Fresh Del Monte Produce, Inc. (FDP) 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

Archer-Daniels-Midland Co.

Seaboard Corp.

Fresh Del Monte Produce, Inc.

Bunge Ltd.

Pilgrim's Pride Corp.

Tilray Brands, Inc.

Cal-Maine Foods, Inc.

Adecoagro SA

Vital Farms, Inc.

MGP Ingredients, Inc.

Mission Produce, Inc.

Why is Fresh Del Monte Produce, Inc. ?

Company has a low Debt to Equity ratio (avg) at times

Low Debt Company with Strong Long Term Fundamental Strength

The company has declared Positive results for the last 4 consecutive quarters

OPERATING CASH FLOW(Y) Highest at USD 198 MM
ROCE(HY) Highest at 7.49%
DIVIDEND PER SHARE(HY) Highest at USD 8.61

With ROCE of 7.60%, it has a expensive valuation with a 0.80 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 12.55%, its profits have risen by 26.5% ; the PEG ratio of the company is 0.4

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Fresh Del Monte Produce, 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 Fresh Del Monte Produce, Inc. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Fresh Del Monte Produce, Inc.

-17.75%

2.81

25.05%

S&P 500

25.41%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.59%

EBIT Growth (5y)

25.87%

EBIT to Interest (avg)

7.43

Debt to EBITDA (avg)

2.15

Net Debt to Equity (avg)

0.12

Sales to Capital Employed (avg)

1.86

Tax Ratio

17.23%

Dividend Payout Ratio

63.71%

Pledged Shares

Institutional Holding

75.91%

ROCE (avg)

5.47%

ROE (avg)

5.53%

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

0.98

EV to EBIT

11.04

EV to EBITDA

8.07

EV to Capital Employed

0.99

EV to Sales

0.50

PEG Ratio

2.66

Dividend Yield

2.89%

ROCE (Latest)

8.93%

ROE (Latest)

7.53%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

OBV

Mildly Bearish

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

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 275.2 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 143.61%

RAW MATERIAL COST(Y)

Fallen by 0.53% (YoY

CASH AND EQV(HY)

Highest at USD 102 MM

-3What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 5.82 times

NET PROFIT(Q)

Lowest at USD 21.57 MM

Here's what is working for Fresh Del Monte Produce, Inc.

Operating Cash Flow

Highest at USD 275.2 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Cash and Eqv

Highest at USD 102 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Dividend Payout Ratio

Highest at 143.61%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by 0.53% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Fresh Del Monte Produce, Inc.

Net Profit

Lowest at USD 21.57 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Net Profit

Fallen at -30.65%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Inventory Turnover Ratio

Lowest at 5.82 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio