Calavo Growers (CVGW) AI Stock Analysis

• Market Cap: $493.38M
• Dividend Yield: 2.89%
• Average Volume (3M): 385.29K
• Price to Earnings (P/E): 48.4
• Beta (1Y): 0.52
• Revenue Growth: -14.58%
• EPS Growth: N/A
• Country: US
• Employees: 2,106
• Sector: Consumer Defensive
• Sector Strength: 66
• Industry: Food Distribution
• EPS (TTM): 0.40
• Shares Outstanding: 17,837,172
• 10 Day Avg. Volume: 789,262
• 30 Day Avg. Volume: 385,286
• PEG Ratio: 2.45
• Price to Book (P/B): 2.74
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.10
• Enterprise Value/Market Cap: 1.37
• Enterprise Value/Revenue: 0.23
• Enterprise Value/Gross Profit: 9.28
• Enterprise Value/Ebitda: 6.46
• 1Y Price Target: $30.00
• Price Target Upside: 8.46% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 61 Neutral
• Price Target: $29.00 ▲(4.84%Upside)

Calavo Growers shows a stable financial position with strong equity and low leverage as the most significant factor. Technical indicators show some positive momentum, but the valuation suggests the stock may be overvalued. No earnings call or corporate events data are available to further influence the score.

Positive Factors

Financial Performance

Revenue growth of 21% YoY to $154M exceeded estimates by 10%, driven by strong avocado pricing.

Regulatory Developments

The indefinite postponement of the FCPA investigation removes a cloud of uncertainty and could lead to a revaluation of the stock.

Tax Benefits

The company received a surprising $0.7M from Mexican tax authorities, hinting at potential long-term benefits from a $49M tax asset.

Negative Factors

Earnings Performance

Q4’24 results disappointed, as market tailwinds only provided some lift, while a series of modest internal factors collectively drove margins and EBITDA down despite the strong macro backdrop.

Market Skepticism

The market is clearly skeptical and will not give Calavo the benefit of the doubt until it is proven.

Operational Challenges

Multiple dynamics, including a $5M YoY tomato revenue decline and rising input costs, collectively pressured margins in the Prepared segment.

Calavo Growers Business Overview & Revenue Model

Company Description

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 in three segments: Fresh Products, Calavo Foods, and Renaissance Food Group (RFG). The Fresh products segment distributes avocados and other fresh produce products comprising tomatoes and papayas; and procures avocados grown in California, Mexico, Peru, and Colombia. The Calavo Foods segment is involved in purchasing, processing, packaging, and distributing prepared avocado products, including guacamole and salsa. The RFG segment manufactures, markets, and distributes fresh-cut fruits and vegetables, fresh prepared entrée salads, wraps, sandwiches, and fresh snacking products, as well as ready-to-heat entrees, other hot bar and various deli items, meals kits and related components, and salad kits. The company offers its products under the Calavo and RFG 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!, 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.

How the Company Makes Money

Calavo Growers generates revenue primarily through the sale of fresh produce and prepared food products. In the Fresh Products segment, the company sources avocados and other fruits from growers and sells them to retail and wholesale customers. The Prepared Foods segment focuses on producing and distributing guacamole, salsa, and other processed avocado products, which are sold under various brand names. Calavo benefits from its vertically integrated supply chain, which enhances its ability to manage costs and ensure product quality. Key partnerships with grocery chains and foodservice providers also play a significant role in its revenue generation. The company's earnings are influenced by factors such as agricultural yield, market demand for avocados and related products, and pricing strategies.

Calavo Growers Financial Statement Overview

Summary

Calavo Growers demonstrates a stable financial position with low leverage and adequate profitability. The company shows strong equity and improving profit margins, but faces challenges in enhancing operational efficiencies and sustaining strong cash flow growth.

Income Statement

Calavo Growers shows an improvement in profitability with a TTM gross profit margin of 10.57% and a net profit margin of 1.64%. Revenue growth from the previous annual period is modest at 4.04%. EBIT and EBITDA margins are improving but remain relatively low, indicating some challenges in operating efficiencies.

