Calavo Story

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CVGW -- USA Stock  

USD 74.06  0.98  1.34%

While some of us are excited about consumer defensive space, it makes sense to focus on Calavo Growers in greater detail to make a better assessment of its actual value. We will analyze why Calavo Growers investors may still consider a stake in the business. Is Calavo Growers current valuation justified? We will cover the entity valuation to give you a better outlook on taking a position in the stock.
Published over three months ago
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Breaking down Calavo Growers real value
Calavo Growers currently holds 118.73 M in liabilities with Debt to Equity (D/E) ratio of 0.42, which is about average as compared to similar companies. Calavo Growers has performance score of 1 on a scale of 0 to 100. The firm shows a Beta (market volatility) of 0.0105, which signifies not very significant fluctuations relative to the market. Let's try to break down what Calavo's beta means in this case. As returns on the market increase, Calavo Growers returns are expected to increase less than the market. However, during the bear market, the loss on holding Calavo Growers will be expected to be smaller as well. Although it is extremely important to respect Calavo Growers historical returns, it is better to be realistic regarding the information on equity current trending patterns. The philosophy towards foreseeing future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By analyzing Calavo Growers technical indicators, you can presently evaluate if the expected return of 0.0667% will be sustainable into the future. Calavo Growers right now shows a risk of 2.44%. Please confirm Calavo Growers treynor ratio, as well as the relationship between the expected short fall and day median price to decide if Calavo Growers will be following its price patterns.
We determine the current worth of Calavo Growers 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 Calavo Growers based exclusively on its fundamental and basic technical indicators. By analyzing Calavo Growers'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 Calavo Growers'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 Calavo Growers. We calculate exposure to Calavo Growers's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Calavo Growers's related companies.

Calavo Growers Investment Alerts

Calavo 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 Calavo Growers performance across your portfolios.Please check all investment alerts for Calavo

Calavo Growers Valuation Ratios as Compared to Competition

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

How Calavo utilizes its cash?

To perform a cash flow analysis of Calavo Growers, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Calavo Growers is receiving and how much cash it distributes out in a given period. The Calavo Growers cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Calavo Growers Net Cash Flow from Operations is fairly stable at the moment as compared to the past year. Calavo Growers reported Net Cash Flow from Operations of 33.21 Million in 2020

Another angle On Calavo Growers

This firm reported the previous year's revenue of 1.21 B. Net Income was 11.6 M with profit before overhead, payroll, taxes, and interest of 128.08 M.

Margins Breakdown

Calavo profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Calavo Growers itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Calavo Growers profit margins.
Operating Margin4.63
EBITDA Margin0.0477
Gross Margin0.097
Profit Margin0.0273

Calavo Growers Earnings Before Interest Taxes and Depreciation Amortization EBITDA is increasing over the last 8 years. The previous year's value of Calavo Growers Earnings Before Interest Taxes and Depreciation Amortization EBITDA was 61,706,658. Further, Calavo Growers Revenue Per Employee is decreasing over the last 8 years. The latest value of Calavo Growers Revenue Per Employee is 314,795.

Calavo may start a reversion in October

The sortino ratio is down to 0.69 as of today. Calavo Growers currently demonstrates below-verage downside deviation. It has Information Ratio of 0.6 and Jensen Alpha of 0.02. However, we do advice investors to further question Calavo Growers expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Our Final Perspective on Calavo Growers

While some other companies under the packaged foods industry are still a bit expensive, Calavo Growers may offer a potential longer-term growth to sophisticated investors. With a relatively neutral outlook on the latest economy, it is better to hold off any trading of Calavo as the current risk-reward utility is not appealing enough. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Calavo Growers.

About Contributor

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 Gabriel Shpitalnik do not own shares of Calavo Growers. Please refer to our Terms of Use for any information regarding our disclosure principles.

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