Mission Produce (AVO) AI Stock Analysis

• Market Cap: $852.48M
• Dividend Yield: N/A
• Average Volume (3M): 482.87K
• Price to Earnings (P/E): 22.8
• Beta (1Y): 0.59
• Revenue Growth: 12.68%
• EPS Growth: 3.09%
• Country: US
• Employees: 3,100
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Distribution
• EPS (TTM): 0.31
• Shares Outstanding: 70,569,520
• 10 Day Avg. Volume: 430,475
• 30 Day Avg. Volume: 482,870
• PEG Ratio: 11.30
• Price to Book (P/B): 1.32
• Price to Sales (P/S): 0.59
• P/FCF Ratio: 22.03
• Enterprise Value/Market Cap: 0.90
• Enterprise Value/Revenue: 0.55
• Enterprise Value/Gross Profit: 4.80
• Enterprise Value/Ebitda: 7.28
• 1Y Price Target: $17.00
• Price Target Upside: 40.73% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.65
• Revenue Forecast (FY): $1.33B

• Rating: 71 Outperform
• Price Target: $14.50 ▲(20.03% Upside)

Mission Produce's overall score reflects strong financial health, strategic growth initiatives, and positive earnings call insights. The company's low leverage and improving cash flow are significant strengths, while technical indicators suggest caution due to potential overvaluation. The strategic leadership transition further supports a positive outlook.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong market demand and effective execution of business strategies, supporting long-term expansion.

International Expansion

Expanding international presence, especially in Europe and Asia, enhances market diversification and reduces dependency on any single region.

Leadership Transition

The leadership transition is structured to ensure continuity and strategic focus, positioning the company for sustained growth and enhanced governance.

Negative Factors

Decreased Avocado Sales Prices

Falling avocado prices can pressure margins and profitability, posing a challenge to maintaining revenue growth and financial performance.

Blueberry Segment Margin Pressure

Margin pressure in the blueberry segment indicates operational challenges, which could impact overall profitability if not addressed.

Expected Margin Compression

Margin compression due to supply conditions could affect profitability, necessitating strategic adjustments to maintain financial health.

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 a solid financial foundation with a strong balance sheet and improving cash flow generation. The income statement reflects challenges in revenue growth and operational efficiency, but the company's low leverage and stable equity position provide a cushion for future growth opportunities.

Income Statement

Mission Produce's income statement shows a mixed performance. The company experienced a slight decline in revenue growth rate of -2.48% in the most recent year, indicating challenges in expanding its top line. However, the gross profit margin remains stable at 11.55%, and the net profit margin is positive at 2.71%, reflecting some level of profitability. The EBIT and EBITDA margins are relatively low, suggesting room for improvement in operational efficiency.

Balance Sheet

The balance sheet of Mission Produce is strong, with a low debt-to-equity ratio of 0.023, indicating minimal leverage and financial risk. The return on equity is moderate at 6.08%, showing decent profitability relative to shareholder equity. The equity ratio is healthy, suggesting a stable financial position with a good proportion of assets financed by equity.

Cash Flow

The cash flow statement reveals a significant improvement in free cash flow growth at 192.91%, indicating enhanced cash generation capabilities. The operating cash flow to net income ratio is 0.66, showing a reasonable conversion of income to cash. However, the free cash flow to net income ratio is 0.42, suggesting that not all net income is translating into free cash flow, which could be an area for improvement.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.39B	1.23B	953.90M	1.05B	891.70M
Gross Profit	160.70M	152.50M	83.30M	89.80M	124.50M
EBITDA	105.90M	110.70M	43.50M	4.40M	94.40M
Net Income	37.70M	36.70M	-2.80M	-34.60M	44.90M
Balance Sheet
Total Assets	983.00M	971.50M	914.80M	879.50M	873.50M
Cash, Cash Equivalents and Short-Term Investments	64.80M	58.00M	42.90M	52.80M	84.50M
Total Debt	14.40M	217.30M	252.70M	214.10M	213.30M
Total Liabilities	363.10M	394.40M	386.50M	356.60M	339.30M
Stockholders Equity	619.90M	547.30M	503.60M	502.10M	534.20M
Cash Flow
Free Cash Flow	37.20M	61.20M	-20.60M	-26.00M	-26.40M
Operating Cash Flow	88.60M	93.40M	29.20M	35.20M	47.00M
Investing Cash Flow	-51.90M	-33.50M	-54.10M	-51.40M	-70.30M
Financing Cash Flow	-29.50M	-43.80M	14.30M	-21.80M	-11.50M

