FRESH DEL MONTE PRODUCE INC (FDP) Stock Fundamental Analysis
USA - NYSE:FDP - KYG367381053 - Common Stock
35.69 USD
-0.58 (-1.6%)
35.691 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to FDP. FDP was compared to 89 industry peers in the Food Products industry. While FDP has a great health rating, its profitability is only average at the moment. FDP may be a bit undervalued, certainly considering the very reasonable score on growth Finally FDP also has an excellent dividend rating. These ratings could make FDP a good candidate for value and dividend investing.
1. Profitability
1.1 Basic Checks
In the past year FDP was profitable.
In the past year FDP had a positive cash flow from operations.
Of the past 5 years FDP 4 years were profitable.
FDP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
FDP has a Return On Assets of 4.75%. This is in the better half of the industry: FDP outperforms 67.42% of its industry peers.
FDP's Return On Equity of 7.30% is fine compared to the rest of the industry. FDP outperforms 60.67% of its industry peers.
FDP has a Return On Invested Capital (5.45%) which is in line with its industry peers.
FDP had an Average Return On Invested Capital over the past 3 years of 4.70%. This is significantly below the industry average of 28.31%.
The 3 year average ROIC (4.70%) for FDP is below the current ROIC(5.45%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.75% | ||
| ROE | 7.3% | ||
| ROIC | 5.45% |
ROA(3y)2.36%
ROA(5y)2.18%
ROE(3y)3.91%
ROE(5y)3.8%
ROIC(3y)4.7%
ROIC(5y)3.9%
1.3 Margins
FDP's Profit Margin of 3.49% is fine compared to the rest of the industry. FDP outperforms 65.17% of its industry peers.
In the last couple of years the Profit Margin of FDP has grown nicely.
Looking at the Operating Margin, with a value of 4.15%, FDP is in line with its industry, outperforming 52.81% of the companies in the same industry.
FDP's Operating Margin has improved in the last couple of years.
The Gross Margin of FDP (8.69%) is worse than 73.03% of its industry peers.
In the last couple of years the Gross Margin of FDP has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.15% | ||
| PM (TTM) | 3.49% | ||
| GM | 8.69% |
OM growth 3Y12.98%
OM growth 5Y9.99%
PM growth 3Y20.87%
PM growth 5Y17.53%
GM growth 3Y5.38%
GM growth 5Y4.54%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so FDP is destroying value.
FDP has more shares outstanding than it did 1 year ago.
FDP has about the same amout of shares outstanding than it did 5 years ago.
The debt/assets ratio for FDP has been reduced compared to a year ago.
2.2 Solvency
FDP has an Altman-Z score of 3.37. This indicates that FDP is financially healthy and has little risk of bankruptcy at the moment.
FDP has a better Altman-Z score (3.37) than 71.91% of its industry peers.
The Debt to FCF ratio of FDP is 1.42, which is an excellent value as it means it would take FDP, only 1.42 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of FDP (1.42) is better than 86.52% of its industry peers.
FDP has a Debt/Equity ratio of 0.10. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.10, FDP is doing good in the industry, outperforming 73.03% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 1.42 | ||
| Altman-Z | 3.37 |
ROIC/WACC0.67
WACC8.15%
2.3 Liquidity
FDP has a Current Ratio of 2.08. This indicates that FDP is financially healthy and has no problem in meeting its short term obligations.
FDP has a Current ratio of 2.08. This is in the better half of the industry: FDP outperforms 67.42% of its industry peers.
FDP has a Quick Ratio of 1.11. This is a normal value and indicates that FDP is financially healthy and should not expect problems in meeting its short term obligations.
FDP has a Quick ratio of 1.11. This is in the better half of the industry: FDP outperforms 64.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.08 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 44.50% over the past year.
FDP shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.83% yearly.
The Revenue has been growing slightly by 1.27% in the past year.
FDP shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.95% yearly.
EPS 1Y (TTM)44.5%
EPS 3Y12.87%
EPS 5Y17.83%
EPS Q2Q%16.04%
Revenue 1Y (TTM)1.27%
Revenue growth 3Y0.22%
Revenue growth 5Y-0.95%
Sales Q2Q%3.76%
3.2 Future
Based on estimates for the next years, FDP will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.96% on average per year.
Based on estimates for the next years, FDP will show a small growth in Revenue. The Revenue will grow by 2.08% on average per year.
EPS Next Y13.47%
EPS Next 2Y12.96%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year1.43%
Revenue Next 2Y2.08%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
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
Based on the Price/Earnings ratio of 12.35, the valuation of FDP can be described as correct.
FDP's Price/Earnings ratio is a bit cheaper when compared to the industry. FDP is cheaper than 75.28% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.38, FDP is valued rather cheaply.
With a Price/Forward Earnings ratio of 11.51, the valuation of FDP can be described as very reasonable.
Based on the Price/Forward Earnings ratio, FDP is valued cheaper than 82.02% of the companies in the same industry.
FDP's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.35 | ||
| Fwd PE | 11.51 |
4.2 Price Multiples
73.03% of the companies in the same industry are more expensive than FDP, based on the Enterprise Value to EBITDA ratio.
FDP's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. FDP is cheaper than 78.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.77 | ||
| EV/EBITDA | 7.19 |
4.3 Compensation for Growth
FDP's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
FDP has a very decent profitability rating, which may justify a higher PE ratio.
