We think Calavo Growers, Inc. ($CVGW) is a Cautious Buy or Hold and it currently should be priced at $83. It has a Confident Investor Rating of Fair
| Company name | Calavo Growers, Inc. |
| Stock ticker | CVGW |
| Live stock price | [stckqut]CVGW[/stckqut] |
| P/E compared to competitors | Fair |
MANAGEMENT EXECUTION
| Employee productivity | Good |
| Sales growth | Fair |
| EPS growth | Good |
| P/E growth | Poor |
| EBIT growth | Good |
| Price growth | Good |
| R&D growth | Poor |
| Income growth | Good |
| Assets growth | Fair |
| Return on Assets growth | Good |
| Income / Rev growth | Good |
| TWCA Plus | Good |
| Standard TWCA | Good |
| Weighted ann. stock price increase | Poor |
ANALYSIS
| Confident Investor Rating | Fair |
| Target stock price (TWCA growth scenario) | $99.22 |
| Target stock price (averages with growth) | $85.54 |
| Target stock price (averages with no growth) | $97.55 |
| Target stock price (manual assumptions) | $94.09 |
The following company description is from Reuters: https://finance.yahoo.com/quote/cvgw/profile?p=cvgw
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; and procures avocados grown in California, Mexico, and Peru, as well as various other commodities, including tomatoes and papayas. The Calavo Foods segment is involved in purchasing, manufacturing, and distributing prepared avocado products, including guacamole and salsa. The RFG segment manufactures 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.
Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in Calavo Growers, Inc. as long as the price is correct and the indicators that I describe in my book The Confident Investor are favorable. Most of the fundamentals of this company are good but there are some concerns.
If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.
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: $64.33
- Growth: 0.181
- Current EPS (TTM): $1.89833333333333
- P/E: 34.7452325752678
- Future EPS Calc: $4.36
- Future Stock Price Calc: $151.53
- Target stock price: $94.09
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I hope that this makes you a Confident Investor.