Calavo Growers (CVGW) AI Stock Analysis

• Market Cap: $368.67M
• Dividend Yield: 3.95%
• Average Volume (3M): 285.37K
• Price to Earnings (P/E): 23.6
• 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): 0.57
• Shares Outstanding: 17,853,323
• 10 Day Avg. Volume: 389,804
• 30 Day Avg. Volume: 285,374
• 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: 1.17
• 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: 58 Neutral
• Price Target: $21.50 ▼(-9.63% Downside)

Calavo Growers' overall stock score reflects a mixed financial performance with a strong balance sheet but declining revenue growth and cash flow concerns. Technical analysis indicates a neutral to bearish trend, while valuation metrics suggest the stock may be overvalued despite a decent dividend yield. Investors should be cautious and monitor strategic shifts in the company's segments for future growth potential.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low leverage provides financial stability and flexibility, enabling the company to invest in growth opportunities and weather economic downturns.

Market Position

As a leading player in the avocado market, Calavo benefits from strong brand recognition and established distribution channels, supporting long-term revenue stability and growth potential.

Strategic Partnerships

Strategic partnerships enhance market reach and distribution efficiency, allowing Calavo to capitalize on demand trends and strengthen its competitive position over time.

Negative Factors

Declining Revenue Growth

Declining revenue growth suggests challenges in market demand or competitive pressures, which could impact the company's ability to sustain long-term profitability and market share.

Cash Flow Concerns

Negative cash flow growth indicates potential difficulties in generating sufficient cash to fund operations and investments, which may constrain future expansion and financial health.

Low Operational Efficiency

Low operational efficiency, as reflected in modest margins, can limit profitability and reduce the company's ability to invest in growth initiatives or improve competitive positioning.

Calavo Growers Business Overview & Revenue Model

Company Description

Calavo Growers, Inc. is a leading global producer and distributor of avocados and other fresh produce, primarily engaged in the cultivation, packing, and marketing of avocados, tomatoes, and other perishable products. The company operates in various sectors including fresh avocado distribution, guacamole production, and prepared food offerings. With a strong presence in both domestic and international markets, Calavo focuses on delivering high-quality, fresh products to consumers and food service operators.

How the Company Makes Money

Calavo Growers generates revenue through multiple key streams, with the primary source being the sale of fresh avocados. The company benefits from its extensive supply chain and established relationships with growers, enabling it to source high-quality avocados year-round. Additionally, Calavo earns income through its prepared food division, which includes guacamole and other avocado-based products, catering to both retail and food service outlets. The company has formed strategic partnerships with various retailers and distributors, enhancing its market reach. Seasonal demand fluctuations and the overall growth of the avocado market also contribute significantly to its revenue generation.

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: Negative

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 20.52, above the 50-day MA of 22.85, and below the 200-day MA of 24.92, indicating a bearish trend. The MACD of -0.81 indicates Negative momentum. The RSI at 40.93 is Neutral, neither overbought nor oversold. The STOCH value of 85.11 is Negative, 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	$345.67M	13.03	15.15%	4.02%	9.33%	72.31%
ANDE	70 Outperform	$1.78B	24.60	5.85%	1.48%	2.19%	-39.07%
AVO	66 Neutral	$856.61M	22.11	7.12%	―	25.34%	66.91%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
CVGW	58 Neutral	$368.67M	23.56	6.58%	3.95%	-5.33%	―
HFFG	56 Neutral	$132.08M	―	-17.40%	―	4.10%	-2241.30%
UNFI	52 Neutral	$2.09B	―	-6.37%	―	1.45%	-5.49%

Calavo Growers Corporate Events

Calavo Growers Announces CEO Retirement and Successor

On November 12, 2025, Calavo Growers announced the retirement of Lee E. Cole as President and CEO, effective December 8, 2025, after four decades of leadership. B. John Lindeman, a current board member and former CFO of Calavo, will succeed him. Lindeman’s appointment is expected to leverage his extensive industry knowledge and strategic insight to advance Calavo’s strategic priorities and create sustainable value for shareholders. The company is also evaluating strategic alternatives following a non-binding proposal to acquire all outstanding shares, with the review process ongoing.

The most recent analyst rating on (CVGW) stock is a Hold with a $24.00 price target. To see the full list of analyst forecasts on Calavo Growers stock, see the CVGW Stock Forecast page.

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.