Mission Produce (AVO) AI Stock Analysis

• Market Cap: $848.83M
• Dividend Yield: N/A
• Average Volume (3M): 412.31K
• Price to Earnings (P/E): 23.3
• Beta (1Y): 0.54
• Revenue Growth: 29.50%
• EPS Growth: 108.33%
• Country: US
• Employees: 3,100
• Sector: Consumer Cyclical
• Sector Strength: 56
• Industry: Food Distribution
• EPS (TTM): 0.12
• Shares Outstanding: 70,618,210
• 10 Day Avg. Volume: 566,426
• 30 Day Avg. Volume: 412,305
• PEG Ratio: 0.19
• Price to Book (P/B): 2.34
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -45.21
• Enterprise Value/Market Cap: 1.57
• Enterprise Value/Revenue: 0.28
• Enterprise Value/Gross Profit: 8.62
• Enterprise Value/Ebitda: 3.56
• 1Y Price Target: $18.00
• Price Target Upside: 49.75% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: $13.50 ▲(12.31%Upside)

Mission Produce's overall stock score is driven by its strong financial performance and positive earnings call outcomes. Technical analysis suggests potential overvaluation, and valuation metrics indicate a moderate risk. The strategic acquisition adds a positive outlook to the company's growth prospects.

Positive Factors

Financial Performance

Mission Produce capped off a record year with a record fourth quarter, and enters FY25 with continued macro tailwinds, a materially improved balance sheet and favorable field conditions ahead of harvest.

Operational Strategy

Mission's global supply chain and owned production in Peru make it uniquely well-positioned to navigate this era.

Revenue Growth

Q1'25 posted a solid 15% revenue beat on continued elevated avocado pricing.

Negative Factors

Margin Improvement

Earnings delivered a more modest beat given subdued margin improvement via increased use of co-packers for sourcing amid high demand and uneven supply.

Operational Challenge

Margin improvement was limited given a difficult YoY comp and higher than average use of co-packers for supply.

Mission Produce Business Overview & Revenue Model

Company Description

Mission Produce, Inc. engages in sourcing, producing, packaging, and distributing avocados in the United States and internationally. The company operates through two segments, Marketing and Distribution, and International Farming. It also provides value-added services, including ripening, bagging, custom packing, and logistical management. The company serves retail, wholesale, and foodservice customers. The company was founded in 1983 and is headquartered in Oxnard, California.

How the Company Makes Money

Mission Produce generates revenue primarily through the sale of fresh avocados. The company's vertically integrated business model allows it to control the entire supply chain, from farming and harvesting to packing and distribution. This integration helps optimize costs and ensure quality, enhancing profitability. Key revenue streams include direct sales to retail chains, wholesalers, and foodservice providers. Additionally, Mission Produce benefits from strategic partnerships with growers and distributors, enhancing its market reach and supply capabilities. The company's global operations and focus on efficiency and innovation in agriculture and logistics further contribute to its financial performance.

Mission Produce Financial Statement Overview

Summary

Mission Produce demonstrates solid financial health with significant revenue growth and improved profitability. The balance sheet reflects reduced leverage and a strong equity base, while cash flow generation has improved, enhancing liquidity. However, careful management of cash reserves and strategic investment decisions will be crucial to maintaining this positive trajectory.

Income Statement

Mission Produce has shown significant revenue growth from $953.9 million in 2023 to $1.31 billion in TTM (Trailing-Twelve-Months), resulting in a robust revenue growth rate. The gross profit margin has remained relatively stable, showing consistent profitability, while the net profit margin has improved markedly, indicating better operational efficiency. However, the EBIT and EBITDA margins have shown minor fluctuations, which could reflect operational cost variations. Overall, the income statement reflects a positive growth trajectory with improved profitability metrics.

