Fresh Del Monte Produce Inc.
Find Ratings ReportsFRESH DEL MONTE PRODUCE INC's gross profit margin for the fourth quarter of its fiscal year 2023 has decreased when compared to the same period a year ago. Sales and net income have dropped, although the growth in net income underperformed the average competitor within the subsector, the revenue growth did not. FRESH DEL MONTE PRODUCE INC has weak liquidity. Currently, the Quick Ratio is 0.95 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.
During the same period, stockholders' equity ("net worth") has remained unchanged from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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Income Statement | Q4 FY23 | Q4 FY22 |
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Net Sales ($mil) | 1008.6 | 1039.9 |
EBITDA ($mil) | 32.0 | 56.5 |
EBIT ($mil) | 12.1 | 34.2 |
Net Income ($mil) | -106.5 | 18.3 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 33.8 | 17.2 |
Total Assets ($mil) | 3184.1 | 3458.9 |
Total Debt ($mil) | 598.2 | 737.3 |
Equity ($mil) | 1896.3 | 1904.7 |
Profitability | Q4 FY23 | Q4 FY22 |
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Gross Profit Margin | 7.55 | 10.0 |
EBITDA Margin | 3.17 | 5.43 |
Operating Margin | 1.2 | 3.29 |
Sales Turnover | 1.36 | 1.28 |
Return on Assets | -0.35 | 2.85 |
Return on Equity | -0.6 | 5.18 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 2.12 | 2.05 |
Debt/Capital | 0.24 | 0.28 |
Interest Expense | 3.6 | 7.1 |
Interest Coverage | 3.36 | 4.82 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 47.63 | 47.84 |
Div / share | 0.2 | 0.15 |
EPS | -2.22 | 0.38 |
Book value / share | 39.81 | 39.81 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 221200.0 | 248657.0 |
HOLD. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. Conducting a second comparison, its price-to-book ratio of 0.61 indicates a significant discount versus the S&P 500 average of 4.68 and a discount versus the subsector average of 1.50. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount. After reviewing these and other key valuation criteria, FRESH DEL MONTE PRODUCE INC proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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FDP NM | Peers 42.90 | FDP 6.50 | Peers 21.41 | |||||||||||||||||||||
Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings. FDP's P/E is negative making this valuation measure meaningless. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. FDP is trading at a significant discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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FDP 9.26 | Peers 17.57 | FDP NA | Peers 0.37 | |||||||||||||||||||||
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. FDP is trading at a significant discount to its peers. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. Ratio not available. |
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Price/Book |
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Earnings Growth |
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FDP 0.61 | Peers 1.50 | FDP -112.19 | Peers 10.45 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. FDP is trading at a significant discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, FDP is expected to significantly trail its peers on the basis of its earnings growth rate. |
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Price/Sales |
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Sales Growth |
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FDP 0.27 | Peers 2.27 | FDP -2.74 | Peers -2.19 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. FDP is trading at a significant discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. FDP significantly trails its peers on the basis of sales growth. |
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