AVO gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 87 industry peers in the Food Products industry. AVO is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. AVO is valued expensive and it does not seem to be growing.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year AVO was profitable.
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.
Each year in the past 5 years AVO had a positive operating cash flow.

1.2 Ratios

AVO's Return On Assets of 3.84% is fine compared to the rest of the industry. AVO outperforms 67.82% of its industry peers.
Looking at the Return On Equity, with a value of 6.42%, AVO is in the better half of the industry, outperforming 62.07% of the companies in the same industry.
With a Return On Invested Capital value of 5.16%, AVO perfoms like the industry average, outperforming 59.77% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for AVO 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 in line with its industry peers.
AVO's Profit Margin has declined in the last couple of years.
The Operating Margin of AVO (4.70%) is comparable to the rest of the industry.
AVO's Operating Margin has declined in the last couple of years.
AVO's Gross Margin of 11.57% is on the low side compared to the rest of the industry. AVO is outperformed by 62.07% of its industry peers.
In the last couple of years the Gross Margin of AVO has declined.

		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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AVO is destroying value.
AVO has less shares outstanding than it did 1 year ago.
The number of shares outstanding for AVO remains at a similar level compared to 5 years ago.
AVO has a better debt/assets ratio than last year.

2.2 Solvency

An Altman-Z score of 3.72 indicates that AVO is not in any danger for bankruptcy at the moment.
AVO has a better Altman-Z score (3.72) than 78.16% of its industry peers.
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.
The Debt to FCF ratio of AVO (3.40) is better than 80.46% of its industry peers.
A Debt/Equity ratio of 0.20 indicates that AVO is not too dependend on debt financing.
AVO has a better Debt to Equity ratio (0.20) than 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

WACC8.36%

2.3 Liquidity

A Current Ratio of 1.95 indicates that AVO should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.95, AVO is doing good in the industry, outperforming 64.37% of the companies in the same industry.
A Quick Ratio of 1.35 indicates that AVO should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.35, AVO is doing good in the industry, outperforming 73.56% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	1.95
Quick Ratio	1.35

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WACC

Debt/Equity

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Altman-Z score

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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.
The Revenue has grown by 12.68% in the past year. This is quite good.
Measured over the past years, AVO shows a quite strong growth in Revenue. The Revenue has been growing by 10.04% on average per year.

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

The Earnings Per Share is expected to decrease by -1.75% on average over the next years.
Based on estimates for the next years, AVO will show a decrease in Revenue. The Revenue will decrease by -5.35% on average per year.

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.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 17.04, AVO is valued on the expensive side.
62.07% of the companies in the same industry are more expensive than AVO, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.32. AVO is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 19.13, the valuation of AVO can be described as rather expensive.
AVO's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 25.57. AVO is valued slightly cheaper when compared to this.

		Industry Rank	Sector Rank
PE	17.04
Fwd PE	19.13

4.2 Price Multiples

AVO's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AVO is on the same level as its industry peers.