FRESH DEL MONTE PRODUCE INC (FDP) Stock Fundamental Analysis
NYSE:FDP - KYG367381053 - Common Stock
36.74 USD
+0.08 (+0.22%)
36.65 USD
-0.09 (-0.24%)
Taking everything into account, FDP scores 6 out of 10 in our fundamental rating. FDP was compared to 90 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. These ratings would make FDP suitable 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.
FDP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 4.75%, FDP is doing good in the industry, outperforming 65.56% of the companies in the same industry.
FDP has a Return On Equity (7.30%) which is in line with its industry peers.
FDP has a Return On Invested Capital (5.45%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for FDP is significantly below the industry average of 27.81%.
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 64.44% of its industry peers.
In the last couple of years the Profit Margin of FDP has grown nicely.
FDP has a Operating Margin of 4.15%. This is comparable to the rest of the industry: FDP outperforms 52.22% of its industry peers.
FDP's Operating Margin has improved in the last couple of years.
FDP has a worse Gross Margin (8.69%) than 75.56% 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.
The number of shares outstanding for FDP remains at a similar level compared to 5 years ago.
Compared to 1 year ago, FDP has an improved debt to assets ratio.
2.2 Solvency
FDP has an Altman-Z score of 3.40. This indicates that FDP is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.40, FDP is doing good in the industry, outperforming 73.33% of the companies in the same industry.
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.
FDP's Debt to FCF ratio of 1.42 is amongst the best of the industry. FDP outperforms 88.89% 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.
The Debt to Equity ratio of FDP (0.10) is better than 71.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 1.42 | ||
| Altman-Z | 3.4 |
ROIC/WACC0.66
WACC8.27%
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.
Looking at the Current ratio, with a value of 2.08, FDP is in the better half of the industry, outperforming 68.89% of the companies in the same industry.
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's Quick ratio of 1.11 is fine compared to the rest of the industry. FDP outperforms 66.67% 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.
The Earnings Per Share has been growing by 17.83% on average over the past years. This is quite good.
FDP shows a small growth in Revenue. In the last year, the Revenue has grown by 1.27%.
The Revenue has been decreasing by -0.95% on average over the past years.
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.
FDP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.08% yearly.
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
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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 12.71 indicates a correct valuation of FDP.
Based on the Price/Earnings ratio, FDP is valued a bit cheaper than the industry average as 74.44% of the companies are valued more expensively.
FDP is valuated cheaply when we compare the Price/Earnings ratio to 27.03, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 11.85, the valuation of FDP can be described as very reasonable.
Based on the Price/Forward Earnings ratio, FDP is valued cheaper than 82.22% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.63, FDP is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.71 | ||
| Fwd PE | 11.85 |
4.2 Price Multiples
FDP's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. FDP is cheaper than 75.56% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FDP indicates a somewhat cheap valuation: FDP is cheaper than 78.89% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.12 | ||
| EV/EBITDA | 7.39 |
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.
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)0.94
PEG (5Y)0.71
EPS Next 2Y12.96%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.21%, FDP has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.60, FDP pays a bit more dividend than its industry peers.
FDP's Dividend Yield is a higher than the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.21% |
5.2 History
On average, the dividend of FDP grows each year by 10.71%, which is quite nice.
FDP has paid a dividend for at least 10 years, which is a reliable track record.
FDP has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
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.
FDP's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP35.04%
EPS Next 2Y12.96%
EPS Next 3YN/A
36.74
+0.08 (+0.22%)
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 Change1.45%
Market Cap1.76B
Analysts80
Price Target46.92 (27.71%)
Short Float %4.57%
Short Ratio4.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.21% |
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)17.95%
PT rev (3m)17.95%
EPS NQ rev (1m)-24.24%
EPS NQ rev (3m)-30.07%
EPS NY rev (1m)5.81%
EPS NY rev (3m)5.81%
Revenue NQ rev (1m)-0.28%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.52%
Revenue NY rev (3m)0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.71 | ||
| Fwd PE | 11.85 | ||
| P/S | 0.41 | ||
| P/FCF | 12.12 | ||
| P/OCF | 8.9 | ||
| P/B | 0.86 | ||
| P/tB | 1.08 | ||
| EV/EBITDA | 7.39 |
EPS(TTM)2.89
EY7.87%
EPS(NY)3.1
Fwd EY8.44%
FCF(TTM)3.03
FCFY8.25%
OCF(TTM)4.13
OCFY11.23%
SpS89.92
BVpS42.95
TBVpS33.98
PEG (NY)0.94
PEG (5Y)0.71
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 | 3.4 |
F-Score7
WACC8.27%
ROIC/WACC0.66
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%