FDP Stock Overview
Fresh Del Monte Produce Inc., through its subsidiaries, produces, markets, and distributes fresh and fresh-cut fruits and vegetables in North America, Europe, the Middle East, Africa, Asia, and internationally.
Fresh Del Monte Produce Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$23.24|
|52 Week High||US$34.00|
|52 Week Low||US$22.63|
|1 Month Change||-15.00%|
|3 Month Change||-23.58%|
|1 Year Change||-28.47%|
|3 Year Change||-26.57%|
|5 Year Change||-49.84%|
|Change since IPO||36.71%|
Recent News & Updates
Fresh Del Monte Produce (NYSE:FDP) Takes On Some Risk With Its Use Of Debt
Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...
Fresh Del Monte gains on report of additional takeover interest
Fresh Del Monte Produce (NYSE:FDP) rose 1.8% on a report that the banana distributor is seeing takeover interest from a second private equity firm. The news comes after Bloomberg reported in mid-July that infrastructure investor I Squared Capital is looking at an expanded partnership that may include an acquisition of the bananas distributor. Bloomberg at the time said that talks were at an early stage and there was no guarantee any deal will happen, Another PE firm is also interested, while I Squared continues to work with advisors on a potential bid, according to a Street Insider report, which cited an unidentified source. Fresh Del Monte Produce (FDP) announced a partnership with I Squared Capital last June. As part of the deal, Fresh Del Monte invested in I Squared Global InfraTech Fund. At the time, both parties said they will share investment prospects and seek to co-invest in certain deals.
Fresh Del Monte Produce Still Has Some Flavor In It
Summary Fresh Del Monte Produce has fared really well compared to the broader market in recent months. This comes as a result of attractive sales growth, but weak bottom line results. Shares are still affordable at this time, and a return to normalcy would make shares quite cheap. It's always a great thing to buy into a stock that ends up appreciating in value. But it's even better when that company sees upside at a time when the broader market is down. One example of this that plays in the food space, through the sale of produce such as bananas, avocados, pineapples, and more, is Fresh Del Monte Produce (FDP). Recent financial performance on the company's bottom line has been a bit weak, but sales do continue to grow. Although the company is not as cheap as it once looked, shares are still affordable from a cash flow perspective. I would make the case that there might be better opportunities out there to be had at this time. But for investors who want a player in this market, and who don't mind paying a premium relative to similar firms, Fresh Del Monte Produce might be worth the look. Not as tasty as it once was The last time I wrote an article about Fresh Del Monte Produce was in the middle of March of this year. In that article, I said that the company had been on a wild ride over the prior few months, with shares falling even more than with the broader market had seen. I also said that the company was far from being an ideal prospect, but that the cheapness of the stock made it a worthwhile prospect. At the end of the day, the affordability of FDP stock led me to rate it a ‘buy’, reflecting my belief that the company would likely outperform the broader market for the foreseeable future. So far, that call has proven to be pretty good. While the S&P 500 is down by 11%, shares of Fresh Del Monte Produce have generated a return of 1.7%. Author - SEC EDGAR Data Whether or not this return disparity is warranted depends on what you prioritize most. If you prioritize revenue over profitability, then you could argue that the increase in price has been completely justified. I say this because, in the first half of the 2022 fiscal year, sales for the company came in at $2.35 billion. This represents an increase of 5.3% over the $2.23 billion the company generated in sales one year earlier. This increase in revenue came even as revenue associated with the bananas the company sells dropped, falling from $844.9 million to $827.6 million. Management attributed this decline to lower sales volume throughout North America and Asia, with sales in Asia negatively impacted by foreign currency fluctuations. Meanwhile, revenue associated with fresh and value-added products jumped by 7.7% from $1.31 billion to $1.41 billion. This rise, management said, came mostly from higher pricing in most of its product categories. Despite this rise in price, sales volumes were virtually flat. Revenue growth associated with all of the company's other products and services was even more impressive at 45.3%, but the base on which sales grew was quite small, with revenue climbing from $80 million to $116.2 million. This, management said, was because of higher net sales of third-party freight services. Basically, the company was able to use its fleet of vessels and higher shipping rates to its advantage. It should be noted that sales growth remained strong in the second quarter of the year alone. Revenue of $1.21 billion came in 6.1% higher than the $1.14 billion generated one year earlier. The same kind of trend that we saw for the first half of the year as a whole was present in the second quarter alone as well. Author - SEC EDGAR Data When it comes to profitability, things aren't looking quite as good. Consider net income. For the first half of the 2022 fiscal year, net profits totaled $46.9 million. That's almost half the $89.9 million generated the same time one year earlier. A big pain for the company was a decrease in its gross margin from 9.6% to 7.3%. With the exception of the other products and services that I highlighted already, gross margin was down across the board. For bananas, the pain involved not only higher costs, but also lower sales volume. And for the fresh and value-added products category, the problem was multifaceted, with non-tropical fruit being hit by a lack of availability of third-party shipping capacity, volatility in the avocados market, and higher costs associated with melons. Inclement weather also resulted in certain charge-offs associated with produce in Chile and the Middle East. Once again, this pain was across both quarters. In the second quarter of the 2022 fiscal year, net profits came in at $21.2 million. That's less than half the $47.2 million experienced one year earlier. Naturally, these pains also had repercussions when it came to other profitability metrics. Operating cash flow, for instance, fell from $139.5 million in the first half of 2021 to $95.1 million the same time this year. If we adjust for changes in working capital, cash flow would have fallen from $135.9 million to $82.1 million. Meanwhile, EBITDA for the company also took a beating, dropping from $165.9 million to $118.4 million. With the exception of operating cash flow, these pains were all consistent in the second quarter alone as well. Operating cash flow during the quarter came in at $95.4 million. That's up from the $92.7 million seen one year earlier. But again, on an adjusted basis, the company continued to see pain.
|FDP||US Food||US Market|
Return vs Industry: FDP underperformed the US Food industry which returned 0.2% over the past year.
Return vs Market: FDP underperformed the US Market which returned -21.5% over the past year.
|FDP Average Weekly Movement||4.5%|
|Food Industry Average Movement||5.4%|
|Market Average Movement||6.9%|
|10% most volatile stocks in US Market||15.6%|
|10% least volatile stocks in US Market||2.8%|
Stable Share Price: FDP is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: FDP's weekly volatility (4%) has been stable over the past year.
About the Company
Fresh Del Monte Produce Inc., through its subsidiaries, produces, markets, and distributes fresh and fresh-cut fruits and vegetables in North America, Europe, the Middle East, Africa, Asia, and internationally. It operates through three segments: Fresh and Value-Added Products, Banana, and Other Products and Services. It offers pineapples, fresh-cut fruit, fresh-cut vegetables, melons, and vegetables; non-tropical fruits, such as grapes, apples, citrus, blueberries, strawberries, pears, peaches, plums, nectarines, cherries, and kiwis; other fruit and vegetables, and avocados; and prepared fruit and vegetables, juices, other beverages, and meals and snacks.
Fresh Del Monte Produce Fundamentals Summary
|FDP fundamental statistics|
Is FDP overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|FDP income statement (TTM)|
|Cost of Revenue||US$4.11b|
Last Reported Earnings
Jul 01, 2022
Next Earnings Date
|Earnings per share (EPS)||0.77|
|Net Profit Margin||0.85%|
How did FDP perform over the long term?See historical performance and comparison
2.6%Current Dividend Yield
Is FDP undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 3/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Key Valuation Metric
Which metric is best to use when looking at relative valuation for FDP?
Other financial metrics that can be useful for relative valuation.
|What is FDP's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does FDP's PE Ratio compare to its peers?
|FDP PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
DAR Darling Ingredients
FDP Fresh Del Monte Produce
Price-To-Earnings vs Peers: FDP is expensive based on its Price-To-Earnings Ratio (30x) compared to the peer average (10.1x).
Price to Earnings Ratio vs Industry
How does FDP's PE Ratio compare vs other companies in the US Food Industry?
Price-To-Earnings vs Industry: FDP is expensive based on its Price-To-Earnings Ratio (30x) compared to the US Food industry average (18.6x)
Price to Earnings Ratio vs Fair Ratio
What is FDP'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.
|Current PE Ratio||30x|
|Fair PE Ratio||49.2x|
Price-To-Earnings vs Fair Ratio: FDP is good value based on its Price-To-Earnings Ratio (30x) compared to the estimated Fair Price-To-Earnings Ratio (49.2x).
Share Price vs Fair Value
What is the Fair Price of FDP when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: FDP ($23.24) is trading below our estimate of fair value ($60.75)
Significantly Below Fair Value: FDP is trading below fair value by more than 20%.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.
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How is Fresh Del Monte Produce forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?
Future Growth Score3/6
Future Growth Score 3/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: FDP's forecast earnings growth (65.3% per year) is above the savings rate (1.9%).
Earnings vs Market: FDP's earnings (65.3% per year) are forecast to grow faster than the US market (14.7% per year).
High Growth Earnings: FDP's earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: FDP's revenue (3.3% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: FDP's revenue (3.3% 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 FDP's Return on Equity is forecast to be high in 3 years time
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How has Fresh Del Monte Produce performed over the past 5 years?
Past Performance Score1/6
Past Performance Score 1/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: FDP has high quality earnings.
Growing Profit Margin: FDP's current net profit margins (0.8%) are lower than last year (2.6%).
Past Earnings Growth Analysis
Earnings Trend: FDP's earnings have declined by 9.6% per year over the past 5 years.
Accelerating Growth: FDP's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: FDP had negative earnings growth (-65.7%) over the past year, making it difficult to compare to the Food industry average (0.3%).
Return on Equity
High ROE: FDP's Return on Equity (1.9%) is considered low.
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How is Fresh Del Monte Produce's financial position?
Financial Health Score4/6
Financial Health Score 4/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: FDP's short term assets ($1.1B) exceed its short term liabilities ($663.0M).
Long Term Liabilities: FDP's short term assets ($1.1B) exceed its long term liabilities ($800.7M).
Debt to Equity History and Analysis
Debt Level: FDP's net debt to equity ratio (23.3%) is considered satisfactory.
Reducing Debt: FDP's debt to equity ratio has increased from 12.2% to 24.1% over the past 5 years.
Debt Coverage: FDP's debt is not well covered by operating cash flow (18.1%).
Interest Coverage: FDP's interest payments on its debt are well covered by EBIT (3.5x coverage).
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What is Fresh Del Monte Produce current dividend yield, its reliability and sustainability?
Dividend Score 4/6
Cash Flow Coverage
Current Dividend Yield
Dividend Yield vs Market
|Fresh Del Monte Produce Dividend Yield vs Market|
|Company (Fresh Del Monte Produce)||2.6%|
|Market Bottom 25% (US)||1.7%|
|Market Top 25% (US)||4.7%|
|Industry Average (Food)||2.8%|
|Analyst forecast in 3 Years (Fresh Del Monte Produce)||n/a|
Notable Dividend: FDP's dividend (2.58%) is higher than the bottom 25% of dividend payers in the US market (1.66%).
High Dividend: FDP's dividend (2.58%) is low compared to the top 25% of dividend payers in the US market (4.7%).
Stability and Growth of Payments
Stable Dividend: FDP's dividend payments have been volatile in the past 10 years.
Growing Dividend: FDP's dividend payments have increased over the past 10 years.
Earnings Payout to Shareholders
Earnings Coverage: At its current payout ratio (77.3%), FDP's payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: At its current cash payout ratio (87.5%), FDP's dividend payments are covered by cash flows.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Mohammad Abu-Ghazaleh (80 yo)
Mr. Mohammad Abu-Ghazaleh has been Chairman and Chief Executive Officer of Fresh Del Monte Produce Inc. since 1996. He also serves as the Chairman of the Royal Jordanian Air Academy. From 1997 to 2010 he s...
CEO Compensation Analysis
|Mohammad Abu-Ghazaleh's Compensation vs Fresh Del Monte Produce Earnings|
|Date||Total Comp.||Salary||Company Earnings|
|Jul 01 2022||n/a||n/a|
|Apr 01 2022||n/a||n/a|
|Dec 31 2021||n/a||n/a|
|Oct 01 2021||n/a||n/a|
|Jul 02 2021||n/a||n/a|
|Apr 02 2021||n/a||n/a|
|Jan 01 2021||n/a||n/a|
|Sep 25 2020||n/a||n/a|
|Jun 26 2020||n/a||n/a|
|Mar 27 2020||n/a||n/a|
|Dec 27 2019||n/a||n/a|
|Sep 27 2019||n/a||n/a|
|Jun 28 2019||n/a||n/a|
|Mar 29 2019||n/a||n/a|
|Dec 28 2018||US$7m||US$1m|
|Sep 28 2018||n/a||n/a|
|Jun 29 2018||n/a||n/a|
|Mar 30 2018||n/a||n/a|
|Dec 29 2017||US$9m||US$1m|
|Sep 29 2017||n/a||n/a|
|Jun 30 2017||n/a||n/a|
|Mar 31 2017||n/a||n/a|
|Dec 30 2016||US$11m||US$1m|
|Sep 30 2016||n/a||n/a|
|Jul 01 2016||n/a||n/a|
|Apr 01 2016||n/a||n/a|
|Jan 01 2016||US$8m||US$1m|
Compensation vs Market: Insufficient data to establish whether Mohammad's total compensation is reasonable compared to companies of similar size in the US market.
Compensation vs Earnings: Mohammad's compensation has been consistent with company performance over the past year.
Experienced Management: FDP's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.
Experienced Board: FDP's board of directors are considered experienced (3.8 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: FDP insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
|09 Sep 22||BuyUS$0.30768||Effie Silva||Individual||0.01||US$25.64|
|24 Aug 22||SellUS$24,751||Sergio Mancilla||Individual||878||US$28.19|
|02 Jun 22||SellUS$102,157||Gianpaolo Renino||Individual||4,070||US$25.10|
|27 May 22||BuyUS$505,751||Mohammad Abu-Ghazaleh||Individual||20,000||US$25.82|
|27 May 22||SellUS$126,550||Michael Berthelot||Individual||5,000||US$25.31|
|17 May 22||SellUS$55,576||Hans Sauter||Individual||2,231||US$24.91|
|25 Mar 22||SellUS$62,981||Hans Sauter||Individual||2,394||US$26.31|
|24 Mar 22||SellUS$62,570||Jorge Pelaez Reyes||Individual||2,447||US$25.57|
|21 Mar 22||SellUS$32,068||Jesus Calvo||Individual||1,242||US$25.82|
|16 Mar 22||SellUS$60,091||Hans Sauter||Individual||2,311||US$26.00|
|08 Mar 22||SellUS$134,186||Marlene Gordon||Individual||5,056||US$26.54|
|08 Mar 22||SellUS$118,517||Eduardo Bezerra||Individual||4,527||US$26.18|
|10 Dec 21||BuyUS$25,943||Charles Beard||Individual||987.92||US$26.26|
|Owner Type||Number of Shares||Ownership Percentage|
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
|Ownership||Name||Shares||Current Value||Change %||Portfolio %|
Fresh Del Monte Produce Inc.'s employee growth, exchange listings and data sources
- Name: Fresh Del Monte Produce Inc.
- Ticker: FDP
- Exchange: NYSE
- Founded: 1886
- Industry: Agricultural Products
- Sector: Food, Beverage & Tobacco
- Implied Market Cap: US$1.112b
- Shares outstanding: 47.83m
- Website: https://www.freshdelmonte.com
Number of Employees
- Fresh Del Monte Produce Inc.
- Apollo House
- 4th Floor
- George Town
- Grand Cayman
- KY1- 1107
- Cayman Islands
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|FDP||NYSE (New York Stock Exchange)||Yes||Ordinary Shares||US||USD||Oct 1997|
|FDM||DB (Deutsche Boerse AG)||Yes||Ordinary Shares||DE||EUR||Oct 1997|
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/09/30 00:00|
|End of Day Share Price||2022/09/30 00:00|
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.