FDP's earnings are expected to grow with 12.96% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.92
PEG (5Y)0.69
EPS Next 2Y12.96%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.17%, FDP has a reasonable but not impressive dividend return.
FDP's Dividend Yield is a higher than the industry average which is at 5.08.
FDP's Dividend Yield is a higher than the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.17% |
5.2 History
The dividend of FDP is nicely growing with an annual growth rate of 10.71%!
FDP has been paying a dividend for at least 10 years, so it has a reliable track record.
As FDP did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)10.71%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
35.04% of the earnings are spent on dividend by FDP. This is a low number and sustainable payout ratio.
The dividend of FDP is growing, but earnings are growing more, so the dividend growth is sustainable.
DP35.04%
EPS Next 2Y12.96%
EPS Next 3YN/A
35.69
-0.58 (-1.6%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners71.22%
Inst Owner Change6.55%
Ins Owners18.16%
Ins Owner Change-0.39%
Market Cap1.71B
Analysts80
Price Target46.92 (31.47%)
Short Float %3.83%
Short Ratio4.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.17% |
Yearly Dividend1
Dividend Growth(5Y)10.71%
DP35.04%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)9.96%
Min EPS beat(2)-8.27%
Max EPS beat(2)28.19%
EPS beat(4)2
Avg EPS beat(4)12.5%
Min EPS beat(4)-30.43%
Max EPS beat(4)60.5%
EPS beat(8)3
Avg EPS beat(8)5.41%
EPS beat(12)6
Avg EPS beat(12)137.4%
EPS beat(16)7
Avg EPS beat(16)73.65%
Revenue beat(2)1
Avg Revenue beat(2)-0.52%
Min Revenue beat(2)-2.19%
Max Revenue beat(2)1.15%
Revenue beat(4)1
Avg Revenue beat(4)-1.01%
Min Revenue beat(4)-2.95%
Max Revenue beat(4)1.15%
Revenue beat(8)1
Avg Revenue beat(8)-3.01%
Revenue beat(12)2
Avg Revenue beat(12)-2.61%
Revenue beat(16)4
Avg Revenue beat(16)-2.1%
PT rev (1m)0%
PT rev (3m)17.95%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-24.24%
EPS NY rev (1m)0%
EPS NY rev (3m)5.81%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.28%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.35 | ||
| Fwd PE | 11.51 | ||
| P/S | 0.4 | ||
| P/FCF | 11.77 | ||
| P/OCF | 8.65 | ||
| P/B | 0.83 | ||
| P/tB | 1.05 | ||
| EV/EBITDA | 7.19 |
EPS(TTM)2.89
EY8.1%
EPS(NY)3.1
Fwd EY8.69%
FCF(TTM)3.03
FCFY8.49%
OCF(TTM)4.13
OCFY11.57%
SpS89.92
BVpS42.95
TBVpS33.98
PEG (NY)0.92
PEG (5Y)0.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.75% | ||
| ROE | 7.3% | ||
| ROCE | 6.9% | ||
| ROIC | 5.45% | ||
| ROICexc | 5.64% | ||
| ROICexgc | 6.8% | ||
| OM | 4.15% | ||
| PM (TTM) | 3.49% | ||
| GM | 8.69% | ||
| FCFM | 3.37% |
ROA(3y)2.36%
ROA(5y)2.18%
ROE(3y)3.91%
ROE(5y)3.8%
ROIC(3y)4.7%
ROIC(5y)3.9%
ROICexc(3y)4.76%
ROICexc(5y)3.94%
ROICexgc(3y)5.78%
ROICexgc(5y)4.83%
ROCE(3y)5.95%
ROCE(5y)4.94%
ROICexcg growth 3Y14.74%
ROICexcg growth 5Y9.67%
ROICexc growth 3Y16.45%
ROICexc growth 5Y10.8%
OM growth 3Y12.98%
OM growth 5Y9.99%
PM growth 3Y20.87%
PM growth 5Y17.53%
GM growth 3Y5.38%
GM growth 5Y4.54%
F-Score7
Asset Turnover1.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 1.42 | ||
| Debt/EBITDA | 0.81 | ||
| Cap/Depr | 69.48% | ||
| Cap/Sales | 1.22% | ||
| Interest Coverage | 9.69 | ||
| Cash Conversion | 77.68% | ||
| Profit Quality | 96.68% | ||
| Current Ratio | 2.08 | ||
| Quick Ratio | 1.11 | ||
| Altman-Z | 3.37 |
F-Score7
WACC8.15%
ROIC/WACC0.67
Cap/Depr(3y)61.97%
Cap/Depr(5y)89.11%
Cap/Sales(3y)1.21%
Cap/Sales(5y)1.9%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)44.5%
EPS 3Y12.87%
EPS 5Y17.83%
EPS Q2Q%16.04%
EPS Next Y13.47%
EPS Next 2Y12.96%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)1.27%
Revenue growth 3Y0.22%
Revenue growth 5Y-0.95%
Sales Q2Q%3.76%
Revenue Next Year1.43%
Revenue Next 2Y2.08%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y28.37%
EBIT growth 3Y13.23%
EBIT growth 5Y8.95%
EBIT Next Year45.49%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y161.51%
FCF growth 3Y63.37%
FCF growth 5Y22.82%
OCF growth 1Y99.2%
OCF growth 3Y12.41%
OCF growth 5Y1.54%