Calavo Growers, Inc. (CVGW) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Vital Farms, Inc.

Seaboard Corp.

Calavo Growers, Inc.

Fresh Del Monte Produce, Inc.

Cal-Maine Foods, Inc.

Mission Produce, Inc.

Pilgrim's Pride Corp.

SNDL, Inc.

Tilray Brands, Inc.

MGP Ingredients, Inc.

Adecoagro SA

Why is Calavo Growers, Inc. ?

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 1.65 times

The company has declared positive results for the last 2 consecutive quarters

PRE-TAX PROFIT(Q) At USD 3.3 MM has Grown at 685.48%
NET PROFIT(Q) At USD 3.82 MM has Grown at 266.31%
ROCE(HY) Highest at 9.72%

With ROCE of 13.05%, it has a fair valuation with a 2.49 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 0.93%, its profits have risen by 163.1% ; the PEG ratio of the company is 0.1

High Institutional Holdings at 94.46%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Their stake has increased by 5.72% over the previous quarter.

Underperformed the market in the last 1 year

The stock has generated a return of 0.93% in the last 1 year, much lower than market (S&P 500) returns of 14.90%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Calavo Growers, Inc. should be less than 10%
Overall Portfolio exposure to Other Agricultural Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Agricultural Products)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Calavo Growers, Inc. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Calavo Growers, Inc.

0.93%

-0.12

38.93%

S&P 500

14.9%

0.77

19.29%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-9.35%

EBIT Growth (5y)

-9.30%

EBIT to Interest (avg)

10.41

Debt to EBITDA (avg)

1.65

Net Debt to Equity (avg)

-0.27

Sales to Capital Employed (avg)

3.34

Tax Ratio

26.36%

Dividend Payout Ratio

72.33%

Pledged Shares

Institutional Holding

94.46%

ROCE (avg)

7.01%

ROE (avg)

4.53%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.08

EV to EBIT

19.07

EV to EBITDA

13.80

EV to Capital Employed

2.49

EV to Sales

0.58

PEG Ratio

0.13

Dividend Yield

3.31%

ROCE (Latest)

13.05%

ROE (Latest)

9.65%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Bearish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

18What is working for the Company

PRE-TAX PROFIT(Q)

At USD 3.3 MM has Grown at 685.48%

NET PROFIT(Q)

At USD 3.82 MM has Grown at 266.31%

ROCE(HY)

Highest at 9.72%

DIVIDEND PAYOUT RATIO(Y)

Highest at 93.55%

CASH AND EQV(HY)

Highest at USD 124.91 MM

DEBT-EQUITY RATIO (HY)

Lowest at -18.21 %

DEBTORS TURNOVER RATIO(HY)

Highest at 15.5 times

-5What is not working for the Company

NET SALES(Q)

Lowest at USD 124.68 MM

OPERATING PROFIT(Q)

Lowest at USD 0.1 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 0.08 %

Here's what is working for Calavo Growers, Inc.

Pre-Tax Profit

At USD 3.3 MM has Grown at 685.48%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (USD MM)

Net Profit

At USD 3.82 MM has Grown at 266.31%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

Cash and Eqv

Highest at USD 124.91 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -18.21 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 15.5 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend Payout Ratio

Highest at 93.55%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for Calavo Growers, Inc.

Net Sales

At USD 124.68 MM has Fallen at -26.64%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (USD MM)

Net Sales

Lowest at USD 124.68 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)

Operating Profit

Lowest at USD 0.1 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at 0.08 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales