MISSION PRODUCE INC (AVO) Stock Fundamental Analysis
NASDAQ:AVO - Nasdaq - US60510V1089 - Common Stock - Currency: USD
Overall AVO gets a fundamental rating of 4 out of 10. We evaluated AVO against 91 industry peers in the Food Products industry. AVO scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. AVO is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
AVO had positive earnings in the past year.
AVO had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: AVO reported negative net income in multiple years.
AVO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 3.78%, AVO perfoms like the industry average, outperforming 58.82% of the companies in the same industry.
AVO's Return On Equity of 6.71% is in line compared to the rest of the industry. AVO outperforms 51.76% of its industry peers.
The Return On Invested Capital of AVO (5.51%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for AVO is significantly below the industry average of 9.02%.
The 3 year average ROIC (2.39%) for AVO is below the current ROIC(5.51%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.78% | ||
| ROE | 6.71% | ||
| ROIC | 5.51% |
ROA(3y)-0.15%
ROA(5y)1.68%
ROE(3y)-0.25%
ROE(5y)2.75%
ROIC(3y)2.39%
ROIC(5y)3.88%
1.3 Margins
AVO has a Profit Margin of 2.97%. This is comparable to the rest of the industry: AVO outperforms 50.59% of its industry peers.
In the last couple of years the Profit Margin of AVO has declined.
With a Operating Margin value of 5.32%, AVO perfoms like the industry average, outperforming 56.47% of the companies in the same industry.
AVO's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 12.35%, AVO is doing worse than 65.88% of the companies in the same industry.
AVO's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.32% | ||
| PM (TTM) | 2.97% | ||
| GM | 12.35% |
OM growth 3Y-8.38%
OM growth 5Y-15.09%
PM growth 3Y-16.11%
PM growth 5Y-18.2%
GM growth 3Y-4%
GM growth 5Y-6.75%
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 more shares outstanding than it did 1 year ago.
AVO has more shares outstanding than it did 5 years ago.
AVO has a better debt/assets ratio than last year.
2.2 Solvency
AVO has an Altman-Z score of 3.33. This indicates that AVO is financially healthy and has little risk of bankruptcy at the moment.
AVO's Altman-Z score of 3.33 is fine compared to the rest of the industry. AVO outperforms 75.29% of its industry peers.
AVO has a debt to FCF ratio of 2.34. This is a good value and a sign of high solvency as AVO would need 2.34 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 2.34, AVO is doing good in the industry, outperforming 75.29% of the companies in the same industry.
A Debt/Equity ratio of 0.25 indicates that AVO is not too dependend on debt financing.
AVO has a Debt to Equity ratio (0.25) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 2.34 | ||
| Altman-Z | 3.33 |
ROIC/WACC0.65
WACC8.48%
2.3 Liquidity
A Current Ratio of 1.87 indicates that AVO should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.87, AVO is in line with its industry, outperforming 54.12% of the companies in the same industry.
AVO has a Quick Ratio of 1.26. This is a normal value and indicates that AVO is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of AVO (1.26) is better than 65.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.87 | ||
| Quick Ratio | 1.26 |
3. Growth
3.1 Past
AVO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 270.00%, which is quite impressive.
The earnings per share for AVO have been decreasing by -12.88% on average. This is quite bad
AVO shows a strong growth in Revenue. In the last year, the Revenue has grown by 29.44%.
AVO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.93% yearly.
EPS 1Y (TTM)270%
EPS 3Y0%
EPS 5Y-12.88%
EPS Q2Q%154.55%
Revenue 1Y (TTM)29.44%
Revenue growth 3Y11.46%
Revenue growth 5Y6.93%
Sales Q2Q%37.42%
3.2 Future
Based on estimates for the next years, AVO will show a very negative growth in Earnings Per Share. The EPS will decrease by -23.39% on average per year.
Based on estimates for the next years, AVO will show a decrease in Revenue. The Revenue will decrease by 0.00% on average per year.
EPS Next Y-32.44%
EPS Next 2Y-23.39%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year0.63%
Revenue Next 2Y0%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
With a Price/Earnings ratio of 16.66, AVO is valued correctly.
63.53% of the companies in the same industry are more expensive than AVO, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of AVO to the average of the S&P500 Index (29.63), we can say AVO is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 24.66, the valuation of AVO can be described as rather expensive.
AVO's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. AVO is cheaper than 61.18% of the companies in the same industry.
AVO is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.66 | ||
| Fwd PE | 24.66 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AVO is valued a bit cheaper than 63.53% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, AVO is valued a bit cheaper than 68.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.29 | ||
| EV/EBITDA | 9.25 |
4.3 Compensation for Growth
AVO's earnings are expected to decrease with -23.39% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-23.39%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for AVO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
12.33
+0.01 (+0.08%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners32.65%
Inst Owner Change-90.22%
Ins Owners22.64%
Ins Owner Change-9.97%
Market Cap874.32M
Analysts80
Price Target17.34 (40.63%)
Short Float %3.86%
Short Ratio4.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)49.06%
Min Revenue beat(2)38.9%
Max Revenue beat(2)59.21%
Revenue beat(4)4
Avg Revenue beat(4)39.2%
Min Revenue beat(4)21.54%
Max Revenue beat(4)59.21%
Revenue beat(8)7
Avg Revenue beat(8)19.28%
Revenue beat(12)8
Avg Revenue beat(12)12.07%
Revenue beat(16)10
Avg Revenue beat(16)9.24%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)25%
EPS NQ rev (3m)-16.67%
EPS NY rev (1m)110.64%
EPS NY rev (3m)110.64%
Revenue NQ rev (1m)6.93%
Revenue NQ rev (3m)6.93%
Revenue NY rev (1m)0%
Revenue NY rev (3m)10.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.66 | ||
| Fwd PE | 24.66 | ||
| P/S | 0.71 | ||
| P/FCF | 14.29 | ||
| P/OCF | 9.36 | ||
| P/B | 1.6 | ||
| P/tB | 1.72 | ||
| EV/EBITDA | 9.25 |
EPS(TTM)0.74
EY6%
EPS(NY)0.5
Fwd EY4.05%
FCF(TTM)0.86
FCFY7%
OCF(TTM)1.32
OCFY10.68%
SpS17.41
BVpS7.72
TBVpS7.16
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.78% | ||
| ROE | 6.71% | ||
| ROCE | 7.99% | ||
| ROIC | 5.51% | ||
| ROICexc | 5.92% | ||
| ROICexgc | 6.24% | ||
| OM | 5.32% | ||
| PM (TTM) | 2.97% | ||
| GM | 12.35% | ||
| FCFM | 4.96% |
ROA(3y)-0.15%
ROA(5y)1.68%
ROE(3y)-0.25%
ROE(5y)2.75%
ROIC(3y)2.39%
ROIC(5y)3.88%
ROICexc(3y)2.57%
ROICexc(5y)4.41%
ROICexgc(3y)2.71%
ROICexgc(5y)4.89%
ROCE(3y)3.47%
ROCE(5y)5.61%
ROICexcg growth 3Y-3.05%
ROICexcg growth 5Y-16.85%
ROICexc growth 3Y-1%
ROICexc growth 5Y-15.2%
OM growth 3Y-8.38%
OM growth 5Y-15.09%
PM growth 3Y-16.11%
PM growth 5Y-18.2%
GM growth 3Y-4%
GM growth 5Y-6.75%
F-Score7
Asset Turnover1.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 2.34 | ||
| Debt/EBITDA | 1.33 | ||
| Cap/Depr | 85.41% | ||
| Cap/Sales | 2.61% | ||
| Interest Coverage | 5.39 | ||
| Cash Conversion | 90.33% | ||
| Profit Quality | 166.76% | ||
| Current Ratio | 1.87 | ||
| Quick Ratio | 1.26 | ||
| Altman-Z | 3.33 |
F-Score7
WACC8.48%
ROIC/WACC0.65
Cap/Depr(3y)161.34%
Cap/Depr(5y)243.13%
Cap/Sales(3y)4.56%
Cap/Sales(5y)5.94%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)270%
EPS 3Y0%
EPS 5Y-12.88%
EPS Q2Q%154.55%
EPS Next Y-32.44%
EPS Next 2Y-23.39%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)29.44%
Revenue growth 3Y11.46%
Revenue growth 5Y6.93%
Sales Q2Q%37.42%
Revenue Next Year0.63%
Revenue Next 2Y0%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y753.25%
EBIT growth 3Y2.12%
EBIT growth 5Y-9.21%
EBIT Next Year180.96%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y397.09%
FCF growth 3YN/A
FCF growth 5Y-0.55%
OCF growth 1Y219.86%
OCF growth 3Y25.72%
OCF growth 5Y0.17%