Fresh Del Monte Produce (FDP) AI Stock Analysis

• Market Cap: $2.03B
• Dividend Yield: 3.34%
• Average Volume (3M): 211.18K
• Price to Earnings (P/E): 22.6
• 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): 0.70
• Shares Outstanding: 47,774,776
• 10 Day Avg. Volume: 238,752
• 30 Day Avg. Volume: 211,176
• PEG Ratio: -0.53
• Price to Book (P/B): 0.85
• Price to Sales (P/S): 0.40
• P/FCF Ratio: 9.33
• Enterprise Value/Market Cap: 1.19
• Enterprise Value/Revenue: 0.56
• Enterprise Value/Gross Profit: 6.00
• Enterprise Value/Ebitda: 11.37
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: $47.00 ▲(29.94% Upside)

The score is driven primarily by stronger financial footing (materially lower leverage) and improved cash generation, supported by constructive (but cautious) 2026 guidance. Offsetting this are thin/uneven profitability and near-term technical overbought signals, while valuation looks only moderately attractive given earnings volatility.

Positive Factors

Balance Sheet Strength

Material deleveraging meaningfully improves financial flexibility over the medium term. Lower debt and sub‑1x leverage reduce interest burden and refinancing risk, enabling sustained dividends, buybacks, capex for operations and M&A resilience through commodity and seasonal cycles.

Improved Cash Generation

Substantially stronger operating and free cash flow provide durable funding for capital investments, dividends and share repurchases without heavy reliance on new debt. Consistent positive FCF helps absorb cyclical revenue swings common in agriculture and supports integration of strategic acquisitions.

Strategic Brand/Asset Acquisition

Reuniting the Del Monte branded packaged foods with Fresh Del Monte is a structural expansion into shelf‑stable and prepared foods, diversifying revenue and channels. If closed and integrated well, the deal can leverage brand equity, manufacturing footprint and cross‑category distribution benefits.

Negative Factors

Thin & Volatile Profitability

Persistently low net margins and episodic losses reduce the firm’s ability to build retained earnings and absorb shocks. Earnings volatility complicates long‑term planning, weakens return on equity, and limits capital for strategic investments unless margins sustainably improve.

Banana Segment Margin Pressure

Bananas are a core volume product; ongoing disease and weather‑driven cost inflation plus elevated logistics costs create structural downside for a key cash generator. Persistent margin compression in bananas can materially drag consolidated profitability and require capital or price actions that may hurt demand.

Del Monte Transaction Uncertainty

The acquisition is strategically significant but lacks quantified synergies and depends on regulatory clearance. Execution, integration costs, or mandated remedies could reduce expected benefits, and timing or financing needs could pressure near‑term resources and distract management from core operations.

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

Balance sheet strength is a key positive (debt materially reduced and leverage low), and cash flow is solid and improving (FY2025 operating cash flow ~$245M; free cash flow ~$181M). The main constraint is thin and uneven profitability (low net margin and earnings volatility, including a 2023 loss and softer 2025 net income despite higher revenue).

Income Statement

Revenue has been broadly stable over the period and returned to growth in 2025 (+11.6% YoY), but profitability remains thin. Gross margin has improved steadily (about 6.2% in 2020 to 9.2% in 2025), supporting better operating performance, yet net margin is low (about 2.1% in 2025) and earnings have been somewhat volatile (including a loss in 2023 and a lower 2025 net income versus 2024 despite higher sales). Overall, improving fundamentals, but still a low-margin business with uneven bottom-line delivery.

Balance Sheet

Leverage has improved materially, with total debt down from ~737M (2022) to ~223M (2025) and debt-to-equity declining from ~0.39 (2020–2022 range) to ~0.11 (2025), indicating a meaningfully stronger capital structure. Equity has also grown modestly and remains large relative to debt. Return on equity is positive in most years (about 4.5% in 2025), though not high and it was negative in 2023, highlighting that balance sheet strength is better than the earnings power it is currently producing.

Cash Flow

Cash generation has improved significantly versus earlier years: operating cash flow rose to ~245M in 2025 (from ~62M in 2022), and free cash flow increased to ~181M in 2025 with strong growth versus 2024. Free cash flow is consistently positive across the period, but cash conversion is not exceptional—free cash flow has been below net income in recent years (roughly 0.72–0.74x in 2024–2025). Overall, solid and improving cash flow profile, with some room for better consistency and conversion.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.32B	4.28B	4.32B	4.41B	4.25B
Gross Profit	399.10M	357.20M	343.60M	307.50M	291.90M
EBITDA	258.90M	274.20M	134.20M	230.10M	187.70M
Net Income	90.70M	142.20M	-11.40M	98.60M	80.00M
Balance Sheet
Total Assets	3.06B	3.10B	3.18B	3.46B	3.40B
Cash, Cash Equivalents and Short-Term Investments	35.70M	32.60M	33.80M	17.20M	16.10M
Total Debt	474.90M	411.30M	598.20M	737.30M	702.00M
Total Liabilities	1.03B	1.09B	1.27B	1.48B	1.52B
Stockholders Equity	2.02B	1.99B	1.90B	1.90B	1.80B
Cash Flow
Free Cash Flow	183.80M	130.80M	120.20M	13.70M	30.00M
Operating Cash Flow	247.60M	182.50M	177.90M	61.80M	128.50M
Investing Cash Flow	-51.20M	20.40M	56.40M	-49.10M	-82.50M
Financing Cash Flow	-165.70M	-209.90M	-213.50M	-12.00M	-53.20M

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 39.70, below the 50-day MA of 37.91, and above the 200-day MA of 35.30, indicating a bullish trend. The MACD of 1.09 indicates Negative momentum. The RSI at 64.18 is Neutral, neither overbought nor oversold. The STOCH value of 83.62 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	$3.92B	3.47	48.69%	10.53%	65.80%	197.95%
FDP	70 Outperform	$2.03B	22.63	4.53%	3.34%	1.11%	414.23%
BG	64 Neutral	$23.55B	24.77	6.34%	3.14%	10.29%	17.32%
TSN	63 Neutral	$22.07B	111.86	1.10%	3.48%	2.12%	-40.75%
DOLE	63 Neutral	$1.52B	52.28	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	$1.23B	37.39	1.69%	4.40%	-7.37%	-84.53%

Fresh Del Monte Produce Corporate Events

Fresh Del Monte to Acquire Del Monte Foods Assets

On February 6, 2026, the U.S. Bankruptcy Court for the District of New Jersey approved an Asset Purchase Agreement under which Fresh Del Monte Produce will acquire Del Monte Foods’ prepared and packaged foods businesses, including canned vegetables, tomato products, refrigerated fruit, the Joyba bubble tea line, several production facilities in the U.S., Mexico and Venezuela, and global ownership of the Del Monte brand subject to existing licenses. The $285 million deal, to be funded with cash on hand and the company’s revolving credit facility, followed a competitive Section 363 bankruptcy auction and, if it closes as expected in the first quarter of 2026 subject to regulatory and customary conditions, would significantly expand Fresh Del Monte’s branded packaged foods footprint and manufacturing base while adding new product categories, though the transaction remains exposed to closing risks such as regulatory approvals, potential adverse business developments and possible termination if deadlines are not met.

The most recent analyst rating on (FDP) stock is a Buy with a $41.00 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 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.