Calavo Growers (CVGW) AI Stock Analysis

• Market Cap: $425.22M
• Dividend Yield: 3.7%
• Average Volume (3M): 225.91K
• Price to Earnings (P/E): 155.3
• Beta (1Y): 0.64
• Revenue Growth: -5.33%
• EPS Growth: N/A
• Country: US
• Employees: 2,106
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Distribution
• EPS (TTM): 0.27
• Shares Outstanding: 17,874,079
• 10 Day Avg. Volume: 307,739
• 30 Day Avg. Volume: 225,910
• PEG Ratio: -0.01
• Price to Book (P/B): 1.92
• Price to Sales (P/S): 0.61
• P/FCF Ratio: 20.44
• Enterprise Value/Market Cap: 0.94
• Enterprise Value/Revenue: 0.65
• Enterprise Value/Gross Profit: 6.34
• Enterprise Value/Ebitda: 15.11
• 1Y Price Target: $27.00
• Price Target Upside: 13.49% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 1.51
• Revenue Forecast (FY): $552.70M

• Rating: 69 Neutral
• Price Target: $27.00 ▲(13.49% Upside)
• Action: Reiterated Date: 03/13/26
• Date: Action: Reiterated 03/13/26

The score is driven primarily by improving fundamentals—especially a very strong, low-leverage balance sheet—and positive corporate developments (pending acquisition and removal of SEC overhang). These are tempered by weakening recent sales/margins/cash-flow versus FY2025 and soft technical momentum, while valuation is neutral-to-supportive due to the ~3.2% dividend yield.

Positive Factors

Strong, low‑leverage balance sheet

Calavo’s very low leverage (debt-to-equity ~0.02) and equity base (~$206M) provide durable financial flexibility. This reduces refinancing risk, supports working-capital needs during seasonal produce cycles, and enables funding of strategic actions or retention payments without materially stressing liquidity.

Return to profitability and improved ROE

After loss-making years, Calavo’s TTM net income (~$17.7M) and improved ROE (~8.6%) reflect a structural improvement in core packing, ripening and prepared‑foods margins. Sustained profitability supports reinvestment in operations, dividend coverage and healthier capital allocation over the medium term.

Strategic acquisition and removal of regulatory overhang

The agreed Mission Produce acquisition provides a clear strategic path and potential scale benefits in sourcing, distribution and prepared foods. Closure of the SEC investigation (no action) removes regulatory uncertainty, improving governance clarity and making integration planning and external stakeholder support more straightforward.

Negative Factors

Declining revenue and softer margins

Sales decline (~5% TTM) alongside margin compression (EBITDA ~4.0% vs ~5.1% prior year) reduces operational headroom. Weaker top-line and margins make it harder to absorb input cost swings, limit reinvestment capacity, and increase sensitivity of earnings to future avocado price or volume shocks.

Weaker, volatile cash generation

Positive but declining FCF (~$14.7M, down ~24% TTM) and historical swings (including negative FCF in FY2023) weaken the reliability of internally generated funds. Variable cash flow constrains capital allocation, makes funding capex/dividends or integration costs more dependent on external financing, and raises execution risk.

High exposure to avocado/produce commodity cycles

Calavo’s core businesses hinge on avocado supply, seasonal yields and volatile commodity prices. Agricultural variability and input-cost swings are structural risks that limit margin predictability, constrain volume visibility and mean profitability depends materially on factors outside company control.

Calavo Growers Business Overview & Revenue Model

Company Description

Calavo Growers, Inc. markets and distributes avocados, prepared avocados, and other perishable foods to retail grocery and foodservice customers, club stores, mass merchandisers, food distributors, and wholesale customers worldwide. It operates in three segments: Fresh Products, Calavo Foods, and Renaissance Food Group (RFG). The Fresh products segment distributes avocados and other fresh produce products comprising tomatoes and papayas; and procures avocados grown in California, Mexico, Peru, and Colombia. The Calavo Foods segment is involved in purchasing, processing, packaging, and distributing prepared avocado products, including guacamole and salsa. The RFG segment manufactures, markets, and distributes fresh-cut fruits and vegetables, fresh prepared entrée salads, wraps, sandwiches, and fresh snacking products, as well as ready-to-heat entrees, other hot bar and various deli items, meals kits and related components, and salad kits. The company offers its products under the Calavo and RFG brands, and related logos; and Avo Fresco, Bueno, Calavo Gold, Calavo Salsa Lisa, Salsa Lisa, Celebrate the Taste, El Dorado, Fresh Ripe, Select, Taste of Paradise, The First Name in Avocados, Tico, Mfresh, Maui Fresh International, Triggered Avocados, ProRipeVIP, RIPE NOW!, Garden Highway Fresh Cut, Garden Highway, and Garden Highway Chef Essentials trademarks. Calavo Growers, Inc. was founded in 1924 and is headquartered in Santa Paula, California.

