Calavo Growers, Inc.

Calavo Growers, Inc.

CVGW·NASDAQ

$26.09

-0.69%
Consumer DefensiveFood Distribution

Calavo Growers, Inc. markets and distributes avocados, prepared avocados, and other perishable foods to retail grocery and foodservice customers, club stores, mass merchandisers, food distributors, and wholesale customers worldwide. It operates in three segments: Fresh Products, Calavo Foods, and Renaissance Food Group (RFG). The Fresh products segment distributes avocados and other fresh produce products comprising tomatoes and papayas; and procures avocados grown in California, Mexico, Peru, and Colombia. The Calavo Foods segment is involved in purchasing, processing, packaging, and distributing prepared avocado products, including guacamole and salsa. The RFG segment manufactures, markets, and distributes fresh-cut fruits and vegetables, fresh prepared entrée salads, wraps, sandwiches, and fresh snacking products, as well as ready-to-heat entrees, other hot bar and various deli items, meals kits and related components, and salad kits. The company offers its products under the Calavo and RFG brands, and related logos; and Avo Fresco, Bueno, Calavo Gold, Calavo Salsa Lisa, Salsa Lisa, Celebrate the Taste, El Dorado, Fresh Ripe, Select, Taste of Paradise, The First Name in Avocados, Tico, Mfresh, Maui Fresh International, Triggered Avocados, ProRipeVIP, RIPE NOW!, Garden Highway Fresh Cut, Garden Highway, and Garden Highway Chef Essentials trademarks. Calavo Growers, Inc. was founded in 1924 and is headquartered in Santa Paula, California.

At a Glance

Live Snapshot
Market Cap$466.33M
EPS1.1100
P/E Ratio20.02
Earnings Date06/08/2026

Intrinsic Alpha Methodology

Thesis Lenses

Signal · Driver · Risk

Signal

High confidence

Valuation multiple is mid-range (P/E 20.0).

Valuation inputs: P/E 20.0, earnings yield +5.0%, momentum -0.7%.

If multiples stay elevated while momentum fades, downside repricing risk rises.

Driver

High confidence

Return profile is acceptable (ROE +9.6%, ROIC +6.7%).

Profitability stack: net margin +3.0%, ROE +9.6%, ROIC +6.7%.

Quality deterioration often appears in margins before it shows up in headline EPS.

Risk

High confidence

Risk profile is balanced but has notable pressure points to monitor.

Risk factors: liabilities/assets +28.6%, momentum -0.7%, net margin +3.0%.

Higher leverage with weak momentum and thin margins can amplify drawdown severity.

cvgw

Calavo Growers, Inc. Market vs Earnings Trajectory

CVGW · NASDAQ

Loading price and EPS data...

Calavo Growers, Inc.

Calavo Growers, Inc. Fair Value Envelope

CVGW · NASDAQ

Our analysis suggests that CVGW has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $26.09, this represents a potential HIDDEN relative to our calculated worth for Calavo Growers, Inc..

Intrinsic Value
Current Price: $26.09
3Y-426.0%
5Y-352.0%
10Y-49.0%
3Y-46.0%
5Y-39.0%
10Y-31.0%
3Y-417.0%
5Y-356.0%
10Y-48.0%
3Y-57.0%
5Y-25.0%
10Y-65.0%
3Y-52.0%
5Y+11.0%
10Y-52.0%
3Y-24.0%
5Y-32.0%
10Y-11.0%
Calavo Growers, Inc.

Calavo Growers, Inc. Profit Bridge

CVGW · NASDAQ
Revenue648.43M
Cost of Goods Sold (584.77M)
Gross Profit63.66M
Operating Expenses (44.05M)
Operating Income19.61M
Interest Expense (827.00K)
Other Income/Expense5.00M
Pretax Income24.62M
Income Tax (4.65M)
Net Income19.80M
Net Income
19.80M

Profitability Analysis

Gross Margin

9.8%

Thin margins leave little room for error. Cost management and pricing strategy are critical.

Operating Margin

3.0%

Minimal operating profit suggests high operating costs or pricing challenges. Scalability is concerning.

Net Profit Margin

3.1%

Minimal profitability after all expenses. Limited financial flexibility for reinvestment or shareholder returns.

Effective Tax Rate

18.9%

Moderate tax rate typical for most corporations. Represents standard tax burden on profits.

Profitability Insight

Efficient profit conversion: Minimal margin compression from gross to net indicates lean operations and favorable tax/interest environment.

