NEW YORK (
) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow.
Highlights from the ratings report include:
- FDP's revenue growth trails the industry average of 23.5%. Since the same quarter one year prior, revenues slightly increased by 0.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- FDP's debt-to-equity ratio is very low at 0.07 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.90 is somewhat weak and could be cause for future problems.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Food Products industry. The net income has decreased by 15.9% when compared to the same quarter one year ago, dropping from $14.50 million to $12.20 million.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. When compared to other companies in the Food Products industry and the overall market, FRESH DEL MONTE PRODUCE INC's return on equity is below that of both the industry average and the S&P 500.
Fresh Del Monte Produce Inc., through its subsidiaries, produces, transports, sources, markets, and distributes fresh and fresh-cut fruit and vegetables worldwide. It also offers prepared fruit and vegetables, juices, beverages, snacks, and poultry and meat products. The company has a P/E ratio of 15.1, below the average food & beverage industry P/E ratio of 15.4 and below the S&P 500 P/E ratio of 17.7. Fresh Del Monte Produce has a market cap of $1.41 billion and is part of the
industry. Shares are down 4.4% year to date as of the close of trading on Friday.
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