Sources avocados from various growing regions around the world. Produces avocados through its international farming operations. Now — the numbers.
That much dependence is a risk in itself: if this one line weakens, the whole company feels it directly.
This is an established company with proven profits.
Average growth of 12% a year over the last 4 years. Red columns mark years that ended in a loss.
We compared this company with its own sector across five subjects.
A score of 50 means class average.
Clearly below the class average.
A solid grade overall — yet the debt outweighs the cash. The strength here comes from earnings power.
Clearly below the class average.
Sales are growing strongly for its sector.
The stock has been running stronger than the market lately.
Business Quality: Profit power and business quality trail similar companies in the sector.
Valuation: The stock trades at a price that looks expensive next to its earnings; that can cap future returns.
The stock trades 37% below its peak. The market has trimmed its expectations for the company.
Over the last 4 years, sales grew about 12% a year on average.
It met or beat analyst expectations in 7 of the last 8 quarters — consistency is a promise kept.
Over the last 12 months, company executives reported 69 buys and 22 sells. Management buying with its own money is usually read as a good sign.
Measured against its sector, the quality of the business sits below the class average. Report-card grade: 35/100.
Today’s price already includes part of tomorrow’s optimism. Report-card grade: 47/100.
As the slice kept from each sale thins out, so does the profit.
On our five-subject report card, AVO sits in the middle of the class: some subjects shine, others don’t. The grade moves as the numbers move.
The takeaway: AVO is an established business that has proven its profits for years. The real debate isn’t the quality of the business — it’s whether the price paid for the stock is too high.
Analysts’ average target sits above today’s price, yet the valuation grade (47/100) says the stock isn’t cheap.