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Dole (DOLE)
NYSE:DOLE
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Dole
(NYSE:DOLE)
Rating:71Outperform
Price Target:
$15.50
▲(9.00%Upside)
Positive Factors
Earnings
DOLE reported first quarter adjusted EBITDA of $104.8 million, in line with expectations and ahead of the consensus estimate.
Financial Outlook
DOLE raised its full-year adjusted EBITDA outlook to at least $380 million, indicating confidence in future performance.
Negative Factors
Margins
Better than expected sales were offset by lower gross margins, impacting overall profitability.
Operational Challenges
The impact of Tropical Storm Sara and a breakdown of a company vessel are expected to pressure gross margins.
Value Proposition
Analyst maintains an Underperform rating due to DOLE's perceived less attractive value proposition compared to food-related companies.
Dole (DOLE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.35B
Dividend Yield2.39%
Average Volume (3M)595.63K
Price to Earnings (P/E)14.4
Beta (1Y)0.30
Revenue Growth0.91%
EPS Growth-49.71%
CountryUS
Employees35,371
SectorConsumer Defensive
Sector Strength55
IndustryAgricultural Farm Products
Share Statistics
EPS (TTM)0.35
Shares Outstanding95,138,030
10 Day Avg. Volume666,618
30 Day Avg. Volume595,625
Financial Highlights & Ratios
PEG Ratio-0.56
Price to Book (P/B)0.98
Price to Sales (P/S)0.00
P/FCF Ratio11.49
Enterprise Value/Market Cap1.77
Enterprise Value/Revenue0.07
Enterprise Value/Gross Profit3.39
Enterprise Value/Ebitda1.48
Forecast
1Y Price Target
$14.00Price Target Upside-1.55% 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 based on producing, sourcing, and distributing its products to retail, wholesale, and foodservice customers globally. Dole operates extensive farming and distribution networks, allowing it to maintain control over the supply chain and ensure product quality. Key revenue streams include the sale of bananas, pineapples, and berries, which are some of the company's most significant product lines. Dole also generates income through packaged salads and other value-added fresh produce items. Significant partnerships with retail chains and distributors, along with a strong brand presence, contribute to Dole's earnings. Additionally, the company's focus on sustainability and innovation in agricultural practices supports its long-term profitability.
Dole Earnings Call Summary
Earnings Call Date:May 12, 2025
(Q1-2025)
| % Change Since: -3.07%|
Next Earnings Date:Aug 14, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a balanced outlook with several positive metrics such as revenue growth, dividend increase, and successful refinancing. However, these were countered by declines in adjusted EBITDA, net income, and challenges from Tropical Storm Sarah and the ongoing strategic review of the fresh vegetables segment.Q1-2025 Updates
Positive Updates
Revenue Growth and Strong Performance
Group revenue increased by 4.2% to $2.1 billion on a like-for-like basis. Diversified fresh produce segments performed well, offsetting challenges in fresh fruit.
Dividend Increase
The company increased its dividend by 6.25% to $0.085 per share, marking the first increase since 2021, reflecting confidence in long-term growth.
Successful Refinancing
Completed a $1.2 billion refinancing of a credit facility at favorable rates, providing enhanced financial flexibility.
Positive Performance in Diversified EMEA
Adjusted EBITDA in this segment increased by 9.4% on a like-for-like basis, despite FX headwinds, driven by strong performance in the UK, Spain, and the Netherlands.
Strong Start for Diversified Americas
Double-digit growth in EBITDA on a like-for-like basis, driven by strong performance in the North American market, particularly in kiwis, citrus, and avocados.
Negative Updates
Decrease in Adjusted EBITDA
Adjusted EBITDA decreased by 2% to $104.8 million, partly due to higher sourcing and shipping costs following Tropical Storm Sarah.
Impact of Tropical Storm Sarah
Fresh fruit segment faced headwinds due to the storm, with higher sourcing costs and operational challenges.
Net Income Decline
Net income was $44.2 million, a decrease of $21.3 million year-on-year, impacted by the prior year's exceptional gain from the progressive produce disposal.
Challenges in Fresh Vegetables Segment
Weaker performance against a strong comparative period, with ongoing strategic review not yet concluded.
