Fresh Del Monte Produce (FDP) AI Stock Analysis

• Market Cap: $1.58B
• Dividend Yield: 3.19%
• Average Volume (3M): 411.05K
• Price to Earnings (P/E): 10.7
• Beta (1Y): -0.06
• Revenue Growth: -0.64%
• EPS Growth: N/A
• Country: US
• Employees: 33,798
• Sector: Consumer Cyclical
• Sector Strength: 61
• Industry: Agricultural Farm Products
• EPS (TTM): 0.63
• Shares Outstanding: 47,927,980
• 10 Day Avg. Volume: 410,022
• 30 Day Avg. Volume: 411,049
• PEG Ratio: 3.24
• Price to Book (P/B): 0.80
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.96
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Fresh Del Monte Produce is well-positioned with strong financial health, highlighted by robust cash flow and a stable balance sheet. The stock price shows positive momentum, supported by bullish technical indicators. The valuation suggests the stock is reasonably priced with a decent dividend yield. The recent earnings call provided a positive outlook with strategic growth initiatives, although challenges in specific segments were noted. Overall, the company seems poised for potential growth with manageable risks.

Fresh Del Monte Produce Business Overview & Revenue Model

Company Description

Fresh Del Monte Produce Inc., through its subsidiaries, produces, markets, and distributes fresh and fresh-cut fruits and vegetables in North America, Europe, the Middle East, Africa, Asia, and internationally. It operates through three segments: Fresh and Value-Added Products, Banana, and Other Products and Services. It offers pineapples, fresh-cut fruit, fresh-cut vegetables, melons, and vegetables; non-tropical fruits, such as grapes, apples, citrus, blueberries, strawberries, pears, peaches, plums, nectarines, cherries, and kiwis; other fruit and vegetables, and avocados; and prepared fruit and vegetables, juices, other beverages, and meals and snacks. The company also engages in the sale of poultry and meat products; and third-party freight services business. In addition, it manufactures and sells plastic and box products, such as bins, trays, bags, and boxes. The company offers its products under the Del Monte brand, as well as under other brands, such as UTC, Rosy, Fruit Express, Just Juice, Fruitini, Mann's Logo, Arcadian Harvest, Nourish Bowls, Broccolini, Caulilini, Better Burger Leaf, RomaLeaf, and other regional brands. It markets and distributes its products to retail stores, club stores, convenience stores, wholesalers, distributors, and foodservice operators. Fresh Del Monte Produce Inc. was founded in 1886 and is based in George Town, Cayman Islands.

How the Company Makes Money

Fresh Del Monte Produce generates revenue primarily through the cultivation, production, and sale of fresh and fresh-cut fruit and vegetables. The company's key revenue streams include the sale of bananas, which represents a significant portion of its overall sales, followed by pineapples, melons, and other fresh produce. Additionally, Fresh Del Monte capitalizes on value-added products such as prepared fruit and vegetables, juices, and snacks, which cater to growing consumer demand for convenience. Strategic partnerships with retailers, wholesalers, and food service companies help expand its market reach. The company also benefits from its vertically integrated operations, which allow it to control costs and maintain high-quality standards from farm to table.

Fresh Del Monte Produce Financial Statement Overview

Summary

Fresh Del Monte Produce demonstrates strong financial health across all three financial statements. The company maintains stable profitability and operational efficiency, supported by a robust balance sheet with low leverage and high equity. Cash flow is particularly strong, indicating excellent cash management and potential for growth. Despite slight challenges in revenue growth, the overall financial position remains solid, making it well-positioned for future opportunities.

Income Statement

The income statement for Fresh Del Monte Produce shows a stable gross profit margin of approximately 8.6% in TTM, indicating consistent cost management. The net profit margin improved to 3.4% in TTM, reflecting better profitability. However, revenue has slightly declined from the previous annual period by 0.23%, suggesting a potential challenge in revenue growth. EBIT and EBITDA margins are healthy at 4.5% and 5.8% respectively, showing operational efficiency.

