Calavo Growers (CVGW) AI Stock Analysis

• Market Cap: $464.82M
• Dividend Yield: 2.74%
• Average Volume (3M): 236.72K
• Price to Earnings (P/E): 49.4
• Beta (1Y): 0.47
• Revenue Growth: -21.19%
• EPS Growth: N/A
• Country: US
• Employees: 2,106
• Sector: Consumer Defensive
• Sector Strength: 73
• Industry: Food Distribution
• EPS (TTM): 0.33
• Shares Outstanding: 17,836,508
• 10 Day Avg. Volume: 215,277
• 30 Day Avg. Volume: 236,724
• PEG Ratio: <0.01
• Price to Book (P/B): 2.25
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 25.60
• Enterprise Value/Market Cap: 0.93
• Enterprise Value/Revenue: 0.15
• Enterprise Value/Gross Profit: 5.93
• Enterprise Value/Ebitda: 4.13
• 1Y Price Target: $35.00
• Price Target Upside: 34.31% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

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 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 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

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: Neutral
• Last Price: 26.06
• 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 Neutral. The current price of 26.06 is below the 20-day moving average (MA) of 26.55, above the 50-day MA of 24.59, and above the 200-day MA of 24.99, indicating a neutral trend. The MACD of 0.41 indicates Positive momentum. The RSI at 51.77 is Neutral, neither overbought nor oversold. The STOCH value of 27.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CVGW.

Calavo Growers Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AVO	70 Outperform	$749.10M	18.51	7.69%	―	31.14%	576.83%
WILC	69 Neutral	$218.96M	11.53	11.83%	3.67%	5.36%	121.07%
Sector *	64 Neutral	$8.75B	14.76	4.97%	174.27%	3.56%	3.44%
ANDE	64 Neutral	$1.23B	11.34	8.25%	2.14%	-17.58%	-11.24%
SPTN	63 Neutral	$646.46M	2,195.40	0.04%	4.57%	-2.66%	8.18%
HFFG	57 Neutral	$217.28M	―	-18.85%	―	4.71%	-1754.14%
CVGW	55 Neutral	$464.82M	49.45	6.85%	2.74%	-21.19%	―

Calavo Growers Corporate Events

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.

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.

Calavo Growers Announces Board Member Retirement

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.