Mission Produce Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.08
• 50DMA: Positive
• 100DMA: Negative
• 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 Positive. The current price of 12.08 is below the 20-day moving average (MA) of 12.16, above the 50-day MA of 12.03, and above the 200-day MA of 11.69, indicating a neutral trend. The MACD of -0.12 indicates Positive momentum. The RSI at 52.37 is Neutral, neither overbought nor oversold. The STOCH value of 65.53 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
WILC	81 Outperform	$406.06M	15.24	15.15%	3.55%	9.33%	72.31%
AVO	71 Outperform	$852.48M	22.79	6.65%	―	12.68%	3.09%
ANDE	71 Outperform	$1.83B	25.62	5.85%	1.44%	2.19%	-39.07%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
CVGW	58 Neutral	$392.59M	25.26	6.58%	3.70%	-5.33%	―
UNFI	52 Neutral	$2.01B	-19.79	-6.37%	―	1.45%	-5.49%

Mission Produce Corporate Events

Mission Produce announces CEO succession and board refresh

On December 18, 2025, Mission Produce announced a CEO succession and board overhaul to take effect at the close of its April 9, 2026 annual meeting, naming President and Chief Operating Officer John Pawlowski as Chief Executive Officer and moving long-time CEO and co‑founder Steve Barnard to Executive Chairman. The company detailed a new employment agreement for Pawlowski, including a $750,000 minimum base salary, substantial bonus and equity incentives, and defined severance protections in both standard and change‑of‑control scenarios, while Barnard’s amended contract formalizes his reduced‑salary Executive Chairman role with scaled equity awards over a two‑year transition period. As part of a broader governance refresh, current Board Chair Stephen Beebe will retire and resign from the Board at that meeting, director Bonnie Lind will not stand for re‑election, and existing director Linda Segre will become Lead Independent Director, while three independent directors—financial executive Michael Sims, former food and beverage CEO Laura Flanagan and agribusiness veteran Douglas Stone—have been added during 2025 to strengthen expertise in finance, food and agribusiness and assume key committee leadership roles. The succession and board changes follow two years of strong financial and operational performance and the completion of a major capital expenditure cycle, and are intended to position Mission Produce for a new phase of growth, enhanced cash generation and strengthened governance, with continuity preserved through Barnard’s ongoing strategic involvement as Executive Chairman and assurances that Beebe’s departure does not stem from disagreements over company practices.

The most recent analyst rating on (AVO) stock is a Hold with a $13.00 price target. To see the full list of analyst forecasts on Mission Produce stock, see the AVO Stock Forecast page.

Mission Produce posts record revenue, boosts profitability and cash

On December 18, 2025, Mission Produce reported fiscal fourth-quarter and full-year 2025 results, highlighting record annual revenue of $1.39 billion, up 13% year over year, driven by 7% avocado volume growth and significantly higher yields from its Peruvian orchards. For the fourth quarter ended October 31, 2025, revenue declined 10% to $319 million as average avocado prices fell 27%, but volume rose 13%, keeping gross profit steady and lifting gross margin to 17.5%; adjusted net income climbed 13% to $22.2 million and adjusted EBITDA rose 12% to $41.4 million on stronger contributions from Marketing & Distribution and International Farming. For the full year, net income edged up 3% to $37.7 million, adjusted net income increased 6% to $56.2 million, and adjusted EBITDA grew 3% to $110.8 million, while exportable avocado production from owned orchards surged 144% to 105 million pounds as weather normalized. Segment results showed a 15% revenue decline but higher profitability in Marketing & Distribution, a near doubling of International Farming sales with a swing to operating profit, and higher blueberry sales but weaker margins due to rising unit costs. The company generated $88.6 million in operating cash flow for the year and nearly $180 million over the past two years, and, with its heavy investment cycle largely complete and capital expenditures expected to fall to about $40 million in fiscal 2026, it signaled a pivot to accelerated free cash flow generation; Mission also announced a leadership succession under which founder and CEO Steve Barnard will become executive chairman and John Pawlowski will assume the CEO role at the April 2026 annual meeting.

The most recent analyst rating on (AVO) stock is a Hold with a $13.00 price target. To see the full list of analyst forecasts on Mission Produce stock, see the AVO Stock Forecast page.

Mission Produce Updates Investor Presentation for NASH25

On November 17, 2025, Mission Produce, Inc. updated its investor presentation on its website, which will be used at the Stephens NASH25 Conference on November 18-19, 2025. The presentation highlights the company’s strategic initiatives and provides insights into its financial performance, including a reported $1.43 billion in revenue for the last twelve months ending in the third quarter of 2025. The release underscores Mission Produce’s commitment to maintaining its market position and addressing potential risks and uncertainties in the global avocado market.

The most recent analyst rating on (AVO) stock is a Hold with a $13.00 price target. To see the full list of analyst forecasts on Mission Produce stock, see the AVO Stock Forecast page.