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Fresh Del Monte Produce (FDP)
NYSE:FDP
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Fresh Del Monte Produce (FDP) AI Stock Analysis

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FDP

Fresh Del Monte Produce

(NYSE:FDP)

Rating:76Outperform
Price Target:
$43.00
▲(19.78% Upside)
Fresh Del Monte Produce's overall stock score is driven by solid financial performance and positive technical indicators. The company's strategic expansions and operational efficiency boost its growth potential, while its valuation remains moderately attractive. Recent earnings call insights highlight both opportunities and challenges, contributing positively to the score.

Fresh Del Monte Produce (FDP) vs. SPDR S&P 500 ETF (SPY)

Fresh Del Monte Produce Business Overview & Revenue Model

Company DescriptionFresh 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 MoneyFresh Del Monte Produce generates revenue primarily through the sale of fresh and fresh-cut fruits and vegetables, which constitute the bulk of its product offerings. The company has a diversified revenue model, with key revenue streams including wholesale distribution to supermarkets, grocery stores, and foodservice establishments. Additionally, FDP earns income from its processed food products, which include juices and snacks. Strategic partnerships with retailers and distributors enhance its market reach, while the company's focus on sustainability and quality helps to maintain consumer loyalty and drive sales. Seasonal demand fluctuations and global supply chain management also play significant roles in influencing its earnings.

Fresh Del Monte Produce Earnings Call Summary

Earnings Call Date:Jul 30, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Positive
The earnings call demonstrated strong financial performance with growth in key metrics and strategic market expansions, particularly in the pineapple and fresh-cut segments. However, the company faced significant challenges related to port disruptions and crop diseases impacting the banana segment. Despite these issues, the overall sentiment of the call is positive, driven by innovation and strategic growth initiatives.
Q2-2025 Updates
Positive Updates
Growth in Key Financial Metrics
Net sales increased by 4% to $1.183 billion, driven by higher net sales in fresh and value-added products and banana segments. Gross profit rose 6% to $120 million and gross margin expanded to 10.2% from 9.9%.
Strong Performance in Fresh and Value-Added Products
Net sales for the fresh and value-added product segment increased by 4% to $723 million. The segment's gross margin improved to 11.7%, driven by higher per unit selling prices in pineapple and fresh-cut fruit product lines.
Pineapple Demand and Market Expansion
Consumer spend on tropical fruit rose 58% since 2017. Fresh Del Monte launched Pinkglow in the UAE and is expanding in Brazil, Africa, and the Philippines.
Positive Earnings and Operational Efficiency
Adjusted EBITDA for the second quarter was $95 million, up from $89 million in the prior year. The company reduced long-term debt by 29% compared to the prior year.
Innovation in Fresh-Cut Products
The introduction of fresh guacamole and expansion into new markets like the Middle East and the UK contributed to growth in the fresh-cut segment.
Negative Updates
Port and Logistical Challenges
The Port of Caldera in Costa Rica faced disruptions due to strong ocean swirls, causing wait times of 3 to 5 days, leading to higher costs and logistical impacts.
Banana Segment Challenges
Banana net sales increased by 4%, but the segment faced crop disease issues like Black Sigatoka, affecting supply and contributing to a slight decrease in gross margin to 7.3%.
Currency Exchange Headwinds
While favorable currency fluctuations benefited sales, the strengthening of the Costa Rican Colón created cost challenges, impacting production costs in key growing regions.
Company Guidance
During Fresh Del Monte Produce's second quarter 2025 earnings call, the company reported strong financial performance with key metrics showing growth. Net sales increased by 4% to $1.183 billion compared to the prior year. Gross profit rose 6% to $120 million, and gross margin expanded to 10.2% from 9.9% year-over-year. The company achieved a net income of $57 million, up from $54 million, and adjusted EBITDA increased to $95 million from $89 million. Earnings per share improved to $1.18, with an adjusted EPS of $1.23 compared to $1.12 and $1.06, respectively, last year. Fresh Del Monte also highlighted the ongoing demand for their pineapple portfolio, with consumer spend on tropical fruit rising 58% since 2017. The company plans to expand its pineapple production in Costa Rica and other regions, anticipating continued strong market demand. Additionally, they are transitioning to container vessels in the Asia Pacific region to enhance operational efficiency. Despite challenges such as disruptions at the Port of Caldera in Costa Rica and a global banana shortage, the company remains confident in meeting its full-year 2025 objectives, expecting net sales growth of 2% year-over-year.

Fresh Del Monte Produce Financial Statement Overview

Summary
Fresh Del Monte Produce exhibits solid financial health with stable growth and profitability metrics. Effective debt management and a strong equity position contribute to financial stability. Consistent cash flow generation supports operational and strategic flexibility, despite minor concerns over asset reduction.
Income Statement
75
Positive
The income statement shows a stable revenue trajectory with a slight increase in TTM to $4.31 billion. Gross profit margin is steady at 8.69% for TTM. Net profit margin improved to 3.49% from negative figures in previous years, indicating enhanced profitability. EBIT and EBITDA margins are 4.58% and 5.80% respectively for TTM, reflecting stable operational efficiency. Revenue growth is modest with an increase of 0.78% from the previous year.
Balance Sheet
70
Positive
The balance sheet highlights a healthy equity ratio of 65.09% in TTM, suggesting strong asset backing by equity. The debt-to-equity ratio decreased over time, now at 0.12, indicating effective debt management. Return on equity improved to 7.30% in TTM, showcasing better returns for shareholders. However, total assets have slightly declined over recent years, which may restrict future growth potential if not addressed.
Cash Flow
80
Positive
The cash flow statement shows robust free cash flow growth of 11.15% in TTM, supporting potential reinvestment and dividend distribution. Operating cash flow to net income improved to 1.32, demonstrating strong cash generation relative to net income. Free cash flow to net income ratio stands at 0.97, indicating efficient conversion of earnings into free cash.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue4.31B4.28B4.32B4.44B4.25B4.20B
Gross Profit374.80M357.90M350.70M340.20M303.80M250.90M
EBITDA275.10M267.60M134.20M230.10M204.00M145.10M
Net Income150.40M142.20M-11.40M98.60M80.00M49.20M
Balance Sheet
Total Assets3.16B3.10B3.18B3.46B3.40B3.34B
Cash, Cash Equivalents and Short-Term Investments85.50M32.60M33.80M17.20M16.10M16.50M
Total Debt371.80M411.30M598.20M737.30M702.00M685.20M
Total Liabilities1.09B1.09B1.27B1.48B1.52B1.54B
Stockholders Equity2.06B1.99B1.90B1.90B1.80B1.73B
Cash Flow
Free Cash Flow145.40M130.80M120.20M13.70M30.00M30.60M
Operating Cash Flow198.00M182.50M177.90M61.80M128.50M180.60M
Investing Cash Flow-5.60M20.40M56.40M-49.10M-82.50M-108.80M
Financing Cash Flow-146.80M-209.90M-213.50M-12.00M-53.20M-85.80M

Fresh Del Monte Produce Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price35.90
Price Trends
50DMA
35.05
Positive
100DMA
34.01
Positive
200DMA
32.43
Positive
Market Momentum
MACD
0.18
Positive
RSI
50.34
Neutral
STOCH
27.83
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FDP, the sentiment is Neutral. The current price of 35.9 is below the 20-day moving average (MA) of 36.16, above the 50-day MA of 35.05, and above the 200-day MA of 32.43, indicating a neutral trend. The MACD of 0.18 indicates Positive momentum. The RSI at 50.34 is Neutral, neither overbought nor oversold. The STOCH value of 27.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FDP.

Fresh Del Monte Produce Risk Analysis

Fresh Del Monte Produce disclosed 39 risk factors in its most recent earnings report. Fresh Del Monte Produce 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

Fresh Del Monte Produce Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
84
Outperform
$5.48B4.5355.96%7.31%83.19%339.22%
77
Outperform
$29.76B27.174.93%3.23%-6.70%-54.38%
77
Outperform
$16.23B8.1113.20%3.27%-8.87%13.21%
76
Outperform
$1.71B11.447.49%3.20%1.41%
63
Neutral
$20.50B14.76-2.72%3.09%1.90%-4.74%
62
Neutral
$1.27B53.758.29%2.40%4.75%-88.74%
59
Neutral
$827.94M23.202.63%4.21%19.45%-82.38%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FDP
Fresh Del Monte Produce
35.90
8.35
30.31%
AGRO
Adecoagro SA
8.28
-2.76
-25.00%
ADM
Archer Daniels Midland
62.94
5.73
10.02%
BG
Bunge Global
84.33
-11.23
-11.75%
CALM
Cal-Maine Foods
113.83
50.87
80.80%
DOLE
Dole
13.56
-1.78
-11.60%

Fresh Del Monte Produce Corporate Events

Executive/Board ChangesShareholder Meetings
Fresh Del Monte’s Shareholders Approve Key Proposals at AGM
Neutral
Jun 9, 2025

On June 5, 2025, Fresh Del Monte Produce Inc. held its virtual Annual General Meeting of Shareholders, where 93% of the Ordinary Shares were represented. During the meeting, shareholders approved the election of three directors, ratified the appointment of Ernst & Young LLP as the independent registered public accounting firm for 2025, and approved the compensation of the company’s named executive officers for 2024.

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.Date of analysis: Aug 01, 2025