FRESH DEL MONTE PRODUCE INC (FDP) Stock Fundamental Analysis
NYSE:FDP - New York Stock Exchange, Inc. - KYG367381053 - Common Stock - Currency: USD
Overall FDP gets a fundamental rating of 6 out of 10. We evaluated FDP against 89 industry peers in the Food Products industry. While FDP has a great health rating, its profitability is only average at the moment. FDP scores decently on growth, while it is valued quite cheap. This could make an interesting combination. FDP also has an excellent dividend rating. With these ratings, FDP could be worth investigating further for value and dividend investing!.
1. Profitability
1.1 Basic Checks
In the past year FDP was profitable.
FDP had a positive operating cash flow in the past year.
FDP had positive earnings in 4 of the past 5 years.
In the past 5 years FDP always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.67%, FDP is in the better half of the industry, outperforming 64.04% of the companies in the same industry.
FDP has a Return On Equity (7.34%) which is in line with its industry peers.
With a Return On Invested Capital value of 5.33%, FDP perfoms like the industry average, outperforming 51.69% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for FDP is below the industry average of 8.83%.
The 3 year average ROIC (4.70%) for FDP is below the current ROIC(5.33%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.67% | ||
| ROE | 7.34% | ||
| ROIC | 5.33% |
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 3.45% is in line compared to the rest of the industry. FDP outperforms 58.43% of its industry peers.
In the last couple of years the Profit Margin of FDP has grown nicely.
FDP has a Operating Margin of 4.07%. This is comparable to the rest of the industry: FDP outperforms 55.06% of its industry peers.
In the last couple of years the Operating Margin of FDP has grown nicely.
The Gross Margin of FDP (8.61%) is worse than 75.28% of its industry peers.
FDP's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.07% | ||
| PM (TTM) | 3.45% | ||
| GM | 8.61% |
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
FDP has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, FDP has more shares outstanding
Compared to 5 years ago, FDP has about the same amount of shares outstanding.
The debt/assets ratio for FDP has been reduced compared to a year ago.
2.2 Solvency
FDP has an Altman-Z score of 3.23. This indicates that FDP is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of FDP (3.23) is better than 71.91% of its industry peers.
FDP has a debt to FCF ratio of 1.48. This is a very positive value and a sign of high solvency as it would only need 1.48 years to pay back of all of its debts.
FDP's Debt to FCF ratio of 1.48 is amongst the best of the industry. FDP outperforms 84.27% of its industry peers.
A Debt/Equity ratio of 0.12 indicates that FDP is not too dependend on debt financing.
FDP has a better Debt to Equity ratio (0.12) than 73.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.48 | ||
| Altman-Z | 3.23 |
ROIC/WACC0.64
WACC8.36%
2.3 Liquidity
A Current Ratio of 2.05 indicates that FDP has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.05, FDP is doing good in the industry, outperforming 66.29% of the companies in the same industry.
FDP has a Quick Ratio of 1.01. 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 (1.01) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.05 | ||
| Quick Ratio | 1.01 |
3. Growth
3.1 Past
FDP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 43.16%, which is quite impressive.
Measured over the past years, FDP shows a quite strong growth in Earnings Per Share. The EPS has been growing by 17.83% on average per year.
FDP shows a decrease in Revenue. In the last year, the revenue decreased by -0.68%.
FDP shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.95% yearly.
EPS 1Y (TTM)43.16%
EPS 3Y12.87%
EPS 5Y17.83%
EPS Q2Q%85.29%
Revenue 1Y (TTM)-0.68%
Revenue growth 3Y0.22%
Revenue growth 5Y-0.95%
Sales Q2Q%-0.86%
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 11.29% on average per year.
Based on estimates for the next years, FDP will show a small growth in Revenue. The Revenue will grow by 1.81% on average per year.
EPS Next Y9.31%
EPS Next 2Y11.29%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year0.9%
Revenue Next 2Y1.81%
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.
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
A Price/Earnings ratio of 12.05 indicates a correct valuation of FDP.
Compared to the rest of the industry, the Price/Earnings ratio of FDP indicates a somewhat cheap valuation: FDP is cheaper than 73.03% of the companies listed in the same industry.
FDP is valuated cheaply when we compare the Price/Earnings ratio to 24.95, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 10.89, which indicates a very decent valuation of FDP.
Based on the Price/Forward Earnings ratio, FDP is valued cheaper than 84.27% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.99, FDP is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.05 | ||
| Fwd PE | 10.89 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FDP is valued a bit cheaper than the industry average as 77.53% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, FDP is valued cheaply inside the industry as 80.90% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.75 | ||
| EV/EBITDA | 7.07 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of FDP may justify a higher PE ratio.
