13.515 USD
+0.05 (+0.41%)
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.
- 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
- AVO has a Return On Assets of 3.84%. This is in the better half of the industry: AVO outperforms 67.82% of its industry peers.
- AVO has a Return On Equity of 6.42%. This is in the better half of the industry: AVO outperforms 62.07% of its industry peers.
- AVO has a Return On Invested Capital (5.16%) which is comparable to the rest of the industry.
- 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 last Return On Invested Capital (5.16%) for AVO is above the 3 year average (3.69%), which is a sign of increasing profitability.
| 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
- With a Profit Margin value of 2.71%, AVO perfoms like the industry average, outperforming 59.77% of the companies in the same industry.
- AVO's Profit Margin has declined in the last couple of years.
- AVO's Operating Margin of 4.70% is in line compared to the rest of the industry. AVO outperforms 58.62% of its industry peers.
- In the last couple of years the Operating Margin of AVO has declined.
- 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%
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.
- The debt/assets ratio for AVO has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 3.72 indicates that AVO is not in any danger for bankruptcy at the moment.
- AVO's Altman-Z score of 3.72 is fine compared to the rest 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.
- Looking at the Debt to Equity ratio, with a value of 0.20, AVO is in the better half of 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 | 3.72 |
ROIC/WACC0.62
WACC8.32%
2.3 Liquidity
- A Current Ratio of 1.95 indicates that AVO should not have too much problems paying its short term obligations.
- AVO has a better Current ratio (1.95) than 64.37% of its industry peers.
- A Quick Ratio of 1.35 indicates that AVO should not have too much problems paying 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%.
- The Earnings Per Share has been growing slightly by 5.21% on average over the past years.
- 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
- The Earnings Per Share is expected to decrease by -1.75% on average over the next years.
- The Revenue is expected to decrease by -5.35% on average over the next years.
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 17.11, which indicates a rather expensive current 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.
- The average S&P500 Price/Earnings ratio is at 28.82. AVO is valued slightly cheaper when compared to this.
- AVO is valuated rather expensively with a Price/Forward Earnings ratio of 19.21.
- 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.
- AVO's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.95.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.11 | ||
| Fwd PE | 19.21 |
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 | 25.66 | ||
| EV/EBITDA | 10.08 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)3.28
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 17.11 and the Price/Book (PB) ratio is 1.63.