FRESH DEL MONTE PRODUCE INC (FDP) Stock Fundamental Analysis
NYSE:FDP - New York Stock Exchange, Inc. - KYG367381053 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to FDP. FDP was compared to 90 industry peers in the Food Products industry. While FDP has a great health rating, its profitability is only average at the moment. A decent growth rate in combination with a cheap valuation! Better keep an eye on FDP.
1. Profitability
1.1 Basic Checks
In the past year FDP was profitable.
FDP had a positive operating cash flow in the past year.
Of the past 5 years FDP 4 years were profitable.
Each year in the past 5 years FDP had a positive operating cash flow.
1.2 Ratios
FDP has a worse Return On Assets (0.48%) than 63.53% of its industry peers.
The Return On Equity of FDP (0.77%) is worse than 62.35% of its industry peers.
FDP's Return On Invested Capital of 4.84% is in line compared to the rest of the industry. FDP outperforms 45.88% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FDP is significantly below the industry average of 9.13%.
The last Return On Invested Capital (4.84%) for FDP is above the 3 year average (4.10%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.48% | ||
| ROE | 0.77% | ||
| ROIC | 4.84% |
ROA(3y)1.62%
ROA(5y)1.66%
ROE(3y)3%
ROE(5y)3.15%
ROIC(3y)4.1%
ROIC(5y)3.5%
1.3 Margins
With a Profit Margin value of 0.36%, FDP is not doing good in the industry: 62.35% of the companies in the same industry are doing better.
FDP has a Operating Margin (3.72%) which is in line with its industry peers.
FDP's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 8.23%, FDP is not doing good in the industry: 76.47% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of FDP has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.72% | ||
| PM (TTM) | 0.36% | ||
| GM | 8.23% |
OM growth 3Y26.66%
OM growth 5Y14.92%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y7.48%
GM growth 5Y5.45%
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 less shares outstanding than it did 1 year ago.
FDP has less shares outstanding than it did 5 years ago.
The debt/assets ratio for FDP has been reduced compared to a year ago.
2.2 Solvency
FDP has an Altman-Z score of 3.15. This indicates that FDP is financially healthy and has little risk of bankruptcy at the moment.
FDP has a better Altman-Z score (3.15) than 72.94% of its industry peers.
FDP has a debt to FCF ratio of 2.06. This is a good value and a sign of high solvency as FDP would need 2.06 years to pay back of all of its debts.
FDP has a better Debt to FCF ratio (2.06) than 77.65% of its industry peers.
A Debt/Equity ratio of 0.14 indicates that FDP is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.14, FDP is in the better half of the industry, outperforming 74.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 2.06 | ||
| Altman-Z | 3.15 |
ROIC/WACC0.62
WACC7.82%
2.3 Liquidity
A Current Ratio of 2.09 indicates that FDP has no problem at all paying its short term obligations.
The Current ratio of FDP (2.09) is comparable to the rest of the industry.
FDP has a Quick Ratio of 1.04. This is a normal value and indicates that FDP is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of FDP (1.04) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.09 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
FDP shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.76%.
FDP shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 36.21% yearly.
FDP shows a decrease in Revenue. In the last year, the revenue decreased by -1.75%.
FDP shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.78% yearly.
EPS 1Y (TTM)4.76%
EPS 3Y22.42%
EPS 5Y36.21%
EPS Q2Q%120%
Revenue 1Y (TTM)-1.75%
Revenue growth 3Y0.93%
Revenue growth 5Y-0.78%
Sales Q2Q%1.63%
3.2 Future
Based on estimates for the next years, FDP will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.92% on average per year.
FDP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.43% yearly.
EPS Next Y21.58%
EPS Next 2Y17.92%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-1.65%
Revenue Next 2Y0.43%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 12.76, which indicates a correct valuation of FDP.
Based on the Price/Earnings ratio, FDP is valued a bit cheaper than the industry average as 77.65% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 29.62, FDP is valued rather cheaply.
FDP is valuated reasonably with a Price/Forward Earnings ratio of 10.52.
Based on the Price/Forward Earnings ratio, FDP is valued cheaper than 88.24% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.70. FDP is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.76 | ||
| Fwd PE | 10.52 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FDP is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, FDP is valued a bit cheaper than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.06 | ||
| EV/EBITDA | 7.16 |
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 17.92% in the coming years.
PEG (NY)0.59
PEG (5Y)0.35
EPS Next 2Y17.92%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.27%, FDP has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.93, FDP pays a bit more dividend than its industry peers.
FDP's Dividend Yield is a higher than the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.27% |
5.2 History
On average, the dividend of FDP grows each year by 8.22%, which is quite nice.
FDP has been paying a dividend for at least 10 years, so it has 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)8.22%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
FDP pays out 296.73% of its income as dividend. This is not a sustainable payout ratio.
