FRESH DEL MONTE PRODUCE INC (FDP) Stock Fundamental Analysis
NYSE:FDP - New York Stock Exchange, Inc. - KYG367381053 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to FDP. 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 has a decent growth rate and is not valued too expensively. FDP also has an excellent dividend rating. This makes FDP very considerable for dividend investing!
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.
FDP had a positive operating cash flow in each of the past 5 years.
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 68.89% of the companies in the same industry.
With a decent Return On Equity value of 7.34%, FDP is doing good in the industry, outperforming 63.33% of the companies in the same industry.
FDP has a Return On Invested Capital of 5.33%. This is comparable to the rest of the industry: FDP outperforms 57.78% of 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
Looking at the Profit Margin, with a value of 3.45%, FDP is in the better half of the industry, outperforming 64.44% of the companies in the same industry.
FDP's Profit Margin has improved in the last couple of years.
The Operating Margin of FDP (4.07%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of FDP has grown nicely.
With a Gross Margin value of 8.61%, FDP is not doing good in the industry: 76.67% of the companies in the same industry are doing better.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), FDP is destroying value.
Compared to 1 year ago, FDP has more shares outstanding
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 3.28. This indicates that FDP is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.28, FDP is in the better half of the industry, outperforming 73.33% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 1.48, FDP belongs to the top of the industry, outperforming 90.00% 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.
Looking at the Debt to Equity ratio, with a value of 0.12, FDP is in the better half of 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 | 3.28 |
ROIC/WACC0.64
WACC8.37%
2.3 Liquidity
FDP has a Current Ratio of 2.05. This indicates that FDP is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of FDP (2.05) is better than 66.67% of its industry peers.
A Quick Ratio of 1.01 indicates that FDP should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.01, FDP is in line with its industry, outperforming 58.89% of the companies in the same industry.
| 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.
The Earnings Per Share has been growing by 17.83% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 11.29% on average over the next years. This is quite good.
The Revenue is expected to grow by 1.81% on average over the next years.
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 12.68 indicates a correct valuation of FDP.
FDP's Price/Earnings ratio is a bit cheaper when compared to the industry. FDP is cheaper than 73.33% of the companies in the same industry.
When comparing the Price/Earnings ratio of FDP to the average of the S&P500 Index (26.17), we can say FDP is valued rather cheaply.
With a Price/Forward Earnings ratio of 11.46, the valuation of FDP can be described as very reasonable.
FDP's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. FDP is cheaper than 80.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, FDP is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.68 | ||
| Fwd PE | 11.46 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FDP is valued a bit cheaper than the industry average as 77.78% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, FDP is valued cheaply inside the industry as 85.56% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.27 | ||
| EV/EBITDA | 7.45 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
FDP has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.75
PEG (5Y)0.71
EPS Next 2Y11.29%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.26%, FDP has a reasonable but not impressive dividend return.
FDP's Dividend Yield is a higher than the industry average which is at 4.64.
FDP's Dividend Yield is a higher than the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.26% |
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
FDP pays out 34.17% of its income as dividend. This is a 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
34.48
-0.21 (-0.61%)
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 Cap1.65B
Analysts80
Price Target39.78 (15.37%)
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 | 12.68 | ||
| Fwd PE | 11.46 | ||
| P/S | 0.39 | ||
| P/FCF | 10.27 | ||
| P/OCF | 7.87 | ||
| P/B | 0.82 | ||
| P/tB | 1.05 | ||
| EV/EBITDA | 7.45 |
EPS(TTM)2.72
EY7.89%
EPS(NY)3.01
Fwd EY8.73%
FCF(TTM)3.36
FCFY9.74%
OCF(TTM)4.38
OCFY12.7%
SpS89.1
BVpS41.85
TBVpS32.89
PEG (NY)1.75
PEG (5Y)0.71
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 | 3.28 |
F-Score7
WACC8.37%
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%