MISSION PRODUCE INC (AVO) Stock Fundamental Analysis
NASDAQ:AVO - Nasdaq - US60510V1089 - Common Stock - Currency: USD
Taking everything into account, AVO scores 4 out of 10 in our fundamental rating. AVO was compared to 91 industry peers in the Food Products industry. AVO has an average financial health and profitability rating. AVO is quite expensive at the moment. It does show a decent growth rate.
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.
The reported net income has been mixed in the past 5 years: AVO reported negative net income in multiple years.
In the past 5 years AVO always reported a positive cash flow from operatings.
1.2 Ratios
AVO has a better Return On Assets (3.63%) than 63.74% of its industry peers.
AVO has a Return On Equity (6.64%) which is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 5.01%, AVO is in line with its industry, outperforming 56.04% 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 28.11%.
The last Return On Invested Capital (5.01%) for AVO is above the 3 year average (2.39%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.63% | ||
| ROE | 6.64% | ||
| ROIC | 5.01% |
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 (2.63%) which is comparable to the rest of the industry.
AVO's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 4.47%, AVO is in line with its industry, outperforming 56.04% of the companies in the same industry.
In the last couple of years the Operating Margin of AVO has declined.
The Gross Margin of AVO (11.01%) is worse than 69.23% of its industry peers.
In the last couple of years the Gross Margin of AVO has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.47% | ||
| PM (TTM) | 2.63% | ||
| GM | 11.01% |
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
An Altman-Z score of 3.30 indicates that AVO is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.30, AVO is in the better half of the industry, outperforming 72.53% of the companies in the same industry.
AVO has a debt to FCF ratio of 6.87. This is a slightly negative value and a sign of low solvency as AVO would need 6.87 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 6.87, AVO is doing good in the industry, outperforming 72.53% of the companies in the same industry.
AVO has a Debt/Equity ratio of 0.30. This is a healthy value indicating a solid balance between debt and equity.
AVO's Debt to Equity ratio of 0.30 is fine compared to the rest of the industry. AVO outperforms 64.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 6.87 | ||
| Altman-Z | 3.3 |
ROIC/WACC0.59
WACC8.45%
2.3 Liquidity
AVO has a Current Ratio of 1.98. This is a normal value and indicates that AVO is financially healthy and should not expect problems in meeting its short term obligations.
AVO has a better Current ratio (1.98) than 62.64% of its industry peers.
A Quick Ratio of 1.23 indicates that AVO should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.23, AVO is doing good in the industry, outperforming 70.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.98 | ||
| Quick Ratio | 1.23 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 48.98% over the past year.
The earnings per share for AVO have been decreasing by -12.88% on average. This is quite bad
The Revenue has grown by 29.50% in the past year. This is a very strong growth!
The Revenue has been growing slightly by 6.93% on average over the past years.
EPS 1Y (TTM)48.98%
EPS 3Y0%
EPS 5Y-12.88%
EPS Q2Q%-14.29%
Revenue 1Y (TTM)29.5%
Revenue growth 3Y11.46%
Revenue growth 5Y6.93%
Sales Q2Q%27.79%
3.2 Future
AVO is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -12.57% yearly.
The Revenue is expected to grow by 6.57% on average over the next years.
EPS Next Y-17.43%
EPS Next 2Y-12.57%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year20.86%
Revenue Next 2Y6.57%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 16.41, the valuation of AVO can be described as correct.
Based on the Price/Earnings ratio, AVO is valued a bit cheaper than 63.74% of the companies in the same industry.
AVO is valuated rather cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
AVO is valuated rather expensively with a Price/Forward Earnings ratio of 21.18.
Based on the Price/Forward Earnings ratio, AVO is valued a bit cheaper than the industry average as 63.74% of the companies are valued more expensively.
AVO is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.41 | ||
| Fwd PE | 21.18 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AVO is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AVO is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.06 | ||
| EV/EBITDA | 10.16 |
4.3 Compensation for Growth
A cheap valuation may be justified as AVO's earnings are expected to decrease with -12.57% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-12.57%
EPS Next 3YN/A
5. Dividend
5.1 Amount
AVO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
11.98
+0.15 (+1.27%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners34.77%
Inst Owner Change0%
Ins Owners22%
Ins Owner Change2.12%
Market Cap851.42M
Analysts80
Price Target17.34 (44.74%)
Short Float %3.22%
Short Ratio4.39
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)2
Avg EPS beat(2)206.03%
Min EPS beat(2)116.02%
Max EPS beat(2)296.04%
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)21.54%
Min Revenue beat(2)15.9%
Max Revenue beat(2)27.19%
Revenue beat(4)4
Avg Revenue beat(4)35.3%
Min Revenue beat(4)15.9%
Max Revenue beat(4)59.21%
Revenue beat(8)7
Avg Revenue beat(8)24.36%
Revenue beat(12)10
Avg Revenue beat(12)16.75%
Revenue beat(16)10
Avg Revenue beat(16)11.48%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.45%
EPS NY rev (1m)11.01%
EPS NY rev (3m)11.01%
Revenue NQ rev (1m)9.82%
Revenue NQ rev (3m)13.93%
Revenue NY rev (1m)11.54%
Revenue NY rev (3m)11.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.41 | ||
| Fwd PE | 21.18 | ||
| P/S | 0.61 | ||
| P/FCF | 34.06 | ||
| P/OCF | 12.61 | ||
| P/B | 1.54 | ||
| P/tB | 1.66 | ||
| EV/EBITDA | 10.16 |
EPS(TTM)0.73
EY6.09%
EPS(NY)0.57
Fwd EY4.72%
FCF(TTM)0.35
FCFY2.94%
OCF(TTM)0.95
OCFY7.93%
SpS19.6
BVpS7.77
TBVpS7.22
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.63% | ||
| ROE | 6.64% | ||
| ROCE | 7.24% | ||
| ROIC | 5.01% | ||
| ROICexc | 5.23% | ||
| ROICexgc | 5.5% | ||
| OM | 4.47% | ||
| PM (TTM) | 2.63% | ||
| GM | 11.01% | ||
| FCFM | 1.79% |
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 Turnover1.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 6.87 | ||
| Debt/EBITDA | 1.72 | ||
| Cap/Depr | 122.13% | ||
| Cap/Sales | 3.05% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 69.52% | ||
| Profit Quality | 68.12% | ||
| Current Ratio | 1.98 | ||
| Quick Ratio | 1.23 | ||
| Altman-Z | 3.3 |
F-Score7
WACC8.45%
ROIC/WACC0.59
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)48.98%
EPS 3Y0%
EPS 5Y-12.88%
EPS Q2Q%-14.29%
EPS Next Y-17.43%
EPS Next 2Y-12.57%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)29.5%
Revenue growth 3Y11.46%
Revenue growth 5Y6.93%
Sales Q2Q%27.79%
Revenue Next Year20.86%
Revenue Next 2Y6.57%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y61.82%
EBIT growth 3Y2.12%
EBIT growth 5Y-9.21%
EBIT Next Year176.31%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y219.62%
FCF growth 3YN/A
FCF growth 5Y-0.55%
OCF growth 1Y46.42%
OCF growth 3Y25.72%
OCF growth 5Y0.17%