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Dole (DOLE)
NYSE:DOLE
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Dole
(NYSE:DOLE)
68Neutral
Positive Factors
Earnings
DOLE reported 3Q24 adj. EBITDA of $82.1mm which was ahead of estimate and Consensus.
Financial Performance
DOLE raised its FY24 adj. EBITDA outlook to at least $380mm from at least $370mm.
Market Conditions
Banana and pineapple supply remains tight across the industry which allows for some positive pricing momentum in certain markets.
Negative Factors
Earnings Outlook
DOLE’s history of guiding conservatively leads to a FY25 adj. EBITDA outlook that represents a -4.5% year over year decline.
Operational Challenges
The impact of tropical Storm Sara and a breakdown of a company vessel are expected to pressure gross margins.
Value Proposition
DOLE offers a less attractive value proposition than food related companies given its low margins and return on capital.
Dole (DOLE) vs. S&P 500 (SPY)
Market Cap
$1.38B
Dividend Yield2.21%
Average Volume (3M)575.67K
Price to Earnings (P/E)11.0
Beta (1Y)0.32
Revenue Growth2.79%
EPS Growth-13.96%
CountryUS
Employees35,371
SectorConsumer Defensive
Sector Strength94
IndustryAgricultural Farm Products
Share Statistics
EPS (TTM)1.31
Shares Outstanding95,138,030
10 Day Avg. Volume573,301
30 Day Avg. Volume575,666
Financial Highlights & Ratios
PEG Ratio0.22
Price to Book (P/B)N/A
Price to Sales (P/S)0.16
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$14.00Price Target Upside-4.11% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering1
Dole Business Overview & Revenue Model
Company DescriptionDole plc engages in sourcing, processing, marketing, and distribution of fresh fruit and vegetables worldwide. The company operates through four segments: Fresh Fruit; Diversified Fresh Produce - EMEA; Diversified Fresh Produce - Americas and ROW; and Fresh Vegetables. It offers bananas, pineapples grapes, berries, avocados, deciduous fruit, and organic produce; value added salads, which includes packaged salad and meal kits; and fresh packed vegetables, such as iceberg, romaine, leaf lettuces, and celery, as well as health foods and consumer goods. The company serves retailers, wholesalers, and foodservice customers. Dole plc is headquartered in Dublin, Ireland.
How the Company Makes MoneyDole makes money primarily through the sale of fresh fruits and vegetables. The company's revenue model is centered around cultivating, sourcing, and distributing its produce to a wide range of customers, including retailers, wholesalers, and foodservice operators. Key revenue streams include the direct sale of its branded and unbranded products, as well as value-added products such as pre-packaged and ready-to-eat fruit and vegetable offerings. Significant partnerships and long-term contracts with major retailers and distributors are crucial to Dole's earnings, allowing the company to maintain a consistent market presence and ensure product availability worldwide. Additionally, Dole invests in marketing and innovation to enhance its product offerings and increase consumer demand.
Dole Financial Statement Overview
Summary
Dole exhibits a stable financial position with strong operational margins and reasonable returns on equity. However, declining revenue and increasing liabilities pose potential risks. The cash flow remains robust, supporting the company's operational needs, albeit with some growth volatility.Income Statement
Dole's income statement shows a mixed performance with a modest increase in net income over the years and a strong TTM (Trailing-Twelve-Months) gross profit margin of 8.87%. However, the revenue has shown a declining trend from 2022 to 2023 and into the TTM, indicating potential challenges in maintaining top-line growth. The EBIT and EBITDA margins in TTM are relatively healthy at 3.90% and 4.43% respectively, showing operational efficiency.75
Positive
Balance Sheet
Dole's balance sheet reflects moderate financial stability with a debt-to-equity ratio of 1.01 in TTM, indicating a balanced leverage. The equity ratio stands at 29.08%, suggesting a significant reliance on debt. Return on equity is reasonable at 12.73%, showcasing profitability for shareholders. However, the company's increasing total liabilities point towards rising financial obligations.70
Positive
Cash Flow
Dole's cash flow statement highlights stable operating cash flow, with a TTM figure of $275 million and a free cash flow of $193 million. The free cash flow to net income ratio is 1.17, reflecting strong cash generation capability relative to profits. However, the free cash flow growth rate has shown some fluctuations, indicating potential challenges in sustaining cash flow growth.68
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 8.48B | 8.25B | 9.23B | 6.45B | 4.35B | Gross Profit |
| 717.72M | 694.17M | 594.71M | 349.13M | 333.59M | EBIT |
| 280.56M | 272.16M | 114.43M | -61.00M | 67.54M | EBITDA |
| 410.72M | 391.21M | 316.00M | 80.02M | 105.89M | Net Income Common Stockholders |
| 125.51M | 124.06M | 86.50M | -31.22M | 40.97M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 336.04M | 281.48M | 234.21M | 256.68M | 160.50M | Total Assets |
| 4.45B | 4.85B | 4.59B | 4.67B | 1.89B | Total Debt |
| 1.30B | 1.43B | 1.64B | 1.74B | 490.97M | Net Debt |
| 971.33M | 1.16B | 1.41B | 1.49B | 330.46M | Total Liabilities |
| 3.01B | 3.43B | 3.27B | 3.42B | 1.20B | Stockholders Equity |
| 1.29B | 1.25B | 1.16B | 1.08B | 535.01M |
| Cash Flow | Free Cash Flow | |||
| 180.29M | 197.94M | 140.89M | -49.06M | 121.37M | Operating Cash Flow |
| 262.72M | 275.98M | 238.89M | 16.38M | 144.57M | Investing Cash Flow |
| 35.78M | -3.27M | -66.50M | 82.82M | -25.60M | Financing Cash Flow |
| -237.84M | -230.00M | -173.40M | -1.34M | -100.58M |
Dole Technical Analysis
Positive
14.60
Price Trends
14.10
Positive
13.91
Positive
14.58
Positive
Market Momentum
0.01
Negative
59.70
Neutral
96.34
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DOLE, the sentiment is Positive. The current price of 14.6 is above the 20-day moving average (MA) of 14.06, above the 50-day MA of 14.10, and above the 200-day MA of 14.58, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 59.70 is Neutral, neither overbought nor oversold. The STOCH value of 96.34 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DOLE.
