Calavo Growers, Inc.
Calavo Growers, Inc. Fundamental Analysis
Calavo Growers, Inc. (CVGW) shows weak financial fundamentals with a PE ratio of 28.68, profit margin of 2.61%, and ROE of 7.82%. The company generates $0.6B in annual revenue with weak year-over-year growth of -1.98%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 37.9/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze CVGW's fundamental strength across five key dimensions:
Efficiency Score
WeakCVGW struggles to generate sufficient returns from assets.
Valuation Score
ModerateCVGW shows balanced valuation metrics.
Growth Score
ModerateCVGW shows steady but slowing expansion.
Financial Health Score
ExcellentCVGW maintains a strong and stable balance sheet.
Profitability Score
WeakCVGW struggles to sustain strong margins.
Key Financial Metrics
Is CVGW Expensive or Cheap?
P/E Ratio
CVGW trades at 28.68 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, CVGW's PEG of -1.82 indicates potential undervaluation.
Price to Book
The market values Calavo Growers, Inc. at 2.25 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 18.42 times EBITDA. This signals the market has high growth expectations.
How Well Does CVGW Make Money?
Net Profit Margin
For every $100 in sales, Calavo Growers, Inc. keeps $2.61 as profit after all expenses.
Operating Margin
Core operations generate 2.13 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.82 in profit for every $100 of shareholder equity.
ROA
Calavo Growers, Inc. generates $5.40 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Calavo Growers, Inc. generates limited operating cash flow of $17.31M, signaling weaker underlying cash strength.
Free Cash Flow
Calavo Growers, Inc. generates weak or negative free cash flow of $14.65M, restricting financial flexibility.
FCF Per Share
Each share generates $0.82 in free cash annually.
FCF Yield
CVGW converts 3.18% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
28.68
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.82
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.25
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.75
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.11
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.21
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How CVGW Stacks Against Its Sector Peers
| Metric | CVGW Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 28.68 | 22.46 | Worse (Expensive) |
| ROE | 7.82% | 1260.00% | Weak |
| Net Margin | 2.61% | -5313.00% (disorted) | Weak |
| Debt/Equity | 0.11 | 0.84 | Strong (Low Leverage) |
| Current Ratio | 2.21 | 2.49 | Strong Liquidity |
| ROA | 5.40% | -193380.00% (disorted) | Weak |
CVGW outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Calavo Growers, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-39.75%
Industry Style: Defensive, Dividend, Low Volatility
DecliningEPS CAGR
243.00%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
-26.58%
Industry Style: Defensive, Dividend, Low Volatility
Declining