FRESH DEL MONTE PRODUCE INC (FDP) Stock Fundamental Analysis
NYSE:FDP - New York Stock Exchange, Inc. - KYG367381053 - Common Stock - Currency: USD
FDP gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 90 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 is not valued too expensively and it also shows a decent growth rate. Finally FDP also has an excellent dividend rating. With these ratings, FDP could be worth investigating further for 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.
Of the past 5 years FDP 4 years were profitable.
Each year in the past 5 years FDP had a positive operating cash flow.
1.2 Ratios
FDP's Return On Assets of 4.67% is fine compared to the rest of the industry. FDP outperforms 68.89% of its industry peers.
Looking at the Return On Equity, with a value of 7.34%, FDP is in the better half of the industry, outperforming 63.33% of the companies in the same industry.
FDP has a Return On Invested Capital (5.33%) 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 below the industry average of 8.11%.
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
FDP's Profit Margin of 3.45% is fine compared to the rest of the industry. FDP outperforms 64.44% of its industry peers.
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.
In the last couple of years the Operating Margin of FDP has grown nicely.
FDP has a Gross Margin of 8.61%. This is in the lower half of the industry: FDP underperforms 76.67% of its industry peers.
In the last couple of years the Gross Margin of FDP has grown nicely.
| 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.
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.
The debt/assets ratio for FDP has been reduced compared to a year ago.
2.2 Solvency
FDP has an Altman-Z score of 3.27. This indicates that FDP is financially healthy and has little risk of bankruptcy at the moment.
FDP has a Altman-Z score of 3.27. This is in the better half of the industry: FDP outperforms 73.33% 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.
The Debt to FCF ratio of FDP (1.48) is better than 90.00% of its industry peers.
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 73.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.48 | ||
| Altman-Z | 3.27 |
ROIC/WACC0.63
WACC8.44%
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 66.67% 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.
The Quick ratio of FDP (1.01) is comparable to the rest of the industry.
| 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.
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%.
The Revenue has been decreasing by -0.95% on average over the past years.
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 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
A Price/Earnings ratio of 12.75 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 73.33% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of FDP to the average of the S&P500 Index (26.35), we can say FDP is valued rather cheaply.
The Price/Forward Earnings ratio is 11.53, which indicates a very decent valuation of FDP.
80.00% of the companies in the same industry are more expensive than FDP, based on the Price/Forward Earnings ratio.
FDP's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.20.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.75 | ||
| Fwd PE | 11.53 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FDP is valued a bit cheaper than 77.78% 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 85.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.33 | ||
| EV/EBITDA | 7.4 |
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)1.76
PEG (5Y)0.72
EPS Next 2Y11.29%
EPS Next 3YN/A
5. Dividend
5.1 Amount
FDP has a Yearly Dividend Yield of 3.26%.
FDP's Dividend Yield is a higher than the industry average which is at 4.64.
Compared to an average S&P500 Dividend Yield of 2.40, FDP pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.26% |
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.
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
34.69
+0.26 (+0.76%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners68.36%
Inst Owner Change1.5%
Ins Owners21.93%
Ins Owner Change2.34%
Market Cap1.66B
Analysts80
Price Target39.78 (14.67%)
Short Float %3.53%
Short Ratio3.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.26% |
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)-1.9%
EPS NY rev (3m)-11.19%
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 | 12.75 | ||
| Fwd PE | 11.53 | ||
| P/S | 0.39 | ||
| P/FCF | 10.33 | ||
| P/OCF | 7.92 | ||
| P/B | 0.83 | ||
| P/tB | 1.05 | ||
| EV/EBITDA | 7.4 |
EPS(TTM)2.72
EY7.84%
EPS(NY)3.01
Fwd EY8.68%
FCF(TTM)3.36
FCFY9.68%
OCF(TTM)4.38
OCFY12.62%
SpS89.1
BVpS41.85
TBVpS32.89
PEG (NY)1.76
PEG (5Y)0.72
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 | 3.27 |
F-Score7
WACC8.44%
ROIC/WACC0.63
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%