Balance Sheet

The balance sheet shows a healthy equity position with stockholders' equity increasing to $582.9 million in TTM. The debt-to-equity ratio has improved, indicating lower leverage and a stronger financial position. The equity ratio has been stable, showing a good proportion of assets financed by equity. However, the decrease in cash reserves could potentially limit liquidity flexibility. Overall, the balance sheet portrays financial stability with reduced leverage risks.

Cash Flow

Mission Produce's free cash flow has turned positive in TTM, marking a significant improvement from previous periods. The operating cash flow to net income ratio indicates effective cash generation from operations relative to net income. However, the volatility in cash flow from investing and financing activities suggests potential challenges in investment and financing strategies. Overall, the cash flow statements indicate improved cash generation capabilities, although investment activities warrant attention.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.31B	1.23B	953.90M	1.05B	891.70M	862.30M
Gross Profit	155.10M	152.50M	83.30M	89.80M	124.50M	124.60M
EBITDA	107.70M	110.70M	43.50M	4.40M	94.40M	86.50M
Net Income	40.60M	36.70M	-2.80M	-34.90M	44.90M	28.80M
Balance Sheet
Total Assets	997.80M	971.50M	914.80M	879.50M	873.50M	777.30M
Cash, Cash Equivalents and Short-Term Investments	40.10M	58.00M	42.90M	52.80M	84.50M	124.00M
Total Debt	216.00M	217.30M	252.70M	214.10M	213.30M	178.60M
Total Liabilities	414.90M	394.40M	386.50M	356.60M	339.30M	303.80M
Stockholders Equity	550.80M	547.30M	503.60M	502.10M	534.20M	473.50M
Cash Flow
Free Cash Flow	45.60M	61.20M	-20.60M	-26.00M	-26.40M	11.60M
Operating Cash Flow	82.70M	93.40M	29.20M	35.20M	47.00M	78.90M
Investing Cash Flow	-38.50M	-33.50M	-54.10M	-51.40M	-70.30M	-67.70M
Financing Cash Flow	-42.30M	-43.80M	14.30M	-21.80M	-11.50M	50.10M

Mission Produce Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.02
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AVO, the sentiment is Positive. The current price of 12.02 is above the 20-day moving average (MA) of 11.64, above the 50-day MA of 10.91, and above the 200-day MA of 11.90, indicating a bullish trend. The MACD of 0.45 indicates Negative momentum. The RSI at 58.82 is Neutral, neither overbought nor oversold. The STOCH value of 60.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AVO.

Mission Produce Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AVO	71 Outperform	$848.83M	23.27	6.89%	―	29.50%	108.33%
SPTN	71 Outperform	$894.97M	2,245.98	-1.38%	3.33%	0.26%	-119.66%
ANDE	71 Outperform	$1.24B	11.62	8.25%	2.12%	-17.58%	-11.24%
Sector *	62 Neutral	$16.34B	11.01	-5.97%	3.14%	1.65%	-24.92%
CVGW	61 Neutral	$483.21M	47.36	6.90%	2.96%	-14.58%	―
HFFG	49 Neutral	$162.22M	―	-18.85%	―	4.71%	-1754.14%
UNFI	48 Neutral	$1.36B	―	-4.11%	―	6.62%	53.12%

Mission Produce Corporate Events

Mission Produce Reports Q2 Revenue Growth Despite Challenges

On June 5, 2025, Mission Produce announced its fiscal second quarter financial results, reporting a 28% increase in total revenue to $380.3 million, primarily driven by the Marketing & Distribution segment. Despite achieving record revenue, the company experienced a decrease in net income to $3.1 million, attributed to challenges in obtaining Mexican avocado supply and increased costs, including tariffs and facility closures. The company executed $5.2 million in share repurchases, reflecting confidence in its financial performance and operational execution. Mission Produce’s mango business gained significant market share, and its operations in the UK showed progress, enhancing its global market position.

The most recent analyst rating on (AVO) stock is a Buy with a $16.00 price target. To see the full list of analyst forecasts on Mission Produce stock, see the AVO Stock Forecast page.