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

Vital Farms, Inc.

Archer-Daniels-Midland Co.

Seaboard Corp.

Fresh Del Monte Produce, Inc.

Cal-Maine Foods, Inc.

Mission Produce, Inc.

Bunge Ltd.

Pilgrim's Pride Corp.

Tilray Brands, Inc.

MGP Ingredients, Inc.

Adecoagro SA

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)

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

Poor long term growth as Operating profit has grown by an annual rate -0.15% of over the last 5 years

Positive results in Oct 25

INTEREST COVERAGE RATIO(Q) Highest at 1,726.09
RAW MATERIAL COST(Y) Fallen by -11.67% (YoY)
DEBT-EQUITY RATIO (HY) Lowest at 22.88 %

With ROCE of 10.74%, it has a expensive valuation with a 1.40 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 32.42%, its profits have fallen by -2.3%

High Institutional Holdings at 36.45%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Market Beating Performance

The stock has generated a return of 32.42% in the last 1 year, much higher than market (S&P 500) returns of 13.68%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Mission 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 Mission Produce, Inc. for you?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Mission Produce, Inc.

35.47%

0.73

31.98%

S&P 500

13.68%

0.71

19.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.04%

EBIT Growth (5y)

-0.15%

EBIT to Interest (avg)

7.20

Debt to EBITDA (avg)

1.90

Net Debt to Equity (avg)

0.21

Sales to Capital Employed (avg)

1.72

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

1.43

EV to EBIT

12.99

EV to EBITDA

8.61

EV to Capital Employed

1.40

EV to Sales

0.63

PEG Ratio

Dividend Yield

ROCE (Latest)

10.74%

ROE (Latest)

7.32%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

No Trend

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

8What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 1,726.09

RAW MATERIAL COST(Y)

Fallen by -11.67% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 22.88 %

INVENTORY TURNOVER RATIO(HY)

Highest at 14.33 times

DEBTORS TURNOVER RATIO(HY)

Highest at 12.33 times

OPERATING PROFIT(Q)

Highest at USD 39.7 MM

OPERATING PROFIT MARGIN(Q)

Highest at 12.45 %

-1What is not working for the Company

NET SALES(Q)

Lowest at USD 319 MM

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

Interest Coverage Ratio

Highest at 1,726.09

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Profit

Highest at USD 39.7 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Operating Profit Margin

Highest at 12.45 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Debt-Equity Ratio

Lowest at 22.88 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 14.33 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 12.33 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -11.67% (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

Depreciation

Highest at USD 10.5 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

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

Net Sales

Lowest at USD 319 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)