13.18 USD
-0.13 (-0.98%)
Taking everything into account, AVO scores 4 out of 10 in our fundamental rating. AVO was compared to 87 industry peers in the Food Products industry. While AVO has a great health rating, its profitability is only average at the moment. AVO has a expensive valuation and it also scores bad on growth.
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.
- Each year in the past 5 years AVO had a positive operating cash flow.
1.2 Ratios
- With a decent Return On Assets value of 3.84%, AVO is doing good in the industry, outperforming 67.82% of the companies in the same industry.
- AVO's Return On Equity of 6.42% is fine compared to the rest of the industry. AVO outperforms 62.07% of its industry peers.
- 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.
- The Average Return On Invested Capital over the past 3 years 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 of 2.71%. This is comparable to the rest of the industry: AVO outperforms 59.77% of its industry peers.
- In the last couple of years the Profit Margin of AVO has declined.
- AVO has a Operating Margin (4.70%) which is in line with its industry peers.
- AVO's Operating Margin has declined in the last couple of years.
- Looking at the Gross Margin, with a value of 11.57%, AVO is doing worse than 62.07% of the companies in the same industry.
- 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.
- Compared to 1 year ago, AVO has less shares outstanding
- 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 3.70 indicates that AVO is not in any danger for bankruptcy at the moment.
- AVO has a Altman-Z score of 3.70. This is in the better half of the industry: AVO outperforms 75.86% 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.
- With an excellent Debt to FCF ratio value of 3.40, AVO belongs to the best of the industry, outperforming 80.46% of the companies in the same industry.
- A Debt/Equity ratio of 0.20 indicates that AVO is not too dependend on debt financing.
- With a decent Debt to Equity ratio value of 0.20, AVO is doing good in the industry, outperforming 71.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 3.4 | ||
| Altman-Z | 3.7 |
ROIC/WACC0.62
WACC8.33%
2.3 Liquidity
- AVO has a Current Ratio of 1.95. This is a normal value and indicates that AVO is financially healthy and should not expect problems in meeting 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.
- Looking at the Quick ratio, with a value of 1.35, AVO is in the better half of the industry, outperforming 73.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.95 | ||
| Quick Ratio | 1.35 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 6.76% over the past year.
- The Earnings Per Share has been growing slightly by 5.21% on average over the past years.
- AVO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.68%.
- AVO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.04% yearly.
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.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 16.68 indicates a correct valuation of AVO.
- Compared to the rest of the industry, the Price/Earnings ratio of AVO indicates a somewhat cheap valuation: AVO is cheaper than 60.92% of the companies listed in the same industry.
- AVO is valuated rather cheaply when we compare the Price/Earnings ratio to 28.60, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 18.73 indicates a rather expensive valuation of AVO.
- Based on the Price/Forward Earnings ratio, AVO is valued a bit cheaper than the industry average as 60.92% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.83, AVO is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.68 | ||
| Fwd PE | 18.73 |
4.2 Price Multiples
- AVO's Enterprise Value to EBITDA ratio is in line with the industry average.
- AVO's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.02 | ||
| EV/EBITDA | 9.97 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)3.2
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 16.68 and the Price/Book (PB) ratio is 1.58.