Fresh Del Monte Produce Inc. Fundamental Analysis (NYSE: FDP)
Fresh Del Monte Produce Inc. Fundamental Analysis (NYSE: FDP)
Fresh Del Monte Produce Inc. (NYSE: FDP) shows weak financial fundamentals with a PE ratio of 38.96, profit margin of 0.79%, and ROE of 1.69%. The company generates $4.3B in annual revenue with weak year-over-year growth of 1.08%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 33.6/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze FDP's fundamental strength across five key dimensions:
Efficiency Score
WeakFDP struggles to generate sufficient returns from assets.
Valuation Score
ModerateFDP shows balanced valuation metrics.
Growth Score
WeakFDP faces weak or negative growth trends.
Financial Health Score
ExcellentFDP maintains a strong and stable balance sheet.
Profitability Score
ModerateFDP maintains healthy but balanced margins.
Key Financial Metrics
Is FDP Expensive or Cheap?
P/E Ratio
FDP trades at 38.96 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, FDP's PEG of -0.51 indicates potential undervaluation.
Price to Book
The market values Fresh Del Monte Produce Inc. at 0.69 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.47 times EBITDA. This is generally considered low.
How Well Does FDP Make Money?
Net Profit Margin
For every $100 in sales, Fresh Del Monte Produce Inc. keeps $0.79 as profit after all expenses.
Operating Margin
Core operations generate 2.95 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.69 in profit for every $100 of shareholder equity.
ROA
Fresh Del Monte Produce Inc. generates $1.01 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Fresh Del Monte Produce Inc. generates limited operating cash flow of $183.09M, signaling weaker underlying cash strength.
Free Cash Flow
Fresh Del Monte Produce Inc. generates weak or negative free cash flow of $100.38M, restricting financial flexibility.
FCF Per Share
Each share generates $2.11 in free cash annually.
FCF Yield
FDP converts 7.19% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
38.96
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.51
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.69
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.32
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.30
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.23
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.02
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How FDP Stacks Against Its Sector Peers
| Metric | FDP Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 38.96 | 20.64 | Worse (Expensive) |
| ROE | 1.69% | 720.00% | Weak |
| Net Margin | 0.79% | -2883.00% (disorted) | Weak |
| Debt/Equity | 0.30 | 0.76 | Strong (Low Leverage) |
| Current Ratio | 2.23 | 2.28 | Strong Liquidity |
| ROA | 1.01% | 4053.00% | Weak |
FDP 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 Fresh Del Monte Produce Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
2.09%
Industry Style: Defensive, Dividend, Low Volatility
GrowingEPS CAGR
83.29%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
36.31%
Industry Style: Defensive, Dividend, Low Volatility
High Growth