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Calavo Growers (CVGW)
NASDAQ:CVGW
US Market

Calavo Growers (CVGW) AI Stock Analysis

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Calavo Growers

(NASDAQ:CVGW)

Rating:60Neutral
Price Target:
$28.00
▲(1.86%Upside)
The overall stock score for Calavo Growers is driven primarily by its stable financial position and positive cash flow management. While technical analysis indicates some positive trends, the high P/E ratio suggests potential overvaluation. Improving operational efficiency and profitability will be essential for enhancing stock performance.
Positive Factors
Investigation Postponement
The indefinite postponement of the FCPA investigation lifts a significant burden, with no further related expenses anticipated.
Revenue Growth
Revenue growth of 21% to $154M surpassed expectations by 10%, driven by strong avocado pricing.
Tax Asset Inflow
The company received an unexpected $0.7M from Mexican tax authorities, potentially marking the start of an eleven-year deferral of a $49M book value asset.
Negative Factors
Earnings Disappointment
Q4 results fell short as market tailwinds offered limited support, while internal challenges led to a decline in margins and EBITDA.
Market Skepticism
The market remains skeptical of Calavo, withholding trust until the company can demonstrate consistent performance.
Operational Challenges
Multiple dynamics, including a $5M YoY decline in tomato revenue and ongoing legal costs, have negatively impacted earnings.

Calavo Growers (CVGW) vs. SPDR S&P 500 ETF (SPY)

Calavo Growers Business Overview & Revenue Model

Company DescriptionCalavo 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 MoneyCalavo 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 conservative leverage and strong cash flow management. However, operational efficiency and profitability remain areas for improvement, as indicated by modest margins and low return on equity.
Income Statement
55
Neutral
Calavo Growers has shown mixed performance in recent years. The TTM (Trailing-Twelve-Months) data shows a gross profit margin of 10.1% and a net profit margin of 1.5%, indicating some profitability, albeit low. Revenue growth has been volatile, with a decline from 2022 to 2023, but a modest recovery in the TTM period. The EBIT and EBITDA margins are modest as well, suggesting that while the company is profitable, it faces challenges in operational efficiency.
Balance Sheet
62
Positive
The balance sheet of Calavo Growers reveals a debt-to-equity ratio of 0.12, which indicates a conservative leverage strategy, reducing financial risk. The equity ratio stands at 63.8%, suggesting strong equity financing. However, the return on equity is low at 5.1%, indicating that the company is not generating high returns on its equity base.
Cash Flow
70
Positive
The cash flow position of Calavo Growers is fairly strong, with a free cash flow growth rate of 51.4% in the TTM period, indicating improved cash generation. The operating cash flow to net income ratio is 3.23, highlighting efficient cash earnings. Additionally, a free cash flow to net income ratio of 3.14 suggests effective cash management and reinvestment.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue694.49M661.54M971.95M1.19B1.06B1.06B
Gross Profit70.20M67.80M69.96M73.84M57.42M89.90M
EBITDA28.84M23.15M18.67M15.51M19.00M5.12M
Net Income10.39M-1.08M-8.34M-6.04M-10.20M-7.73M
Balance Sheet
Total Assets321.45M301.12M386.85M385.75M445.40M429.62M
Cash, Cash Equivalents and Short-Term Investments60.36M57.03M2.09M2.06M1.89M4.05M
Total Debt24.64M25.92M98.79M66.29M109.22M92.33M
Total Liabilities114.89M99.34M176.63M162.38M218.52M173.62M
Stockholders Equity205.00M201.78M208.84M223.37M226.88M256.00M
Cash Flow
Free Cash Flow32.60M21.53M-25.16M40.46M2.13M17.54M
Operating Cash Flow33.53M24.42M-14.47M50.23M13.57M28.88M
Investing Cash Flow82.07M80.11M-10.69M8.68M-9.36M-31.93M
Financing Cash Flow-59.52M-50.35M24.88M-58.63M-5.41M-865.00K

Calavo Growers Technical Analysis

Technical Analysis Sentiment
Positive
Last Price27.49
Price Trends
50DMA
26.56
Positive
100DMA
24.90
Positive
200DMA
25.42
Positive
Market Momentum
MACD
0.23
Negative
RSI
55.73
Neutral
STOCH
60.49
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 27.49 is above the 20-day moving average (MA) of 26.63, above the 50-day MA of 26.56, and above the 200-day MA of 25.42, indicating a bullish trend. The MACD of 0.23 indicates Negative momentum. The RSI at 55.73 is Neutral, neither overbought nor oversold. The STOCH value of 60.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CVGW.

Calavo Growers Risk Analysis

Calavo Growers disclosed 40 risk factors in its most recent earnings report. Calavo Growers reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Calavo Growers Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
$264.17M13.6612.29%3.06%11.68%82.59%
71
Outperform
$900.39M2,245.98-1.38%3.31%0.26%-119.66%
71
Outperform
$1.31B12.148.25%2.03%-17.58%-11.24%
AVAVO
69
Neutral
$853.07M23.386.89%29.50%108.33%
65
Neutral
$27.33B15.36-4.01%3.14%1.00%1.98%
60
Neutral
$490.34M48.066.90%2.91%-14.58%
49
Neutral
$177.07M-18.85%4.71%-1754.14%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CVGW
Calavo Growers
27.49
5.84
26.97%
WILC
Willi Food Inte
19.05
10.22
115.74%
SPTN
SpartanNash Co
26.60
9.28
53.58%
ANDE
The Andersons
38.43
-8.90
-18.80%
HFFG
HF Foods Group
3.34
0.55
19.71%
AVO
Mission Produce
12.08
2.35
24.15%

Calavo Growers Corporate Events

M&A Transactions
Calavo Growers Receives Acquisition Proposal at $32/Share
Neutral
Jun 12, 2025

On June 11, 2025, Calavo Growers Inc. announced that it received a non-binding proposal to acquire all its outstanding shares at $32.00 per share, comprising stock and cash from the proposing party. The proposal is under review by the company’s Board of Directors with legal and financial advisors, and it may or may not result in a transaction.

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

Executive/Board ChangesShareholder Meetings
Calavo Growers Shareholders Approve Key Governance Changes
Neutral
Apr 28, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 28, 2025