CALAVO GROWERS INC (CVGW) Stock Fundamental Analysis
NASDAQ:CVGW - Nasdaq - US1282461052 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to CVGW. CVGW was compared to 91 industry peers in the Food Products industry. CVGW is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. CVGW is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year CVGW was profitable.
In the past year CVGW had a positive cash flow from operations.
In the past 5 years CVGW always reported negative net income.
CVGW had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
CVGW has a Return On Assets of 3.23%. This is in the better half of the industry: CVGW outperforms 60.44% of its industry peers.
CVGW has a Return On Equity of 5.07%. This is comparable to the rest of the industry: CVGW outperforms 48.35% of its industry peers.
The Return On Invested Capital of CVGW (8.55%) is better than 81.32% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CVGW is significantly below the industry average of 28.40%.
The 3 year average ROIC (3.99%) for CVGW is below the current ROIC(8.55%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.23% | ||
| ROE | 5.07% | ||
| ROIC | 8.55% |
ROA(3y)-1.38%
ROA(5y)-1.99%
ROE(3y)-2.45%
ROE(5y)-3.59%
ROIC(3y)3.99%
ROIC(5y)3.92%
1.3 Margins
CVGW's Profit Margin of 1.50% is in line compared to the rest of the industry. CVGW outperforms 42.86% of its industry peers.
CVGW's Operating Margin of 3.75% is in line compared to the rest of the industry. CVGW outperforms 52.75% of its industry peers.
CVGW's Operating Margin has declined in the last couple of years.
CVGW has a Gross Margin of 10.11%. This is in the lower half of the industry: CVGW underperforms 71.43% of its industry peers.
CVGW's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.75% | ||
| PM (TTM) | 1.5% | ||
| GM | 10.11% |
OM growth 3Y137.14%
OM growth 5Y-13.23%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y23.52%
GM growth 5Y-0.88%
2. Health
2.1 Basic Checks
CVGW has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for CVGW has been increased compared to 1 year ago.
The number of shares outstanding for CVGW has been increased compared to 5 years ago.
Compared to 1 year ago, CVGW has an improved debt to assets ratio.
2.2 Solvency
CVGW has an Altman-Z score of 5.41. This indicates that CVGW is financially healthy and has little risk of bankruptcy at the moment.
CVGW has a better Altman-Z score (5.41) than 87.91% of its industry peers.
The Debt to FCF ratio of CVGW is 0.14, which is an excellent value as it means it would take CVGW, only 0.14 years of fcf income to pay off all of its debts.
CVGW has a better Debt to FCF ratio (0.14) than 93.41% of its industry peers.
A Debt/Equity ratio of 0.02 indicates that CVGW is not too dependend on debt financing.
The Debt to Equity ratio of CVGW (0.02) is better than 81.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.14 | ||
| Altman-Z | 5.41 |
ROIC/WACC0.84
WACC10.22%
2.3 Liquidity
CVGW has a Current Ratio of 2.00. This is a normal value and indicates that CVGW is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of CVGW (2.00) is better than 64.84% of its industry peers.
CVGW has a Quick Ratio of 1.54. This is a normal value and indicates that CVGW is financially healthy and should not expect problems in meeting its short term obligations.
CVGW has a Quick ratio of 1.54. This is amongst the best in the industry. CVGW outperforms 81.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2 | ||
| Quick Ratio | 1.54 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 136.84% over the past year.
CVGW shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -18.14% yearly.
Looking at the last year, CVGW shows a very negative growth in Revenue. The Revenue has decreased by -14.58% in the last year.
The Revenue for CVGW have been decreasing by -11.17% on average. This is quite bad
EPS 1Y (TTM)136.84%
EPS 3Y46.92%
EPS 5Y-18.14%
EPS Q2Q%-20%
Revenue 1Y (TTM)-14.58%
Revenue growth 3Y-14.43%
Revenue growth 5Y-11.17%
Sales Q2Q%3.34%
3.2 Future
Based on estimates for the next years, CVGW will show a very strong growth in Earnings Per Share. The EPS will grow by 30.13% on average per year.
The Revenue is expected to grow by 7.34% on average over the next years.
EPS Next Y55.94%
EPS Next 2Y37.34%
EPS Next 3Y30.13%
EPS Next 5YN/A
Revenue Next Year8.99%
Revenue Next 2Y6.64%
Revenue Next 3Y7.34%
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 accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
CVGW is valuated rather expensively with a Price/Earnings ratio of 20.33.
CVGW's Price/Earnings ratio is a bit cheaper when compared to the industry. CVGW is cheaper than 61.54% of the companies in the same industry.
CVGW's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.28.
The Price/Forward Earnings ratio is 13.11, which indicates a correct valuation of CVGW.
76.92% of the companies in the same industry are more expensive than CVGW, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of CVGW to the average of the S&P500 Index (21.76), we can say CVGW is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.33 | ||
| Fwd PE | 13.11 |
4.2 Price Multiples
CVGW's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, CVGW is valued a bit cheaper than 74.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.01 | ||
| EV/EBITDA | 12.85 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
CVGW's earnings are expected to grow with 30.13% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.36
PEG (5Y)N/A
EPS Next 2Y37.34%
EPS Next 3Y30.13%
5. Dividend
5.1 Amount
CVGW has a Yearly Dividend Yield of 3.01%. Purely for dividend investing, there may be better candidates out there.
