Calavo Growers (CVGW) AI Stock Analysis

• Market Cap: $489.61M
• Dividend Yield: 2.54%
• Average Volume (3M): 225.49K
• Price to Earnings (P/E): 52.1
• Beta (1Y): 0.52
• Revenue Growth: -21.19%
• EPS Growth: N/A
• Country: US
• Employees: 2,106
• Sector: Consumer Defensive
• Sector Strength: 78
• Industry: Food Distribution
• EPS (TTM): 0.33
• Shares Outstanding: 17,836,508
• 10 Day Avg. Volume: 163,804
• 30 Day Avg. Volume: 225,486
• PEG Ratio: <0.01
• Price to Book (P/B): 2.25
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 25.60
• Enterprise Value/Market Cap: 0.88
• Enterprise Value/Revenue: 0.15
• Enterprise Value/Gross Profit: 5.93
• Enterprise Value/Ebitda: 4.13
• 1Y Price Target: $35.00
• Price Target Upside: 27.04% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 55 Neutral
• Price Target: ―

Calavo Growers' stock score reflects a stable financial position with low leverage and adequate equity, but it is offset by bearish technical indicators and valuation concerns due to negative earnings. The lack of earnings call and corporate events data limits additional insights, keeping the focus on financial stability and technical pressures.

Positive Factors

Financial Performance

Revenue growth of 21% YoY to $154M exceeded estimates by 10%, driven by strong avocado pricing.

Regulatory Developments

The indefinite postponement of the FCPA investigation removes a cloud of uncertainty and could lead to a revaluation of the stock.

Tax Benefits

The company received a surprising $0.7M from Mexican tax authorities, hinting at potential long-term benefits from a $49M tax asset.

Negative Factors

Earnings Performance

Q4’24 results disappointed, as market tailwinds only provided some lift, while a series of modest internal factors collectively drove margins and EBITDA down despite the strong macro backdrop.

Market Skepticism

The market is clearly skeptical and will not give Calavo the benefit of the doubt until it is proven.

Operational Challenges

Multiple dynamics, including a $5M YoY tomato revenue decline and rising input costs, collectively pressured margins in the Prepared segment.

Calavo Growers Business Overview & Revenue Model

Company Description

Calavo Growers, Inc. is a publicly traded company in the United States that specializes in the procurement and marketing of fresh avocados and other fresh produce, as well as the manufacturing and distribution of prepared avocado products and other perishable foods. The company operates in two main business segments: Fresh Products and Prepared Foods. In addition to avocados, Calavo deals in tomatoes, papayas, and other fresh produce, catering to a wide range of customers including grocery retailers, foodservice operators, and wholesale distributors.

How the Company Makes Money

Calavo Growers generates revenue primarily through the sale of fresh produce and prepared food products. In the Fresh Products segment, the company sources avocados and other fruits from growers and sells them to retail and wholesale customers. The Prepared Foods segment focuses on producing and distributing guacamole, salsa, and other processed avocado products, which are sold under various brand names. Calavo benefits from its vertically integrated supply chain, which enhances its ability to manage costs and ensure product quality. Key partnerships with grocery chains and foodservice providers also play a significant role in its revenue generation. The company's earnings are influenced by factors such as agricultural yield, market demand for avocados and related products, and pricing strategies.

Calavo Growers Financial Statement Overview

Summary

Calavo Growers demonstrates a stable financial position with a strong equity base and low leverage, indicating financial stability. However, challenges remain in improving operational efficiencies and sustaining cash flow growth, despite modest profitability improvements.

Income Statement

Calavo Growers shows an improvement in profitability with a TTM gross profit margin of 10.57% and a net profit margin of 1.64%. Revenue growth from the previous annual period is modest at 4.04%. EBIT and EBITDA margins are improving but remain relatively low, indicating some challenges in operating efficiencies.

Balance Sheet

The company has a strong equity base with an equity ratio of 81.42% TTM, which signifies financial stability. The debt-to-equity ratio of 0.02 TTM indicates low leverage, reducing financial risk. Return on equity is modest at 5.56%, reflecting a moderate return to shareholders.

Cash Flow

Operating cash flow is positive, but with a decline from the previous period. The company shows a significant free cash flow, though it decreased by 17.33% from the prior period. The operating cash flow to net income ratio is healthy at 1.77 TTM, suggesting a good conversion of income into cash.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
688.32M	661.54M	971.95M	1.19B	1.06B	1.06B
	Gross Profit
72.77M	67.80M	69.96M	73.84M	57.42M	89.90M
	EBIT
24.30M	16.72M	428.00K	-8.34M	-11.14M	-5.38M
	EBITDA
26.78M	23.15M	18.67M	15.51M	19.00M	5.12M
	Net Income Common Stockholders
9.61M	-1.08M	-8.34M	-6.04M	-10.20M	-7.73M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
48.49M	57.03M	2.09M	2.06M	1.89M	4.05M
	Total Assets
298.93M	301.12M	386.85M	385.75M	445.40M	429.62M
	Total Debt
24.79M	25.92M	98.79M	66.29M	109.22M	92.33M
	Net Debt
-23.70M	-31.11M	96.70M	64.23M	107.33M	88.27M
	Total Liabilities
96.06M	99.34M	176.63M	162.38M	218.52M	173.62M
	Stockholders Equity
202.87M	201.78M	208.84M	223.37M	226.88M	256.00M
Cash Flow		Free Cash Flow
17.79M	21.53M	-25.16M	40.46M	2.13M	17.54M
	Operating Cash Flow
19.93M	24.42M	-14.47M	50.23M	13.57M	28.88M
	Investing Cash Flow
80.86M	80.11M	-10.69M	8.68M	-9.36M	-31.93M
	Financing Cash Flow
-57.96M	-50.35M	24.88M	-58.63M	-5.41M	-865.00K

Calavo Growers Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 27.55
• 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 CVGW, the sentiment is Positive. The current price of 27.55 is above the 20-day moving average (MA) of 26.41, above the 50-day MA of 25.56, and above the 200-day MA of 25.29, indicating a bullish trend. The MACD of 0.35 indicates Negative momentum. The RSI at 60.48 is Neutral, neither overbought nor oversold. The STOCH value of 90.89 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CVGW.

Calavo Growers Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AVO	72 Outperform	$794.58M	19.56	7.69%	―	31.14%	576.83%
ANDE	70 Neutral	$1.21B	11.22	8.25%	2.17%	-17.58%	-11.24%
WILC	69 Neutral	$219.38M	11.34	12.29%	3.63%	11.68%	82.59%
Sector *	65 Neutral	$8.91B	14.97	4.70%	203.30%	3.50%	-2.45%
SPTN	63 Neutral	$658.72M	2,245.98	-1.38%	4.48%	-2.66%	8.18%
HFFG	57 Neutral	$200.40M	―	-18.85%	―	4.71%	-1754.14%
CVGW	55 Neutral	$489.61M	52.09	6.85%	2.54%	-21.19%	―

Calavo Growers Corporate Events

Calavo Growers Shareholders Approve Key Governance Changes

On April 23, 2025, Calavo Growers, Inc. held its annual shareholders meeting where several key decisions were made. Shareholders elected eight directors to serve for a one-year term, ratified the appointment of Deloitte & Touche LLP as independent accountants for fiscal 2025, approved executive compensation, and amended the 2020 Equity Incentive Plan. These decisions reflect the company’s strategic direction and governance priorities, potentially impacting its operational efficiency and stakeholder confidence.