Calavo Growers (CVGW) AI Stock Analysis

• Market Cap: $396.88M
• Dividend Yield: 3.61%
• Average Volume (3M): 174.95K
• Price to Earnings (P/E): 25.4
• Beta (1Y): 0.53
• Revenue Growth: -5.33%
• EPS Growth: N/A
• Country: US
• Employees: 2,106
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Distribution
• EPS (TTM): 0.57
• Shares Outstanding: 17,853,323
• 10 Day Avg. Volume: 178,391
• 30 Day Avg. Volume: 174,947
• PEG Ratio: 5.04
• Price to Book (P/B): 2.36
• Price to Sales (P/S): 0.72
• P/FCF Ratio: 21.98
• Enterprise Value/Market Cap: 1.09
• Enterprise Value/Revenue: 0.62
• Enterprise Value/Gross Profit: 6.34
• Enterprise Value/Ebitda: 14.37
• 1Y Price Target: $34.00
• Price Target Upside: 42.92% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: $24.00 ▲(0.88% Upside)

Calavo Growers' overall stock score is driven by mixed financial performance and bearish technical indicators. While the company has a strong balance sheet, declining revenue and cash flow concerns weigh on its financial outlook. The stock's technical indicators suggest a bearish trend, and the valuation indicates it may be overpriced relative to peers. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Balance Sheet Strength

A low debt-to-equity ratio indicates financial stability and low leverage, providing flexibility for future investments and growth.

Strategic Partnerships

These partnerships enhance supply chain reliability and market reach, supporting long-term revenue stability and growth potential.

Product Diversification

Diversification into value-added products caters to consumer demand for convenience, potentially boosting revenue and reducing reliance on fresh produce sales.

Negative Factors

Declining Revenue Growth

A declining revenue trend suggests challenges in market demand or competitive pressures, potentially impacting long-term profitability and market position.

Cash Flow Concerns

Negative cash flow growth limits the company's ability to reinvest in business operations and pursue growth opportunities, affecting future expansion.

Low Operational Efficiency

Low margins indicate limited operational efficiency, which can constrain profitability and competitiveness in the industry over the long term.

Calavo Growers Business Overview & Revenue Model

Company Description

Calavo Growers, Inc. (CVGW) is a leading global avocado company based in the United States, primarily engaged in the production and marketing of avocados and other perishable food products. The company operates in three main segments: Fresh Products, which includes the distribution of fresh avocados; Calavo Foods, which offers value-added products such as guacamole and salsa; and the International segment, which focuses on exporting avocados and other fresh produce. With a commitment to quality and sustainability, Calavo serves retail, foodservice, and industrial customers across North America and beyond.

How the Company Makes Money

Calavo Growers generates revenue primarily through the sale of fresh avocados and value-added products. The Fresh Products segment is the largest revenue contributor, leveraging its extensive supply chain and distribution networks to sell avocados to retailers and foodservice operators. The Calavo Foods segment enhances revenue by offering packaged products like guacamole and salsas, which cater to consumer demand for convenience and ready-to-eat options. Additionally, the International segment contributes to revenues through the export of avocados to markets outside the U.S. The company also benefits from strategic partnerships with growers and distributors, which help secure a steady supply of quality produce and expand its market reach. Factors such as market demand for avocados, pricing trends, and seasonal supply variations significantly influence Calavo's earnings.

Calavo Growers Financial Statement Overview

Summary

Calavo Growers presents a mixed financial picture. The income statement shows some recovery with positive net income, but declining revenue growth is a concern. The balance sheet is strong with low leverage, indicating financial stability. However, cash flow metrics suggest the need for improved cash generation.

Income Statement

Calavo Growers shows a mixed performance in its income statement. The TTM data indicates a gross profit margin of 9.85% and a net profit margin of 2.87%, which are moderate for the industry. However, the revenue growth rate is negative at -11.1%, indicating a decline in sales. The EBIT and EBITDA margins are low at 2.27% and 4.34% respectively, suggesting limited operational efficiency. Despite these challenges, the company has improved from previous losses to a positive net income, reflecting some recovery.

Balance Sheet

The balance sheet of Calavo Growers is relatively strong with a low debt-to-equity ratio of 0.017, indicating low leverage and financial stability. The return on equity is 9.76%, showing a decent return for shareholders. The equity ratio stands at approximately 68.5%, highlighting a solid equity base. Overall, the company maintains a stable financial position with manageable debt levels.

Cash Flow

Cash flow analysis reveals some concerns. The free cash flow growth rate is negative at -12.18%, indicating a reduction in cash available for reinvestment. The operating cash flow to net income ratio is 0.43, suggesting that cash generation from operations is not fully covering net income. However, the free cash flow to net income ratio is high at 0.95, which is a positive sign of cash efficiency. Despite these mixed signals, the company needs to improve its cash flow generation to support future growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	693.71M	661.54M	971.95M	1.19B	1.06B	1.06B
Gross Profit	68.31M	67.80M	69.96M	73.84M	57.42M	89.90M
EBITDA	30.12M	23.15M	18.67M	15.51M	19.00M	5.12M
Net Income	19.88M	-1.08M	-8.34M	-6.04M	-10.20M	-7.73M
Balance Sheet
Total Assets	301.25M	301.12M	386.85M	385.75M	445.40M	429.62M
Cash, Cash Equivalents and Short-Term Investments	63.75M	57.03M	2.09M	2.06M	1.89M	4.05M
Total Debt	3.48M	25.92M	98.79M	66.29M	109.22M	100.11M
Total Liabilities	24.05M	99.34M	176.63M	162.38M	218.52M	173.62M
Stockholders Equity	206.42M	200.33M	208.84M	223.37M	226.88M	256.00M
Cash Flow
Free Cash Flow	28.63M	21.53M	-25.16M	40.46M	2.13M	17.54M
Operating Cash Flow	30.07M	24.42M	-14.47M	50.23M	13.57M	28.88M
Investing Cash Flow	81.56M	80.11M	-10.69M	8.68M	-9.36M	-31.93M
Financing Cash Flow	-49.01M	-50.35M	24.88M	-58.63M	-5.41M	-865.00K

Calavo Growers Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 23.79
• 50DMA: Negative
• 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 Negative. The current price of 23.79 is above the 20-day moving average (MA) of 22.83, below the 50-day MA of 24.87, and below the 200-day MA of 25.11, indicating a bearish trend. The MACD of -0.82 indicates Negative momentum. The RSI at 30.51 is Neutral, neither overbought nor oversold. The STOCH value of 48.16 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	80 Outperform	$307.49M	11.63	15.58%	4.55%	12.41%	137.89%
ANDE	70 Outperform	$1.59B	19.77	5.85%	1.52%	2.19%	-39.07%
AVO	66 Neutral	$889.09M	23.08	7.12%	―	25.34%	66.91%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
SPTN	58 Neutral	―	―	―	―	1.54%	-134.75%
CVGW	55 Neutral	$396.88M	25.36	6.58%	3.61%	-5.33%	―
HFFG	52 Neutral	$124.12M	―	-17.40%	―	4.10%	-2241.30%

Calavo Growers Corporate Events

Calavo Growers Reports Improved Earnings Amid Challenges

Calavo Growers, Inc. is a leading company in the fresh produce industry, specializing in the sourcing, packing, and distribution of avocados, tomatoes, papayas, and the processing of guacamole and other avocado products. The company operates globally, providing a wide range of products to retail grocers, foodservice operators, and wholesalers.