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FDP

Fresh Del Monte Produce NYSE:FDP Stock Report

Last Price

US$23.24

Market Cap

US$1.1b

7D

-4.8%

1Y

-28.5%

Updated

30 Sep, 2022

Data

Company Financials +
FDP fundamental analysis
Snowflake Score
Valuation3/6
Future Growth3/6
Past Performance1/6
Financial Health4/6
Dividends4/6

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

Summary of all time highs, changes and price drops for Fresh Del Monte Produce
Historical stock prices
Current Share PriceUS$23.24
52 Week HighUS$34.00
52 Week LowUS$22.63
Beta0.56
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 IPO36.71%

Recent News & Updates

Sep 28
Fresh Del Monte Produce (NYSE:FDP) Takes On Some Risk With Its Use Of Debt

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...

Sep 12

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.

Sep 05

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.

Shareholder Returns

FDPUS FoodUS Market
7D-4.8%-3.4%-2.5%
1Y-28.5%-1.5%-23.2%

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.

Price Volatility

Is FDP's price volatile compared to industry and market?
FDP volatility
FDP Average Weekly Movement4.5%
Food Industry Average Movement5.4%
Market Average Movement6.9%
10% most volatile stocks in US Market15.6%
10% least volatile stocks in US Market2.8%

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

FoundedEmployeesCEOWebsite
188640,055Mohammad Abu-Ghazalehhttps://www.freshdelmonte.com

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

How do Fresh Del Monte Produce's earnings and revenue compare to its market cap?
FDP fundamental statistics
Market CapUS$1.11b
Earnings (TTM)US$37.00m
Revenue (TTM)US$4.37b

30.0x

P/E Ratio

0.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
FDP income statement (TTM)
RevenueUS$4.37b
Cost of RevenueUS$4.11b
Gross ProfitUS$258.90m
Other ExpensesUS$221.90m
EarningsUS$37.00m

Last Reported Earnings

Jul 01, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.77
Gross Margin5.92%
Net Profit Margin0.85%
Debt/Equity Ratio24.1%

How did FDP perform over the long term?

See historical performance and comparison

Dividends

2.6%

Current Dividend Yield

77%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

3/6

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

  • Analyst Forecast

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.

FDP 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/Revenue0.4x
Enterprise Value/EBITDA10.7x
PEG Ratio0.5x

Price to Earnings Ratio vs Peers

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

FDP PE Ratio vs Peers
The above table shows the PE ratio for FDP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average10.1x
INGR Ingredion
11.5x10.8%US$5.3b
ALCO Alico
6.6x-97.1%US$214.3m
DAR Darling Ingredients
15.3x19.8%US$10.6b
BG Bunge
7.1x4.2%US$12.5b
FDP Fresh Del Monte Produce
30x65.3%US$1.1b

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.

FDP PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio30x
Fair PE Ratio49.2x

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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Future Growth

How is Fresh Del Monte Produce forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

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


65.3%

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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Past Performance

How has Fresh Del Monte 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


-9.6%

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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Financial Health

How is Fresh Del Monte 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: 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).


Balance Sheet


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Dividend

What is Fresh Del Monte Produce current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


2.58%

Current Dividend Yield

Dividend Yield vs Market

Fresh Del Monte Produce Dividend Yield vs Market
How does Fresh Del Monte Produce dividend yield compare to the market?
SegmentDividend Yield
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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Management

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

1.3yrs

Average management tenure


CEO

Mohammad Abu-Ghazaleh (80 yo)

25.75yrs

Tenure

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
How has Mohammad Abu-Ghazaleh's remuneration changed compared to Fresh Del Monte Produce's earnings?
DateTotal Comp.SalaryCompany Earnings
Jul 01 2022n/an/a

US$37m

Apr 01 2022n/an/a

US$63m

Dec 31 2021n/an/a

US$80m

Oct 01 2021n/an/a

US$92m

Jul 02 2021n/an/a

US$108m

Apr 02 2021n/an/a

US$79m

Jan 01 2021n/an/a

US$49m

Sep 25 2020n/an/a

US$23m

Jun 26 2020n/an/a

US$23m

Mar 27 2020n/an/a

US$43m

Dec 27 2019n/an/a

US$67m

Sep 27 2019n/an/a

US$58m

Jun 28 2019n/an/a

US$19m

Mar 29 2019n/an/a

-US$27m

Dec 28 2018US$7mUS$1m

-US$22m

Sep 28 2018n/an/a

US$6m

Jun 29 2018n/an/a

US$39m

Mar 30 2018n/an/a

US$116m

Dec 29 2017US$9mUS$1m

US$121m

Sep 29 2017n/an/a

US$139m

Jun 30 2017n/an/a

US$163m

Mar 31 2017n/an/a

US$190m

Dec 30 2016US$11mUS$1m

US$225m

Sep 30 2016n/an/a

US$140m

Jul 01 2016n/an/a

US$133m

Apr 01 2016n/an/a

US$102m

Jan 01 2016US$8mUS$1m

US$62m

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.


Leadership Team

Experienced Management: FDP's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

Experienced Board: FDP's board of directors are considered experienced (3.8 years average tenure).


Ownership

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

NYSE:FDP Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
09 Sep 22BuyUS$0.30768Effie SilvaIndividual0.01US$25.64
24 Aug 22SellUS$24,751Sergio MancillaIndividual878US$28.19
02 Jun 22SellUS$102,157Gianpaolo ReninoIndividual4,070US$25.10
27 May 22BuyUS$505,751Mohammad Abu-GhazalehIndividual20,000US$25.82
27 May 22SellUS$126,550Michael BerthelotIndividual5,000US$25.31
17 May 22SellUS$55,576Hans SauterIndividual2,231US$24.91
25 Mar 22SellUS$62,981Hans SauterIndividual2,394US$26.31
24 Mar 22SellUS$62,570Jorge Pelaez ReyesIndividual2,447US$25.57
21 Mar 22SellUS$32,068Jesus CalvoIndividual1,242US$25.82
16 Mar 22SellUS$60,091Hans SauterIndividual2,311US$26.00
08 Mar 22SellUS$134,186Marlene GordonIndividual5,056US$26.54
08 Mar 22SellUS$118,517Eduardo BezerraIndividual4,527US$26.18
10 Dec 21BuyUS$25,943Charles BeardIndividual987.92US$26.26

Ownership Breakdown

What is the ownership structure of FDP?
Owner TypeNumber of SharesOwnership Percentage
General Public5,456,62211.4%
Individual Insiders10,369,40721.7%
Institutions32,006,94566.9%

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


Top Shareholders

Top 25 shareholders own 80.72% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
14.32%
Mohammad Abu-Ghazaleh
6,847,657$159.1m0%no data
11.79%
FMR LLC
5,639,353$131.1m-20.22%0.01%
11.45%
BlackRock, Inc.
5,478,887$127.3m-0.25%no data
8.99%
The Vanguard Group, Inc.
4,301,786$100.0m6.06%no data
7.61%
Dimensional Fund Advisors LP
3,639,285$84.6m0.7%0.02%
6.79%
Amir Abu-Ghazaleh
3,248,310$75.5m0%no data
2.72%
State Street Global Advisors, Inc.
1,302,912$30.3m-0.24%no data
2.38%
Boston Partners Global Investors, Inc.
1,138,268$26.5m-14.86%0.02%
2.15%
Capital Research and Management Company
1,028,000$23.9m0%no data
1.66%
Charles Schwab Investment Management, Inc.
795,886$18.5m14.81%0.01%
1.55%
BNY Mellon Asset Management
742,464$17.3m32.58%no data
1.5%
Invesco Capital Management LLC
719,074$16.7m-9.49%0.01%
1.26%
Columbia Management Investment Advisers, LLC
603,119$14.0m-3.69%no data
1.18%
Geode Capital Management, LLC
562,965$13.1m-2.71%no data
0.85%
Northern Trust Global Investments
406,990$9.5m-6.49%no data
0.65%
Bridgeway Capital Management, LLC
311,800$7.2m12.89%0.18%
0.58%
Jacobs Levy Equity Management Inc
275,796$6.4m47.12%0.05%
0.57%
Norges Bank Investment Management
270,739$6.3m0%no data
0.48%
Renaissance Technologies LLC
230,000$5.3m64.99%0.01%
0.43%
Principal Global Investors, LLC
206,543$4.8m-6.03%no data
0.42%
Teachers Insurance and Annuity Association-College Retirement Equities Fund
199,076$4.6m-1.23%no data
0.39%
American Century Investment Management Inc
185,157$4.3m46.87%no data
0.36%
American Beacon Advisors, Inc.
169,989$4.0m0%0.06%
0.32%
Victory Capital Management Inc.
154,814$3.6m1.09%no data
0.31%
JPMorgan Chase & Co, Brokerage and Securities Investments
150,030$3.5m-26.21%no data

Company Information

Fresh Del Monte Produce Inc.'s employee growth, exchange listings and data sources


Key Information

  • 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


Location

  • Fresh Del Monte Produce Inc.
  • Apollo House
  • 4th Floor
  • George Town
  • Grand Cayman
  • KY1- 1107
  • Cayman Islands


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FDPNYSE (New York Stock Exchange)YesOrdinary SharesUSUSDOct 1997
FDMDB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 1997

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/30 00:00
End of Day Share Price2022/09/30 00:00
Earnings2022/07/01
Annual Earnings2021/12/31


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.