NasdaqGS:CVGW

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

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. More Details


Snowflake Analysis

Excellent balance sheet with moderate growth potential.


Similar Companies

Share Price & News

How has Calavo Growers's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CVGW is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

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


Market Performance


7 Day Return

0.9%

CVGW

0.1%

US Food

-1.4%

US Market


1 Year Return

1.0%

CVGW

11.6%

US Food

37.1%

US Market

Return vs Industry: CVGW underperformed the US Food industry which returned 10.2% over the past year.

Return vs Market: CVGW underperformed the US Market which returned 34.1% over the past year.


Shareholder returns

CVGWIndustryMarket
7 Day0.9%0.1%-1.4%
30 Day3.1%0.9%1.6%
90 Day7.4%3.5%7.3%
1 Year2.6%1.0%14.4%11.6%40.2%37.1%
3 Year-6.3%-9.9%17.3%7.7%62.5%52.1%
5 Year68.3%57.5%18.9%2.9%133.9%108.0%

Long-Term Price Volatility Vs. Market

How volatile is Calavo Growers's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Calavo Growers undervalued compared to its fair value and its price relative to the market?

5.34x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: CVGW ($76.93) is trading above our estimate of fair value ($38.1)

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


Price To Earnings Ratio

PE vs Industry: CVGW is unprofitable, so we can't compare its PE Ratio to the US Food industry average.

PE vs Market: CVGW is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CVGW's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CVGW is overvalued based on its PB Ratio (5.3x) compared to the US Food industry average (2.2x).


Next Steps

Future Growth

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

69.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CVGW is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

Earnings vs Market: CVGW is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: CVGW's is expected to become profitable in the next 3 years.

Revenue vs Market: CVGW's revenue (4.6% per year) is forecast to grow slower than the US market (10.5% per year).

High Growth Revenue: CVGW's revenue (4.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if CVGW's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Calavo Growers performed over the past 5 years?

-17.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CVGW is currently unprofitable.

Growing Profit Margin: CVGW is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CVGW is unprofitable, and losses have increased over the past 5 years at a rate of 17.4% per year.

Accelerating Growth: Unable to compare CVGW's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CVGW is unprofitable, making it difficult to compare its past year earnings growth to the Food industry (8.7%).


Return on Equity

High ROE: CVGW has a negative Return on Equity (-5.41%), as it is currently unprofitable.


Next Steps

Financial Health

How is Calavo Growers's financial position?


Financial Position Analysis

Short Term Liabilities: CVGW's short term assets ($135.9M) exceed its short term liabilities ($106.3M).

Long Term Liabilities: CVGW's short term assets ($135.9M) exceed its long term liabilities ($67.3M).


Debt to Equity History and Analysis

Debt Level: CVGW's debt to equity ratio (8%) is considered satisfactory.

Reducing Debt: CVGW's debt to equity ratio has reduced from 21.4% to 8% over the past 5 years.

Debt Coverage: CVGW's debt is well covered by operating cash flow (140.5%).

Interest Coverage: CVGW is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

What is Calavo Growers's current dividend yield, its reliability and sustainability?

1.49%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CVGW's dividend (1.49%) is higher than the bottom 25% of dividend payers in the US market (1.34%).

High Dividend: CVGW's dividend (1.49%) is low compared to the top 25% of dividend payers in the US market (3.75%).


Stability and Growth of Payments

Stable Dividend: CVGW's dividends per share have been stable in the past 10 years.

Growing Dividend: CVGW's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: CVGW is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

0.6yrs

Average management tenure


CEO

Jim Gibson (58 yo)

1

Tenure

US$1,292,880

Compensation

Mr. James E. Gibson, also known as Jim, serves as Chief Executive Officer at Calavo Growers, Inc. since February 1, 2020. He served as President of RFG at Calavo Growers, Inc. since October 26, 2017 until ...


CEO Compensation Analysis

Compensation vs Market: Jim's total compensation ($USD1.29M) is below average for companies of similar size in the US market ($USD3.68M).

Compensation vs Earnings: Jim's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
James Gibson
Chief Executive Officer1yrUS$1.29m0.14%
$ 1.9m
Robert Wedin
Executive Vice President of Fresh Sales0.50yrUS$1.16m0.064%
$ 874.6k
Kevin Manion
Chief Financial Officer0.75yrno data0.042%
$ 569.5k
Mark Lodge
Chief Operations Officer0.50yrno data0.034%
$ 459.2k
Joel Silva
Corporate Controller0.92yrno data0.0020%
$ 26.9k
Patricia Vorhies
Director of Human Resourcesno datano datano data
Raina Nelson
Executive Vice President of Business Development0.50yrno datano data
Scott Runge
Treasurerno datano datano data

0.6yrs

Average Tenure

60yo

Average Age

Experienced Management: CVGW's management team is not considered experienced ( 0.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Lecil Cole
Director39.08yrsUS$2.59m1.71%
$ 23.3m
J. Leavens
Chairman of the Board1yrUS$185.23k2.12%
$ 28.9m
Donald Sanders
Director19.08yrsUS$187.23k0.11%
$ 1.5m
Scott Van Der Kar
Director27.08yrsUS$185.23k0.74%
$ 10.0m
Kathleen Holmgren
Independent Director4.08yrsUS$185.23k0.052%
$ 711.6k
John Hunt
Independent Director28.08yrsUS$184.23k0.19%
$ 2.6m
Harold Edwards
Director14.67yrsUS$174.23k0.042%
$ 572.2k
Farha Aslam Ford
Independent Director0.083yrno datano data
Steven Hollister
Independent Director12.5yrsUS$199.23k0.13%
$ 1.8m
Marc Brown
Independent Director10.67yrsUS$184.23k0.085%
$ 1.2m
James Helin
Independent Director10.08yrsUS$184.23k0.14%
$ 2.0m
Michael DiGregorio
Independent Director8.08yrsUS$189.23k0.11%
$ 1.4m

11.6yrs

Average Tenure

65yo

Average Age

Experienced Board: CVGW's board of directors are seasoned and experienced ( 11.6 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

Calavo Growers, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Calavo Growers, Inc.
  • Ticker: CVGW
  • Exchange: NasdaqGS
  • Founded: 1924
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: US$1.361b
  • Shares outstanding: 17.69m
  • Website: https://www.calavo.com

Number of Employees


Location

  • Calavo Growers, Inc.
  • 1141-A Cummings Road
  • Santa Paula
  • California
  • 93060
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CVGWNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDMar 2002
XGWDB (Deutsche Boerse AG)YesCommon StockDEEURMar 2002

Biography

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 who...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/02/25 00:24
End of Day Share Price2021/02/24 00:00
Earnings2020/10/31
Annual Earnings2020/10/31


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.