PEG (NY)1.29
PEG (5Y)0.68
EPS Next 2Y11.29%
EPS Next 3YN/A
5. Dividend
5.1 Amount
FDP has a Yearly Dividend Yield of 3.33%.
FDP's Dividend Yield is a higher than the industry average which is at 4.63.
FDP's Dividend Yield is a higher than the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.33% |
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
34.17% of the earnings are spent on dividend by FDP. This is a low number and sustainable payout ratio.
The dividend of FDP is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP34.17%
EPS Next 2Y11.29%
EPS Next 3YN/A
32.77
+0.01 (+0.03%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners68.36%
Inst Owner Change-3.58%
Ins Owners21.93%
Ins Owner Change2.33%
Market Cap1.57B
Analysts80
Price Target39.78 (21.39%)
Short Float %3.53%
Short Ratio3.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.33% |
Yearly Dividend1
Dividend Growth(5Y)10.71%
DP34.17%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-19.35%
Min EPS beat(2)-30.43%
Max EPS beat(2)-8.27%
EPS beat(4)2
Avg EPS beat(4)24.18%
Min EPS beat(4)-30.43%
Max EPS beat(4)74.92%
EPS beat(8)3
Avg EPS beat(8)9.52%
EPS beat(12)5
Avg EPS beat(12)131.21%
EPS beat(16)7
Avg EPS beat(16)72.94%
Revenue beat(2)0
Avg Revenue beat(2)-2.57%
Min Revenue beat(2)-2.95%
Max Revenue beat(2)-2.19%
Revenue beat(4)0
Avg Revenue beat(4)-2.41%
Min Revenue beat(4)-4.47%
Max Revenue beat(4)-0.05%
Revenue beat(8)0
Avg Revenue beat(8)-3.65%
Revenue beat(12)2
Avg Revenue beat(12)-2.38%
Revenue beat(16)3
Avg Revenue beat(16)-2.29%
PT rev (1m)2.63%
PT rev (3m)0%
EPS NQ rev (1m)-5.47%
EPS NQ rev (3m)4.4%
EPS NY rev (1m)-2.59%
EPS NY rev (3m)-9.47%
Revenue NQ rev (1m)-0.68%
Revenue NQ rev (3m)-1.27%
Revenue NY rev (1m)-0.27%
Revenue NY rev (3m)-1.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.05 | ||
| Fwd PE | 10.89 | ||
| P/S | 0.37 | ||
| P/FCF | 9.75 | ||
| P/OCF | 7.47 | ||
| P/B | 0.78 | ||
| P/tB | 0.99 | ||
| EV/EBITDA | 7.07 |
EPS(TTM)2.72
EY8.3%
EPS(NY)3.01
Fwd EY9.18%
FCF(TTM)3.36
FCFY10.26%
OCF(TTM)4.39
OCFY13.39%
SpS89.25
BVpS41.92
TBVpS32.94
PEG (NY)1.29
PEG (5Y)0.68
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.67% | ||
| ROE | 7.34% | ||
| ROCE | 6.75% | ||
| ROIC | 5.33% | ||
| ROICexc | 5.4% | ||
| ROICexgc | 6.51% | ||
| OM | 4.07% | ||
| PM (TTM) | 3.45% | ||
| GM | 8.61% | ||
| FCFM | 3.77% |
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 Turnover1.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.48 | ||
| Debt/EBITDA | 0.95 | ||
| Cap/Depr | 63.64% | ||
| Cap/Sales | 1.15% | ||
| Interest Coverage | 9.09 | ||
| Cash Conversion | 83.73% | ||
| Profit Quality | 109.31% | ||
| Current Ratio | 2.05 | ||
| Quick Ratio | 1.01 | ||
| Altman-Z | 3.23 |
F-Score7
WACC8.36%
ROIC/WACC0.64
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)43.16%
EPS 3Y12.87%
EPS 5Y17.83%
EPS Q2Q%85.29%
EPS Next Y9.31%
EPS Next 2Y11.29%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-0.68%
Revenue growth 3Y0.22%
Revenue growth 5Y-0.95%
Sales Q2Q%-0.86%
Revenue Next Year0.9%
Revenue Next 2Y1.81%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y18.73%
EBIT growth 3Y13.23%
EBIT growth 5Y8.95%
EBIT Next Year52.88%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y425.82%
FCF growth 3Y63.37%
FCF growth 5Y22.82%
OCF growth 1Y170.49%
OCF growth 3Y12.41%
OCF growth 5Y1.54%