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Del Monte
(NYSE:DMC)
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Rating:59Neutral
Price Target:
$30.00
â–¼(-17.06% Downside)
Action:Reiterated
Date:07/22/26
The score reflects stable-to-moderate fundamentals supported by manageable leverage and resilient free cash flow, but constrained by thin/softening profitability and limited recent revenue growth. Near-term outlook is balanced: acquisition-driven sales growth guidance is strong, yet significant, quantified cost/FX/logistics headwinds and higher debt raise margin and cash-flow risk. Technicals further weigh on the score as the stock remains in a broader downtrend.
Positive Factors
Integrated farm-to-market operations
Del Monte’s vertically integrated model — owning sourcing, farming, packing, logistics and sales — yields durable control over quality, traceability and product timing. That integration supports margin capture on fresh and convenience formats, helps manage supply shocks, and underpins long-term customer relationships.
Negative Factors
Thin and weakening profitability
Margins are slim and have deteriorated materially, leaving little cushion for commodity, freight or labor cost swings. Low net margins and prior earnings volatility reduce resilience, limit reinvestment capacity, and make reported earnings and ROE sensitive to small adverse moves in input costs or pricing over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Integrated farm-to-market operations
Del Monte’s vertically integrated model — owning sourcing, farming, packing, logistics and sales — yields durable control over quality, traceability and product timing. That integration supports margin capture on fresh and convenience formats, helps manage supply shocks, and underpins long-term customer relationships.
Read all positive factors
Del Monte Key Performance Indicators (KPIs)
Any
Gross Profit by Segment
Shows how much money the company keeps from sales in each business area after direct costs. For a produce company, differences in gross profit reveal which segments (fresh fruit, value‑added or packaged foods) have pricing power, better cost control, or are more exposed to input, labor and transport swings — key to understanding profitability and where margin improvement or deterioration is coming from.
Shows how much money the company keeps from sales in each business area after direct costs. For a produce company, differences in gross profit reveal which segments (fresh fruit, value‑added or packaged foods) have pricing power, better cost control, or are more exposed to input, labor and transport swings — key to understanding profitability and where margin improvement or deterioration is coming from.
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The Fly
The FlyDel Monte (DMC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.36B
Dividend Yield2.09%
Average Volume (3M)482.39K
Price to Earnings (P/E)19.7
Beta (1Y)<0.01
Revenue Growth0.22%
EPS Growth-52.50%
CountryUS
Employees40,028
SectorConsumer Defensive
Sector Strength42
IndustryAgricultural Farm Products
Share Statistics
EPS (TTM)0.72
Shares Outstanding47,576,610
10 Day Avg. Volume335,826
30 Day Avg. Volume482,392
Financial Highlights & Ratios
PEG Ratio-0.52
Price to Book (P/B)0.85
Price to Sales (P/S)0.40
P/FCF Ratio9.33
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)2.15
Revenue Forecast (FY)$4.71B
Del Monte Business Overview & Revenue Model
Company Description
Del Monte Corp. engages in production and distribution of fresh fruit and vegetable products. It operates through the following segments: Fresh and Value-Added Products, Bananas, and Other Products and Services. The Fresh and Value-Added Products ...
How the Company Makes Money
FDP makes money primarily by selling fresh produce and value-added fresh-cut products through integrated farm-to-market operations. Revenue is generated from (1) fresh fruit sales—particularly bananas and pineapples—where FDP grows and/or sources ...
Del Monte Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Neutral
The call presented a mix of meaningful strategic progress and near-term operational challenges. The company achieved a major strategic milestone by reuniting the Del Monte brand—an acquisition expected to add ~$600M of sales and create a higher-margin branded platform—which supports 13%–15% revenue growth guidance for 2026. However, substantial cost pressures from the Middle East conflict, foreign exchange, logistics, commodity inflation and supply disruptions are expected to materially compress margins and reduce cash generation in 2026. Leverage increased materially to fund the acquisition, and the company incurred acquisition-related impairments in the quarter. Overall, the update balances a strong strategic narrative and growth outlook against significant and quantifiable near-term headwinds and margin risk.Positive Updates
Strategic Reunification - Del Monte Foods Acquisition
Closed acquisition of Del Monte Foods for $308 million ($285M base price + $23M wind-down/closing costs). Acquisition expected to contribute approximately $600 million of net sales and about $23 million of adjusted EBITDA in 2026 (9 months contribution), and prompted creation of a new Prepared Foods segment to align the combined branded CPG platform.
Negative Updates
Material Cost Headwinds from Geopolitical Events
Company estimated incremental cost pressures of approximately $40 million to $45 million beginning in Q2 2026 due to the Middle East conflict (higher ocean freight, bunker fuel surcharges, inland transportation, fertilizer and packaging costs).
Read all updates
Q1-2026 Updates
Positive
Negative
Strategic Reunification - Del Monte Foods Acquisition
Closed acquisition of Del Monte Foods for $308 million ($285M base price + $23M wind-down/closing costs). Acquisition expected to contribute approximately $600 million of net sales and about $23 million of adjusted EBITDA in 2026 (9 months contribution), and prompted creation of a new Prepared Foods segment to align the combined branded CPG platform.
