CALAVO GROWERS INC (CVGW)
US1282461052 - Common Stock
Overall CVGW gets a fundamental rating of 4 out of 10. We evaluated CVGW against 92 industry peers in the Food Products industry. CVGW has a great financial health rating, but its profitability evaluates not so good. CVGW has a correct valuation and a medium 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.
CVGW had negative earnings in each of the past 5 years.
In multiple years CVGW reported negative operating cash flow during the last 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of -2.31%, CVGW is doing worse than 72.09% of the companies in the same industry.
The Return On Equity of CVGW (-4.34%) is worse than 69.77% of its industry peers.
CVGW has a Return On Invested Capital (5.13%) which is in line with its industry peers.
CVGW had an Average Return On Invested Capital over the past 3 years of 2.16%. This is significantly below the industry average of 8.99%.
The 3 year average ROIC (2.16%) for CVGW is below the current ROIC(5.13%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.31% | ||
| ROE | -4.34% | ||
| ROIC | 5.13% |
ROA(3y)-2.14%
ROA(5y)-0.04%
ROE(3y)-4.02%
ROE(5y)-0.9%
ROIC(3y)2.16%
ROIC(5y)6.41%
1.3 Margins
CVGW has a Operating Margin of 2.36%. This is in the lower half of the industry: CVGW underperforms 62.79% of its industry peers.
CVGW's Operating Margin has declined in the last couple of years.
The Gross Margin of CVGW (9.33%) is worse than 73.26% of its industry peers.
CVGW's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.36% | ||
| PM (TTM) | N/A | ||
| GM | 9.33% |
OM growth 3Y-32.61%
OM growth 5Y-29.08%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-5.34%
GM growth 5Y-7.16%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CVGW is destroying value.
There is no outstanding debt for CVGW. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
CVGW has an Altman-Z score of 3.99. This indicates that CVGW is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of CVGW (3.99) is better than 80.23% of its industry peers.
CVGW has a debt to FCF ratio of 2.56. This is a good value and a sign of high solvency as CVGW would need 2.56 years to pay back of all of its debts.
CVGW has a Debt to FCF ratio of 2.56. This is in the better half of the industry: CVGW outperforms 73.26% of its industry peers.
CVGW has a Debt/Equity ratio of 0.18. This is a healthy value indicating a solid balance between debt and equity.
CVGW's Debt to Equity ratio of 0.18 is fine compared to the rest of the industry. CVGW outperforms 69.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 2.56 | ||
| Altman-Z | 3.99 |
ROIC/WACC0.55
WACC9.31%
2.3 Liquidity
CVGW has a Current Ratio of 2.04. This indicates that CVGW is financially healthy and has no problem in meeting its short term obligations.
CVGW has a better Current ratio (2.04) than 62.79% of its industry peers.
CVGW has a Quick Ratio of 1.77. This is a normal value and indicates that CVGW is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of CVGW (1.77) is better than 82.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.04 | ||
| Quick Ratio | 1.77 |
3. Growth
3.1 Past
CVGW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11200.00%, which is quite impressive.
The earnings per share for CVGW have been decreasing by -18.14% on average. This is quite bad
EPS 1Y (TTM)11200%
EPS 3Y46.92%
EPS 5Y-18.14%
EPS Q2Q%115.15%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-29.53%
3.2 Future
The Earnings Per Share is expected to grow by 46.01% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 6.75% on average over the next years.
EPS Next Y62.04%
EPS Next 2Y46.01%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.27%
Revenue Next 2Y6.75%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS 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
Based on the Price/Earnings ratio of 21.77, the valuation of CVGW can be described as rather expensive.
CVGW's Price/Earnings is on the same level as the industry average.
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 13.43, which indicates a correct valuation of CVGW.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CVGW indicates a somewhat cheap valuation: CVGW is cheaper than 75.58% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of CVGW to the average of the S&P500 Index (23.53), we can say CVGW is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.77 | ||
| Fwd PE | 13.43 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as CVGW.
The rest of the industry has a similar Price/Free Cash Flow ratio as CVGW.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.3 | ||
| EV/EBITDA | 15.39 |
4.3 Compensation for Growth
CVGW's 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 46.01% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.35
PEG (5Y)N/A
EPS Next 2Y46.01%
EPS Next 3YN/A
5. Dividend
5.1 Amount
CVGW has a Yearly Dividend Yield of 3.39%.
CVGW's Dividend Yield is a higher than the industry average which is at 3.85.
CVGW's Dividend Yield is a higher than the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.39% |
5.2 History
The dividend of CVGW decreases each year by -9.13%.
CVGW has been paying a dividend for at least 10 years, so it has a reliable track record.
