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AVO

Mission Produce NasdaqGS:AVO Stock Report

Last Price

US$14.59

Market Cap

US$1.0b

7D

1.0%

1Y

-29.9%

Updated

04 Jul, 2022

Data

Company Financials +
AVO fundamental analysis
Snowflake Score
Valuation1/6
Future Growth3/6
Past Performance1/6
Financial Health4/6
Dividends0/6

AVO Stock Overview

Mission Produce, Inc. engages in sourcing, producing, packaging, and distributing avocados in the United States and internationally.

Mission Produce Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Mission Produce
Historical stock prices
Current Share PriceUS$14.59
52 Week HighUS$21.50
52 Week LowUS$11.04
Beta0
1 Month Change6.03%
3 Month Change18.62%
1 Year Change-29.89%
3 Year Changen/a
5 Year Changen/a
Change since IPO5.73%

Recent News & Updates

May 14
Is Mission Produce, Inc. (NASDAQ:AVO) Trading At A 22% Discount?

Is Mission Produce, Inc. (NASDAQ:AVO) Trading At A 22% Discount?

Today we will run through one way of estimating the intrinsic value of Mission Produce, Inc. ( NASDAQ:AVO ) by taking...

Mar 29
Capital Allocation Trends At Mission Produce (NASDAQ:AVO) Aren't Ideal

Capital Allocation Trends At Mission Produce (NASDAQ:AVO) Aren't Ideal

What are the early trends we should look for to identify a stock that could multiply in value over the long term...

Shareholder Returns

AVOUS FoodUS Market
7D1.0%0.5%-2.2%
1Y-29.9%-0.09%-19.1%

Return vs Industry: AVO underperformed the US Food industry which returned -0.1% over the past year.

Return vs Market: AVO underperformed the US Market which returned -21.2% over the past year.

Price Volatility

Is AVO's price volatile compared to industry and market?
AVO volatility
AVO Average Weekly Movement4.9%
Food Industry Average Movement6.8%
Market Average Movement8.1%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market3.3%

Stable Share Price: AVO is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: AVO's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19832,800Steve Barnardhttps://missionproduce.com

Mission Produce, Inc. engages in sourcing, producing, packaging, and distributing avocados in the United States and internationally. The company operates through two segments, Marketing and Distribution, and International Farming. It also provides value-added services, including ripening, bagging, custom packing, and logistical management.

Mission Produce Fundamentals Summary

How do Mission Produce's earnings and revenue compare to its market cap?
AVO fundamental statistics
Market CapUS$1.03b
Earnings (TTM)US$24.30m
Revenue (TTM)US$978.50m

42.4x

P/E Ratio

1.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
AVO income statement (TTM)
RevenueUS$978.50m
Cost of RevenueUS$883.50m
Gross ProfitUS$95.00m
Other ExpensesUS$70.70m
EarningsUS$24.30m

Last Reported Earnings

Apr 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.34
Gross Margin9.71%
Net Profit Margin2.48%
Debt/Equity Ratio30.4%

How did AVO perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is AVO undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for AVO?

Other financial metrics that can be useful for relative valuation.

AVO key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.3x
Enterprise Value/EBITDA25.6x
PEG Ratio1x

Price to Earnings Ratio vs Peers

How does AVO's PE Ratio compare to its peers?

AVO PE Ratio vs Peers
The above table shows the PE ratio for AVO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average23.2x
AGRO Adecoagro
5.2x-5.3%US$914.2m
JBSS John B. Sanfilippo & Son
15xn/aUS$848.0m
BGS B&G Foods
25.9x12.7%US$1.7b
UTZ Utz Brands
46.7x-7.1%US$2.0b
AVO Mission Produce
42.4x44.1%US$1.0b

Price-To-Earnings vs Peers: AVO is expensive based on its Price-To-Earnings Ratio (42.4x) compared to the peer average (23.2x).


