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 91 industry peers in the Food Products industry. FDP is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. FDP has a decent growth rate and is not valued too expensively. Finally FDP also has an excellent dividend rating. These ratings would make FDP suitable for dividend investing!
1. Profitability
1.1 Basic Checks
FDP had positive earnings in the past year.
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
FDP's Return On Assets of 4.67% is fine compared to the rest of the industry. FDP outperforms 67.39% of its industry peers.
FDP has a better Return On Equity (7.34%) than 60.87% of its industry peers.
FDP has a Return On Invested Capital of 5.33%. This is comparable to the rest of the industry: FDP outperforms 58.70% of 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 28.11%.
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
Looking at the Profit Margin, with a value of 3.45%, FDP is in the better half of the industry, outperforming 63.04% of the companies in the same industry.
FDP's Profit Margin has improved in the last couple of years.
FDP has a Operating Margin (4.07%) which is comparable to the rest of the industry.
FDP's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 8.61%, FDP is doing worse than 76.09% of the companies in the same industry.
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.
The number of shares outstanding for FDP has been increased compared to 1 year ago.
The number of shares outstanding for FDP remains at a similar level compared to 5 years ago.
FDP has a better debt/assets ratio than last year.
2.2 Solvency
FDP has an Altman-Z score of 3.26. This indicates that FDP is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.26, FDP is doing good in the industry, outperforming 69.57% of the companies in the same industry.
The Debt to FCF ratio of FDP is 1.48, which is an excellent value as it means it would take FDP, only 1.48 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.48, FDP belongs to the top of the industry, outperforming 88.04% of the companies in the same industry.
FDP has a Debt/Equity ratio of 0.12. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.12, FDP is doing good in the industry, outperforming 70.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.48 | ||
| Altman-Z | 3.26 |
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.
FDP has a better Current ratio (2.05) than 69.57% of its industry peers.
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 of 1.01. This is comparable to the rest of the industry: FDP outperforms 58.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.05 | ||
| Quick Ratio | 1.01 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 43.16% over the past year.
The Earnings Per Share has been growing by 17.83% on average over the past years. This is quite good.
The Revenue has decreased by -0.68% in the past year.
Measured over the past years, FDP shows a decrease in Revenue. The Revenue has been decreasing by -0.95% on average per year.
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
FDP is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.29% yearly.
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 Y7.23%
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.
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 12.42, the valuation of FDP can be described as correct.
Based on the Price/Earnings ratio, FDP is valued a bit cheaper than 75.00% of the companies in the same industry.
FDP's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.30.
The Price/Forward Earnings ratio is 11.23, which indicates a very decent valuation of FDP.
Based on the Price/Forward Earnings ratio, FDP is valued cheaply inside the industry as 84.78% of the companies are valued more expensively.
FDP's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.42 | ||
| Fwd PE | 11.23 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FDP is valued a bit cheaper than 78.26% of the companies in the same industry.
FDP's Price/Free Cash Flow ratio is rather cheap when compared to the industry. FDP is cheaper than 84.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.07 | ||
| EV/EBITDA | 7.28 |
4.3 Compensation for Growth
FDP's 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)1.72
PEG (5Y)0.7
EPS Next 2Y11.29%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.28%, FDP has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.71, FDP pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.35, FDP pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.28% |
5.2 History
The dividend of FDP is nicely growing with an annual growth rate of 10.71%!
FDP has paid a dividend for at least 10 years, which is 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
FDP pays out 34.17% of its income as dividend. This is a sustainable payout ratio.
FDP's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP34.17%
EPS Next 2Y11.29%
EPS Next 3YN/A
33.79
+0.26 (+0.78%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners69.98%
Inst Owner Change0%
Ins Owners18.17%
Ins Owner Change2.32%
Market Cap1.62B
Analysts80
Price Target39.78 (17.73%)
Short Float %4.82%
Short Ratio4.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.28% |
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)0%
PT rev (3m)2.63%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.47%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.44%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.68%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.42 | ||
| Fwd PE | 11.23 | ||
| P/S | 0.38 | ||
| P/FCF | 10.07 | ||
| P/OCF | 7.72 | ||
| P/B | 0.81 | ||
| P/tB | 1.03 | ||
| EV/EBITDA | 7.28 |
EPS(TTM)2.72
EY8.05%
EPS(NY)3.01
Fwd EY8.91%
FCF(TTM)3.36
FCFY9.93%
OCF(TTM)4.38
OCFY12.96%
SpS89.1
BVpS41.85
TBVpS32.89
PEG (NY)1.72
PEG (5Y)0.7
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 | 3.26 |
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 Y7.23%
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 Year48.48%
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%