| 2017 | 2018 | 2019 | 2020 (projected) | Share Based Compensation | 4.63 M | 3.59 M | 4.13 M | 4.46 M | Net Cash Flow from Operations | 48.43 M | 72.1 M | 82.91 M | 89.46 M |
Is Calavo Growers (NASDAQ:CVGW) low volatility a good sign for sophisticated investors?
 | By Vlad Skutelnik | Macroaxis Story |
Calavo Growers is currently generating 0.166% in daily expected returns and assumes 1.7521% risk (volatility on return distribution) over the 60 days horizon. As many conservative investors are still indifferent towards latest market risk, it is prudent, from our point of view, to focus on Calavo Growers' current volatility. We will go over a few points Calavo Growers sophisticated investors should remember regarding its volatility. Calavo Growers' very low volatility may have no significant impact on the stock's value as we estimate Calavo Growers as currently overvalued. The real value, based on our calculations, is getting close to 70.06 per share.
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Reviewed by Rifka Kats
Calavo Growers currently holds roughly 3.57 M in cash with 31.97 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.2. Volatility is a rate at which the price of Calavo Growers or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Calavo Growers may increase or decrease. In other words, similar to Calavo's beta indicator, it measures the risk of Calavo Growers and helps estimate the fluctuations that may happen in a short period of time. So if prices of Calavo Growers fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility. Please read more on our technical analysis page.
How important is Calavo Growers's Liquidity
Calavo Growers financial leverage refers to using borrowed capital as a funding source to finance Calavo Growers ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Calavo Growers financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Calavo Growers' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Calavo Growers' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Calavo Growers's total debt and its cash.
Calavo Growers Gross Profit
Calavo Growers Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Calavo Growers previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Calavo Growers Gross Profit growth over the last 10 years. Please check Calavo Growers' gross profit and other fundamental indicators for more details.
Calavo Growers Volatility Drivers
Calavo Growers unsystematic risk is unique to Calavo Growers and usually not directly affected by the market or economic environment. An example of unsystematic risk is the possibility of poor earnings or a layoff due to coronavirus. One may mitigate nonsystematic risk by buying different securities in the same industry or by buying in different sectors. For example, if you have a position in Calavo Growers you can also buy Pyxus International. You can also mitigate this risk by investing in the consumer staples sector as well as in companies having nothing to do with it. This type of risk is also called diversifiable risk and can be understood from analyzing Calavo Growers important indicators over time. Here we run a correlation analysis between relevant fundamental ratios over at least ten year period to find a relationship in the way they react to changes in Calavo Growers income statement and balance sheet. Here are more details about Calavo volatility.Click cells to compare fundamentals
What is driving Calavo Growers Investor Appetite?
The company reported the previous year's revenue of 1.12 B. Net Loss for the year was (14.64 M) with profit before overhead, payroll, taxes, and interest of 128.08 M.
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