Bedrijfsoverzicht
Calavo Growers, Inc. is a prominent player in the consumer defensive sector, specifically operating within the food distribution industry. The company engages in the comprehensive sourcing, packing, and distribution of fresh avocados, tomatoes, and papayas, alongside the processing of guacamole and various other avocado products. These goods are supplied to a diverse network of retail grocers, club and mass-merchandise stores, foodservice operators, and wholesalers globally. With a market capitalization of $493.86M and an annual revenue of $616.25M, the firm employs 1969 individuals to execute its operations. The combination of a market cap under half a billion dollars and revenue exceeding six hundred million dollars indicates that Calavo Growers functions as a significant mid-cap entity within the specialized fresh produce supply chain, balancing substantial operational scale with a valuation that reflects the capital-intensive nature of agricultural logistics.
Financiële gezondheid
The company reported a total revenue of $616.25M for the trailing twelve months, generating a net income of $16.11M and an EBITDA of $26.41M. The substantial disparity between the $616.25M in revenue and the $16.11M in net income highlights a cost structure characterized by high operating expenses, which is typical for the food distribution sector where margins are naturally compressed. Free cash flow stands at $21.58M, a figure that signifies the company's ability to generate cash beyond its capital expenditures, thereby providing financial flexibility for potential debt reduction or operational investments. The gross margin is recorded at 10.2%, while the operating margin sits at 3.7% and the profit margin is 2.6%, collectively indicating a business model reliant on high volume rather than per-unit profitability. In terms of liquidity and solvency, the company holds $47.67M in cash against $22.40M in debt, supported by a debt-to-equity ratio of 10.80 which suggests a leveraged balance sheet rather than a conservative one. Despite the leverage, the current ratio of 2.21 demonstrates robust short-term liquidity, ensuring the firm can comfortably meet its immediate obligations. Return on equity is 8.0% and return on assets is 4.0%, metrics that reveal how effectively management utilizes shareholder capital and total assets to generate profit in a capital-intensive environment.
Waarderingsbeoordeling
The stock trades with a P/E ratio of 30.70 on a trailing twelve-month basis, while the forward P/E is 18.18, implying that the market expects a significant improvement in earnings relative to current levels. The price-to-book ratio stands at 2.40, indicating that the market values the company at a premium of 140% over its net asset book value. Alternative valuation metrics such as a price-to-sales ratio of 0.80 and an EV/EBITDA of 17.80 suggest that the stock is priced relatively affordably on a revenue basis despite the high earnings multiple. Over the past year, the stock price has ranged between a 52-week low of $18.40 and a 52-week high of $28.72. Without the specific current share price, the exact percentage deviation from the 52-week high or low cannot be calculated, but the trading range defines the recent volatility envelope. The beta is 0.38, a figure that indicates the stock exhibits significantly lower price volatility relative to the broader market, behaving as a defensive asset that moves less aggressively than the overall index.
Growth & Income
Year-over-year revenue growth is -20.8%, while earnings growth is -83.8%, revealing that earnings are declining at a much faster rate than revenue. This divergence suggests that the company's cost structure or operational efficiency has deteriorated sharply compared to its top-line performance, or that one-time charges impacted the bottom line disproportionately. The company offers a dividend yield of 2.9% with a payout ratio of 88.9%, which presents a sustainability concern given the sharp contraction in earnings, as such a high payout ratio leaves little room for error in earnings estimates. Consequently, the dividend is heavily dependent on current cash flows rather than sustainable earnings growth, requiring close monitoring of profitability trends. The overall growth and income profile is characterized by a defensive dividend yield that currently compensates for significant negative earnings growth and a contraction in the broader revenue base.