FRESH DEL MONTE PRODUCE INC (FDP) Stock Fundamental Analysis
NYSE:FDP - New York Stock Exchange, Inc. - KYG367381053 - Common Stock - Currency: USD
Taking everything into account, FDP scores 6 out of 10 in our fundamental rating. FDP was compared to 91 industry peers in the Food Products industry. While FDP has a great health rating, its profitability is only average at the moment. FDP has a correct valuation and a medium growth rate. FDP also has an excellent dividend rating. These ratings would make FDP suitable for 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.
FDP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 4.67%, FDP is doing good in the industry, outperforming 67.03% of the companies in the same industry.
The Return On Equity of FDP (7.34%) is better than 61.54% of its industry peers.
FDP has a Return On Invested Capital of 5.33%. This is comparable to the rest of the industry: FDP outperforms 59.34% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FDP is significantly below the industry average of 28.11%.
The 3 year average ROIC (4.70%) for FDP is below the current ROIC(5.33%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.67% | ||
| ROE | 7.34% | ||
| ROIC | 5.33% |
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 of 3.45%. This is in the better half of the industry: FDP outperforms 62.64% of its industry peers.
In the last couple of years the Profit Margin of FDP has grown nicely.
The Operating Margin of FDP (4.07%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of FDP has grown nicely.
FDP has a Gross Margin of 8.61%. This is in the lower half of the industry: FDP underperforms 76.92% of its industry peers.
FDP's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.07% | ||
| PM (TTM) | 3.45% | ||
| GM | 8.61% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), FDP is destroying value.
FDP has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, FDP has about the same amount of shares outstanding.
The debt/assets ratio for FDP has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.24 indicates that FDP is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.24, FDP is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
The Debt to FCF ratio of FDP is 1.48, which is an excellent value as it means it would take FDP, only 1.48 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 1.48, FDP belongs to the best of the industry, outperforming 89.01% of the companies in the same industry.
FDP has a Debt/Equity ratio of 0.12. This is a healthy value indicating a solid balance between debt and equity.
FDP has a better Debt to Equity ratio (0.12) than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.48 | ||
| Altman-Z | 3.24 |
ROIC/WACC0.64
WACC8.32%
2.3 Liquidity
A Current Ratio of 2.05 indicates that FDP has no problem at all paying its short term obligations.
FDP has a Current ratio of 2.05. This is in the better half of the industry: FDP outperforms 70.33% of its industry peers.
A Quick Ratio of 1.01 indicates that FDP should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.01, FDP is in line with its industry, outperforming 59.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.05 | ||
| Quick Ratio | 1.01 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 43.16% over the past year.
The Earnings Per Share has been growing by 17.83% on average over the past years. This is quite good.
FDP shows a decrease in Revenue. In the last year, the revenue decreased by -0.68%.
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)43.16%
EPS 3Y12.87%
EPS 5Y17.83%
EPS Q2Q%85.29%
Revenue 1Y (TTM)-0.68%
Revenue growth 3Y0.22%
Revenue growth 5Y-0.95%
Sales Q2Q%-0.86%
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 11.29% yearly.
The Revenue is expected to grow by 1.81% on average over the next years.
EPS Next Y7.23%
EPS Next 2Y11.29%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year0.9%
Revenue Next 2Y1.81%
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 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 12.14, the valuation of FDP can be described as correct.
73.63% of the companies in the same industry are more expensive than FDP, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.30. FDP is valued rather cheaply when compared to this.
FDP is valuated reasonably with a Price/Forward Earnings ratio of 10.97.
FDP's Price/Forward Earnings ratio is rather cheap when compared to the industry. FDP is cheaper than 84.62% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.76. FDP is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.14 | ||
| Fwd PE | 10.97 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FDP indicates a somewhat cheap valuation: FDP is cheaper than 78.02% of the companies listed in the same industry.
FDP's Price/Free Cash Flow ratio is rather cheap when compared to the industry. FDP is cheaper than 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.83 | ||
| EV/EBITDA | 7.13 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of FDP may justify a higher PE ratio.
PEG (NY)1.68
PEG (5Y)0.68
EPS Next 2Y11.29%
EPS Next 3YN/A
5. Dividend
5.1 Amount
FDP has a Yearly Dividend Yield of 3.32%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.66, 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 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.32% |
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
34.17% of the earnings are spent on dividend by FDP. This is a low number and sustainable payout ratio.
