Fresh Del Monte Produce (FDP)
NYSE:FDP
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Fresh Del Monte Produce
(NYSE:FDP)
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Rating:57Neutral
Price Target:
$34.00
â–¼(-6.00% Downside)
Action:Reiterated
Date:05/19/26
The score is held back most by weak price momentum (below key moving averages with very bearish MACD/RSI) and a high P/E that looks demanding given thin, declining margins. Financially, steady cash generation and manageable historical leverage help, while the earnings call adds both upside (13–15% sales growth outlook tied to the Del Monte Foods deal) and meaningful near-term risk from large cost/FX/logistics headwinds, margin compression guidance, higher debt, and lower operating cash flow guidance.
Positive Factors
Strong cash generation
Sustained OCF and FCF provide durable internal funding to support operations, dividends and buybacks while absorbing seasonal working capital swings typical in produce. Reliable cash generation improves resilience to crop and pricing cycles and funds integration of strategic acquisitions.
Negative Factors
Material cost and FX headwinds
Quantified multi‑tens‑of‑millions of persistent cost and FX pressures reduce margin visibility. These structural supply‑chain and currency shocks erode pricing power in low‑margin produce segments and can persist through seasons, limiting sustainable profit improvements absent cost pass‑through or productivity gains.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Sustained OCF and FCF provide durable internal funding to support operations, dividends and buybacks while absorbing seasonal working capital swings typical in produce. Reliable cash generation improves resilience to crop and pricing cycles and funds integration of strategic acquisitions.
Read all positive factors
Fresh Del Monte Produce Key Performance Indicators (KPIs)
Any
Gross Profit by Segment
Shows how much money the company keeps from sales in each business area after direct costs. For a produce company, differences in gross profit reveal which segments (fresh fruit, value‑added or packaged foods) have pricing power, better cost control, or are more exposed to input, labor and transport swings — key to understanding profitability and where margin improvement or deterioration is coming from.
Shows how much money the company keeps from sales in each business area after direct costs. For a produce company, differences in gross profit reveal which segments (fresh fruit, value‑added or packaged foods) have pricing power, better cost control, or are more exposed to input, labor and transport swings — key to understanding profitability and where margin improvement or deterioration is coming from.
Data provided by:
The Fly
The FlyFresh Del Monte Produce (FDP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.56B
Dividend Yield3.34%
Average Volume (3M)318.21K
Price to Earnings (P/E)45.6
Beta (1Y)-0.03
Revenue Growth0.22%
EPS Growth-52.50%
CountryUS
Employees33,798
SectorConsumer Defensive
Sector Strength42
IndustryAgricultural Farm Products
Share Statistics
EPS (TTM)1.46
Shares Outstanding47,576,610
10 Day Avg. Volume487,051
30 Day Avg. Volume318,206
Financial Highlights & Ratios
PEG Ratio-0.53
Price to Book (P/B)0.85
Price to Sales (P/S)0.40
P/FCF Ratio9.33
Enterprise Value/Market Cap1.37
Enterprise Value/Revenue0.50
Enterprise Value/Gross Profit5.37
Enterprise Value/Ebitda11.16
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)3.1
Revenue Forecast (FY)$4.20B
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: ...
How the Company Makes Money
FDP primarily makes money by selling fresh produce and value-added produce products to customers such as grocery retailers, wholesalers/distributors, and foodservice operators. Its key revenue streams generally include: (1) Sales of fresh fruit an...
Fresh Del Monte Produce Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Neutral
The call presented a mix of meaningful strategic progress and near-term operational challenges. The company achieved a major strategic milestone by reuniting the Del Monte brand—an acquisition expected to add ~$600M of sales and create a higher-margin branded platform—which supports 13%–15% revenue growth guidance for 2026. However, substantial cost pressures from the Middle East conflict, foreign exchange, logistics, commodity inflation and supply disruptions are expected to materially compress margins and reduce cash generation in 2026. Leverage increased materially to fund the acquisition, and the company incurred acquisition-related impairments in the quarter. Overall, the update balances a strong strategic narrative and growth outlook against significant and quantifiable near-term headwinds and margin risk.Positive Updates
Strategic Reunification - Del Monte Foods Acquisition
Closed acquisition of Del Monte Foods for $308 million ($285M base price + $23M wind-down/closing costs). Acquisition expected to contribute approximately $600 million of net sales and about $23 million of adjusted EBITDA in 2026 (9 months contribution), and prompted creation of a new Prepared Foods segment to align the combined branded CPG platform.
Negative Updates
Material Cost Headwinds from Geopolitical Events
Company estimated incremental cost pressures of approximately $40 million to $45 million beginning in Q2 2026 due to the Middle East conflict (higher ocean freight, bunker fuel surcharges, inland transportation, fertilizer and packaging costs).
Read all updates
Q1-2026 Updates
Positive
Negative
Strategic Reunification - Del Monte Foods Acquisition
Closed acquisition of Del Monte Foods for $308 million ($285M base price + $23M wind-down/closing costs). Acquisition expected to contribute approximately $600 million of net sales and about $23 million of adjusted EBITDA in 2026 (9 months contribution), and prompted creation of a new Prepared Foods segment to align the combined branded CPG platform.
