13.525 USD
+0.06 (+0.48%)
We assign a fundamental rating of 4 out of 10 to AVO. AVO was compared to 87 industry peers in the Food Products industry. AVO has an excellent financial health rating, but there are some minor concerns on its profitability. AVO is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- AVO had positive earnings in the past year.
- In the past year AVO had a positive cash flow from operations.
- In multiple years AVO reported negative net income over the last 5 years.
- AVO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- AVO has a better Return On Assets (3.84%) than 67.82% of its industry peers.
- With a decent Return On Equity value of 6.42%, AVO is doing good in the industry, outperforming 62.07% of the companies in the same industry.
- AVO has a Return On Invested Capital (5.16%) which is in line with its industry peers.
- AVO had an Average Return On Invested Capital over the past 3 years of 3.69%. This is significantly below the industry average of 27.79%.
- The 3 year average ROIC (3.69%) for AVO is below the current ROIC(5.16%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.84% | ||
| ROE | 6.42% | ||
| ROIC | 5.16% |
ROA(3y)2.44%
ROA(5y)1.7%
ROE(3y)4.19%
ROE(5y)2.82%
ROIC(3y)3.69%
ROIC(5y)3.49%
1.3 Margins
- AVO has a Profit Margin (2.71%) which is comparable to the rest of the industry.
- AVO's Profit Margin has declined in the last couple of years.
- AVO has a Operating Margin (4.70%) which is comparable to the rest of the industry.
- In the last couple of years the Operating Margin of AVO has declined.
- AVO has a worse Gross Margin (11.57%) than 62.07% of its industry peers.
- AVO's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.7% | ||
| PM (TTM) | 2.71% | ||
| GM | 11.57% |
OM growth 3Y58.71%
OM growth 5Y-9.93%
PM growth 3YN/A
PM growth 5Y-4.09%
GM growth 3Y10.44%
GM growth 5Y-4.36%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AVO is destroying value.
- AVO has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, AVO has about the same amount of shares outstanding.
- The debt/assets ratio for AVO has been reduced compared to a year ago.
2.2 Solvency
- AVO has an Altman-Z score of 3.72. This indicates that AVO is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 3.72, AVO is in the better half of the industry, outperforming 75.86% of the companies in the same industry.
- AVO has a debt to FCF ratio of 3.40. This is a good value and a sign of high solvency as AVO would need 3.40 years to pay back of all of its debts.
- AVO has a Debt to FCF ratio of 3.40. This is amongst the best in the industry. AVO outperforms 80.46% of its industry peers.
- AVO has a Debt/Equity ratio of 0.20. This is a healthy value indicating a solid balance between debt and equity.
- AVO has a Debt to Equity ratio of 0.20. This is in the better half of the industry: AVO outperforms 71.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 3.4 | ||
| Altman-Z | 3.72 |
ROIC/WACC0.62
WACC8.34%
2.3 Liquidity
- A Current Ratio of 1.95 indicates that AVO should not have too much problems paying its short term obligations.
- AVO's Current ratio of 1.95 is fine compared to the rest of the industry. AVO outperforms 64.37% of its industry peers.
- AVO has a Quick Ratio of 1.35. This is a normal value and indicates that AVO is financially healthy and should not expect problems in meeting its short term obligations.
- AVO has a Quick ratio of 1.35. This is in the better half of the industry: AVO outperforms 73.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.95 | ||
| Quick Ratio | 1.35 |
3. Growth
3.1 Past
- AVO shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.76%.
- Measured over the past 5 years, AVO shows a small growth in Earnings Per Share. The EPS has been growing by 5.21% on average per year.
- Looking at the last year, AVO shows a quite strong growth in Revenue. The Revenue has grown by 12.68% in the last year.
- The Revenue has been growing by 10.04% on average over the past years. This is quite good.
EPS 1Y (TTM)6.76%
EPS 3Y43.03%
EPS 5Y5.21%
EPS Q2Q%10.71%
Revenue 1Y (TTM)12.68%
Revenue growth 3Y9.98%
Revenue growth 5Y10.04%
Sales Q2Q%-9.99%
3.2 Future
- AVO is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -1.75% yearly.
- AVO is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -5.35% yearly.
EPS Next Y-10.93%
EPS Next 2Y-1.75%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-10.93%
Revenue Next 2Y-5.35%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 17.12, which indicates a rather expensive current valuation of AVO.
- AVO's Price/Earnings ratio is a bit cheaper when compared to the industry. AVO is cheaper than 60.92% of the companies in the same industry.
- AVO's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.21.
- AVO is valuated rather expensively with a Price/Forward Earnings ratio of 19.22.
- The rest of the industry has a similar Price/Forward Earnings ratio as AVO.
- AVO is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.12 | ||
| Fwd PE | 19.22 |
4.2 Price Multiples
- AVO's Enterprise Value to EBITDA ratio is in line with the industry average.
- The rest of the industry has a similar Price/Free Cash Flow ratio as AVO.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.68 | ||
| EV/EBITDA | 10.08 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)3.29
EPS Next 2Y-1.75%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- No dividends for AVO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
MISSION PRODUCE INC / AVO FAQ
Can you provide the ChartMill fundamental rating for MISSION PRODUCE INC?
ChartMill assigns a fundamental rating of 4 / 10 to AVO.
Can you provide the valuation status for MISSION PRODUCE INC?
ChartMill assigns a valuation rating of 3 / 10 to MISSION PRODUCE INC (AVO). This can be considered as Overvalued.
Can you provide the profitability details for MISSION PRODUCE INC?
MISSION PRODUCE INC (AVO) has a profitability rating of 4 / 10.
What is the valuation of MISSION PRODUCE INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for MISSION PRODUCE INC (AVO) is 17.12 and the Price/Book (PB) ratio is 1.63.