Mission Produce (AVO) AI Stock Analysis

• Market Cap: $876.37M
• Dividend Yield: N/A
• Average Volume (3M): 256.79K
• Price to Earnings (P/E): 24.0
• Beta (1Y): 0.50
• Revenue Growth: 29.50%
• EPS Growth: 108.33%
• Country: US
• Employees: 3,100
• Sector: Consumer Defensive
• Sector Strength: 65
• Industry: Food Distribution
• EPS (TTM): 0.12
• Shares Outstanding: 70,618,210
• 10 Day Avg. Volume: 197,331
• 30 Day Avg. Volume: 256,788
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.12
• Enterprise Value/Revenue: 0.71
• Enterprise Value/Gross Profit: 6.45
• Enterprise Value/Ebitda: 9.62
• 1Y Price Target: $18.00
• Price Target Upside: 45.40% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 69 Neutral
• Price Target: $13.00 ▲(5.01% Upside)

Mission Produce's overall stock score is bolstered by strong technical indicators and positive earnings call sentiment, indicating potential growth opportunities and strategic market expansions. Financial performance shows a positive trajectory but highlights areas for improvement, especially in cash flow management. The valuation suggests a premium pricing, which may limit attractiveness if growth expectations are not met.

Positive Factors

Earnings Potential

Mission continues to be well-positioned to prove that its FY24 success was reflective of its durable earnings power.

Revenue Performance

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

Strategic Positioning

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

Negative Factors

Margin Challenges

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 Costs

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. (AVO) is a global leader in the avocado industry, specializing in the sourcing, production, distribution, and marketing of fresh avocados. Founded in 1983 and headquartered in Oxnard, California, Mission Produce operates across various sectors including farming, packing, and logistics to deliver high-quality avocados to retail, wholesale, and foodservice customers worldwide. The company is recognized for its vertically integrated supply chain, which ensures year-round availability and a consistent supply of avocados to its diverse customer base.

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 a positive financial trajectory with notable improvements in revenue growth and profitability. The balance sheet reflects a healthy leverage position, though there is room to optimize asset utilization further. Cash flow management presents opportunities for improvement, particularly in free cash flow generation, which is critical for sustaining long-term growth and investment. Overall, the company is on a solid path with strategic areas identified for enhancement.

Income Statement

Mission Produce shows a healthy TTM revenue growth of 12.8%, driven by strategic improvements over the past year. Gross Profit Margin is stable at approximately 11% TTM, reflecting efficient cost management, though slightly below industry leaders. Net Profit Margin has improved significantly from previous losses, now at 2.6% TTM, indicating a positive turnaround. EBIT and EBITDA margins are 4.4% and 7.3% respectively, showing moderate operational efficiency improvements.

Balance Sheet

The company's Debt-to-Equity ratio is 0.45, demonstrating a balanced leverage position with manageable debt levels. Return on Equity (ROE) improved to 6.6% TTM, signaling better profitability from equity investments. However, the Equity Ratio stands at 54.6%, suggesting a strong equity base but with room for better asset utilization.

Cash Flow

Free Cash Flow shows a significant decline of -59.1% TTM, highlighting potential challenges in cash generation. Operating Cash Flow to Net Income Ratio is robust at 1.84, indicating strong cash conversion from net income. Yet, the Free Cash Flow to Net Income Ratio of 0.68 suggests potential reinvestment needs or capital allocation inefficiencies.

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

Mission Produce Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.38
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 12.38 is above the 20-day moving average (MA) of 12.19, above the 50-day MA of 11.93, and above the 200-day MA of 11.83, indicating a bullish trend. The MACD of 0.14 indicates Negative momentum. The RSI at 59.87 is Neutral, neither overbought nor oversold. The STOCH value of 82.80 is Negative, 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
SPTN	71 Outperform	$897.58M	2,245.98	-1.38%	3.29%	0.26%	-119.66%
AVO	69 Neutral	$876.37M	23.98	6.89%	―	29.50%	108.33%
ANDE	69 Neutral	$1.18B	14.75	6.03%	2.24%	-6.66%	-21.70%
Sector *	63 Neutral	$20.32B	12.52	-7.33%	3.14%	2.92%	-10.01%
UNFI	62 Neutral	$1.60B	―	-4.11%	―	6.62%	53.12%
CVGW	55 Neutral	$468.58M	45.93	6.90%	2.97%	-14.58%	―
HFFG	49 Neutral	$151.09M	―	-18.85%	―	4.71%	-1754.14%

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.