How the Company Makes Money

Calavo makes money mainly by selling (1) fresh produce—especially avocados—and (2) prepared avocado products. In the Fresh segment, revenue is generated through sourcing avocados and other produce from growers and suppliers, then providing services such as ripening, grading, packing, and logistics before selling to customers like grocery retailers, club stores, foodservice operators, and produce distributors. Earnings in this segment are driven by sales volumes, produce pricing (which can be volatile, particularly for avocados), the company’s ability to secure supply, and the value added through ripening/handling and distribution services. In the Prepared segment, revenue comes from manufacturing and selling value-added foods (notably guacamole) to retail and foodservice customers; this business typically monetizes processing and packaging capabilities, product formulations, and branded/private-label relationships. Across both segments, the company’s results are influenced by factors such as avocado and produce supply conditions, input costs, customer mix, and operating efficiency in packing, ripening, and processing facilities. Specific partnership details not publicly available here: null.

Calavo Growers Financial Statement Overview

Summary

Fundamentals are improving but not uniformly strong. Profitability has returned (TTM net income ~$17.7M; ~2.9% net margin) and the balance sheet is a standout with very low leverage (debt-to-equity ~0.02) and improved ROE (~8.6%). Offsetting this, TTM revenue is down ~5%, EBITDA margin has softened versus FY2025, and cash flow is positive but weaker vs FY2025 with historical volatility.

Income Statement

Profitability has improved meaningfully versus the loss-making period in 2021–2024, with TTM (Trailing-Twelve-Months) net income of ~$17.7M and a ~2.9% net margin. However, revenue momentum is weak: sales are down ~5.0% in TTM (Trailing-Twelve-Months) and were essentially flat-to-down in FY2025, while margins have also softened versus FY2025 (EBITDA margin ~4.0% TTM (Trailing-Twelve-Months) vs ~5.1% in FY2025). Overall, earnings are positive again, but growth and margin durability remain key watch items.

Balance Sheet

The balance sheet is a clear strength, with very low leverage in TTM (Trailing-Twelve-Months) (debt-to-equity ~0.02) and solid equity of ~$206M supporting the asset base. Returns have recovered alongside profitability (return on equity ~8.6% TTM (Trailing-Twelve-Months)), a notable improvement from negative levels in 2021–2024. The main caution is that this deleveraging is a sharp change versus prior years (e.g., higher leverage in 2021–2023), so investors should monitor whether the lower-debt posture is sustainable through the cycle.

Cash Flow

Cash generation is positive, with TTM (Trailing-Twelve-Months) operating cash flow of ~$17.3M and free cash flow of ~$14.7M, and free cash flow broadly tracking reported earnings (free cash flow is ~0.85x net income). That said, cash flow has weakened versus FY2025 (both operating cash flow and free cash flow are lower), and free cash flow growth is down ~24% in TTM (Trailing-Twelve-Months). The company also showed volatility historically (including negative operating/free cash flow in FY2023), which tempers the quality/stability score.

