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 91 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 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.
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 (3.23%) than 60.44% of its industry peers.
The Return On Equity of CVGW (5.07%) is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 8.55%, CVGW belongs to the top of the industry, outperforming 81.32% of the companies in the same industry.
CVGW had an Average Return On Invested Capital over the past 3 years of 3.99%. This is significantly below the industry average of 28.39%.
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 42.86% of the companies in the same industry.
CVGW has a Operating Margin (3.75%) which is in line with its industry peers.
In the last couple of years the Operating Margin of CVGW has declined.
Looking at the Gross Margin, with a value of 10.11%, CVGW is doing worse than 71.43% 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 | 3.75% | ||
| 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.
CVGW has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, CVGW has an improved debt to assets ratio.
2.2 Solvency
CVGW has an Altman-Z score of 5.32. This indicates that CVGW is financially healthy and has little risk of bankruptcy at the moment.
CVGW's Altman-Z score of 5.32 is amongst the best of the industry. CVGW outperforms 87.91% 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.
CVGW's Debt to FCF ratio of 0.14 is amongst the best of the industry. CVGW outperforms 93.41% of its industry peers.
CVGW has a Debt/Equity ratio of 0.02. This is a healthy value indicating a solid balance between debt and equity.
CVGW has a better Debt to Equity ratio (0.02) than 81.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.14 | ||
| Altman-Z | 5.32 |
ROIC/WACC0.84
WACC10.22%
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.
Looking at the Current ratio, with a value of 2.00, CVGW is in the better half of the industry, outperforming 64.84% of the companies in the same industry.
A Quick Ratio of 1.54 indicates that CVGW should not have too much problems paying its short term obligations.
CVGW's Quick ratio of 1.54 is amongst the best of the industry. CVGW outperforms 81.32% 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.
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.
CVGW shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -14.58%.
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
CVGW is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 30.13% yearly.
CVGW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.34% yearly.
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
CVGW is valuated rather expensively with a Price/Earnings ratio of 20.36.
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's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.21.
A Price/Forward Earnings ratio of 13.12 indicates a correct valuation of CVGW.
Based on the Price/Forward Earnings ratio, CVGW is valued a bit cheaper than the industry average as 76.92% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of CVGW to the average of the S&P500 Index (21.70), we can say CVGW is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.36 | ||
| Fwd PE | 13.12 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CVGW indicates a somewhat cheap valuation: CVGW is cheaper than 74.73% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.04 | ||
| EV/EBITDA | 12.38 |
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)0.36
PEG (5Y)N/A
EPS Next 2Y37.34%
EPS Next 3Y30.13%
5. Dividend
5.1 Amount
CVGW has a Yearly Dividend Yield of 3.01%. Purely for dividend investing, there may be better candidates out there.
CVGW's Dividend Yield is a higher than the industry average which is at 4.75.
CVGW's Dividend Yield is a higher than the S&P500 average which is at 2.42.
| 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
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%
27.48
+0.89 (+3.35%)
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 Cap490.24M
Analysts80
Price Target35.7 (29.91%)
Short Float %6.68%
Short Ratio2.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.01% |
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 | 20.36 | ||
| Fwd PE | 13.12 | ||
| P/S | 0.71 | ||
| P/FCF | 15.04 | ||
| P/OCF | 14.62 | ||
| P/B | 2.39 | ||
| P/tB | 2.52 | ||
| EV/EBITDA | 12.38 |
EPS(TTM)1.35
EY4.91%
EPS(NY)2.09
Fwd EY7.62%
FCF(TTM)1.83
FCFY6.65%
OCF(TTM)1.88
OCFY6.84%
SpS38.93
BVpS11.49
TBVpS10.92
PEG (NY)0.36
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 | 5.32 |
F-Score8
WACC10.22%
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%