Calavo Growers (CVGW) AI Stock Analysis

• Market Cap: $427.90M
• Dividend Yield: 2.48%
• Average Volume (3M): 182.57K
• Price to Earnings (P/E): 45.5
• Beta (1Y): 0.63
• Revenue Growth: -21.19%
• EPS Growth: N/A
• Country: US
• Employees: 2,106
• Sector: Consumer Defensive
• Sector Strength: 75
• Industry: Food Distribution
• EPS (TTM): 0.53
• Shares Outstanding: 17,836,508
• 10 Day Avg. Volume: 195,091
• 30 Day Avg. Volume: 182,570
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.62
• Price to Cash Flow (P/CF): -24.20
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $35.00
• Price Target Upside: 48.87% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

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

Regulatory Issues

The indefinite postponement of the FCPA investigation can remove a significant uncertainty for the company.

Tax Assets

The company received $0.7M from Mexican tax authorities, indicating potential future inflows from a deferred tax asset valued at $49M.

Negative Factors

Earnings Performance

Q4’24 results fell short as various internal factors led to decreased margins and EBITDA, despite favorable market conditions.

Revenue Decline

A $5M decline in tomato revenue contributed to the overall subdued earnings performance.

Calavo Growers Business Overview & Revenue Model

Company Description

Calavo Growers, Inc. (CVGW) is a publicly traded company based in the United States, operating primarily in the food and agriculture sectors. The company specializes in the procurement, production, and distribution of fresh avocados, prepared avocado products, and other fresh produce. Calavo Growers is renowned for its extensive supply chain capabilities and global distribution network, serving retail, foodservice, and wholesale customers with high-quality produce sourced from various regions.

How the Company Makes Money

Calavo Growers generates revenue primarily through the sale of fresh avocados and prepared avocado products, such as guacamole, across multiple channels including retail, foodservice, and wholesale markets. The company leverages its strong relationships with growers to source avocados and other produce, which are then distributed through its extensive logistics network. Additionally, Calavo has a segment dedicated to the sale of other fresh produce, further diversifying its revenue streams. Strategic partnerships with retailers and foodservice operators play a significant role in expanding its market reach and ensuring steady demand for its products. The company's earnings are influenced by factors such as avocado supply and demand dynamics, pricing strategies, and operational efficiencies in sourcing and distribution.

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
24.85M	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
1.06M	57.03M	2.09M	2.06M	1.89M	4.05M
	Total Assets
150.20M	301.12M	386.85M	385.75M	445.40M	429.62M
	Total Debt
15.61M	8.44M	98.79M	66.29M	109.22M	92.33M
	Net Debt
14.54M	-48.59M	96.70M	64.23M	107.33M	88.27M
	Total Liabilities
61.37M	99.34M	176.63M	162.38M	218.52M	173.62M
	Stockholders Equity
88.26M	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: 23.51
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 23.51 is above the 20-day moving average (MA) of 23.24, above the 50-day MA of 23.19, and below the 200-day MA of 24.58, indicating a neutral trend. The MACD of 0.26 indicates Negative momentum. The RSI at 56.26 is Neutral, neither overbought nor oversold. The STOCH value of 45.22 is Neutral, 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
SENEA	71 Outperform	$615.44M	16.39	6.35%	―	4.01%	22.46%
FDP	71 Outperform	$1.48B	10.42	7.32%	3.38%	-0.95%	―
CAG	67 Neutral	$12.73B	26.06	5.53%	5.26%	-2.00%	-50.02%
AVO	66 Neutral	$744.83M	18.35	7.69%	―	31.14%	576.83%
Sector *	63 Neutral	$20.94B	14.39	-10.05%	3.13%	1.25%	3.11%
LMNR	61 Neutral	$319.94M	42.69	4.34%	1.69%	2.39%	―
CVGW	55 Neutral	$427.90M	45.52	6.85%	2.48%	-21.19%	―

Calavo Growers Corporate Events

Calavo Growers Announces Board Member Retirement

Calavo Growers, Inc. announced that James Helin intends to retire from the Board of Directors, effective at the conclusion of the company’s 2025 Annual Meeting of Shareholders scheduled for April 23, 2025. Helin’s decision to retire was not due to any disagreements with the company, and his departure is acknowledged with gratitude for his years of service and contributions.