Balance Sheet

The balance sheet reveals a strong equity position, with an equity ratio of 63.6% in TTM, highlighting financial stability. The debt-to-equity ratio improved to 0.14, indicating reduced leverage risk. Return on equity is robust at 7.34%, showing efficient use of equity to generate profit. Overall, the balance sheet reflects a solid financial foundation, although the total assets have slightly decreased over time.

Cash Flow

Cash flow analysis shows a robust free cash flow growth of 22.94% in TTM, highlighting strong cash-generating capabilities. The operating cash flow to net income ratio is 1.43, indicating a strong conversion of profit into cash. The free cash flow to net income ratio is also solid at 1.09, showcasing effective cash management. These metrics suggest healthy cash flow management and potential for reinvestment.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Mar 2021
Income Statement		Total Revenue
4.27B	4.28B	4.32B	4.44B	4.25B	4.20B
	Gross Profit
366.50M	357.90M	350.70M	340.20M	303.80M	250.90M
	EBIT
191.00M	196.30M	58.50M	156.30M	111.00M	50.20M
	EBITDA
263.30M	274.20M	134.20M	230.10M	204.00M	145.10M
	Net Income Common Stockholders
147.20M	142.20M	-11.40M	98.60M	80.00M	49.20M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
34.40M	32.60M	33.80M	17.20M	16.10M	16.50M
	Total Assets
3.15B	3.10B	3.18B	3.46B	3.40B	3.34B
	Total Debt
405.20M	411.30M	598.20M	737.30M	702.00M	685.20M
	Net Debt
370.80M	378.70M	564.40M	720.10M	685.90M	668.70M
	Total Liabilities
1.13B	1.09B	1.27B	1.48B	1.52B	1.54B
	Stockholders Equity
2.01B	1.99B	1.90B	1.90B	1.80B	1.73B
Cash Flow		Free Cash Flow
160.80M	130.80M	120.20M	13.70M	30.00M	30.60M
	Operating Cash Flow
209.80M	182.50M	177.90M	61.80M	128.50M	180.60M
	Investing Cash Flow
7.70M	20.40M	56.40M	-49.10M	-82.50M	-108.80M
	Financing Cash Flow
-228.30M	-209.90M	-213.50M	-12.00M	-53.20M	-85.80M

Fresh Del Monte Produce Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 32.76
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FDP, the sentiment is Neutral. The current price of 32.76 is below the 20-day moving average (MA) of 33.22, above the 50-day MA of 31.41, and above the 200-day MA of 30.39, indicating a neutral trend. The MACD of 0.55 indicates Positive momentum. The RSI at 52.70 is Neutral, neither overbought nor oversold. The STOCH value of 17.26 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FDP.

Fresh Del Monte Produce Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CALM	84 Outperform	$4.86B	4.51	48.27%	7.42%	60.00%	259.01%
FDP	76 Outperform	$1.58B	10.75	7.51%	3.19%	-0.64%	―
BG	69 Neutral	$10.40B	9.80	10.36%	3.52%	-10.90%	-36.54%
ADM	69 Neutral	$23.32B	17.30	6.03%	4.14%	-8.59%	-50.72%
DOLE	68 Neutral	$1.40B	11.23	12.14%	2.17%	2.79%	-13.96%
Sector *	61 Neutral	$6.68B	11.75	3.01%	3.94%	2.61%	-21.96%
AGRO	61 Neutral	$894.94M	9.94	7.11%	3.82%	18.45%	-57.55%

Fresh Del Monte Produce Corporate Events

Fresh Del Monte Reports Strong 2024 Financial Performance

On February 24, 2025, Fresh Del Monte Produce Inc. announced its financial results for the fourth quarter and full fiscal year 2024. The company reported a significant increase in gross margins and a reduction in long-term debt by 39%, ending the year with $244 million in debt. The company also increased its quarterly dividend for the third consecutive year, reflecting strong cash flow and strategic focus despite challenges faced in 2024. Notable improvements included increased net sales and gross profit in the fresh and value-added products segment, although the banana segment experienced a decline in net sales due to lower prices and volumes. The company’s operating income improved substantially from a loss in the prior year, driven by reduced asset impairments and enhanced operational performance.