Calavo Growers Inc

CVGW

Agricultural Services

Mkt Cap

$406M

PE

-103.55

Debt

Cash

$2.163M

EV

FCF

-$23.27M

Market Cap

$406M

P/E Ratio

-103.55

Debt

Cash

$2.163M

EV

FCF

-$23.27M

Calavo Growers, Inc. markets and distributes avocados, prepared avocados, and other perishable foods to retail grocery and foodservice customers, club stores, mass merchandisers, food distributors, and wholesale customers worldwide. It operates through two segments, Grown and Prepared. The Grown segment distributes tomatoes and papayas; and procures avocados grown in California, Mexico, Peru, and Colombia. The Prepared segment is involved in the distribution of prepared avocado products, salsa, fresh-cut fruit and vegetables, fresh prepared entrees salads, wraps, sandwiches, parfaits, and fresh snacking products, as well as ready-to-heat entrees, other hot bars and various deli items, meals kit components, and salad kits. The company offers its products under the Calavo brands and related logos; and Avo Fresco, Bueno, Calavo Gold, Calavo Salsa Lisa, Salsa Lisa, Celebrate the Taste, El Dorado, Fresh Ripe, Select, Taste of Paradise, The First Name in Avocados, Tico, Mfresh, Maui Fresh International, Triggered Avocados, ProRipeVIP, RIPE NOW!, Renaissance Food Group, Garden Highway Fresh Cut, Garden Highway, and Garden Highway Chef Essentials trademarks. Calavo Growers, Inc. was founded in 1924 and is headquartered in Santa Paula, California.

Sector

10-Q
7/31/23
10-Q
4/30/23
10-Q
1/31/23
10-K
10/31/22
10-Q
7/31/22
10-Q
4/30/22
10-Q
1/31/22
10-K
10/31/21
10-Q
7/31/21
10-Q
4/30/21
10-Q
1/31/21
10-K
10/31/20
10-Q
7/31/20
10-Q
4/30/20
10-Q
1/31/20
10-K
10/31/19
10-Q
7/31/19
10-Q
4/30/19
10-Q
1/31/19
10-K
10/31/18
10-Q
7/31/18
10-Q
4/30/18
10-Q
1/31/18
10-K
10/31/17

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 2.3%

Earnings Stability -44%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Over time the ROA has been decreasing indicating a lower marginal ROA with respect to the calculated one, this could impede growth.

Years	10-2014	10-2015	10-2016	10-2017	10-2018	10-2019	10-2020	10-2021	10-2022	TTM
Net Margin	-0.027%	3.2%	4.1%	3.5%	2.9%	3.1%	-1.3%	-1.1%	-0.55%	-0.4%
ROA	-1.5%	15%	19%	16%	16%	18%	7.5%	0.3%	1.6%	1.2%
ROE	-0.12%	15%	18%	15%	12%	13%	-5.4%	-5.3%	-3%	-1.8%

What is the average Net Margin?

The average Net Margin over the past 5 years is +1.08%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is -1.05%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +9.86%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is -3.69%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +4.42%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is -4.61%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Data are missing

The Graham’s stability indicate a relevant drawdown, consider checking when it has occured and why.

Years	10-2014	10-2015	10-2016	10-2017	10-2018	10-2019	10-2020	10-2021	10-2022	TTM
Debt FCF	-	2.07	0.48	1.16	0.46	0.11	1.50	3.35	0.15	-
Debt Equity	0.24	0.21	0.09	0.08	0.06	0.02	0.10	0.03	0.03	-
MIN
Graham Stability	-	-	-	100%	94%	100%	-39%	-65%	-180%	-180%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is -.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is 0.14.

What is the Graham’s Stability?

Graham’s Stability measure stands at -1.83.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has not been increasing in the past years.

Years	10-2015	10-2017	10-2019	10-2021	Trend
Revenue	4.8%	2.1%	-0.13%	13%	-1.1%
Net Income	-	-	-	-	-8.9%
Stockholders Equity	2.7%	-1.8%	-7.9%	-1.5%	-2.9%
FCF	11%	18%	-9.9%	1.8K%	130%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +2.06%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is -1.13%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is -.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is -8.86%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is -1.76%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is -2.91%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +18.08%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is +129.14%.