Company Guidance
In the recent earnings call, Dole plc provided updated guidance for the fiscal year 2025, projecting a full-year adjusted EBITDA of at least $380 million, reflecting increased confidence based on a strong first quarter performance. The company reported a 4.2% like-for-like revenue increase to $2.1 billion, with adjusted EBITDA slightly declining by 2% to $104.8 million due to challenges from Tropical Storm Sarah. Adjusted net income was $33.1 million, translating to an adjusted EPS of $0.35, down from $0.43 in the previous year. Dole also announced a 6.25% increase in its dividend to $0.085 per share, supported by a $1.2 billion refinancing of its credit facility to enhance financial flexibility. The fresh fruit segment recorded an adjusted EBITDA of $63.3 million, with notable volume growth in bananas and pineapples, while the diversified EMEA segment showed strong like-for-like growth in adjusted EBITDA by 9.4%. The company remains optimistic about robust demand and potential tailwinds from the strengthening Euro, despite anticipating ongoing production challenges in Honduras due to the storm.Dole Financial Statement Overview
Summary
Dole's financial statements indicate a stable financial position with consistent revenue and profitability metrics. While the income statement shows some pressure on margins, the balance sheet reflects prudent management of debt and equity. Cash flow generation remains solid, though there is room for improvement in free cash flow growth. Overall, Dole appears well-positioned in its industry, with a need to focus on enhancing profitability and cash flow resilience.Income Statement
Dole's income statement reveals stable revenue performance with a slight decline in TTM compared to the previous year, indicating revenue stability. The gross profit margin is healthy, suggesting efficient cost management. However, there is a notable decline in net profit margin from the previous year, which could be a concern if it persists. EBIT and EBITDA margins also show a slight decrease, reflecting some pressure on operating efficiency.78
Positive
Balance Sheet
The balance sheet is relatively stable, with a manageable debt-to-equity ratio and a consistent equity ratio, indicating a balanced approach to leverage. The return on equity has decreased slightly, which may suggest a need for improved profitability. Overall, the balance sheet reflects stable financial health with room for optimizing returns to shareholders.72
Positive
Cash Flow
The cash flow statement shows positive operating cash flows, although there is a decline in free cash flow compared to the previous year. The operating cash flow to net income ratio remains strong, indicating efficient cash generation relative to earnings. However, a decrease in free cash flow growth suggests potential challenges in maintaining cash reserves.75
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.45B | 8.48B | 8.25B | 8.02B | 6.45B | 4.35B |
| Gross Profit | 705.24M | 717.72M | 694.17M | 599.88M | 349.13M | 333.59M |
| EBITDA | 360.91M | 410.72M | 391.21M | 307.84M | 69.01M | 105.89M |
| Net Income | 94.28M | 125.51M | 124.06M | 86.50M | -7.22M | 52.49M |
Balance Sheet | ||||||
| Total Assets | 4.52B | 4.45B | 4.85B | 4.59B | 4.67B | 1.89B |
| Cash, Cash Equivalents and Short-Term Investments | 261.01M | 336.04M | 281.48M | 234.21M | 256.68M | 160.50M |
| Total Debt | 1.33B | 1.30B | 1.43B | 1.54B | 1.74B | 490.97M |
| Total Liabilities | 3.04B | 3.01B | 3.43B | 3.27B | 3.42B | 1.20B |
| Stockholders Equity | 1.34B | 1.29B | 1.25B | 1.16B | 1.08B | 535.01M |
Cash Flow | ||||||
| Free Cash Flow | 114.57M | 180.29M | 197.94M | 140.89M | -49.06M | 121.37M |
| Operating Cash Flow | 231.60M | 262.72M | 275.98M | 238.89M | 16.38M | 144.57M |
| Investing Cash Flow | -101.13M | 35.78M | -3.27M | -54.07M | 82.82M | -25.60M |
| Financing Cash Flow | -85.89M | -237.84M | -230.00M | -173.40M | -1.34M | -100.58M |
Dole Technical Analysis
Positive
14.22
Price Trends
14.17
Positive
14.08
Positive
14.42
Negative
Market Momentum
0.01
Negative
55.56
Neutral
70.58
Neutral
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 14.22 is above the 20-day moving average (MA) of 13.93, above the 50-day MA of 14.17, and below the 200-day MA of 14.42, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 55.56 is Neutral, neither overbought nor oversold. The STOCH value of 70.58 is Neutral, 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 (53)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $1.59B | 10.82 | 7.51% | 3.62% | -0.64% | ― | |
71 Outperform | $1.35B | 14.43 | 8.87% | 2.39% | 0.91% | -49.71% | |
70 Outperform | $20.03B | 21.85 | 5.01% | 3.49% | 1.39% | ― | |
69 Neutral | $10.54B | 9.94 | 10.36% | 3.57% | -10.90% | -36.54% | |
66 Neutral | $26.57B | 19.72 | 6.03% | 3.69% | -8.59% | -50.72% | |
65 Neutral | $936.94M | 14.96 | 4.51% | 3.74% | 17.05% | -73.53% | |
53 Neutral | C$4.43B | 3.98 | -22.83% | 4.39% | 8.13% | 2.00% |
* Consumer Defensive Sector Average
Performance Comparison
DOLE
Dole
14.22
2.24
18.70%
AGRO
Adecoagro SA
9.37
-0.26
-2.70%
ADM
Archer Daniels Midland
55.31
-5.63
-9.24%
BG
Bunge Global
78.44
-28.38
-26.57%
FDP
Fresh Del Monte Produce
33.13
12.55
60.98%
TSN
Tyson Foods
57.36
2.49
4.54%
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.