Fresh Del Monte Produce (FDP) AI Stock Analysis

• Market Cap: $1.76B
• Dividend Yield: 3.34%
• Average Volume (3M): 267.45K
• Price to Earnings (P/E): 22.5
• Beta (1Y): >-0.01
• Revenue Growth: 1.11%
• EPS Growth: 414.23%
• Country: US
• Employees: 33,798
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Agricultural Farm Products
• EPS (TTM): 0.69
• Shares Outstanding: 47,774,776
• 10 Day Avg. Volume: 257,913
• 30 Day Avg. Volume: 267,451
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.80
• Price to Sales (P/S): 0.37
• P/FCF Ratio: 12.11
• Enterprise Value/Market Cap: 1.09
• Enterprise Value/Revenue: 0.45
• Enterprise Value/Gross Profit: 5.31
• Enterprise Value/Ebitda: 9.69
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 3.07
• Revenue Forecast (FY): $4.17B

• Rating: 71 Outperform
• Price Target: $41.00 ▲(13.35% Upside)

The score is primarily supported by strong cash flow generation and a healthier, low-leverage balance sheet. Offsetting factors are thin profitability and mixed momentum signals, while valuation looks only moderately attractive given a mid-20s P/E despite the dividend. Earnings call and recent strategic events are net supportive but tempered by ongoing banana-segment pressures and recent impairments.

Positive Factors

Strong free cash flow generation

Sustained free cash flow growth and high cash conversion provide durable financial flexibility. With FCF growing ~21% TTM and strong conversion versus net income, the company can fund capex, dividends, and working capital through cycles without relying on new debt, supporting long-term stability.

Low leverage / healthier balance sheet

A very low debt-to-equity ratio and sub-1x adjusted leverage reduce financial risk and interest exposure. This stronger capital structure supports investment in supply chain, disease mitigation, and margin-improving initiatives, and gives resilience against agricultural cyclical shocks over the medium term.

Shift to higher-margin value-added categories

A strategic mix shift toward value-added products and strong pineapple demand creates structurally higher margins. Coupled with planned divestiture of low-margin assets, this improves long-run profitability resilience by focusing resources on differentiated, higher-margin product lines and channels.

Negative Factors

Thin overall profitability

Very low net margins and falling operating margins indicate structural pressure on profitability. Even with good cash flow, persistent thin returns limit reinvestment and shareholder returns, and suggest pricing or cost-structure issues that may take multiple quarters to rectify.

Banana-segment disease and cost pressures

Ongoing fungal diseases and rising production/procurement costs materially erode a core business line. Declining yields and higher per-unit costs create persistent margin volatility and supply risk for a major product, reducing predictability of earnings and raising remediation costs over time.

Recent impairments and operating loss

Significant impairment charges reflect asset underperformance and prior capital allocation issues. These write-downs reduce equity and signal possible structural problems in certain farms/businesses, potentially constraining future investment and implying higher scrutiny of asset returns going forward.

Fresh Del Monte Produce Business Overview & Revenue Model

Company Description

Fresh Del Monte Produce Inc., through its subsidiaries, produces, markets, and distributes fresh and fresh-cut fruits and vegetables in North America, Europe, the Middle East, Africa, Asia, and internationally. It operates through three segments: Fresh and Value-Added Products, Banana, and Other Products and Services. It offers pineapples, fresh-cut fruit, fresh-cut vegetables, melons, and vegetables; non-tropical fruits, such as grapes, apples, citrus, blueberries, strawberries, pears, peaches, plums, nectarines, cherries, and kiwis; other fruit and vegetables, and avocados; and prepared fruit and vegetables, juices, other beverages, and meals and snacks. The company also engages in the sale of poultry and meat products; and third-party freight services business. In addition, it manufactures and sells plastic and box products, such as bins, trays, bags, and boxes. The company offers its products under the Del Monte brand, as well as under other brands, such as UTC, Rosy, Fruit Express, Just Juice, Fruitini, Mann's Logo, Arcadian Harvest, Nourish Bowls, Broccolini, Caulilini, Better Burger Leaf, RomaLeaf, and other regional brands. It markets and distributes its products to retail stores, club stores, convenience stores, wholesalers, distributors, and foodservice operators. Fresh Del Monte Produce Inc. was founded in 1886 and is based in George Town, Cayman Islands.

How the Company Makes Money

Fresh Del Monte Produce generates revenue through multiple streams, primarily from the sale of fresh and processed fruits and vegetables. Key revenue sources include the sale of whole fruits, fresh-cut fruit products, and value-added items such as packaged salads and snacks. The company also benefits from strategic partnerships with retailers and foodservice providers, which enhance its distribution capabilities and market reach. Additionally, FDP engages in direct sales and exports, allowing it to penetrate international markets. Seasonal demand fluctuations and the company's ability to manage supply chain efficiencies further contribute to its financial performance.

Fresh Del Monte Produce Financial Statement Overview

Summary

Fresh Del Monte Produce shows solid financial health with strong cash flow performance and improved leverage. However, profitability margins remain a concern, with declining EBIT and EBITDA margins. The company has a positive revenue growth trajectory, but operational efficiency needs improvement to enhance profitability.

Income Statement

Fresh Del Monte Produce shows a stable revenue growth rate of 3.9% in the TTM period, indicating a positive trend compared to the previous year. The gross profit margin is modest at 8.4%, and the net profit margin is relatively low at 1.9%, reflecting challenges in cost management or pricing power. The EBIT and EBITDA margins have decreased compared to the previous year, suggesting potential operational inefficiencies.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.11, indicating a strong reduction in leverage and a healthier balance sheet. Return on equity is moderate at 4.0%, showing a decrease from the previous year, which could be a concern for investors seeking higher returns. The equity ratio is strong, reflecting a solid capital structure with a significant portion of assets financed by equity.

