FRESH DEL MONTE PRODUCE INC (FDP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FDP - KYG367381053 - Common Stock
39.33 USD
+0.76 (+1.97%)
39.33 USD
0 (0%)
Taking everything into account, FDP scores 6 out of 10 in our fundamental rating. FDP was compared to 87 industry peers in the Food Products industry. FDP is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. FDP is cheap, but on the other hand it scores bad on growth. Finally FDP also has an excellent dividend rating. These ratings could make FDP a good candidate for value and dividend investing.
1. Profitability
1.1 Basic Checks
- In the past year FDP was profitable.
- FDP had a positive operating cash flow in the past year.
- FDP had positive earnings in 4 of the past 5 years.
- In the past 5 years FDP always reported a positive cash flow from operatings.
1.2 Ratios
- FDP has a Return On Assets (2.58%) which is comparable to the rest of the industry.
- With a Return On Equity value of 3.93%, FDP perfoms like the industry average, outperforming 50.57% of the companies in the same industry.
- With a Return On Invested Capital value of 5.10%, FDP perfoms like the industry average, outperforming 58.62% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for FDP is significantly below the industry average of 27.79%.
- The 3 year average ROIC (4.70%) for FDP is below the current ROIC(5.10%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.58% | ||
| ROE | 3.93% | ||
| ROIC | 5.1% |
ROA(3y)2.36%
ROA(5y)2.18%
ROE(3y)3.91%
ROE(5y)3.8%
ROIC(3y)4.7%
ROIC(5y)3.9%
1.3 Margins
- FDP has a Profit Margin (1.84%) which is comparable to the rest of the industry.
- FDP's Profit Margin has improved in the last couple of years.
- FDP has a Operating Margin (3.75%) which is comparable to the rest of the industry.
- In the last couple of years the Operating Margin of FDP has grown nicely.
- Looking at the Gross Margin, with a value of 8.38%, FDP is doing worse than 70.11% of the companies in the same industry.
- FDP's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.75% | ||
| PM (TTM) | 1.84% | ||
| GM | 8.38% |
OM growth 3Y12.98%
OM growth 5Y9.99%
PM growth 3Y20.87%
PM growth 5Y17.53%
GM growth 3Y5.38%
GM growth 5Y4.54%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so FDP is destroying value.
- FDP has more shares outstanding than it did 1 year ago.
- The number of shares outstanding for FDP remains at a similar level compared to 5 years ago.
- FDP has a better debt/assets ratio than last year.
2.2 Solvency
- FDP has an Altman-Z score of 3.55. This indicates that FDP is financially healthy and has little risk of bankruptcy at the moment.
- FDP has a Altman-Z score of 3.55. This is in the better half of the industry: FDP outperforms 72.41% of its industry peers.
- FDP has a debt to FCF ratio of 1.01. This is a very positive value and a sign of high solvency as it would only need 1.01 years to pay back of all of its debts.
- FDP has a better Debt to FCF ratio (1.01) than 90.80% of its industry peers.
- A Debt/Equity ratio of 0.09 indicates that FDP is not too dependend on debt financing.
- The Debt to Equity ratio of FDP (0.09) is better than 77.01% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 1.01 | ||
| Altman-Z | 3.55 |
ROIC/WACC0.62
WACC8.27%
2.3 Liquidity
- FDP has a Current Ratio of 2.09. This indicates that FDP is financially healthy and has no problem in meeting its short term obligations.
- FDP's Current ratio of 2.09 is fine compared to the rest of the industry. FDP outperforms 65.52% of its industry peers.
- FDP has a Quick Ratio of 1.07. This is a normal value and indicates that FDP is financially healthy and should not expect problems in meeting its short term obligations.
- FDP has a better Quick ratio (1.07) than 65.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.09 | ||
| Quick Ratio | 1.07 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 16.12% over the past year.
- The Earnings Per Share has been growing by 17.83% on average over the past years. This is quite good.
- Looking at the last year, FDP shows a small growth in Revenue. The Revenue has grown by 0.94% in the last year.
- Measured over the past years, FDP shows a decrease in Revenue. The Revenue has been decreasing by -0.95% on average per year.
EPS 1Y (TTM)16.12%
EPS 3Y12.87%
EPS 5Y17.83%
EPS Q2Q%-10.39%
Revenue 1Y (TTM)0.94%
Revenue growth 3Y0.22%
Revenue growth 5Y-0.95%
Sales Q2Q%0.24%
3.2 Future
- FDP is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.96% yearly.
- Based on estimates for the next years, FDP will show a decrease in Revenue. The Revenue will decrease by -1.58% on average per year.
EPS Next Y17.63%
EPS Next 2Y12.96%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year0.21%
Revenue Next 2Y-1.58%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
- Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 14.00, FDP is valued correctly.
- FDP's Price/Earnings ratio is a bit cheaper when compared to the industry. FDP is cheaper than 68.97% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.82. FDP is valued rather cheaply when compared to this.
- The Price/Forward Earnings ratio is 12.68, which indicates a correct valuation of FDP.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of FDP indicates a somewhat cheap valuation: FDP is cheaper than 78.16% of the companies listed in the same industry.
- FDP is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.95, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14 | ||
| Fwd PE | 12.68 |
4.2 Price Multiples
- 67.82% of the companies in the same industry are more expensive than FDP, based on the Enterprise Value to EBITDA ratio.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of FDP indicates a rather cheap valuation: FDP is cheaper than 85.06% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.66 | ||
| EV/EBITDA | 8.29 |
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.
- A more expensive valuation may be justified as FDP's earnings are expected to grow with 12.96% in the coming years.
PEG (NY)0.79
PEG (5Y)0.79
EPS Next 2Y12.96%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- FDP has a Yearly Dividend Yield of 3.14%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 2.29, FDP pays a bit more dividend than its industry peers.
- FDP's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.14% |
5.2 History
- The dividend of FDP is nicely growing with an annual growth rate of 10.71%!
- FDP has paid a dividend for at least 10 years, which is a reliable track record.
- FDP has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)10.71%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
- 69.44% of the earnings are spent on dividend by FDP. This is not a sustainable payout ratio.
- FDP's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP69.44%
EPS Next 2Y12.96%
EPS Next 3YN/A
FRESH DEL MONTE PRODUCE INC / FDP FAQ
Can you provide the ChartMill fundamental rating for FRESH DEL MONTE PRODUCE INC?
ChartMill assigns a fundamental rating of 6 / 10 to FDP.
Can you provide the valuation status for FRESH DEL MONTE PRODUCE INC?
ChartMill assigns a valuation rating of 7 / 10 to FRESH DEL MONTE PRODUCE INC (FDP). This can be considered as Undervalued.
What is the profitability of FDP stock?
FRESH DEL MONTE PRODUCE INC (FDP) has a profitability rating of 5 / 10.
What are the PE and PB ratios of FRESH DEL MONTE PRODUCE INC (FDP) stock?
The Price/Earnings (PE) ratio for FRESH DEL MONTE PRODUCE INC (FDP) is 14 and the Price/Book (PB) ratio is 0.93.
Can you provide the dividend sustainability for FDP stock?
The dividend rating of FRESH DEL MONTE PRODUCE INC (FDP) is 7 / 10 and the dividend payout ratio is 69.44%.