FRESH DEL MONTE PRODUCE INC (FDP)
KYG367381053 - Common Stock
Overall FDP gets a fundamental rating of 5 out of 10. We evaluated FDP against 91 industry peers in the Food Products industry. FDP has only an average score on both its financial health and profitability. FDP is valued quite cheap, while showing a decent growth score. This is a good combination! Finally FDP also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
FDP had positive earnings in the past year.
In the past year FDP had a positive cash flow from operations.
Of the past 5 years FDP 4 years were profitable.
In the past 5 years FDP always reported a positive cash flow from operatings.
1.2 Ratios
FDP's Return On Assets of 3.39% is fine compared to the rest of the industry. FDP outperforms 61.54% of its industry peers.
FDP's Return On Equity of 5.59% is in line compared to the rest of the industry. FDP outperforms 53.85% of its industry peers.
FDP's Return On Invested Capital of 5.86% is fine compared to the rest of the industry. FDP outperforms 64.84% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FDP is below the industry average of 8.25%.
The last Return On Invested Capital (5.86%) for FDP is above the 3 year average (3.67%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.39% | ||
| ROE | 5.59% | ||
| ROIC | 5.86% |
ROA(3y)2.23%
ROA(5y)1.6%
ROE(3y)4.15%
ROE(5y)3.01%
ROIC(3y)3.67%
ROIC(5y)3.46%
1.3 Margins
FDP has a Profit Margin (2.61%) which is in line with its industry peers.
In the last couple of years the Profit Margin of FDP has declined.
FDP has a Operating Margin (4.13%) which is in line with its industry peers.
In the last couple of years the Operating Margin of FDP has declined.
FDP has a worse Gross Margin (8.50%) than 70.33% of its industry peers.
FDP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.13% | ||
| PM (TTM) | 2.61% | ||
| GM | 8.5% |
OM growth 3Y13.9%
OM growth 5Y-2.29%
PM growth 3Y14.43%
PM growth 5Y-5.57%
GM growth 3Y4.58%
GM growth 5Y-1.15%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), FDP is destroying value.
FDP has more shares outstanding than it did 1 year ago.
FDP has less shares outstanding than it did 5 years ago.
FDP has a worse debt/assets ratio than last year.
2.2 Solvency
FDP has an Altman-Z score of 2.80. This is not the best score and indicates that FDP is in the grey zone with still only limited risk for bankruptcy at the moment.
FDP's Altman-Z score of 2.80 is fine compared to the rest of the industry. FDP outperforms 62.64% of its industry peers.
The Debt to FCF ratio of FDP is 4.91, which is a neutral value as it means it would take FDP, 4.91 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.91, FDP is in the better half of the industry, outperforming 75.82% of the companies in the same industry.
FDP has a Debt/Equity ratio of 0.20. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.20, FDP is doing good in the industry, outperforming 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 4.91 | ||
| Altman-Z | 2.8 |
ROIC/WACC0.8
WACC7.33%
2.3 Liquidity
A Current Ratio of 2.02 indicates that FDP has no problem at all paying its short term obligations.
The Current ratio of FDP (2.02) is better than 64.84% of its industry peers.
A Quick Ratio of 1.00 indicates that FDP should not have too much problems paying its short term obligations.
FDP has a Quick ratio (1.00) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.02 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
FDP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 72.39%, which is quite impressive.
FDP shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.88% yearly.
The Revenue has decreased by -1.53% in the past year.
The Revenue has been growing slightly by 1.69% on average over the past years.
EPS 1Y (TTM)72.39%
EPS 3Y22.56%
EPS 5Y-2.88%
EPS growth Q2Q-35.19%
Revenue 1Y (TTM)-1.53%
Revenue growth 3Y-0.35%
Revenue growth 5Y1.69%
Revenue growth Q2Q-4.78%
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 9.88% on average per year.
The Revenue is expected to grow by 1.27% on average over the next years.
EPS Next Y20.48%
EPS Next 2Y9.88%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year0.16%
Revenue Next 2Y1.27%
Revenue Next 3YN/A
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
FDP is valuated reasonably with a Price/Earnings ratio of 9.96.
Based on the Price/Earnings ratio, FDP is valued cheaply inside the industry as 86.81% of the companies are valued more expensively.
FDP is valuated cheaply when we compare the Price/Earnings ratio to 24.54, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 9.67, the valuation of FDP can be described as very reasonable.
FDP's Price/Forward Earnings ratio is rather cheap when compared to the industry. FDP is cheaper than 87.91% of the companies in the same industry.
FDP's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 19.65.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.96 | ||
| Fwd PE | 9.67 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FDP indicates a rather cheap valuation: FDP is cheaper than 89.01% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, FDP is valued cheaply inside the industry as 82.42% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.31 | ||
| EV/EBITDA | 5.38 |
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.
PEG (NY)0.49
PEG (5Y)N/A
EPS Next 2Y9.88%
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 3.56, FDP pays a better dividend. On top of this FDP pays more dividend than 81.32% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.63, FDP pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.21% |
5.2 History
The dividend of FDP has a limited annual growth rate of 3.97%.
