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 has an excellent financial health rating, but there are some minor concerns on its profitability. AVO has a expensive valuation and it also scores bad on growth.

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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.
AVO had a positive operating cash flow in the past year.
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 Return On Assets of 3.84%. This is in the better half 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.
AVO has a Return On Invested Capital of 5.16%. This is comparable to the rest of the industry: AVO outperforms 59.77% of its industry peers.
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.
In the last couple of years the Profit Margin of AVO has declined.
AVO has a Operating Margin of 4.70%. This is comparable to the rest of the industry: AVO outperforms 58.62% of its industry peers.
AVO's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 11.57%, AVO is not doing good in the industry: 62.07% of the companies in the same industry are doing better.
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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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
Compared to 5 years ago, AVO has about the same amount of shares outstanding.
AVO has a better debt/assets ratio than last year.

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.
AVO has a Altman-Z score of 3.72. This is in the better half of the industry: AVO outperforms 78.16% of its industry peers.
The Debt to FCF ratio of AVO is 3.40, which is a good value as it means it would take AVO, 3.40 years of fcf income to pay off 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	3.72

ROIC/WACC0.62

WACC8.36%

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.
Looking at the Current ratio, with a value of 1.95, AVO is in the better half of 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.
AVO has a better Quick ratio (1.35) than 73.56% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.95
Quick Ratio	1.35

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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%.
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

AVO is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -1.75% yearly.
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

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.

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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.
Based on the Price/Earnings ratio, AVO is valued a bit cheaper than the industry average as 62.07% of the companies are valued more expensively.
AVO's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.32.
With a Price/Forward Earnings ratio of 19.13, AVO is valued on the expensive side.
AVO's Price/Forward Earnings ratio is in line with the industry average.
AVO's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.57.

		Industry Rank	Sector Rank
PE	17.04
Fwd PE	19.13

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.