CVGW has decreased its dividend in the last 3 years.
Dividend Growth(5Y)-9.13%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
CVGW has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-80.51%
EPS Next 2Y46.01%
EPS Next 3YN/A
CALAVO GROWERS INC
NASDAQ:CVGW (1/14/2025, 8:00:01 PM)
After market: 21.9235 -2.24 (-9.26%)24.16
+0.59 (+2.5%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners73.66%
Inst Owner Change-0.13%
Ins Owners2.72%
Ins Owner Change2.09%
Market Cap430.05M
Analysts80
Price Target35.7 (47.76%)
Short Float %3.26%
Short Ratio3.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.39% |
Dividend Growth(5Y)-9.13%
DP-80.51%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)33.33%
Min EPS beat(2)30.36%
Max EPS beat(2)36.29%
EPS beat(4)2
Avg EPS beat(4)-76.32%
Min EPS beat(4)-266.19%
Max EPS beat(4)36.29%
EPS beat(8)3
Avg EPS beat(8)-75.6%
EPS beat(12)5
Avg EPS beat(12)-60.88%
EPS beat(16)5
Avg EPS beat(16)-65.55%
Revenue beat(2)1
Avg Revenue beat(2)5.63%
Min Revenue beat(2)-1.39%
Max Revenue beat(2)12.66%
Revenue beat(4)1
Avg Revenue beat(4)-12.44%
Min Revenue beat(4)-50.79%
Max Revenue beat(4)12.66%
Revenue beat(8)1
Avg Revenue beat(8)-17.54%
Revenue beat(12)5
Avg Revenue beat(12)-10.92%
Revenue beat(16)6
Avg Revenue beat(16)-8.93%
PT rev (1m)0%
PT rev (3m)5%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.29%
EPS NY rev (1m)0%
EPS NY rev (3m)18.65%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.27%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.77 | ||
| Fwd PE | 13.43 | ||
| P/S | 0.59 | ||
| P/FCF | 28.3 | ||
| P/OCF | 23.48 | ||
| P/B | 2.11 | ||
| P/tB | 2.22 | ||
| EV/EBITDA | 15.39 |
EPS(TTM)1.11
EY4.59%
EPS(NY)1.8
Fwd EY7.44%
FCF(TTM)0.85
FCFY3.53%
OCF(TTM)1.03
OCFY4.26%
SpS41.17
BVpS11.45
TBVpS10.86
PEG (NY)0.35
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.31% | ||
| ROE | -4.34% | ||
| ROCE | 6.49% | ||
| ROIC | 5.13% | ||
| ROICexc | 5.15% | ||
| ROICexgc | 5.36% | ||
| OM | 2.36% | ||
| PM (TTM) | N/A | ||
| GM | 9.33% | ||
| FCFM | 2.07% |
ROA(3y)-2.14%
ROA(5y)-0.04%
ROE(3y)-4.02%
ROE(5y)-0.9%
ROIC(3y)2.16%
ROIC(5y)6.41%
ROICexc(3y)2.18%
ROICexc(5y)6.54%
ROICexgc(3y)2.48%
ROICexgc(5y)7.17%
ROCE(3y)2.74%
ROCE(5y)8.24%
ROICexcg growth 3Y-31.99%
ROICexcg growth 5Y-30.97%
ROICexc growth 3Y-31.96%
ROICexc growth 5Y-31.65%
OM growth 3Y-32.61%
OM growth 5Y-29.08%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-5.34%
GM growth 5Y-7.16%
F-Score5
Asset Turnover1.92
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 2.56 | ||
| Debt/EBITDA | 1.22 | ||
| Cap/Depr | 23.75% | ||
| Cap/Sales | 0.43% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 60.25% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.04 | ||
| Quick Ratio | 1.77 | ||
| Altman-Z | 3.99 |
F-Score5
WACC9.31%
ROIC/WACC0.55
Cap/Depr(3y)61.95%
Cap/Depr(5y)75.8%
Cap/Sales(3y)1%
Cap/Sales(5y)1.09%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)11200%
EPS 3Y46.92%
EPS 5Y-18.14%
EPS Q2Q%115.15%
EPS Next Y62.04%
EPS Next 2Y46.01%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-29.53%
Revenue Next Year3.27%
Revenue Next 2Y6.75%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y95.76%
EBIT growth 3Y-34.51%
EBIT growth 5Y-30.67%
EBIT Next Year140.06%
EBIT Next 3Y48.96%
EBIT Next 5YN/A
FCF growth 1Y-55.08%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-57.76%
OCF growth 3YN/A
OCF growth 5YN/A