Del Monte Pacific (D03) AI Stock Analysis

• Market Cap: S$120.53M
• Dividend Yield: 2.22%
• Average Volume (3M): 120.43K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.41
• Revenue Growth: 2.62%
• EPS Growth: -171.00%
• Country: SG
• Employees: 11,000
• Sector: Consumer Defensive
• Sector Strength: 63
• Industry: Packaged Foods
• EPS (TTM): -0.03
• Shares Outstanding: 1,944,935,800
• 10 Day Avg. Volume: 168,850
• 30 Day Avg. Volume: 120,433
• PEG Ratio: -0.17
• Price to Book (P/B): 0.79
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.54
• Enterprise Value/Market Cap: 28.83
• Enterprise Value/Revenue: 0.35
• Enterprise Value/Gross Profit: 8.68
• Enterprise Value/Ebitda: 3.51
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 45 Neutral
• Price Target: ―

Del Monte Pacific's overall stock score reflects significant financial challenges, particularly declining profitability and high leverage. While cash flow management is a positive factor, the bearish technical indicators and negative valuation metrics further weigh down the score.

Del Monte Pacific Business Overview & Revenue Model

Company Description

Del Monte Pacific Limited (D03) is a leading global producer, distributor, and marketer of premium quality, branded food and beverage products. The company operates primarily in the food and beverage industry, offering a diverse range of products including canned fruits and vegetables, juices, packaged prepared foods, and fresh produce. Its well-known brands, such as Del Monte, S&W, and Contadina, are recognized for their high quality and nutritional value, serving consumers across the Americas, Asia-Pacific, and Europe.

How the Company Makes Money

Del Monte Pacific generates revenue through its extensive portfolio of branded food and beverage products. The company's primary revenue streams include the sale of canned fruits and vegetables, packaged prepared foods, and beverages. These products are distributed to a wide range of customers, including retail chains, foodservice distributors, and direct consumers, through various channels such as supermarkets, online platforms, and foodservice establishments. Additionally, Del Monte Pacific benefits from strategic partnerships and joint ventures that expand its market reach and product offerings. The company's earnings are significantly influenced by its ability to maintain strong brand recognition, manage supply chain efficiencies, and adapt to changing consumer preferences and market trends.

Del Monte Pacific Financial Statement Overview

Summary

Del Monte Pacific is experiencing significant financial challenges, with a declining income statement, high leverage on its balance sheet, and robust cash flow being the only positive aspect. The overall financial health is precarious, requiring attention to operational inefficiencies and debt management.

Income Statement

Del Monte Pacific's income statement reveals a challenging environment, with declining revenue and increasing net losses evident in the TTM data. The gross profit margin decreased from previous years, indicating potential cost pressures. There is a notable decline in EBIT and EBITDA margins, reflecting reduced operational efficiency. However, the slight increase in total revenue in the TTM period suggests potential for stabilization.

Balance Sheet

The balance sheet shows high leverage, with a significant debt-to-equity ratio due to low stockholders' equity, which has been declining. The equity ratio is weak, and the company is highly reliant on debt financing, posing financial stability risks. The return on equity has turned negative, indicating poor returns for shareholders.

Cash Flow

Del Monte Pacific's cash flow performance is a relative strength, with robust operating cash flow supporting free cash flow growth. The operating cash flow to net income ratio highlights efficient cash generation, despite net losses. The positive free cash flow in the TTM period indicates good liquidity management, albeit capital expenditures remain significant.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
2.49B	2.43B	2.42B	2.34B	2.16B	2.13B
	Gross Profit
400.06M	419.56M	606.99M	622.66M	555.96M	452.16M
	EBIT
23.38M	45.00M	245.60M	267.29M	211.85M	51.19M
	EBITDA
247.66M	255.47M	367.89M	444.79M	392.32M	207.32M
	Net Income Common Stockholders
-170.81M	-129.16M	16.95M	100.03M	63.26M	-81.39M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
16.20M	13.12M	19.85M	23.14M	30.76M	33.47M
	Total Assets
3.04B	3.11B	3.14B	2.58B	2.42B	2.55B
	Total Debt
2.36B	2.39B	2.38B	1.69B	1.42B	1.56B
	Net Debt
2.35B	2.37B	2.36B	1.67B	1.39B	1.53B
	Total Liabilities
2.89B	2.86B	2.75B	2.09B	1.78B	1.99B
	Stockholders Equity
24.38M	129.85M	318.82M	425.57M	581.18M	511.08M
Cash Flow		Free Cash Flow
365.62M	181.69M	-620.00M	-13.66M	93.51M	207.95M
	Operating Cash Flow
526.04M	369.30M	-195.23M	260.18M	316.36M	388.19M
	Investing Cash Flow
-155.50M	-181.49M	-430.34M	-275.68M	-51.15M	-142.08M
	Financing Cash Flow
-384.14M	-196.89M	628.18M	14.69M	-275.09M	-230.04M

Del Monte Pacific Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.07
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:D03, the sentiment is Negative. The current price of 0.07 is above the 20-day moving average (MA) of 0.07, above the 50-day MA of 0.07, and below the 200-day MA of 0.08, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 15.28 is Positive, neither overbought nor oversold. The STOCH value of -18.18 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SG:D03.

Del Monte Pacific Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Q01	76 Outperform	S$486.10M	14.01	7.04%	5.92%	1.20%	26.15%
P34	76 Outperform	$452.26M	9.97	12.79%	4.24%	-7.55%	-26.87%
MV4	72 Outperform	S$397.68M	7.66	4.76%	4.60%	15.23%	-4.95%
5JS	70 Outperform	S$439.71M	4.66	7.94%	3.17%	-4.59%	74.87%
Sector *	65 Neutral	$8.77B	15.11	4.67%	3.71%	3.60%	-2.96%
D03	45 Neutral	S$120.53M	―	-116.79%	2.22%	2.62%	-171.00%

Del Monte Pacific Corporate Events

Del Monte Pacific Board Opts Out of U.S. Litigation Settlement Support

Del Monte Pacific Limited’s Board has decided not to provide financial support to its U.S. subsidiaries for a litigation settlement, following the dismissal of the case by the Delaware Court of Chancery. This decision was made after considering the company’s financial health, macroeconomic conditions, and the operational needs of its Philippine subsidiary, ensuring that shareholder interests are safeguarded without disrupting business operations.

Del Monte Pacific Settles Litigation with U.S. Subsidiaries

Del Monte Pacific Limited has reached a settlement in a litigation involving its U.S. subsidiaries, specifically Del Monte Foods, Inc. The lawsuit, initiated by a group of lenders, alleged defaults under a 2022 loan agreement, seeking to replace the current directors. The settlement, which dismisses the lawsuit, involves retiring the indebtedness under the agreement and is funded by an incremental loan, increasing the company’s interest expenses and debts. Del Monte Pacific agreed to contribute financially to the subsidiary, with potential governance changes if no contribution is made.