Dole Risk Analysis
Dole disclosed 50 risk factors in its most recent earnings report. Dole reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Dole Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $21.44B | 20.31 | 5.74% | 3.23% | 1.27% | ― | |
71 Outperform | $1.16B | 12.88 | 7.11% | 2.95% | 18.45% | -57.55% | |
71 Outperform | $1.62B | 11.41 | 7.32% | 3.11% | -0.95% | ― | |
68 Neutral | $1.38B | 11.01 | 12.14% | 2.21% | 2.79% | -13.96% | |
67 Neutral | $10.22B | 9.54 | 10.95% | 3.40% | -10.78% | -45.77% | |
66 Neutral | $23.31B | 13.29 | 7.78% | 4.14% | -9.01% | -43.53% | |
63 Neutral | $9.37B | 14.87 | 4.61% | 187.28% | 3.96% | 6.52% |
* Consumer Defensive Sector Average
Performance Comparison
DOLE
Dole
14.94
3.01
25.23%
AGRO
Adecoagro SA
11.65
1.01
9.49%
ADM
Archer Daniels Midland
48.78
-9.99
-17.00%
BG
Bunge Global
80.80
-20.10
-19.92%
FDP
Fresh Del Monte Produce
34.28
9.46
38.11%
TSN
Tyson Foods
61.42
2.46
4.17%
Dole Earnings Call Summary
Earnings Call Date: Feb 26, 2025 | % Change Since: 4.51% | Next Earnings Date: May 12, 2025
Earnings Call Sentiment Positive
Dole plc achieved a strong financial performance in 2024, with significant growth in key segments and effective debt reduction. However, challenges such as the impact of Tropical Storm Sara, higher shipping costs, and a non-cash write-down in the Vegetables division present headwinds for 2025.Highlights
Record Financial Performance
Dole plc exceeded their adjusted EBITDA guidance by $12 million, with Group revenue and adjusted EBITDA increasing by 6.7% to $8.5 billion and $392 million respectively.
Debt Reduction and Cash Generation
Dole reduced net debt by over $180 million and ended 2024 with a net leverage of 1.6 times, indicating strong cash generation.
Fresh Fruit Segment Growth
The Fresh Fruit segment delivered an adjusted EBITDA of $214.8 million, an increase of $5.9 million compared to 2023, driven by volume growth in bananas and plantains.
Strong Performance in Diversified Fresh Produce Americas
This segment delivered a $22.3 million increase in adjusted EBITDA for the full year, driven by strong export performance and growth in key categories like avocados.
Positive Cash Flow from Vegetables Business
The Vegetables business concluded an encouraging turnaround, delivering positive cash flow on a full-year basis.
Lowlights
Impact of Tropical Storm Sara
The storm affected operations in Honduras, anticipated to have a notable short-term financial impact on the first part of 2025.
Higher Shipping Costs
Higher shipping costs into the U.S. due to planned dry dockings and logistical issues at ports impacted financial performance.
EMEA Segment Challenges
Despite a robust performance, the EMEA segment faced supply challenges, weather events, and entity-specific issues that mitigated growth at the margin level.
Non-Cash Write-Down in Vegetables Division
A non-cash write-down of $78.2 million net of tax was recorded for the Fresh Vegetables division, impacting the net income.
Company Guidance
In the recent earnings call, Dole plc provided guidance for the fiscal year 2025, projecting adjusted EBITDA to be in the range of $370 million to $380 million. This comes after a robust performance in 2024 where the company exceeded its expectations with an adjusted EBITDA of $392 million, a 6.7% increase from the previous year. The company emphasized its strong cash generation, which led to a reduction in net debt by over $180 million, ending the year at $637 million with a net leverage of 1.6 times. Dole also highlighted a 6.7% increase in group revenue, reaching $8.5 billion, driven by strong performances in its Diversified Fresh Produce Americas and Fresh Fruit segments. Despite facing headwinds such as higher shipping costs and the impact of Tropical Storm Sara, the company remains optimistic, focusing on strategic capital allocation and potential growth opportunities in 2025.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.