Breakdown	TTM	Oct 2025	Oct 2024	Jan 2024	Oct 2022	Oct 2021
Income Statement
Total Revenue	616.25M	648.43M	661.54M	594.10M	1.19B	1.06B
Gross Profit	63.12M	63.66M	67.80M	62.61M	72.84M	57.42M
EBITDA	26.46M	33.14M	23.15M	31.73M	15.51M	19.00M
Net Income	16.11M	19.80M	-1.27M	-8.34M	-6.25M	-11.82M
Balance Sheet
Total Assets	298.18M	292.25M	301.12M	386.85M	385.75M	445.40M
Cash, Cash Equivalents and Short-Term Investments	47.67M	61.16M	57.03M	2.09M	2.06M	1.89M
Total Debt	22.40M	23.47M	25.92M	65.55M	66.29M	109.22M
Total Liabilities	90.84M	83.69M	99.34M	176.63M	162.38M	218.52M
Stockholders Equity	205.65M	206.94M	200.33M	208.84M	223.37M	225.51M
Cash Flow
Free Cash Flow	14.65M	19.39M	21.53M	-25.16M	40.46M	2.13M
Operating Cash Flow	17.31M	21.54M	24.42M	-14.47M	50.23M	13.57M
Investing Cash Flow	-2.66M	-2.15M	80.11M	-10.69M	8.68M	-9.36M
Financing Cash Flow	-15.47M	-15.27M	-50.35M	24.88M	-58.63M	-5.41M

Calavo Growers Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 23.79
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CVGW, the sentiment is Negative. The current price of 23.79 is below the 20-day moving average (MA) of 25.53, below the 50-day MA of 25.21, and below the 200-day MA of 24.61, indicating a bearish trend. The MACD of -0.35 indicates Positive momentum. The RSI at 35.01 is Neutral, neither overbought nor oversold. The STOCH value of 39.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CVGW.

Calavo Growers Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WILC	81 Outperform	$359.00M	12.30	18.55%	3.55%	9.33%	72.31%
CVGW	69 Neutral	$425.22M	155.30	7.82%	3.70%	-5.33%	―
ANDE	64 Neutral	$2.25B	6.70	7.44%	1.44%	2.19%	-39.07%
AVO	63 Neutral	$865.74M	-339.58	5.77%	―	12.68%	3.09%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
UNFI	62 Neutral	$2.36B	28.34	-4.97%	―	1.45%	-5.49%
HFFG	48 Neutral	$99.72M	-2.93	-16.91%	―	4.10%	-2241.30%

Calavo Growers Corporate Events

Calavo Growers to Be Acquired by Mission Produce

On January 14, 2026, Calavo Growers agreed to be acquired by Mission Produce through a two-step merger in which Calavo shareholders will receive 0.9790 Mission shares plus $14.85 in cash per Calavo share, with mechanisms to preserve the intended U.S. tax reorganization treatment by adjusting the stock/cash mix if needed. The deal, which remains subject to shareholder approvals, antitrust and other regulatory clearances, Nasdaq listing of new Mission shares and effectiveness of a registration statement, will see all Calavo stock options and restricted stock units vest and be cashed out based on the merger consideration value, and one Calavo independent director will join the Mission board at closing. The merger agreement includes customary covenants, non-solicitation provisions and detailed termination rights, including a Calavo break-up fee of about $12.87 million in certain circumstances and reverse termination fees payable by Mission of about $15.02 million or $12.87 million depending on the reason for termination, underscoring the strategic significance and negotiated protections around consolidation in the avocado and fresh foods sector. On the same date, Calavo entered into executive retention agreements with CFO James Snyder and Calavo Foods EVP Ronald Araiza, providing sizable one-time retention bonuses, change-in-control bonuses and severance protections to stabilize leadership through the transaction, and the board signaled it does not expect to hold a 2026 annual meeting in order to focus on timely completion of the merger.

The most recent analyst rating on (CVGW) stock is a Buy with a $25.00 price target. To see the full list of analyst forecasts on Calavo Growers stock, see the CVGW Stock Forecast page.

Calavo Growers SEC investigation concludes with no action

On December 22, 2025, Calavo Growers, Inc. announced that it had received a letter from the staff of the U.S. Securities and Exchange Commission stating that the SEC staff had concluded its previously disclosed investigation into the company and, based on the information available at that time, did not intend to recommend any enforcement action. The closure of the probe, which had been detailed in earlier regulatory filings including Calavo’s Form 10-K for the fiscal year ended October 31, 2024, removes a regulatory overhang for the company and its stakeholders, easing concerns about potential sanctions or litigation risk tied to the investigation.

The most recent analyst rating on (CVGW) stock is a Hold with a $21.50 price target. To see the full list of analyst forecasts on Calavo Growers stock, see the CVGW Stock Forecast page.