Read all positive updates
Company Guidance
Management's 2026 guidance calls for net sales to increase 13–15% year‑over‑year (continuing operations, excludes Mann Packing and includes nine months of Del Monte Foods), with the Del Monte Foods acquisition expected to contribute about $600 million of net sales and roughly $23 million of adjusted EBITDA in 2026; company estimates approximately $40–45 million of cost pressures beginning in Q2 (ocean freight/bunker fuel/war surcharges, inland transportation, fertilizer and packaging) plus an additional $20–25 million of headwinds (about 50% from foreign exchange, primarily the Costa Rica colón, and the remainder from higher U.S. domestic transportation), segment gross margin outlooks of Fresh & Value‑Added 11–12% (vs 14% prior year), Bananas 3–4%, Prepared Foods 13–14%, Other Products & Services 12–13%, SG&A of $270–280 million, capital expenditures of $85–95 million, and net cash provided by operating activities of $40–50 million; quarter‑end financials included long‑term debt of $438 million and an average adjusted leverage of 1.4x EBITDA, and capital allocation actions include a $0.30 quarterly dividend ($1.20 annualized, ~3% yield) and 100,000 shares repurchased for $4 million (avg $40.24) with $116 million available under a $150 million repurchase program.Fresh Del Monte Produce Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
70
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.27B | 4.32B | 4.28B | 4.32B | 4.41B | 4.25B |
| Gross Profit | 395.90M | 399.10M | 357.20M | 343.60M | 307.50M | 291.90M |
| EBITDA | 190.60M | 214.60M | 274.20M | 134.20M | 230.10M | 187.70M |
| Net Income | 69.60M | 90.70M | 142.20M | -11.40M | 98.60M | 80.00M |
Balance Sheet | ||||||
| Total Assets | 3.40B | 3.06B | 3.10B | 3.18B | 3.46B | 3.40B |
| Cash, Cash Equivalents and Short-Term Investments | 66.30M | 35.70M | 32.60M | 33.80M | 17.20M | 16.10M |
| Total Debt | 628.90M | 474.90M | 411.30M | 598.20M | 737.30M | 702.00M |
| Total Liabilities | 1.37B | 1.03B | 1.09B | 1.27B | 1.48B | 1.52B |
| Stockholders Equity | 2.01B | 2.02B | 1.99B | 1.90B | 1.90B | 1.80B |
Cash Flow | ||||||
| Free Cash Flow | 177.40M | 183.80M | 130.80M | 120.20M | 13.70M | 30.00M |
| Operating Cash Flow | 245.60M | 247.60M | 182.50M | 177.90M | 61.80M | 128.50M |
| Investing Cash Flow | -324.60M | -51.20M | 20.40M | 56.40M | -49.10M | -82.50M |
| Financing Cash Flow | 113.50M | -165.70M | -209.90M | -213.50M | -12.00M | -53.20M |
Fresh Del Monte Produce Technical Analysis
Negative
36.17
Price Trends
40.15
Negative
39.45
Negative
37.36
Negative
Market Momentum
-2.20
Positive
17.78
Positive
2.37
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FDP, the sentiment is Negative. The current price of 36.17 is below the 20-day moving average (MA) of 38.18, below the 50-day MA of 40.15, and below the 200-day MA of 37.36, indicating a bearish trend. The MACD of -2.20 indicates Positive momentum. The RSI at 17.78 is Positive, neither overbought nor oversold. The STOCH value of 2.37 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FDP.
Fresh Del Monte Produce Risk Analysis
Fresh Del Monte Produce disclosed 42 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
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $3.71B | 20.41 | 26.11% | 10.53% | -8.85% | -29.16% | |
63 Neutral | $24.18B | 90.61 | 4.47% | 3.14% | 56.89% | -45.77% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
62 Neutral | $23.01B | 21.70 | 2.50% | 3.48% | 3.91% | -50.15% | |
58 Neutral | $1.92B | 66.81 | 0.93% | 4.40% | -5.30% | -109.16% | |
57 Neutral | $1.56B | 45.63 | 3.43% | 3.34% | 0.22% | -52.50% | |
56 Neutral | $1.39B | 10.86 | 3.18% | 2.23% | 11.38% | -38.18% |
* Consumer Defensive Sector Average
FDP
Fresh Del Monte Produce
32.88
-0.06
-0.17%
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CALM
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78.26
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TSN
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66.52
12.13
22.31%
DOLE
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0.91
6.68%
Fresh Del Monte Produce Corporate Events
Dividends
Fresh Del Monte Declares Quarterly Cash Dividend for Shareholders
Positive
Apr 28, 2026
On April 28, 2026, Fresh Del Monte Produce Inc. announced that its board of directors declared a quarterly cash dividend of $0.30 per share on its outstanding common stock. The dividend is scheduled to be paid in cash on June 11, 2026, to sharehol...
Business Operations and StrategyM&A Transactions
Fresh Del Monte Completes Transformative Del Monte Brand Acquisition
Positive
Mar 25, 2026
On March 19, 2026, Fresh Del Monte Produce completed the acquisition of select assets of California-based Del Monte Foods Corporation II Inc. and its affiliates for approximately $285 million, funded with cash on hand and its revolving credit faci...
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.