Calavo Growers (CVGW) AI Stock Analysis

• Market Cap: $468.47M
• Dividend Yield: 3.09%
• Average Volume (3M): 181.43K
• Price to Earnings (P/E): 29.9
• Beta (1Y): 0.44
• 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: 194,648
• 30 Day Avg. Volume: 181,429
• PEG Ratio: 5.04
• Price to Book (P/B): 2.34
• Price to Sales (P/S): 0.72
• P/FCF Ratio: 21.98
• Enterprise Value/Market Cap: 0.92
• Enterprise Value/Revenue: 0.62
• Enterprise Value/Gross Profit: 6.34
• Enterprise Value/Ebitda: 14.37
• 1Y Price Target: $34.00
• Price Target Upside: 29.57% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 57 Neutral
• Price Target: $28.00 ▲(6.71% Upside)

Calavo Growers' overall stock score is driven by its mixed financial performance, with a strong balance sheet but concerns over declining revenue and cash flow. Technical analysis suggests a neutral to slightly bearish trend, while valuation metrics indicate potential overvaluation. The dividend yield offers some compensation, but the lack of earnings call data and corporate events limits additional insights.

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. 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 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	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	92.33M
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: 26.24
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 26.24 is below the 20-day moving average (MA) of 27.07, below the 50-day MA of 27.06, and above the 200-day MA of 25.37, indicating a neutral trend. The MACD of -0.26 indicates Positive momentum. The RSI at 34.82 is Neutral, neither overbought nor oversold. The STOCH value of 12.31 is Positive, 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	75 Outperform	$280.42M	10.61	15.17%	4.96%	12.41%	137.89%
AVO	66 Neutral	$849.55M	21.93	6.49%	―	25.34%	66.91%
ANDE	64 Neutral	$1.39B	17.31	5.91%	1.91%	-6.66%	-21.70%
SPTN	58 Neutral	$910.78M	-56.39	-2.14%	3.26%	1.54%	-134.75%
CVGW	57 Neutral	$468.47M	29.94	6.58%	3.09%	-5.33%	―
HFFG	53 Neutral	$151.83M	-3.02	-20.27%	―	4.88%	-1359.01%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

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.