25.08 USD
+0.21 (+0.84%)
CVGW gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 87 industry peers in the Food Products industry. CVGW has an excellent financial health rating, but there are some minor concerns on its profitability. CVGW has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- CVGW had positive earnings in the past year.
- In the past year CVGW had a positive cash flow from operations.
- In the past 5 years CVGW reported 4 times negative net income.
- CVGW had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- With an excellent Return On Assets value of 6.77%, CVGW belongs to the best of the industry, outperforming 83.91% of the companies in the same industry.
- CVGW has a better Return On Equity (9.57%) than 75.86% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 7.32%, CVGW is in the better half of the industry, outperforming 78.16% of the companies in the same industry.
- CVGW had an Average Return On Invested Capital over the past 3 years of 5.37%. This is significantly below the industry average of 27.79%.
- The 3 year average ROIC (5.37%) for CVGW is below the current ROIC(7.32%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.77% | ||
| ROE | 9.57% | ||
| ROIC | 7.32% |
ROA(3y)1.42%
ROA(5y)0%
ROE(3y)1.68%
ROE(5y)-0.6%
ROIC(3y)5.37%
ROIC(5y)4.05%
1.3 Margins
- CVGW has a better Profit Margin (3.05%) than 60.92% of its industry peers.
- CVGW has a Operating Margin (3.33%) which is comparable to the rest of the industry.
- CVGW's Operating Margin has improved in the last couple of years.
- CVGW has a Gross Margin of 9.82%. This is in the lower half of the industry: CVGW underperforms 67.82% of its industry peers.
- In the last couple of years the Gross Margin of CVGW has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.33% | ||
| PM (TTM) | 3.05% | ||
| GM | 9.82% |
OM growth 3Y45.19%
OM growth 5Y1.8%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y16.56%
GM growth 5Y2.96%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CVGW is destroying value.
- Compared to 1 year ago, CVGW has more shares outstanding
- The number of shares outstanding for CVGW has been increased compared to 5 years ago.
- The debt/assets ratio for CVGW has been reduced compared to a year ago.
2.2 Solvency
- CVGW has an Altman-Z score of 6.08. This indicates that CVGW is financially healthy and has little risk of bankruptcy at the moment.
- CVGW's Altman-Z score of 6.08 is amongst the best of the industry. CVGW outperforms 89.66% of its industry peers.
- The Debt to FCF ratio of CVGW is 0.25, which is an excellent value as it means it would take CVGW, only 0.25 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 0.25, CVGW belongs to the top of the industry, outperforming 94.25% 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 better Debt to Equity ratio (0.02) than 82.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.25 | ||
| Altman-Z | 6.08 |
ROIC/WACC0.82
WACC8.93%
2.3 Liquidity
- A Current Ratio of 2.47 indicates that CVGW has no problem at all paying its short term obligations.
- CVGW has a Current ratio of 2.47. This is in the better half of the industry: CVGW outperforms 72.41% of its industry peers.
- A Quick Ratio of 1.92 indicates that CVGW should not have too much problems paying its short term obligations.
- CVGW has a better Quick ratio (1.92) than 86.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.47 | ||
| Quick Ratio | 1.92 |
3. Growth
3.1 Past
- CVGW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 39.64%, which is quite impressive.
- CVGW shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.13% yearly.
- CVGW shows a decrease in Revenue. In the last year, the revenue decreased by -1.98%.
- CVGW shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -9.35% yearly.
EPS 1Y (TTM)39.64%
EPS 3Y45.81%
EPS 5Y0.13%
EPS Q2Q%400%
Revenue 1Y (TTM)-1.98%
Revenue growth 3Y-18.35%
Revenue growth 5Y-9.35%
Sales Q2Q%-26.63%
3.2 Future
- CVGW is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 25.62% yearly.
- Based on estimates for the next years, CVGW will show a small growth in Revenue. The Revenue will grow by 3.93% on average per year.
EPS Next Y10.99%
EPS Next 2Y25.62%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-2.89%
Revenue Next 2Y3.93%
Revenue Next 3YN/A
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 correctly with a Price/Earnings ratio of 16.18.
- Based on the Price/Earnings ratio, CVGW is valued a bit cheaper than 62.07% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.60, CVGW is valued a bit cheaper.
- CVGW is valuated correctly with a Price/Forward Earnings ratio of 14.58.
- 73.56% 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 (25.83), we can say CVGW is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.18 | ||
| Fwd PE | 14.58 |
4.2 Price Multiples
- CVGW's Enterprise Value to EBITDA ratio is in line with the industry average.
- CVGW's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.09 | ||
| EV/EBITDA | 13.34 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- A more expensive valuation may be justified as CVGW's earnings are expected to grow with 25.62% in the coming years.
PEG (NY)1.47
PEG (5Y)124.91
EPS Next 2Y25.62%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- CVGW has a Yearly Dividend Yield of 3.08%.
- CVGW's Dividend Yield is a higher than the industry average which is at 2.29.
- CVGW's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.08% |
5.2 History
- The dividend of CVGW decreases each year by -6.10%.
- 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)-6.1%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
- 72.18% of the earnings are spent on dividend by CVGW. This is not a sustainable payout ratio.
DP72.18%
EPS Next 2Y25.62%
EPS Next 3YN/A
CALAVO GROWERS INC / CVGW FAQ
What is the fundamental rating for CVGW stock?
ChartMill assigns a fundamental rating of 6 / 10 to CVGW.
Can you provide the valuation status for CALAVO GROWERS INC?
ChartMill assigns a valuation rating of 5 / 10 to CALAVO GROWERS INC (CVGW). This can be considered as Fairly Valued.
Can you provide the profitability details for CALAVO GROWERS INC?
CALAVO GROWERS INC (CVGW) has a profitability rating of 5 / 10.
Can you provide the PE and PB ratios for CVGW stock?
The Price/Earnings (PE) ratio for CALAVO GROWERS INC (CVGW) is 16.18 and the Price/Book (PB) ratio is 2.16.
Is the dividend of CALAVO GROWERS INC sustainable?
The dividend rating of CALAVO GROWERS INC (CVGW) is 4 / 10 and the dividend payout ratio is 72.18%.