Mission Produce (AVO) AI Stock Analysis

• Market Cap: $903.22M
• Dividend Yield: N/A
• Average Volume (3M): 451.85K
• Price to Earnings (P/E): 23.2
• Beta (1Y): 0.48
• Revenue Growth: 25.34%
• EPS Growth: 66.91%
• Country: US
• Employees: 3,100
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Distribution
• EPS (TTM): 0.26
• Shares Outstanding: 70,619,095
• 10 Day Avg. Volume: 822,835
• 30 Day Avg. Volume: 451,854
• PEG Ratio: -0.02
• Price to Book (P/B): 1.54
• Price to Sales (P/S): 0.68
• P/FCF Ratio: 13.73
• Enterprise Value/Market Cap: 1.21
• Enterprise Value/Revenue: 0.77
• Enterprise Value/Gross Profit: 6.82
• Enterprise Value/Ebitda: 10.22
• 1Y Price Target: $16.50
• Price Target Upside: 31.79% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 71 Outperform
• Price Target: $14.00 ▲(11.82% Upside)

Mission Produce's strong earnings call performance and positive technical indicators are the primary drivers of its overall score. While financial performance shows solid growth, challenges in cash flow and debt management need attention. Valuation is moderate, and the absence of a dividend yield may deter some investors.

Positive Factors

Revenue Growth

Mission Produce's strong revenue growth reflects effective market strategies and expanding global reach, supporting long-term business sustainability.

International Expansion

Significant growth in international segments, particularly in farming, indicates successful global expansion and diversification, enhancing resilience.

European Market Penetration

Increased European sales demonstrate improved market penetration and utilization of facilities, strengthening Mission Produce's position in key markets.

Negative Factors

Tariff Impacts

Tariff impacts add to operational costs, potentially affecting margins and necessitating strategic adjustments to maintain profitability.

Decreased Sales Prices

Falling sales prices due to increased supply could pressure revenue growth, requiring strategic pricing adjustments to sustain margins.

Lower Future Pricing Expectations

Anticipated lower pricing due to higher volumes may affect revenue and profitability, challenging Mission Produce's pricing strategy.

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 through the sale of fresh avocados, which are sourced from both domestic and international growers. The company's primary revenue streams include the wholesale distribution of avocados to supermarkets, restaurants, and foodservice companies. Additionally, Mission Produce operates its own ripening facilities, allowing for better control over the ripening process, which enhances product quality and shelf life. The company also benefits from long-term partnerships with growers and distributors, securing a steady supply of avocados and ensuring a reliable sales pipeline. Furthermore, Mission Produce's investment in technology and logistics enables it to optimize supply chain efficiencies, contributing to cost savings and higher profit margins.

Mission Produce Financial Statement Overview

Summary

Mission Produce demonstrates solid revenue growth and operational efficiency, with stable margins and a balanced capital structure. However, declining free cash flow and increasing debt levels could pose challenges. Continued focus on cost management and cash flow improvement will be crucial for sustaining growth and financial health.

Income Statement

Mission Produce shows a steady revenue growth rate of 2.42% TTM, indicating positive sales momentum. The gross profit margin of 11.27% and net profit margin of 2.73% TTM reflect moderate profitability, with room for improvement. EBIT and EBITDA margins are stable at 5.12% and 7.52% TTM, respectively, suggesting efficient operational management. However, the margins have slightly declined compared to previous years, indicating potential cost pressures.

Balance Sheet

The company's debt-to-equity ratio of 0.39 TTM indicates a balanced capital structure, with manageable leverage. Return on equity is modest at 6.84% TTM, showing decent returns for shareholders. The equity ratio of 59.91% TTM reflects a strong equity base, enhancing financial stability. However, the slight increase in debt levels over the years may pose a risk if not managed carefully.

Cash Flow

Operating cash flow to net income ratio of 0.42 TTM suggests adequate cash generation relative to earnings. However, the free cash flow growth rate has declined by 49.2% TTM, indicating potential cash flow challenges. The free cash flow to net income ratio of 0.21 TTM is relatively low, highlighting limited cash available after capital expenditures. This could impact the company's ability to invest in growth opportunities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.43B	1.23B	953.90M	1.05B	891.70M	862.30M
Gross Profit	160.80M	152.50M	83.30M	89.80M	124.50M	124.60M
EBITDA	107.30M	110.70M	43.50M	4.40M	94.40M	86.50M
Net Income	39.00M	36.70M	-2.80M	-34.90M	44.90M	28.80M
Balance Sheet
Total Assets	1.00B	971.50M	914.80M	879.50M	873.50M	777.30M
Cash, Cash Equivalents and Short-Term Investments	43.70M	58.00M	42.90M	52.80M	84.50M	124.00M
Total Debt	235.30M	217.30M	252.70M	214.10M	213.30M	178.60M
Total Liabilities	401.90M	394.40M	386.50M	356.60M	339.30M	303.80M
Stockholders Equity	600.50M	547.30M	503.60M	502.10M	534.20M	473.50M
Cash Flow
Free Cash Flow	12.70M	61.20M	-20.60M	-26.00M	-26.40M	11.60M
Operating Cash Flow	59.40M	93.40M	29.20M	35.20M	47.00M	78.90M
Investing Cash Flow	-47.50M	-33.50M	-54.10M	-51.40M	-70.30M	-67.70M
Financing Cash Flow	-15.10M	-43.80M	14.30M	-21.80M	-11.50M	50.10M

Mission Produce Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 12.52
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AVO, the sentiment is Neutral. The current price of 12.52 is below the 20-day moving average (MA) of 12.60, above the 50-day MA of 12.40, and above the 200-day MA of 11.79, indicating a neutral trend. The MACD of 0.08 indicates Positive momentum. The RSI at 49.59 is Neutral, neither overbought nor oversold. The STOCH value of 47.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	$903.22M	23.20	7.12%	―	25.34%	66.91%
UNFI	66 Neutral	1.80B	-26.12	0.00%	―	6.62%	53.12%
ANDE	64 Neutral	1.32B	17.07	5.91%	2.01%	-6.66%	-21.70%
CVGW	60 Neutral	490.43M	31.74	9.63%	2.91%	-5.33%	0.00%
SPTN	58 Neutral	910.78M	-56.39	-2.14%	3.26%	1.54%	-134.75%
HFFG	56 Neutral	187.04M	-3.71	-20.27%	―	4.88%	-1359.01%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Mission Produce Corporate Events

Mission Produce Reports Record Q3 2025 Financial Results

Mission Produce announced its fiscal third quarter 2025 financial results, achieving record revenue and gross profit. The company reported a 10% increase in total revenue to $357.7 million and a net income of $14.7 million, driven by higher avocado production due to favorable weather conditions and increased sales volume. The International Farming segment saw significant growth in sales and EBITDA, attributed to higher yields from owned avocado orchards. Despite higher SG&A expenses, the company generated $34 million in operating cash flow, reflecting strong operational performance and effective management of market volatility.

The most recent analyst rating on (AVO) stock is a Buy with a $18.00 price target. To see the full list of analyst forecasts on Mission Produce stock, see the AVO Stock Forecast page.