Calavo Growers, Inc. ($CVGW) Possible Buy to $119 Confident Investor Rating: Good
| Company name | Calavo Growers, Inc. |
| Stock ticker | CVGW |
| Live stock price | [stckqut]CVGW[/stckqut] |
| P/E compared to competitors | Good |
MANAGEMENT EXECUTION
| Employee productivity | Poor |
| Sales growth | Fair |
| EPS growth | Good |
| P/E growth | Good |
| EBIT growth | Good |
ANALYSIS
| Confident Investor Rating | Good |
| Target stock price (TWCA growth scenario) | $149.92 |
| Target stock price (averages with growth) | $195.71 |
| Target stock price (averages with no growth) | $132.94 |
| Target stock price (manual assumptions) | $136.37 |
The following company description is from Reuters: https://www.reuters.com/finance/stocks/company-profile/cvgw
Calavo Growers, Inc., incorporated on January 5, 2001, operates in the avocado industry. The Company provides value-added fresh food. The Company distributes its products both domestically and internationally. It operates in three business segments: Fresh products, Calavo Foods and Renaissance Food Group, LLC (RFG). The Company is engaged in marketing and distributing avocados, prepared avocados and other perishable foods, which allows it to deliver an array of fresh and prepared food products to food distributors, produce wholesalers, supermarkets, convenience stores, and restaurants on a worldwide basis. The Company procures avocados principally from California and Mexico. Through its various operating facilities, the Company sorts, packs, and/or ripens avocados, tomatoes and/or Hawaiian grown papayas; processes and packages fresh cut fruit and vegetables, salads, wraps, sandwiches, fresh snacking products and a range of behind-the-glass deli items, and produces and packages guacamole and salsa.
The Company sells avocados under the Calavo family of brand labels, as well as private labels. The Company offers ProRipeVIP avocado ripening program. The ProRipeVIP avocado ripening program allows the Company to deliver avocados evenly ripened to its customers’ specifications.
Confident Investor comments: At this price and at this time, I think that a Confident Investor can confidently invest in Calavo Growers, Inc. as long as the indicators that I describe in my book The Confident Investor are favorable.
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How was this analysis of Calavo Growers, Inc. calculated?
For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
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In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:
- Stock price at the time of the calculation: $96.85
- Growth: 0.18
- Current EPS (TTM): $2.4
- P/E: 40
- Future EPS Calc: $5.49
- Future Stock Price Calc: $219.62
- Target stock price: $136.36
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I hope that this makes you a Confident Investor.