9.82%
Gross Profit Margin
-4%
3Y+61.0%
5Y+16.0%
10Y-15.0%
3.02%
Operating Profit Margin
13%
3Y+238.0%
5Y-696.0%
10Y-54.0%
3.05%
Net Profit Margin
-1693%
3Y-682.0%
5Y-518.0%
10Y-25.0%
9.57%
Return on Equity
-1611%
3Y-442.0%
5Y-417.0%
10Y-46.0%
6.77%
Return on Assets
-1709%
3Y-518.0%
5Y-476.0%
10Y-42.0%
6.73%
Return on Invested Capital
18%
3Y+85.0%
5Y-800.0%
10Y-59.0%
CVGW

Calavo Growers, Inc. Cash Conversion Engine

CVGW · NASDAQ
Net Income19.80M
Depreciation & Amortization7.48M
Stock-Based Compensation0.00
Change in Working Capital-8.58M
Others3.69M
Capital Expenditures-2.15M
Free Cash Flow19.39M

Cash Flow Quality Analysis

FCF Conversion Rate

98.0%

Strong cash conversion. Most reported earnings translate into actual cash flow, suggesting solid fundamentals.

CapEx Intensity

10.0%

Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.

FCF Growth Trend

-9.9%

Declining FCF warrants attention. Investigate whether due to temporary factors or fundamental deterioration.

Working Capital Impact

-$8.58M

Moderate working capital outflow. Typical for growing businesses, but ensure it's supporting revenue growth, not inefficiency.

Cash Flow Quality Insight

Asset-light with strong cash conversion: Low capital requirements combined with efficient cash generation creates significant shareholder value through dividends, buybacks, or strategic investments.

cvgw

Calavo Growers, Inc. Funding & Solvency Profile

CVGW · NASDAQ
Cash & Cash Equivalents47.67M
Net Receivables42.85M
Inventory37.77M
Other Current Assets24.34M
Total Current Assets153 M
Property, Plant & Equipment64.04M
Goodwill & Intangible Assets10.21M
Long-Term Investments1.67M
Other Non-Current Assets61.31M
Total Non-Current Assets127 M
Total Assets
298.18M

Financial Health Analysis

Current Ratio

2.21x

Excellent liquidity position. The company can easily cover its short-term obligations with substantial cushion.

Debt-to-Equity Ratio

0.44x

Conservative capital structure. The company relies primarily on equity financing, indicating low financial risk.

Working Capital

84 M

Strong working capital position provides significant operational flexibility and financial cushion.

Asset Composition

51% Current

Balanced asset mix between current and non-current assets, typical of many stable businesses.

Financial Health Insight

Strong financial foundation: Excellent liquidity combined with conservative leverage suggests the company is well-positioned to weather economic uncertainties and fund growth opportunities.

cvgw

Calavo Growers, Inc. Street Expectations Map

CVGW · NASDAQ

Wall Street analysts project that CVGW stock may experience modest gains over the coming 12 months. The consensus 1-year price target stands at 27.00, with estimates ranging from a low of 27.00 to a high of 27.00.

Lowest Target
27.00
3.49%
Consensus Target
27.00
3.49%
Highest Target
27.00
3.49%

The consensus 1-year price target stands at 27.00, with estimates ranging from a low of 27.00 to a high of 27.00.

Analyst Consensus Analysis

Upside Potential

+3.5%

Fair value territory. Stock trading near consensus target suggests limited near-term catalysts. Focus on fundamental developments.

Analyst Agreement

0.0% spread

High analyst agreement. Narrow target range indicates strong consensus on valuation, suggesting clear investment thesis and predictable outlook.

Analyst Conviction

Moderate

Neutral sentiment. Fair value pricing with moderate agreement suggests wait-and-see approach or catalyst-driven opportunity.

Market Sentiment Insight

Efficient pricing: Stock trading at fair value with strong consensus suggests market has priced in expectations. Look for fundamental inflection points or new catalysts to drive meaningful moves.

cvgw

Calavo Growers, Inc. Insider Positioning

CVGW · NASDAQ

During the last 12 months, there has been no insider trading activity reported for CVGW.

3 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

3-6 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

6-9 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

9-12 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

Top Buyers

No buying activity

Top Sellers

No selling activity

Insider Activity Analysis

Net Insider Sentiment

Neutral

No insider trading activity reported. This could indicate blackout periods, lack of conviction, or regulatory restrictions.

Insider Participation

No Activity

No insider trading activity reported from any insiders in the past year.

0.79%
Dividend Yield
-13%
3Y-13.0%
5Y-48.0%
10Y-
 

cvgw Dividend History

CVGW
10Y CAGR +0%
Latest $0.2
Annual $1
Stable dividend payments
Last Period: +0%