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.
CVGW had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
CVGW has a better Return On Assets (3.21%) than 61.80% of its industry peers.
With a Return On Equity value of 4.77%, CVGW perfoms like the industry average, outperforming 48.31% of the companies in the same industry.
With an excellent Return On Invested Capital value of 8.52%, CVGW belongs to the best of the industry, outperforming 82.02% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CVGW is below the industry average of 7.57%.
The last Return On Invested Capital (8.52%) for CVGW is above the 3 year average (3.99%), which is a sign of increasing profitability.
| 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
CVGW has a Profit Margin (1.40%) which is comparable to the rest of the industry.
CVGW has a Operating Margin (3.72%) which is in line with its industry peers.
In the last couple of years the Operating Margin of CVGW has declined.
CVGW has a Gross Margin of 10.53%. This is in the lower half of the industry: CVGW underperforms 74.16% of its industry peers.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CVGW 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.
Compared to 1 year ago, CVGW has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.97 indicates that CVGW is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.97, CVGW belongs to the top of the industry, outperforming 89.89% of the companies in the same industry.
The Debt to FCF ratio of CVGW is 0.28, which is an excellent value as it means it would take CVGW, only 0.28 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.28, CVGW belongs to the top of the industry, outperforming 92.13% 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.
With a decent Debt to Equity ratio value of 0.02, CVGW is doing good in the industry, outperforming 79.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.28 | ||
| Altman-Z | 5.97 |
ROIC/WACC0.94
WACC9.08%
2.3 Liquidity
A Current Ratio of 2.23 indicates that CVGW has no problem at all paying its short term obligations.
The Current ratio of CVGW (2.23) is better than 70.79% of its industry peers.
A Quick Ratio of 1.67 indicates that CVGW should not have too much problems paying its short term obligations.
CVGW has a better Quick ratio (1.67) than 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.
Measured over the past years, CVGW shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -18.14% on average per year.
The Revenue for CVGW has decreased by -21.19% 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)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 30.22% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 7.31% on average over the next years.
EPS Next Y68.93%
EPS Next 2Y40.32%
EPS Next 3Y30.22%
EPS Next 5YN/A
Revenue Next Year8.01%
Revenue Next 2Y6.74%
Revenue Next 3Y7.31%
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 19.09, which indicates a rather expensive current valuation of CVGW.
Compared to the rest of the industry, the Price/Earnings ratio of CVGW is on the same level as its industry peers.
CVGW is valuated rather cheaply when we compare the Price/Earnings ratio to 26.52, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 12.67 indicates a correct valuation of CVGW.
77.53% of the companies in the same industry are more expensive than CVGW, based on the Price/Forward Earnings ratio.
CVGW is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.25, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.09 | ||
| Fwd PE | 12.67 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as CVGW.
CVGW's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CVGW is cheaper than 64.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.75 | ||
| EV/EBITDA | 12.83 |
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.
A more expensive valuation may be justified as CVGW's earnings are expected to grow with 30.22% in the coming years.
PEG (NY)0.28
PEG (5Y)N/A
EPS Next 2Y40.32%
EPS Next 3Y30.22%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.01%, CVGW has a reasonable but not impressive dividend return.
CVGW's Dividend Yield is a higher than the industry average which is at 4.65.
Compared to an average S&P500 Dividend Yield of 2.39, CVGW pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.01% |
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 111.46% of its income as dividend. This is not a sustainable payout ratio.
DP111.46%
EPS Next 2Y40.32%
EPS Next 3Y30.22%
27.68
+1.07 (+4.02%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners77.37%
Inst Owner Change-0.14%
Ins Owners2.92%
Ins Owner Change7.29%
Market Cap493.81M
Analysts80
Price Target32.64 (17.92%)
Short Float %3.34%
Short Ratio2.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.01% |
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)-3.03%
EPS NQ rev (1m)0%
EPS NQ rev (3m)7.44%
EPS NY rev (1m)-0.63%
EPS NY rev (3m)6.88%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.4%
Revenue NY rev (1m)2.2%
Revenue NY rev (3m)0.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.09 | ||
| Fwd PE | 12.67 | ||
| P/S | 0.72 | ||
| P/FCF | 27.75 | ||
| P/OCF | 24.77 | ||
| P/B | 2.45 | ||
| P/tB | 2.58 | ||
| EV/EBITDA | 12.83 |
EPS(TTM)1.45
EY5.24%
EPS(NY)2.19
Fwd EY7.9%
FCF(TTM)1
FCFY3.6%
OCF(TTM)1.12
OCFY4.04%
SpS38.58
BVpS11.29
TBVpS10.72
PEG (NY)0.28
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 | 5.97 |
F-Score8
WACC9.08%
ROIC/WACC0.94
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 Y68.93%
EPS Next 2Y40.32%
EPS Next 3Y30.22%
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 Year8.01%
Revenue Next 2Y6.74%
Revenue Next 3Y7.31%
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%