CALAVO GROWERS INC (CVGW) Stock Fundamental Analysis
NASDAQ:CVGW - Nasdaq - US1282461052 - Common Stock - Currency: USD
CVGW gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 91 industry peers in the Food Products industry. No worries on liquidiy or solvency for CVGW as it has an excellent financial health rating, but there are worries on the profitability. CVGW has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year CVGW was profitable.
CVGW had a positive operating cash flow in the past year.
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's Return On Assets of -0.36% is on the low side compared to the rest of the industry. CVGW is outperformed by 65.88% of its industry peers.
CVGW's Return On Equity of -0.54% is on the low side compared to the rest of the industry. CVGW is outperformed by 64.71% of its industry peers.
CVGW's Return On Invested Capital of 6.38% is fine compared to the rest of the industry. CVGW outperforms 61.18% of its industry peers.
CVGW had an Average Return On Invested Capital over the past 3 years of 3.99%. This is significantly below the industry average of 9.02%.
The 3 year average ROIC (3.99%) for CVGW is below the current ROIC(6.38%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.36% | ||
| ROE | -0.54% | ||
| ROIC | 6.38% |
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
With a Operating Margin value of 2.90%, CVGW perfoms like the industry average, outperforming 44.71% of the companies in the same industry.
CVGW's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 10.46%, CVGW is not doing good in the industry: 71.76% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of CVGW has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.9% | ||
| PM (TTM) | N/A | ||
| GM | 10.46% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CVGW is destroying value.
Compared to 1 year ago, CVGW has more shares outstanding
Compared to 5 years ago, CVGW has more shares outstanding
The debt/assets ratio for CVGW has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.41 indicates that CVGW is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.41, CVGW belongs to the top of the industry, outperforming 85.88% of the companies in the same industry.
CVGW has a debt to FCF ratio of 0.24. This is a very positive value and a sign of high solvency as it would only need 0.24 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.24, CVGW belongs to the best of the industry, outperforming 90.59% of the companies in the same industry.
CVGW has a Debt/Equity ratio of 0.02. This is a healthy value indicating a solid balance between debt and equity.
CVGW has a Debt to Equity ratio of 0.02. This is amongst the best in the industry. CVGW outperforms 82.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.24 | ||
| Altman-Z | 5.41 |
ROIC/WACC0.71
WACC8.99%
2.3 Liquidity
CVGW has a Current Ratio of 2.17. This indicates that CVGW is financially healthy and has no problem in meeting its short term obligations.
CVGW has a Current ratio of 2.17. This is in the better half of the industry: CVGW outperforms 64.71% of its industry peers.
A Quick Ratio of 1.70 indicates that CVGW should not have too much problems paying its short term obligations.
CVGW has a better Quick ratio (1.70) than 76.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.17 | ||
| Quick Ratio | 1.7 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 11200.00% 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.
CVGW shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -24.70%.
The Revenue for CVGW have been decreasing by -11.17% on average. This is quite bad
EPS 1Y (TTM)11200%
EPS 3Y46.92%
EPS 5Y-18.14%
EPS Q2Q%115.15%
Revenue 1Y (TTM)-24.7%
Revenue growth 3Y-14.43%
Revenue growth 5Y-11.17%
Sales Q2Q%-29.53%
3.2 Future
CVGW is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 40.23% yearly.
The Revenue is expected to grow by 7.63% on average over the next years.
EPS Next Y58.05%
EPS Next 2Y40.23%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year7.17%
Revenue Next 2Y7.63%
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.
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
Based on the Price/Earnings ratio of 21.73, the valuation of CVGW can be described as rather expensive.
The rest of the industry has a similar Price/Earnings ratio as CVGW.
When comparing the Price/Earnings ratio of CVGW to the average of the S&P500 Index (29.63), we can say CVGW is valued slightly cheaper.
CVGW is valuated correctly with a Price/Forward Earnings ratio of 13.75.
CVGW's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CVGW is cheaper than 78.82% of the companies in the same industry.
CVGW is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.73 | ||
| Fwd PE | 13.75 |
4.2 Price Multiples
CVGW's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CVGW is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.99 | ||
| EV/EBITDA | 12.71 |
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.
A more expensive valuation may be justified as CVGW's earnings are expected to grow with 40.23% in the coming years.
