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Calavo Growers (CVGW)
:CVGW
US Market

Calavo Growers (CVGW) AI Stock Analysis

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Calavo Growers

(NASDAQ:CVGW)

55Neutral
Calavo Growers' stock score reflects a stable financial position with low leverage and adequate equity, but it is offset by bearish technical indicators and valuation concerns due to negative earnings. The lack of earnings call and corporate events data limits additional insights, keeping the focus on financial stability and technical pressures.
Positive Factors
Earnings Outlook
The Q1’25 outlook appears positive as pricing for larger retail-destined fruit has continued to rise, while Mexican producers have oversupplied smaller fruits.
Financial Performance
Revenue growth of 21% YoY to $154M exceeded estimates by 10%, driven by strong avocado pricing.
Tax Developments
The company received a surprising $0.7M from Mexican tax authorities – potentially the beginning of an eleven-year deferral of what has accumulated to be a $49M book value asset.
Negative Factors
Legal and Compensation Costs
Multiple individual dynamics converged, including a $5M YoY tomato revenue decline, higher year-end compensation expenses, continued elevated legal costs associated with the FCPA investigation, and Prepared segment volume/margin pressure via rising input costs.
Market Skepticism
The market is clearly skeptical and will not give Calavo the benefit of the doubt until it is proven.
Operational Challenges
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.

Calavo Growers (CVGW) vs. S&P 500 (SPY)

Calavo Growers Business Overview & Revenue Model

Company DescriptionCalavo 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 MoneyCalavo Growers generates revenue primarily through the sale of fresh avocados and prepared avocado products, such as guacamole, across multiple channels including retail, foodservice, and wholesale markets. The company leverages its strong relationships with growers to source avocados and other produce, which are then distributed through its extensive logistics network. Additionally, Calavo has a segment dedicated to the sale of other fresh produce, further diversifying its revenue streams. Strategic partnerships with retailers and foodservice operators play a significant role in expanding its market reach and ensuring steady demand for its products. The company's earnings are influenced by factors such as avocado supply and demand dynamics, pricing strategies, and operational efficiencies in sourcing and distribution.

Calavo Growers Financial Statement Overview

Summary
Calavo Growers demonstrates a stable financial position with a strong equity base and low leverage, indicating financial stability. However, challenges remain in improving operational efficiencies and sustaining cash flow growth, despite modest profitability improvements.
Income Statement
65
Positive
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
72
Positive
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
60
Neutral
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
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
688.32M661.54M971.95M1.19B1.06B1.06B
Gross Profit
72.77M67.80M69.96M73.84M57.42M89.90M
EBIT
24.30M16.72M428.00K-8.34M-11.14M-5.38M
EBITDA
26.78M23.15M18.67M15.51M19.00M5.12M
Net Income Common Stockholders
9.61M-1.08M-8.34M-6.04M-10.20M-7.73M
Balance SheetCash, Cash Equivalents and Short-Term Investments
48.49M57.03M2.09M2.06M1.89M4.05M
Total Assets
298.93M301.12M386.85M385.75M445.40M429.62M
Total Debt
24.79M25.92M98.79M66.29M109.22M92.33M
Net Debt
-23.70M-31.11M96.70M64.23M107.33M88.27M
Total Liabilities
96.06M99.34M176.63M162.38M218.52M173.62M
Stockholders Equity
202.87M201.78M208.84M223.37M226.88M256.00M
Cash FlowFree Cash Flow
17.79M21.53M-25.16M40.46M2.13M17.54M
Operating Cash Flow
19.93M24.42M-14.47M50.23M13.57M28.88M
Investing Cash Flow
80.86M80.11M-10.69M8.68M-9.36M-31.93M
Financing Cash Flow
-57.96M-50.35M24.88M-58.63M-5.41M-865.00K

Calavo Growers Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price25.54
Price Trends
50DMA
24.46
Positive
100DMA
24.14
Positive
200DMA
24.97
Positive
Market Momentum
MACD
0.54
Positive
RSI
47.92
Neutral
STOCH
7.68
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CVGW, the sentiment is Neutral. The current price of 25.54 is below the 20-day moving average (MA) of 26.38, above the 50-day MA of 24.46, and above the 200-day MA of 24.97, indicating a neutral trend. The MACD of 0.54 indicates Positive momentum. The RSI at 47.92 is Neutral, neither overbought nor oversold. The STOCH value of 7.68 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CVGW.

Calavo Growers Risk Analysis

Calavo Growers disclosed 40 risk factors in its most recent earnings report. Calavo Growers reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Calavo Growers Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AVAVO
71
Outperform
$737.01M18.147.69%31.14%576.83%
69
Neutral
$216.26M11.3911.83%3.72%5.36%121.07%
64
Neutral
$8.78B14.765.05%174.28%3.62%3.48%
64
Neutral
$1.18B10.958.25%2.22%-17.58%-11.24%
63
Neutral
$646.46M2,195.400.04%4.57%-2.66%8.18%
57
Neutral
$210.42M-18.45%4.63%-2188.56%
55
Neutral
$455.54M48.466.85%2.74%-21.19%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CVGW
Calavo Growers
25.54
-2.05
-7.43%
WILC
Willi Food Inte
15.60
6.74
76.07%
SPTN
SpartanNash Co
19.10
-0.40
-2.05%
ANDE
The Andersons
34.66
-16.49
-32.24%
HFFG
HF Foods Group
4.35
1.33
44.04%
AVO
Mission Produce
10.38
-1.98
-16.02%

Calavo Growers Corporate Events

Executive/Board ChangesShareholder Meetings
Calavo Growers Shareholders Approve Key Governance Changes
Neutral
Apr 28, 2025

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.

Spark’s Take on CVGW Stock

According to Spark, TipRanks’ AI Analyst, CVGW is a Neutral.

Calavo Growers’ stock score reflects a stable financial position with low leverage and adequate equity, but it is offset by bearish technical indicators and valuation concerns due to negative earnings. The lack of earnings call and corporate events data limits additional insights, keeping the focus on financial stability and technical pressures.

To see Spark’s full report on CVGW stock, click here.

Executive/Board ChangesShareholder Meetings
Calavo Growers Announces Board Member Retirement
Neutral
Feb 21, 2025

Calavo Growers, Inc. announced that James Helin intends to retire from the Board of Directors, effective at the conclusion of the company’s 2025 Annual Meeting of Shareholders scheduled for April 23, 2025. Helin’s decision to retire was not due to any disagreements with the company, and his departure is acknowledged with gratitude for his years of service and contributions.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.