FDP's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP296.73%
EPS Next 2Y17.92%
EPS Next 3YN/A
30.88
+0.27 (+0.88%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners68.36%
Inst Owner Change-94.8%
Ins Owners21.93%
Ins Owner Change-0.06%
Market Cap1.48B
Analysts80
Price Target39.78 (28.82%)
Short Float %1.93%
Short Ratio2.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.27% |
Yearly Dividend0.75
Dividend Growth(5Y)8.22%
DP296.73%
Div Incr Years5
Div Non Decr Years5
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)67.71%
Min EPS beat(2)60.5%
Max EPS beat(2)74.92%
EPS beat(4)2
Avg EPS beat(4)18.05%
Min EPS beat(4)-44.36%
Max EPS beat(4)74.92%
EPS beat(8)4
Avg EPS beat(8)149.56%
EPS beat(12)6
Avg EPS beat(12)107.17%
EPS beat(16)9
Avg EPS beat(16)87.48%
Revenue beat(2)0
Avg Revenue beat(2)-2.26%
Min Revenue beat(2)-4.47%
Max Revenue beat(2)-0.05%
Revenue beat(4)0
Avg Revenue beat(4)-3.16%
Min Revenue beat(4)-4.74%
Max Revenue beat(4)-0.05%
Revenue beat(8)0
Avg Revenue beat(8)-3.47%
Revenue beat(12)3
Avg Revenue beat(12)-2.07%
Revenue beat(16)3
Avg Revenue beat(16)-2.18%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)-12.94%
EPS NQ rev (3m)-12.94%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.93%
Revenue NQ rev (1m)1.26%
Revenue NQ rev (3m)1.26%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.76 | ||
| Fwd PE | 10.52 | ||
| P/S | 0.35 | ||
| P/FCF | 11.06 | ||
| P/OCF | 8 | ||
| P/B | 0.74 | ||
| P/tB | 0.95 | ||
| EV/EBITDA | 7.16 |
EPS(TTM)2.42
EY7.84%
EPS(NY)2.93
Fwd EY9.5%
FCF(TTM)2.79
FCFY9.04%
OCF(TTM)3.86
OCFY12.5%
SpS89.19
BVpS41.54
TBVpS32.45
PEG (NY)0.59
PEG (5Y)0.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.48% | ||
| ROE | 0.77% | ||
| ROCE | 6.12% | ||
| ROIC | 4.84% | ||
| ROICexc | 4.93% | ||
| ROICexgc | 5.95% | ||
| OM | 3.72% | ||
| PM (TTM) | 0.36% | ||
| GM | 8.23% | ||
| FCFM | 3.13% |
ROA(3y)1.62%
ROA(5y)1.66%
ROE(3y)3%
ROE(5y)3.15%
ROIC(3y)4.1%
ROIC(5y)3.5%
ROICexc(3y)4.14%
ROICexc(5y)3.53%
ROICexgc(3y)5.1%
ROICexgc(5y)4.39%
ROCE(3y)5.2%
ROCE(5y)4.43%
ROICexcg growth 3Y28.29%
ROICexcg growth 5Y12.77%
ROICexc growth 3Y30.43%
ROICexc growth 5Y14.35%
OM growth 3Y26.66%
OM growth 5Y14.92%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y7.48%
GM growth 5Y5.45%
F-Score6
Asset Turnover1.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 2.06 | ||
| Debt/EBITDA | 1.15 | ||
| Cap/Depr | 64.6% | ||
| Cap/Sales | 1.2% | ||
| Interest Coverage | 8.34 | ||
| Cash Conversion | 77.63% | ||
| Profit Quality | 875.16% | ||
| Current Ratio | 2.09 | ||
| Quick Ratio | 1.04 | ||
| Altman-Z | 3.15 |
F-Score6
WACC7.82%
ROIC/WACC0.62
Cap/Depr(3y)73.93%
Cap/Depr(5y)100.92%
Cap/Sales(3y)1.58%
Cap/Sales(5y)2.21%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)4.76%
EPS 3Y22.42%
EPS 5Y36.21%
EPS Q2Q%120%
EPS Next Y21.58%
EPS Next 2Y17.92%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-1.75%
Revenue growth 3Y0.93%
Revenue growth 5Y-0.78%
Sales Q2Q%1.63%
Revenue Next Year-1.65%
Revenue Next 2Y0.43%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-11.51%
EBIT growth 3Y27.84%
EBIT growth 5Y14.02%
EBIT Next Year40.71%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y322.4%
FCF growth 3Y57.78%
FCF growth 5Y4.58%
OCF growth 1Y123.97%
OCF growth 3Y-0.5%
OCF growth 5Y-6.32%