than 73.03% of its industry peers.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CVGW is destroying value.
CVGW has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, CVGW has more shares outstanding
The debt/assets ratio for CVGW has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.43 indicates that CVGW is not in any danger for bankruptcy at the moment.
CVGW has a Altman-Z score of 5.43. This is amongst the best in 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.
Looking at the Debt to FCF ratio, with a value of 0.14, CVGW belongs to the top of the industry, outperforming 93.26% of the companies in the same industry.
A Debt/Equity ratio of 0.02 indicates that CVGW is not too dependend on debt financing.
CVGW has a better Debt to Equity ratio (0.02) than 79.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.14 | ||
| Altman-Z | 5.43 |
ROIC/WACC0.84
WACC10.17%
2.3 Liquidity
CVGW has a Current Ratio of 2.00. This is a normal value and indicates that CVGW is financially healthy and should not expect problems in meeting its short term obligations.
CVGW's Current ratio of 2.00 is fine compared to the rest of the industry. CVGW outperforms 65.17% of its industry peers.
CVGW has a Quick Ratio of 1.54. 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 better Quick ratio (1.54) than 80.90% 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
Measured over the past years, CVGW shows a very negative growth in Revenue. The Revenue has been decreasing by -11.17% on average per year.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 20.56, which indicates a rather expensive current valuation of CVGW.
CVGW's Price/Earnings is on the same level as the industry average.
CVGW's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.35.
A Price/Forward Earnings ratio of 13.25 indicates a correct valuation of CVGW.
74.16% of the companies in the same industry are more expensive than CVGW, based on the Price/Forward Earnings ratio.
CVGW's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.19.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.56 | ||
| Fwd PE | 13.25 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as CVGW.
74.16% of the companies in the same industry are more expensive than CVGW, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.18 | ||
| EV/EBITDA | 12.99 |
4.3 Compensation for Growth
CVGW's 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 2.93%, CVGW has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.63, CVGW pays a bit more dividend than its industry peers.
CVGW's Dividend Yield is a higher than the S&P500 average which is at 2.42.
| 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.
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%
27.75
+0.47 (+1.72%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners74.83%
Inst Owner Change-0.26%
Ins Owners2.75%
Ins Owner Change7.29%
Market Cap495.06M
Analysts80
Price Target35.7 (28.65%)
Short Float %3.03%
Short Ratio1.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.93% |
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)9.38%
PT rev (3m)9.38%
EPS NQ rev (1m)6.61%
EPS NQ rev (3m)9.14%
EPS NY rev (1m)-7.69%
EPS NY rev (3m)-1.34%
Revenue NQ rev (1m)1.47%
Revenue NQ rev (3m)1.63%
Revenue NY rev (1m)0.91%
Revenue NY rev (3m)1.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.56 | ||
| Fwd PE | 13.25 | ||
| P/S | 0.71 | ||
| P/FCF | 15.18 | ||
| P/OCF | 14.76 | ||
| P/B | 2.41 | ||
| P/tB | 2.54 | ||
| EV/EBITDA | 12.99 |
EPS(TTM)1.35
EY4.86%
EPS(NY)2.09
Fwd EY7.54%
FCF(TTM)1.83
FCFY6.59%
OCF(TTM)1.88
OCFY6.77%
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
WACC10.17%
ROIC/WACC0.84
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%