Fresh Del Monte Produce (FDP)
NYSE:FDP
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Fresh Del Monte Produce
(NYSE:FDP)
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Rating:70Outperform
Price Target:
$47.00
â–²(29.94% Upside)
Action:ReiteratedDate:02/20/26
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.
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.
Read all positive and negative factors
Positive Factors
Negative 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.
Read all positive factors
Fresh Del Monte Produce (FDP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.02B
Dividend Yield3.34%
Average Volume (3M)272.47K
Price to Earnings (P/E)18.9
Beta (1Y)0.04
Revenue Growth1.11%
EPS Growth414.23%
CountryUS
Employees33,798
SectorConsumer Defensive
Sector Strength42
IndustryAgricultural Farm Products
Share Statistics
EPS (TTM)0.70
Shares Outstanding47,383,526
10 Day Avg. Volume333,823
30 Day Avg. Volume272,471
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 Cap1.23
Enterprise Value/Revenue0.57
Enterprise Value/Gross Profit6.11
Enterprise Value/Ebitda11.43
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)3.07
Revenue Forecast (FY)$4.17B
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
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...
Fresh Del Monte Produce Earnings Call Summary
Earnings Call Date:Feb 18, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
The call presents a constructive strategic narrative with several positive operational and financial indicators — court approval to acquire Del Monte Foods assets, solid adjusted profitability (adjusted operating income and EBITDA), strong cash generation ($245M operating cash flow) and a disciplined capital allocation approach (dividend and buybacks). However, notable headwinds temper the outlook: banana segment margin compression from disease and weather-driven costs, impairment and divestiture charges that reduced GAAP operating income, supply constraints in pineapples, and near-term logistic/weather disruptions. The company’s strong balance sheet and disciplined strategy, plus the transformational acquisition opportunity, outweigh the operational challenges in the near term but require execution and regulatory clearance to realize full benefits.Positive Updates
Court Approval to Acquire Select Del Monte Foods Assets
Fresh Del Monte received U.S. Bankruptcy Court approval to purchase the global Del Monte brand and select assets for $285 million plus assumption of certain liabilities; expected to close before the end of Q1 2026 subject to HSR antitrust clearance and remaining closing conditions. Management frames the deal as strategic alignment to unify fresh and packaged food under one company.
Negative Updates
Banana Segment Margin Pressure
Full-year banana net sales $1.5 billion but gross profit only $71 million and gross margin declined to 4.8% (adjusted gross margin 4.7%). Management attributed declines to higher per-unit production and procurement costs from adverse weather, disease pressures (including Black Sigatoka), higher distribution costs and an allowance on a receivable from an independent grower in Asia.
Read all updates
Q4-2025 Updates
Positive
Negative
Court Approval to Acquire Select Del Monte Foods Assets
Fresh Del Monte received U.S. Bankruptcy Court approval to purchase the global Del Monte brand and select assets for $285 million plus assumption of certain liabilities; expected to close before the end of Q1 2026 subject to HSR antitrust clearance and remaining closing conditions. Management frames the deal as strategic alignment to unify fresh and packaged food under one company.
Read all positive updates
Company Guidance
The company guided to 2026 on a continuing operations basis (excluding the divested Mann Packing and any contribution from the pending Del Monte Foods transaction) and expects net sales to be up 1%–2% driven by higher per‑unit selling prices; segment gross margin guidance is 12%–14% for Fresh & Value‑Added, 5%–6% for Bananas, and 12%–13% for Other Products & Services; SG&A is expected to be $210M–$215M; net cash provided by operating activities is forecast at $220M–$230M; the company flagged Q1 headwinds from extreme U.S. snowfall/freezing that disrupted distribution and cautioned guidance reflects macro, industry and logistic risks and assumptions available today.Fresh Del Monte Produce Financial Statement Overview
Summary
Income Statement
64
Positive
Balance Sheet
78
Positive
Cash Flow
72
Positive
| 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 | 214.60M | 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
Positive
36.17
Price Trends
40.08
Positive
38.00
Positive
36.04
Positive
Market Momentum
0.30
Positive
59.58
Neutral
62.06
Neutral
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 41.77, below the 50-day MA of 40.08, and above the 200-day MA of 36.04, indicating a bullish trend. The MACD of 0.30 indicates Positive momentum. The RSI at 59.58 is Neutral, neither overbought nor oversold. The STOCH value of 62.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FDP.
Fresh Del Monte Produce Risk Analysis
Fresh Del Monte Produce disclosed 41 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 |
|---|---|---|---|---|---|---|---|
86 Outperform | $3.75B | 9.73 | 44.65% | 10.53% | 65.80% | 197.95% | |
70 Outperform | $2.02B | 18.92 | 4.53% | 3.34% | 1.11% | 414.23% | |
64 Neutral | $24.01B | 18.12 | 5.98% | 3.14% | 10.29% | 17.32% | |
63 Neutral | $20.60B | 59.42 | 1.10% | 3.48% | 2.12% | -40.75% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
59 Neutral | $1.37B | 27.79 | 3.76% | 2.23% | 7.09% | -83.75% | |
53 Neutral | $1.87B | -484.91 | -0.54% | 4.40% | -7.37% | -84.53% |
* Consumer Defensive Sector Average
FDP
Fresh Del Monte Produce
42.55
14.28
50.52%
AGRO
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13.97
3.38
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BG
Bunge Global
124.09
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74.16%
CALM
Cal-Maine Foods
78.60
-7.92
-9.16%
TSN
Tyson Foods
60.89
2.99
5.16%
DOLE
Dole
14.34
0.86
6.36%
Fresh Del Monte Produce Corporate Events
Business Operations and StrategyLegal ProceedingsM&A Transactions
Fresh Del Monte to Acquire Del Monte Foods Assets
Positive
Feb 12, 2026
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 veg...
Business Operations and StrategyLegal ProceedingsM&A Transactions
Fresh Del Monte to Acquire Key Del Monte Foods Assets
Positive
Jan 15, 2026
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-su...
Business Operations and StrategyExecutive/Board Changes
Fresh Del Monte Promotes Abbas to President and COO
Positive
Jan 7, 2026
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 prev...
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.