PEG (NY)0.37
PEG (5Y)N/A
EPS Next 2Y40.23%
EPS Next 3YN/A
5. Dividend
5.1 Amount
CVGW has a Yearly Dividend Yield of 3.32%.
Compared to an average industry Dividend Yield of 3.94, CVGW pays a bit more dividend than its industry peers.
CVGW's Dividend Yield is a higher than the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.32% |
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.
CVGW has decreased its dividend in the last 3 years.
Dividend Growth(5Y)-12.87%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
The earnings of CVGW are negative and hence is the payout ratio. CVGW will probably not be able to sustain this dividend level.
DP-829.09%
EPS Next 2Y40.23%
EPS Next 3YN/A
24.12
+0.03 (+0.12%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners77.37%
Inst Owner Change-95.11%
Ins Owners2.92%
Ins Owner Change2.09%
Market Cap430.30M
Analysts80
Price Target33.66 (39.55%)
Short Float %2.63%
Short Ratio2.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.32% |
Yearly Dividend0.5
Dividend Growth(5Y)-12.87%
DP-829.09%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-26.56%
Min EPS beat(2)-83.48%
Max EPS beat(2)30.36%
EPS beat(4)2
Avg EPS beat(4)-30.64%
Min EPS beat(4)-105.74%
Max EPS beat(4)36.29%
EPS beat(8)3
Avg EPS beat(8)-74.65%
EPS beat(12)4
Avg EPS beat(12)-70.12%
EPS beat(16)5
Avg EPS beat(16)-67.77%
Revenue beat(2)1
Avg Revenue beat(2)0.76%
Min Revenue beat(2)-1.39%
Max Revenue beat(2)2.9%
Revenue beat(4)2
Avg Revenue beat(4)-9.15%
Min Revenue beat(4)-50.79%
Max Revenue beat(4)12.66%
Revenue beat(8)2
Avg Revenue beat(8)-14.69%
Revenue beat(12)5
Avg Revenue beat(12)-10.82%
Revenue beat(16)7
Avg Revenue beat(16)-8.11%
PT rev (1m)-5.71%
PT rev (3m)-1%
EPS NQ rev (1m)-2.26%
EPS NQ rev (3m)16.85%
EPS NY rev (1m)-2.46%
EPS NY rev (3m)-2.46%
Revenue NQ rev (1m)3.05%
Revenue NQ rev (3m)12.5%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.73 | ||
| Fwd PE | 13.75 | ||
| P/S | 0.65 | ||
| P/FCF | 19.99 | ||
| P/OCF | 17.62 | ||
| P/B | 2.15 | ||
| P/tB | 2.26 | ||
| EV/EBITDA | 12.71 |
EPS(TTM)1.11
EY4.6%
EPS(NY)1.75
Fwd EY7.27%
FCF(TTM)1.21
FCFY5%
OCF(TTM)1.37
OCFY5.67%
SpS37.08
BVpS11.23
TBVpS10.66
PEG (NY)0.37
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.36% | ||
| ROE | -0.54% | ||
| ROCE | 8.41% | ||
| ROIC | 6.38% | ||
| ROICexc | 8.52% | ||
| ROICexgc | 9.06% | ||
| OM | 2.9% | ||
| PM (TTM) | N/A | ||
| GM | 10.46% | ||
| FCFM | 3.25% |
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-Score6
Asset Turnover2.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.24 | ||
| Debt/EBITDA | 0.14 | ||
| Cap/Depr | 27.26% | ||
| Cap/Sales | 0.44% | ||
| Interest Coverage | 7.27 | ||
| Cash Conversion | 82.02% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.17 | ||
| Quick Ratio | 1.7 | ||
| Altman-Z | 5.41 |
F-Score6
WACC8.99%
ROIC/WACC0.71
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)11200%
EPS 3Y46.92%
EPS 5Y-18.14%
EPS Q2Q%115.15%
EPS Next Y58.05%
EPS Next 2Y40.23%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-24.7%
Revenue growth 3Y-14.43%
Revenue growth 5Y-11.17%
Sales Q2Q%-29.53%
Revenue Next Year7.17%
Revenue Next 2Y7.63%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y177.02%
EBIT growth 3Y102.92%
EBIT growth 5Y-22.92%
EBIT Next Year67.07%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y185.57%
FCF growth 3Y116.08%
FCF growth 5Y-17.22%
OCF growth 1Y268.8%
OCF growth 3Y21.63%
OCF growth 5Y-19.47%