Read all positive updates
Company Guidance
Management's 2026 guidance calls for net sales to increase 13–15% year‑over‑year (continuing operations, excludes Mann Packing and includes nine months of Del Monte Foods), with the Del Monte Foods acquisition expected to contribute about $600 million of net sales and roughly $23 million of adjusted EBITDA in 2026; company estimates approximately $40–45 million of cost pressures beginning in Q2 (ocean freight/bunker fuel/war surcharges, inland transportation, fertilizer and packaging) plus an additional $20–25 million of headwinds (about 50% from foreign exchange, primarily the Costa Rica colón, and the remainder from higher U.S. domestic transportation), segment gross margin outlooks of Fresh & Value‑Added 11–12% (vs 14% prior year), Bananas 3–4%, Prepared Foods 13–14%, Other Products & Services 12–13%, SG&A of $270–280 million, capital expenditures of $85–95 million, and net cash provided by operating activities of $40–50 million; quarter‑end financials included long‑term debt of $438 million and an average adjusted leverage of 1.4x EBITDA, and capital allocation actions include a $0.30 quarterly dividend ($1.20 annualized, ~3% yield) and 100,000 shares repurchased for $4 million (avg $40.24) with $116 million available under a $150 million repurchase program.Del Monte Financial Statement Overview
Summary
Income Statement
Balance Sheet
Cash Flow
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.30B | 4.32B | 4.28B | 4.32B | 4.41B | 4.25B |
| Gross Profit | 397.10M | 399.10M | 357.20M | 343.60M | 307.50M | 291.90M |
| EBITDA | 131.50M | 214.60M | 274.20M | 134.20M | 230.10M | 187.70M |
| Net Income | 34.00M | 90.70M | 142.20M | -11.40M | 98.60M | 80.00M |
Balance Sheet | ||||||
| Total Assets | 3.38B | 3.06B | 3.10B | 3.18B | 3.46B | 3.40B |
| Cash, Cash Equivalents and Short-Term Investments | 36.10M | 35.70M | 32.60M | 33.80M | 17.20M | 16.10M |
| Total Debt | 477.60M | 474.90M | 411.30M | 598.20M | 737.30M | 702.00M |
| Total Liabilities | 1.36B | 1.03B | 1.09B | 1.27B | 1.48B | 1.52B |
| Stockholders Equity | 2.01B | 2.02B | 1.99B | 1.90B | 1.90B | 1.80B |
Cash Flow | ||||||
| Free Cash Flow | 100.00M | 183.80M | 130.80M | 120.20M | 13.70M | 30.00M |
| Operating Cash Flow | 182.40M | 247.60M | 182.50M | 177.90M | 61.80M | 128.50M |
| Investing Cash Flow | -332.50M | -51.20M | 20.40M | 56.40M | -49.10M | -82.50M |
| Financing Cash Flow | 104.20M | -165.70M | -209.90M | -213.50M | -12.00M | -53.20M |
Del Monte Technical Analysis
Neutral
36.17
Price Trends
29.45
Negative
35.09
Negative
35.99
Negative
Market Momentum
-0.36
Negative
44.79
Neutral
29.10
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DMC, the sentiment is Neutral. The current price of 36.17 is above the 20-day moving average (MA) of 28.43, above the 50-day MA of 29.45, and above the 200-day MA of 35.99, indicating a neutral trend. The MACD of -0.36 indicates Negative momentum. The RSI at 44.79 is Neutral, neither overbought nor oversold. The STOCH value of 29.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DMC.
Del Monte Risk Analysis
Del Monte disclosed 42 risk factors in its most recent earnings report. Del Monte reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Del Monte Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $4.16B | 14.17 | 11.82% | 5.33% | -31.68% | -73.76% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
60 Neutral | $22.80B | 27.17 | 4.68% | 2.32% | 56.89% | -45.77% | |
59 Neutral | $1.36B | 19.68 | 3.43% | 3.34% | 0.22% | -52.50% | |
57 Neutral | $20.95B | 46.35 | 2.50% | 3.53% | 3.91% | -50.15% | |
54 Neutral | $1.34B | 23.25 | 3.18% | 2.40% | 11.38% | -38.18% | |
52 Neutral | $1.48B | 3,324.50 | 0.89% | 2.80% | -5.29% | -97.13% |
* Consumer Defensive Sector Average
DMC
Del Monte
28.73
-9.79
-25.43%
AGRO
Adecoagro SA
10.04
1.05
11.69%
BG
Bunge Global
117.37
39.27
50.28%
CALM
Cal-Maine Foods
93.21
-12.41
-11.75%
TSN
Tyson Foods
61.18
10.04
19.63%
DOLE
Dole
14.23
-0.04
-0.26%
Del Monte Corporate Events
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Del Monte Expands Revolving Credit Facility Commitments
Positive
Jul 21, 2026
On July 15, 2026, Del Monte Corporation and certain subsidiaries entered into a third amendment to their Second Amended and Restated Credit Agreement with a syndicate of lenders led by Bank of America as administrative agent, with group subsidiari...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.