Calavo Growers (CVGW) AI Stock Analysis

• Market Cap: $468.58M
• Dividend Yield: 3.04%
• Average Volume (3M): 346.95K
• Price to Earnings (P/E): 47.2
• Beta (1Y): 0.54
• Revenue Growth: -14.58%
• EPS Growth: N/A
• Country: US
• Employees: 2,106
• Sector: Consumer Defensive
• Sector Strength: 55
• Industry: Food Distribution
• EPS (TTM): 0.40
• Shares Outstanding: 17,837,172
• 10 Day Avg. Volume: 205,737
• 30 Day Avg. Volume: 346,948
• PEG Ratio: 6.82
• Price to Book (P/B): 2.31
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 14.51
• Enterprise Value/Market Cap: 0.92
• Enterprise Value/Revenue: 0.16
• Enterprise Value/Gross Profit: 6.16
• Enterprise Value/Ebitda: 4.19
• 1Y Price Target: $30.00
• Price Target Upside: 13.98% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 60 Neutral
• Price Target: $28.00 ▲(6.38%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 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 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

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

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

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.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	661.54M	971.95M	1.19B	1.06B	1.06B
Gross Profit	67.80M	69.96M	73.84M	57.42M	89.90M
EBITDA	23.15M	18.67M	15.51M	19.00M	5.12M
Net Income	-1.08M	-8.34M	-6.04M	-10.20M	-7.73M
Balance Sheet
Total Assets	301.12M	386.85M	385.75M	445.40M	429.62M
Cash, Cash Equivalents and Short-Term Investments	57.03M	2.09M	2.06M	1.89M	4.05M
Total Debt	25.92M	98.79M	66.29M	109.22M	92.33M
Total Liabilities	99.34M	176.63M	162.38M	218.52M	173.62M
Stockholders Equity	201.78M	208.84M	223.37M	226.88M	256.00M
Cash Flow
Free Cash Flow	21.53M	-25.16M	40.46M	2.13M	17.54M
Operating Cash Flow	24.42M	-14.47M	50.23M	13.57M	28.88M
Investing Cash Flow	80.11M	-10.69M	8.68M	-9.36M	-31.93M
Financing Cash Flow	-50.35M	24.88M	-58.63M	-5.41M	-865.00K

Calavo Growers Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 26.32
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• 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 Neutral. The current price of 26.32 is below the 20-day moving average (MA) of 26.75, below the 50-day MA of 26.56, and above the 200-day MA of 25.33, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 46.67 is Neutral, neither overbought nor oversold. The STOCH value of 40.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CVGW.

Calavo Growers Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WILC	75 Outperform	$285.00M	14.72	12.29%	0.18%	11.68%	82.59%
SPTN	71 Outperform	$899.95M	2,245.98	-1.38%	3.30%	0.26%	-119.66%
AVO	69 Neutral	$858.72M	23.54	6.89%	―	29.50%	108.33%
ANDE	67 Neutral	$1.23B	11.85	8.25%	2.15%	-17.58%	-11.24%
Sector *	65 Neutral	€7.02B	13.35	-5.47%	2.74%	-1.20%	11.35%
CVGW	60 Neutral	$468.58M	47.20	6.90%	3.04%	-14.58%	―
HFFG	49 Neutral	$160.63M	―	-18.85%	―	4.71%	-1754.14%

Calavo Growers Corporate Events

Calavo Growers Receives Acquisition Proposal at $32/Share

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.

Calavo Growers Shareholders Approve Key Governance Changes

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.