CVGW's Dividend Yield is a higher than the industry average which is at 4.75.
Compared to an average S&P500 Dividend Yield of 2.42, CVGW pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.01% |
5.2 History
The dividend of CVGW decreases each year by -12.87%.
CVGW has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of CVGW decreased in the last 3 years.
Dividend Growth(5Y)-12.87%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
CVGW pays out 120.27% of its income as dividend. This is not a sustainable payout ratio.
DP120.27%
EPS Next 2Y37.34%
EPS Next 3Y30.13%
27.44
-0.04 (-0.15%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners74.83%
Inst Owner Change-0.26%
Ins Owners2.75%
Ins Owner Change7.29%
Market Cap489.53M
Analysts80
Price Target35.7 (30.1%)
Short Float %6.68%
Short Ratio2.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.01% |
Yearly Dividend0.5
Dividend Growth(5Y)-12.87%
DP120.27%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-7.33%
Min EPS beat(2)-26.61%
Max EPS beat(2)11.95%
EPS beat(4)2
Avg EPS beat(4)-16.94%
Min EPS beat(4)-83.48%
Max EPS beat(4)30.36%
EPS beat(8)4
Avg EPS beat(8)-46.77%
EPS beat(12)4
Avg EPS beat(12)-63.16%
EPS beat(16)6
Avg EPS beat(16)-67.25%
Revenue beat(2)0
Avg Revenue beat(2)-6.38%
Min Revenue beat(2)-7.28%
Max Revenue beat(2)-5.49%
Revenue beat(4)1
Avg Revenue beat(4)-2.81%
Min Revenue beat(4)-7.28%
Max Revenue beat(4)2.9%
Revenue beat(8)2
Avg Revenue beat(8)-8.61%
Revenue beat(12)3
Avg Revenue beat(12)-12.45%
Revenue beat(16)6
Avg Revenue beat(16)-8.85%
PT rev (1m)9.38%
PT rev (3m)9.38%
EPS NQ rev (1m)6.61%
EPS NQ rev (3m)9.14%
EPS NY rev (1m)-7.69%
EPS NY rev (3m)-1.34%
Revenue NQ rev (1m)1.47%
Revenue NQ rev (3m)1.63%
Revenue NY rev (1m)0.91%
Revenue NY rev (3m)1.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.33 | ||
| Fwd PE | 13.11 | ||
| P/S | 0.7 | ||
| P/FCF | 15.01 | ||
| P/OCF | 14.6 | ||
| P/B | 2.39 | ||
| P/tB | 2.51 | ||
| EV/EBITDA | 12.85 |
EPS(TTM)1.35
EY4.92%
EPS(NY)2.09
Fwd EY7.63%
FCF(TTM)1.83
FCFY6.66%
OCF(TTM)1.88
OCFY6.85%
SpS38.93
BVpS11.49
TBVpS10.92
PEG (NY)0.36
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.23% | ||
| ROE | 5.07% | ||
| ROCE | 11.27% | ||
| ROIC | 8.55% | ||
| ROICexc | 11.57% | ||
| ROICexgc | 12.31% | ||
| OM | 3.75% | ||
| PM (TTM) | 1.5% | ||
| GM | 10.11% | ||
| FCFM | 4.69% |
ROA(3y)-1.38%
ROA(5y)-1.99%
ROE(3y)-2.45%
ROE(5y)-3.59%
ROIC(3y)3.99%
ROIC(5y)3.92%
ROICexc(3y)4.7%
ROICexc(5y)4.36%
ROICexgc(3y)5.14%
ROICexgc(5y)4.83%
ROCE(3y)5.25%
ROCE(5y)5.28%
ROICexcg growth 3Y147.48%
ROICexcg growth 5Y-14.29%
ROICexc growth 3Y152.41%
ROICexc growth 5Y-14.22%
OM growth 3Y137.14%
OM growth 5Y-13.23%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y23.52%
GM growth 5Y-0.88%
F-Score8
Asset Turnover2.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.14 | ||
| Debt/EBITDA | 0.11 | ||
| Cap/Depr | 11.94% | ||
| Cap/Sales | 0.13% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 99.13% | ||
| Profit Quality | 313.69% | ||
| Current Ratio | 2 | ||
| Quick Ratio | 1.54 | ||
| Altman-Z | 5.41 |
F-Score8
WACC10.22%
ROIC/WACC0.84
Cap/Depr(3y)49.34%
Cap/Depr(5y)56.72%
Cap/Sales(3y)0.79%
Cap/Sales(5y)0.9%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)136.84%
EPS 3Y46.92%
EPS 5Y-18.14%
EPS Q2Q%-20%
EPS Next Y55.94%
EPS Next 2Y37.34%
EPS Next 3Y30.13%
EPS Next 5YN/A
Revenue 1Y (TTM)-14.58%
Revenue growth 3Y-14.43%
Revenue growth 5Y-11.17%
Sales Q2Q%3.34%
Revenue Next Year8.99%
Revenue Next 2Y6.64%
Revenue Next 3Y7.34%
Revenue Next 5YN/A
EBIT growth 1Y75.36%
EBIT growth 3Y102.92%
EBIT growth 5Y-22.92%
EBIT Next Year70.78%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y205.29%
FCF growth 3Y116.08%
FCF growth 5Y-17.22%
OCF growth 1Y33.48%
OCF growth 3Y21.63%
OCF growth 5Y-19.47%