Calavo Growers (CVGW) AI Stock Analysis

• Market Cap: $486.42M
• Dividend Yield: 2.94%
• Average Volume (3M): 157.57K
• Price to Earnings (P/E): 47.7
• Beta (1Y): 0.52
• Revenue Growth: -14.58%
• EPS Growth: N/A
• Country: US
• Employees: 2,106
• Sector: Consumer Defensive
• Sector Strength: 45
• Industry: Food Distribution
• EPS (TTM): 0.40
• Shares Outstanding: 17,837,172
• 10 Day Avg. Volume: 147,574
• 30 Day Avg. Volume: 157,572
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.94
• Enterprise Value/Revenue: 0.66
• Enterprise Value/Gross Profit: 6.53
• Enterprise Value/Ebitda: 15.89
• 1Y Price Target: $29.00
• Price Target Upside: 6.70% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 55 Neutral
• Price Target: $27.00 ▼(-0.66% Downside)

Calavo Growers shows a stable financial position with strong cash flow management and low leverage, which are the most significant strengths. However, the high P/E ratio suggests overvaluation, and technical indicators are neutral, indicating limited momentum. The absence of recent earnings call data and notable corporate events limits additional insights.

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. (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 exhibits a stable financial position with moderate profitability and strong cash flow management. The income statement shows some operational challenges, particularly in margins, but the company's low leverage and strong cash flow generation provide a solid foundation for potential future growth.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	694.49M	661.54M	971.95M	1.19B	1.06B	1.06B
Gross Profit	70.20M	67.80M	69.96M	73.84M	57.42M	89.90M
EBITDA	28.84M	23.15M	18.67M	15.51M	19.00M	5.12M
Net Income	10.39M	-1.08M	-8.34M	-6.04M	-10.20M	-7.73M
Balance Sheet
Total Assets	321.45M	301.12M	386.85M	385.75M	445.40M	429.62M
Cash, Cash Equivalents and Short-Term Investments	60.36M	57.03M	2.09M	2.06M	1.89M	4.05M
Total Debt	24.64M	25.92M	98.79M	66.29M	109.22M	92.33M
Total Liabilities	114.89M	99.34M	176.63M	162.38M	218.52M	173.62M
Stockholders Equity	205.00M	201.78M	208.84M	223.37M	226.88M	256.00M
Cash Flow
Free Cash Flow	32.60M	21.53M	-25.16M	40.46M	2.13M	17.54M
Operating Cash Flow	33.53M	24.42M	-14.47M	50.23M	13.57M	28.88M
Investing Cash Flow	82.07M	80.11M	-10.69M	8.68M	-9.36M	-31.93M
Financing Cash Flow	-59.52M	-50.35M	24.88M	-58.63M	-5.41M	-865.00K

Calavo Growers Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 27.18
• 50DMA: Positive
• 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 27.18 is below the 20-day moving average (MA) of 27.49, above the 50-day MA of 26.98, and above the 200-day MA of 25.33, indicating a neutral trend. The MACD of 0.09 indicates Positive momentum. The RSI at 49.04 is Neutral, neither overbought nor oversold. The STOCH value of 23.36 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	78 Outperform	$275.01M	10.40	15.58%	4.97%	12.41%	137.89%
ANDE	70 Outperform	$1.42B	17.67	6.03%	1.87%	-6.66%	-21.70%
AVO	69 Neutral	$879.20M	24.45	6.89%	―	29.50%	108.33%
Sector *	63 Neutral	$20.50B	14.76	-2.72%	3.09%	1.90%	-4.74%
SPTN	58 Neutral	$907.74M	2,245.98	-2.08%	3.26%	1.54%	-134.75%
HFFG	57 Neutral	$174.94M	―	-18.35%	―	4.88%	-1359.01%
CVGW	55 Neutral	$486.42M	47.67	6.90%	2.94%	-14.58%	―

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.