FDP has paid a dividend for at least 10 years, which is a reliable track record.
FDP has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)3.97%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
FDP pays out 29.63% of its income as dividend. This is a sustainable payout ratio.
The dividend of FDP is growing, but earnings are growing more, so the dividend growth is sustainable.
DP29.63%
EPS Next 2Y9.88%
EPS Next 3YN/A
FRESH DEL MONTE PRODUCE INC
NYSE:FDP (11/29/2023, 7:04:00 PM)
After market: 23.01 0 (0%)23.01
-0.28 (-1.2%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)11-01 2023-11-01/bmo
Earnings (Next)02-20 2024-02-20/amc
Inst Owners66.14%
Inst Owner Change-0.39%
Ins Owners22.12%
Ins Owner Change0.33%
Market Cap1.11B
Analysts80
Price Target34.68 (50.72%)
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.21% |
Dividend Growth(5Y)3.97%
DP29.63%
Div Incr Years3
Div Non Decr Years3
Ex-Date11-14 2023-11-14 (0.2)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)21.32%
Min EPS beat(2)-18.46%
Max EPS beat(2)61.1%
EPS beat(4)2
Avg EPS beat(4)281.07%
Min EPS beat(4)-18.46%
Max EPS beat(4)1090.1%
Revenue beat(2)0
Avg Revenue beat(2)-5.7%
Min Revenue beat(2)-7.46%
Max Revenue beat(2)-3.95%
Revenue beat(4)0
Avg Revenue beat(4)-3.78%
Min Revenue beat(4)-7.46%
Max Revenue beat(4)-0.39%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)-21.79%
EPS NQ rev (3m)-22.78%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.05%
Revenue NQ rev (1m)-2.88%
Revenue NQ rev (3m)-2.88%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.96 | ||
| Fwd PE | 9.67 | ||
| P/S | 0.25 | ||
| P/FCF | 13.31 | ||
| P/OCF | 8.13 | ||
| P/B | 0.55 | ||
| P/tB | 0.75 | ||
| EV/EBITDA | 5.38 |
EPS(TTM)2.31
EY10.04%
EPS(NY)2.38
Fwd EY10.34%
FCF(TTM)1.73
FCFY7.51%
OCF(TTM)2.83
OCFY12.3%
SpS90.44
BVpS42.19
TBVpS30.7
PEG (NY)0.49
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.39% | ||
| ROE | 5.59% | ||
| ROCE | 6.49% | ||
| ROIC | 5.86% | ||
| ROICexc | 6.03% | ||
| ROICexgc | 7.59% | ||
| OM | 4.13% | ||
| PM (TTM) | 2.61% | ||
| GM | 8.5% | ||
| FCFM | 1.91% |
ROA(3y)2.23%
ROA(5y)1.6%
ROE(3y)4.15%
ROE(5y)3.01%
ROIC(3y)3.67%
ROIC(5y)3.46%
ROICexc(3y)3.69%
ROICexc(5y)3.48%
ROICexgc(3y)4.63%
ROICexgc(5y)4.39%
ROCE(3y)4.07%
ROCE(5y)3.83%
ROICexcg growth 3Y11.73%
ROICexcg growth 5Y-2.36%
ROICexc growth 3Y12.41%
ROICexc growth 5Y-4.31%
OM growth 3Y13.9%
OM growth 5Y-2.29%
PM growth 3Y14.43%
PM growth 5Y-5.57%
GM growth 3Y4.58%
GM growth 5Y-1.15%
F-Score7
Asset Turnover1.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 4.91 | ||
| Debt/EBITDA | 1.52 | ||
| Cap/Depr | 60.78% | ||
| Cap/Sales | 1.22% | ||
| Interest Coverage | 6.81 | ||
| Cash Conversion | 50.99% | ||
| Profit Quality | 73.37% | ||
| Current Ratio | 2.02 | ||
| Quick Ratio | 1 | ||
| Altman-Z | 2.8 |
F-Score7
WACC7.33%
ROIC/WACC0.8
Cap/Depr(3y)103.88%
Cap/Depr(5y)117.27%
Cap/Sales(3y)2.32%
Cap/Sales(5y)2.61%
Profit Quality(3y)37.86%
Profit Quality(5y)N/A
Growth
EPS 1Y (TTM)72.39%
EPS 3Y22.56%
EPS 5Y-2.88%
EPS growth Q2Q-35.19%
EPS Next Y20.48%
EPS Next 2Y9.88%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-1.53%
Revenue growth 3Y-0.35%
Revenue growth 5Y1.69%
Revenue growth Q2Q-4.78%
Revenue Next Year0.16%
Revenue Next 2Y1.27%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y57.26%
EBIT growth 3Y13.51%
EBIT growth 5Y-0.64%
EBIT Next Year116.03%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y367.42%
FCF growth 3Y-33.6%
FCF growth 5Y-24.46%
OCF growth 1Y-13.96%
OCF growth 3Y-28.5%
OCF growth 5Y-20.47%