The dividend of FDP is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP34.17%
EPS Next 2Y11.29%
EPS Next 3YN/A
33.01
+0.21 (+0.64%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners69.98%
Inst Owner Change0%
Ins Owners18.17%
Ins Owner Change2.32%
Market Cap1.58B
Analysts80
Price Target39.78 (20.51%)
Short Float %4.82%
Short Ratio4.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.32% |
Yearly Dividend1
Dividend Growth(5Y)10.71%
DP34.17%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-19.35%
Min EPS beat(2)-30.43%
Max EPS beat(2)-8.27%
EPS beat(4)2
Avg EPS beat(4)24.18%
Min EPS beat(4)-30.43%
Max EPS beat(4)74.92%
EPS beat(8)3
Avg EPS beat(8)9.52%
EPS beat(12)5
Avg EPS beat(12)131.21%
EPS beat(16)7
Avg EPS beat(16)72.94%
Revenue beat(2)0
Avg Revenue beat(2)-2.57%
Min Revenue beat(2)-2.95%
Max Revenue beat(2)-2.19%
Revenue beat(4)0
Avg Revenue beat(4)-2.41%
Min Revenue beat(4)-4.47%
Max Revenue beat(4)-0.05%
Revenue beat(8)0
Avg Revenue beat(8)-3.65%
Revenue beat(12)2
Avg Revenue beat(12)-2.38%
Revenue beat(16)3
Avg Revenue beat(16)-2.29%
PT rev (1m)0%
PT rev (3m)2.63%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.47%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.44%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.68%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.14 | ||
| Fwd PE | 10.97 | ||
| P/S | 0.37 | ||
| P/FCF | 9.83 | ||
| P/OCF | 7.54 | ||
| P/B | 0.79 | ||
| P/tB | 1 | ||
| EV/EBITDA | 7.13 |
EPS(TTM)2.72
EY8.24%
EPS(NY)3.01
Fwd EY9.12%
FCF(TTM)3.36
FCFY10.17%
OCF(TTM)4.38
OCFY13.27%
SpS89.1
BVpS41.85
TBVpS32.89
PEG (NY)1.68
PEG (5Y)0.68
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.67% | ||
| ROE | 7.34% | ||
| ROCE | 6.75% | ||
| ROIC | 5.33% | ||
| ROICexc | 5.4% | ||
| ROICexgc | 6.51% | ||
| OM | 4.07% | ||
| PM (TTM) | 3.45% | ||
| GM | 8.61% | ||
| FCFM | 3.77% |
ROA(3y)2.36%
ROA(5y)2.18%
ROE(3y)3.91%
ROE(5y)3.8%
ROIC(3y)4.7%
ROIC(5y)3.9%
ROICexc(3y)4.76%
ROICexc(5y)3.94%
ROICexgc(3y)5.78%
ROICexgc(5y)4.83%
ROCE(3y)5.95%
ROCE(5y)4.94%
ROICexcg growth 3Y14.74%
ROICexcg growth 5Y9.67%
ROICexc growth 3Y16.45%
ROICexc growth 5Y10.8%
OM growth 3Y12.98%
OM growth 5Y9.99%
PM growth 3Y20.87%
PM growth 5Y17.53%
GM growth 3Y5.38%
GM growth 5Y4.54%
F-Score7
Asset Turnover1.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.48 | ||
| Debt/EBITDA | 0.95 | ||
| Cap/Depr | 63.64% | ||
| Cap/Sales | 1.15% | ||
| Interest Coverage | 9.09 | ||
| Cash Conversion | 83.73% | ||
| Profit Quality | 109.31% | ||
| Current Ratio | 2.05 | ||
| Quick Ratio | 1.01 | ||
| Altman-Z | 3.24 |
F-Score7
WACC8.32%
ROIC/WACC0.64
Cap/Depr(3y)61.97%
Cap/Depr(5y)89.11%
Cap/Sales(3y)1.21%
Cap/Sales(5y)1.9%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)43.16%
EPS 3Y12.87%
EPS 5Y17.83%
EPS Q2Q%85.29%
EPS Next Y7.23%
EPS Next 2Y11.29%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-0.68%
Revenue growth 3Y0.22%
Revenue growth 5Y-0.95%
Sales Q2Q%-0.86%
Revenue Next Year0.9%
Revenue Next 2Y1.81%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y18.73%
EBIT growth 3Y13.23%
EBIT growth 5Y8.95%
EBIT Next Year48.48%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y425.82%
FCF growth 3Y63.37%
FCF growth 5Y22.82%
OCF growth 1Y170.49%
OCF growth 3Y12.41%
OCF growth 5Y1.54%