Calavo Growers markets, and distributes avocados, prepared avocados, and other perishable foods to food distributors, produce wholesalers, supermarkets, convenience stores, and restaurants worldwide. The company was founded in 1924 and is based in Santa Paula, California.
CVGW Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for CVGW, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Calavo Growers Inc ranked in the 14th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. In terms of the factors that were most noteworthy in this DCF analysis for CVGW, they are:
The company has produced more trailing twelve month cash flow than merely 12.99% of its sector Consumer Defensive.
The business' balance sheet reveals debt to be 7% of the company's capital (with equity being the remaining amount). Approximately merely 19.27% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
Calavo Growers Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -22.28. This coverage rate is greater than that of just 5.2% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Calavo Growers Inc? See IBA, JJSF, HAIN, LRN, and MTEX.
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