Balance Sheet

The company has a strong equity base with an equity ratio of 81.42% TTM, which signifies financial stability. The debt-to-equity ratio of 0.02 TTM indicates low leverage, reducing financial risk. Return on equity is modest at 5.56%, reflecting a moderate return to shareholders.

Cash Flow

Operating cash flow is positive, but with a decline from the previous period. The company shows a significant free cash flow, though it decreased by 17.33% from the prior period. The operating cash flow to net income ratio is healthy at 1.77 TTM, suggesting a good conversion of income into cash.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
688.32M	661.54M	971.95M	1.19B	1.06B	1.06B
	Gross Profit
72.77M	67.80M	69.96M	73.84M	57.42M	89.90M
	EBIT
24.30M	16.72M	428.00K	-8.34M	-11.14M	-5.38M
	EBITDA
26.78M	23.15M	18.67M	15.51M	19.00M	5.12M
	Net Income Common Stockholders
9.61M	-1.08M	-8.34M	-6.04M	-10.20M	-7.73M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
48.49M	57.03M	2.09M	2.06M	1.89M	4.05M
	Total Assets
298.93M	301.12M	386.85M	385.75M	445.40M	429.62M
	Total Debt
24.79M	25.92M	98.79M	66.29M	109.22M	92.33M
	Net Debt
-23.70M	-31.11M	96.70M	64.23M	107.33M	88.27M
	Total Liabilities
96.06M	99.34M	176.63M	162.38M	218.52M	173.62M
	Stockholders Equity
202.87M	201.78M	208.84M	223.37M	226.88M	256.00M
Cash Flow		Free Cash Flow
17.79M	21.53M	-25.16M	40.46M	2.13M	17.54M
	Operating Cash Flow
19.93M	24.42M	-14.47M	50.23M	13.57M	28.88M
	Investing Cash Flow
80.86M	80.11M	-10.69M	8.68M	-9.36M	-31.93M
	Financing Cash Flow
-57.96M	-50.35M	24.88M	-58.63M	-5.41M	-865.00K

Calavo Growers Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 27.66
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CVGW, the sentiment is Positive. The current price of 27.66 is above the 20-day moving average (MA) of 26.54, above the 50-day MA of 26.04, and above the 200-day MA of 25.42, indicating a bullish trend. The MACD of 0.09 indicates Positive momentum. The RSI at 55.86 is Neutral, neither overbought nor oversold. The STOCH value of 68.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CVGW.

Calavo Growers Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AVO	71 Outperform	$870.72M	23.87	6.89%	―	29.50%	108.33%
WILC	69 Neutral	$214.25M	11.08	12.29%	3.77%	11.68%	82.59%
ANDE	69 Neutral	$1.25B	11.52	8.25%	2.14%	-17.58%	-11.24%
Sector *	65 Neutral	$8.81B	14.92	4.67%	6.17%	3.60%	-2.89%
SPTN	63 Neutral	$596.43M	2,245.98	-1.38%	4.99%	-2.66%	8.18%
CVGW	61 Neutral	$493.38M	48.36	6.90%	2.89%	-14.58%	―
HFFG	53 Neutral	$181.84M	―	-18.85%	―	4.71%	-1754.14%

Calavo Growers Corporate Events

Calavo Growers Receives Acquisition Proposal at $32/Share

On June 11, 2025, Calavo Growers Inc. announced that it received a non-binding proposal to acquire all its outstanding shares at $32.00 per share, comprising stock and cash from the proposing party. The proposal is under review by the company’s Board of Directors with legal and financial advisors, and it may or may not result in a transaction.

The most recent analyst rating on (CVGW) stock is a Hold with a $25.00 price target. To see the full list of analyst forecasts on Calavo Growers stock, see the CVGW Stock Forecast page.

Calavo Growers Shareholders Approve Key Governance Changes

On April 23, 2025, Calavo Growers, Inc. held its annual shareholders meeting where several key decisions were made. Shareholders elected eight directors to serve for a one-year term, ratified the appointment of Deloitte & Touche LLP as independent accountants for fiscal 2025, approved executive compensation, and amended the 2020 Equity Incentive Plan. These decisions reflect the company’s strategic direction and governance priorities, potentially impacting its operational efficiency and stakeholder confidence.