Mission Produce, Inc. (AVO) 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.

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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 Mission Produce, Inc. ?

Poor Management Efficiency with a low ROCE of 6.99%

The company has been able to generate a Return on Capital Employed (avg) of 6.99% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Operating profit has grown by an annual rate -1.28% of over the last 5 years

With a fall in Net Sales of -23.51%, the company declared Very Negative results in Apr 26

NET PROFIT(Q) At USD -0.1 MM has Fallen at -102.77%
NET SALES(Q) At USD 290.9 MM has Fallen at -23.51%
INTEREST(Q) At USD 1.9 MM has Grown at 11.76%

With ROCE of 10.36%, it has a very expensive valuation with a 1.62 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 -1.22%, its profits have fallen by -9.1%

Below par performance in long term as well as near term

Along with generating -1.22% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Mission Produce, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Mission Produce, Inc.

-1.22%

0.45

35.18%

S&P 500

20.78%

1.56

13.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.77%

EBIT Growth (5y)

-1.28%

EBIT to Interest (avg)

7.20

Debt to EBITDA (avg)

1.90

Net Debt to Equity (avg)

0.21

Sales to Capital Employed (avg)

1.78

Tax Ratio

30.00%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

36.45%

ROCE (avg)

6.99%

ROE (avg)

5.89%

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

1.68

EV to EBIT

15.60

EV to EBITDA

10.26

EV to Capital Employed

1.62

EV to Sales

0.79

PEG Ratio

Dividend Yield

ROCE (Latest)

10.36%

ROE (Latest)

7.38%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

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

2What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 80.6 MM

-29What is not working for the Company

NET PROFIT(Q)

At USD -0.1 MM has Fallen at -102.77%

NET SALES(Q)

At USD 290.9 MM has Fallen at -23.51%

INTEREST(Q)

At USD 1.9 MM has Grown at 11.76%

INTEREST COVERAGE RATIO(Q)

Lowest at 321.05

RAW MATERIAL COST(Y)

Grown by 5.76% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 9.54 times

OPERATING PROFIT(Q)

Lowest at USD 6.1 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 2.1 %

PRE-TAX PROFIT(Q)

Lowest at USD -1.6 MM

EPS(Q)

Lowest at USD -0.1

Here's what is working for Mission Produce, Inc.

Operating Cash Flow

Highest at USD 80.6 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Here's what is not working for Mission Produce, Inc.

Pre-Tax Profit

At USD -1.6 MM has Fallen at -129.09%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD -0.1 MM has Fallen at -102.77%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Net Sales

At USD 290.9 MM has Fallen at -23.51%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (USD MM)

Interest

At USD 1.9 MM has Grown at 11.76%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Interest Coverage Ratio

Lowest at 321.05

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at USD 6.1 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at 2.1 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at USD -1.6 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

EPS

Lowest at USD -0.1

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Inventory Turnover Ratio

Lowest at 9.54 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 5.76% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales