Is Mission Produce (USA Stocks:AVO) valuation viable?

AVO Stock  USD 12.17  0.19  1.54%   
As many of us are excited about consumer defensive space, it is fair to outline Mission Produce. Why are we still confident in anticipation of a complete recovery. Is current the firm value sustainable? We will go over Mission Produce valuation drivers to give you a better outlook on taking a position in it.
Published over a month ago
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This firm has 155.1 M in debt with debt to equity (D/E) ratio of 0.41, which is OK given its current industry classification. The company has a current ratio of 2.13, demonstrating that it is liquid and is capable to disburse its financial commitments when the payables are due. Debt can assist Mission Produce until it has trouble settling it off, either with new capital or with free cash flow. So, Mission Produce's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Mission Produce sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Mission to invest in growth at high rates of return. When we think about Mission Produce's use of debt, we should always consider it together with cash and equity.
Our investment recommendation tool can cross-verify current analyst consensus on Mission Produce and to analyze the entity potential to grow in the current economic cycle.
We determine the current worth of Mission Produce using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Mission Produce based exclusively on its fundamental and basic technical indicators. By analyzing Mission Produce's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Mission Produce's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Mission Produce. We calculate exposure to Mission Produce's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Mission Produce's related companies.

Mission Produce Investment Alerts

Mission investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Mission Produce performance across your portfolios.Please check all investment alerts for Mission

Mission Produce Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare Mission value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Mission Produce competition to find correlations between indicators driving the intrinsic value of Mission.

How does Mission utilize its cash?

To perform a cash flow analysis of Mission Produce, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Mission Produce is receiving and how much cash it distributes out in a given period. The Mission Produce cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Mission Produce Net Cash Flow from Operations is very stable at the moment as compared to the past year. Mission Produce reported last year Net Cash Flow from Operations of 54.05 Million

Acquisition by Wiesner Juan R of 21707 shares of Mission Produce subject to Rule 16b-3

Legal trades by Mission Produce insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Mission insider trading alert for grant of common stock by Wiesner Juan R, Dir S. America Ops, on 9th of January 2023. This event was filed by Mission Produce Inc with SEC on 2023-01-09. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Another angle On Mission Produce

The small slide in market price for the last few months could raise concerns from institutional investors as the firm is trading at a share price of 14.71 on 127,356 in volume. The company directors and management did not add much value to Mission Produce investors in November. However, diversifying your holdings with Mission Produce or similar stocks can still protect your portfolio during high-volatility market scenarios. The stock standard deviation of daily returns for 90 days investing horizon is currently 1.84. The below-average Stock volatility is a good sign for longer-term investment options and for buy-and-hold investors.
 2019 2020 2021 2022 (projected)
Current Assets248.1 M247.1 M284.17 M273.76 M
Total Assets777.3 M873.5 M1 B957.4 M

Margins Breakdown

Mission profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Mission Produce itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Mission Produce profit margins.
0.0498
Profit Margin
0.0965
EBITDA Margin
EBITDA Margin0.0965
Gross Margin0.16
Profit Margin0.0498


Mission Produce Average Assets is increasing over the last 5 years. The previous year's value of Mission Produce Average Assets was 925,754,851. Mission Produce Earnings Before Interest Taxes and Depreciation Amortization EBITDA is decreasing over the last 6 years. The latest value of Mission Produce Earnings Before Interest Taxes and Depreciation Amortization EBITDA is 85,684,211. Furthermore, Mission Produce Earnings Before Interest Taxes and Depreciation Amortization USD is quite stable at the moment. Mission Produce Average Assets is increasing over the last 5 years. Mission Produce Earnings Before Interest Taxes and Depreciation Amortization EBITDA is decreasing over the last 6 years. The previous year's value of Mission Produce Earnings Before Interest Taxes and Depreciation Amortization EBITDA was 85,684,211. Furthermore, Mission Produce Earnings Before Interest Taxes and Depreciation Amortization USD is quite stable at the moment.

Possible January recoup of Mission?

Latest coefficient of variation is at -16330.99. Mission Produce exhibits very low volatility with skewness of 0.53 and kurtosis of -0.04. However, we advise investors to further study Mission Produce technical indicators to ensure that all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Mission Produce's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Mission Produce's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Bottom Line On Mission Produce

Whereas some other companies within the food distribution industry are still a little expensive, even after the recent corrections, Mission Produce may offer a potential longer-term growth to institutional investors. The bottom line, as of the 22nd of December 2022, we believe that at this point, Mission Produce is undervalued with below average probability of distress within the next 2 years. Our actual recommendation on the company is Strong Buy.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Rifka Kats do not own shares of Mission Produce. Please refer to our Terms of Use for any information regarding our disclosure principles.

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