Price to Earnings Ratio vs Industry

How does AVO's PE Ratio compare vs other companies in the US Food Industry?

Price-To-Earnings vs Industry: AVO is expensive based on its Price-To-Earnings Ratio (42.4x) compared to the US Food industry average (17.7x)


Price to Earnings Ratio vs Fair Ratio

What is AVO's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

AVO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio42.4x
Fair PE Ratio34x

Price-To-Earnings vs Fair Ratio: AVO is expensive based on its Price-To-Earnings Ratio (42.4x) compared to the estimated Fair Price-To-Earnings Ratio (34x).


Share Price vs Fair Value

What is the Fair Price of AVO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: AVO ($14.59) is trading above our estimate of fair value ($12.53)

Significantly Below Fair Value: AVO is trading above our estimate of fair value.


Price to Earnings Growth Ratio

PEG Ratio: AVO is good value based on its PEG Ratio (1x)


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Future Growth

How is Mission Produce forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


44.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AVO's forecast earnings growth (44.1% per year) is above the savings rate (1.9%).

Earnings vs Market: AVO's earnings (44.1% per year) are forecast to grow faster than the US market (13.6% per year).

High Growth Earnings: AVO's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: AVO's revenue (6.9% per year) is forecast to grow slower than the US market (8.2% per year).

High Growth Revenue: AVO's revenue (6.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AVO's Return on Equity is forecast to be low in 3 years time (10.4%).


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Past Performance

How has Mission Produce performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-26.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: AVO has high quality earnings.

Growing Profit Margin: AVO's current net profit margins (2.5%) are lower than last year (6.1%).


Past Earnings Growth Analysis

Earnings Trend: AVO's earnings have declined by 26.4% per year over the past 5 years.

Accelerating Growth: AVO's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: AVO had negative earnings growth (-53.1%) over the past year, making it difficult to compare to the Food industry average (15.2%).


Return on Equity

High ROE: AVO's Return on Equity (4.6%) is considered low.


Discover strong past performing companies

Financial Health

How is Mission Produce's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: AVO's short term assets ($255.1M) exceed its short term liabilities ($128.8M).

Long Term Liabilities: AVO's short term assets ($255.1M) exceed its long term liabilities ($247.2M).


Debt to Equity History and Analysis

Debt Level: AVO's net debt to equity ratio (26.3%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if AVO's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: AVO's debt is not well covered by operating cash flow (18.9%).

Interest Coverage: AVO earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


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Dividend

What is Mission Produce current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


0.38%

Forecast Dividend Yield

Dividend Yield vs Market

Notable Dividend: Unable to evaluate AVO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate AVO's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if AVO's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if AVO's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: AVO is not paying a notable dividend for the US market.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as AVO has not reported any payouts.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

11.5yrs

Average board tenure


CEO

Steve Barnard (69 yo)

no data

Tenure

US$1,266,091

Compensation

Mr. Stephen J. Barnard, also known as Steve, founded Mission Produce, Inc. in 1983 and serves as its President and Chief Executive Officer. He is a Director at Mission Produce, Inc. since 1983. Mr. Barnard...


CEO Compensation Analysis

Compensation vs Market: Steve's total compensation ($USD1.27M) is below average for companies of similar size in the US market ($USD4.04M).

Compensation vs Earnings: Steve's compensation has been consistent with company performance over the past year.


Board Members

Experienced Board: AVO's board of directors are seasoned and experienced ( 11.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Mission Produce, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Mission Produce, Inc.
  • Ticker: AVO
  • Exchange: NasdaqGS
  • Founded: 1983
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Implied Market Cap: US$1.031b
  • Shares outstanding: 70.66m
  • Website: https://missionproduce.com

Number of Employees


Location

  • Mission Produce, Inc.
  • 2710 Camino Del Sol
  • Oxnard
  • California
  • 93030
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/07/04 00:00
End of Day Share Price2022/07/01 00:00
Earnings2022/04/30
Annual Earnings2021/10/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.