Cash Flow

Operating cash flow has increased, with a healthy free cash flow growth rate of 21.2% in the TTM period. The operating cash flow to net income ratio is robust at 0.41, indicating efficient cash generation relative to net income. The free cash flow to net income ratio is also strong at 0.77, suggesting good cash conversion efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.32B	4.28B	4.32B	4.41B	4.25B	4.21B
Gross Profit	363.80M	357.20M	343.60M	307.50M	291.90M	259.00M
EBITDA	199.40M	274.20M	134.20M	230.10M	187.70M	158.70M
Net Income	80.20M	142.20M	-11.40M	98.60M	80.00M	49.20M
Balance Sheet
Total Assets	3.07B	3.10B	3.18B	3.46B	3.40B	3.26B
Cash, Cash Equivalents and Short-Term Investments	97.20M	32.60M	33.80M	17.20M	16.10M	16.50M
Total Debt	335.10M	411.30M	598.20M	737.30M	702.00M	685.20M
Total Liabilities	1.04B	1.09B	1.27B	1.48B	1.52B	1.46B
Stockholders Equity	2.01B	1.99B	1.90B	1.90B	1.80B	1.73B
Cash Flow
Free Cash Flow	176.20M	130.80M	120.20M	13.70M	30.00M	30.60M
Operating Cash Flow	229.50M	182.50M	177.90M	61.80M	128.50M	180.60M
Investing Cash Flow	-15.00M	20.40M	56.40M	-49.10M	-82.50M	-108.80M
Financing Cash Flow	-173.10M	-209.90M	-213.50M	-12.00M	-53.20M	-85.80M

Fresh Del Monte Produce Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 36.17
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FDP, the sentiment is Positive. The current price of 36.17 is below the 20-day moving average (MA) of 36.20, below the 50-day MA of 36.38, and above the 200-day MA of 34.40, indicating a bullish trend. The MACD of 0.16 indicates Negative momentum. The RSI at 53.88 is Neutral, neither overbought nor oversold. The STOCH value of 85.61 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FDP.

Fresh Del Monte Produce Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CALM	73 Outperform	$3.71B	3.29	48.69%	10.53%	65.80%	197.95%
FDP	71 Outperform	$1.76B	22.54	3.95%	3.34%	1.11%	414.23%
TSN	69 Neutral	$20.79B	44.10	2.60%	3.48%	2.12%	-40.75%
BG	66 Neutral	$20.85B	11.58	10.24%	3.14%	10.29%	17.32%
DOLE	63 Neutral	$1.39B	47.98	8.75%	2.23%	7.09%	-83.75%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
AGRO	52 Neutral	$1.19B	36.10	1.69%	4.40%	-7.37%	-84.53%

Fresh Del Monte Produce Corporate Events

Fresh Del Monte to Acquire Key Del Monte Foods Assets

On January 15, 2026, Fresh Del Monte Produce announced it had been selected as the successful bidder to acquire select assets of the bankrupt Del Monte Foods Corporation II Inc. for $285 million plus certain assumed liabilities, through a court-supervised auction under Section 363 of the U.S. Bankruptcy Code. Subject to court approval scheduled for January 28, 2026, regulatory clearances and customary closing conditions, the deal is expected to close by the end of the first quarter of 2026 and would reunify the Del Monte brand under a single owner for the first time in nearly 40 years, combining fresh and shelf-stable categories under one integrated strategy. The proposed transaction covers prepared and packaged vegetable, tomato, refrigerated fruit and beverage brands including Del Monte, S&W, Contadina, Take Root Organics and JOYBA, along with selected facilities in the U.S., Mexico and Venezuela, key contracts, inventories and global ownership of the Del Monte brand subject to existing licenses, while excluding canned fruit and certain broth and stock businesses. Fresh Del Monte plans to operate the acquired assets through a dedicated business unit, maintain continuity for retailers and consumers with no immediate product changes, and finance the purchase with cash on hand and its revolving credit facility, a move that could expand its multi-category food platform, deepen its presence across channels and occasions, and potentially strengthen its competitive position in both fresh and shelf-stable segments.

The most recent analyst rating on (FDP) stock is a Hold with a $40.00 price target. To see the full list of analyst forecasts on Fresh Del Monte Produce stock, see the FDP Stock Forecast page.

Fresh Del Monte Promotes Abbas to President and COO

Fresh Del Monte Produce Inc. announced that Mohammed Abbas, 49, will be promoted to President and Chief Operating Officer effective January 1, 2026, after serving as Executive Vice President and Chief Operating Officer since February 2022 and previously leading the company’s operations across Asia Pacific, the Middle East and North Africa in various senior regional roles since 2016. In connection with the promotion, the board’s compensation committee approved notable increases to Abbas’s base salary and performance-linked cash incentives under the company’s annual and long-term executive incentive plans, while confirming there are no special arrangements, family relationships or related-party transactions underlying his appointment, underscoring a governance-focused approach to a key leadership transition that could influence strategic execution and operational oversight across the company’s global markets.

The most recent analyst rating on (FDP) stock is a Hold with a $38.00 price target. To see the full list of analyst forecasts on Fresh Del Monte Produce stock, see the FDP Stock Forecast page.