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Fresh Del Monte Produce (FDP)
NYSE:FDP
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Fresh Del Monte Produce
(NYSE:FDP)
71Outperform
Fresh Del Monte Produce (FDP) vs. S&P 500 (SPY)
Market Cap
$1.43B
Dividend Yield3.3%
Average Volume (3M)398.94K
Price to Earnings (P/E)10.2
Beta (1Y)-0.09
Revenue Growth-0.95%
EPS GrowthN/A
CountryUS
Employees39,886
SectorConsumer Cyclical
Sector Strength47
IndustryConsumer Products - Foods
Share Statistics
EPS (TTM)2.96
Shares Outstanding47,940,300
10 Day Avg. Volume392,973
30 Day Avg. Volume398,937
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.34
Price to Cash Flow (P/CF)-77.20
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Fresh Del Monte Produce Business Overview & Revenue Model
Company DescriptionFresh Del Monte Produce, Inc. engages in production and distribution of fresh fruit and vegetables products. It operates through the following segments: Bananas and Fresh and Value-added products segments. The Bananas segment produces banana. The Fresh and Value-added products segment includes sales of pineapples, melons, non-tropical fruit (including grapes, apples, citrus, blueberries, strawberries, pears, peaches, plums, nectarines, cherries and kiwis), other fruit and vegetables, avocados, fresh-cut fruit and vegetables, prepared fruit and vegetables, juices, other beverages, prepared meals and snacks. The company was founded in 1886 and is headquartered in Coral Gables, FL.
How the Company Makes MoneyFresh Del Monte Produce generates revenue primarily through the cultivation, production, and sale of fresh and fresh-cut fruit and vegetables. The company's key revenue streams include the sale of bananas, which represents a significant portion of its overall sales, followed by pineapples, melons, and other fresh produce. Additionally, Fresh Del Monte capitalizes on value-added products such as prepared fruit and vegetables, juices, and snacks, which cater to growing consumer demand for convenience. Strategic partnerships with retailers, wholesalers, and food service companies help expand its market reach. The company also benefits from its vertically integrated operations, which allow it to control costs and maintain high-quality standards from farm to table.
Fresh Del Monte Produce Financial Statement Overview
Summary
Fresh Del Monte Produce has shown significant improvement in profitability and operational efficiency, with better margins and cash flow metrics. The balance sheet remains stable with reduced leverage, although revenue has declined slightly.Income Statement
Fresh Del Monte Produce has shown a strong recovery in terms of profitability, with the Net Profit Margin improving significantly from a loss to a positive 3.32% in the latest period. The Gross Profit Margin is steady at 8.36%. Revenue, however, has experienced a slight decline of 0.94% year-over-year, which is a concern. The EBIT and EBITDA margins have also improved substantially, indicating better operational efficiency.75
Positive
Balance Sheet
The company's balance sheet reflects a solid equity position with an Equity Ratio of 64.30%. The Debt-to-Equity Ratio has improved to 0.15, indicating better leverage management compared to previous years. However, the Return on Equity stands at 7.14%, suggesting moderate returns on shareholders' equity.70
Positive
Cash Flow
Fresh Del Monte Produce has improved its cash flow significantly, with a Free Cash Flow growth of 8.81%. The Operating Cash Flow to Net Income Ratio is robust at 1.28, demonstrating strong cash generation relative to net income. The Free Cash Flow to Net Income Ratio is also favorable at 0.92, indicating effective conversion of profit into cash flow.80
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Mar 2021 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 4.28B | 4.32B | 4.44B | 4.25B | 4.20B | Gross Profit |
| 357.90M | 350.70M | 340.20M | 303.80M | 250.90M | EBIT |
| 196.30M | 58.50M | 156.30M | 111.00M | 50.20M | EBITDA |
| 267.60M | 134.20M | 230.10M | 204.00M | 145.10M | Net Income Common Stockholders |
| 142.20M | -11.40M | 98.60M | 80.00M | 49.20M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 32.60M | 33.80M | 17.20M | 16.10M | 16.50M | Total Assets |
| 3.10B | 3.18B | 3.46B | 3.40B | 3.34B | Total Debt |
| 289.00M | 598.20M | 737.30M | 702.00M | 685.20M | Net Debt |
| 256.40M | 564.40M | 720.10M | 685.90M | 668.70M | Total Liabilities |
| 1.09B | 1.27B | 1.48B | 1.52B | 1.54B | Stockholders Equity |
| 1.99B | 1.90B | 1.90B | 1.80B | 1.73B |
| Cash Flow | Free Cash Flow | |||
| 130.80M | 120.20M | 13.70M | 30.00M | 30.60M | Operating Cash Flow |
| 182.50M | 177.90M | 61.80M | 128.50M | 180.60M | Investing Cash Flow |
| 20.40M | 56.40M | -49.10M | -82.50M | -108.80M | Financing Cash Flow |
| -209.90M | -213.50M | -12.00M | -53.20M | -85.80M |
Fresh Del Monte Produce Technical Analysis
Positive
29.90
Price Trends
30.58
Negative
31.55
Negative
28.49
Positive
Market Momentum
-0.13
Negative
49.59
Neutral
27.24
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FDP, the sentiment is Positive. The current price of 29.9 is below the 20-day moving average (MA) of 30.10, below the 50-day MA of 30.58, and above the 200-day MA of 28.49, indicating a neutral trend. The MACD of -0.13 indicates Negative momentum. The RSI at 49.59 is Neutral, neither overbought nor oversold. The STOCH value of 27.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FDP.
Fresh Del Monte Produce Risk Analysis
Fresh Del Monte Produce disclosed 38 risk factors in its most recent earnings report. Fresh Del Monte Produce reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Fresh Del Monte Produce Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $1.43B | 10.23 | 7.32% | 3.30% | -0.95% | ― | |
71 Outperform | $589.60M | 15.58 | 6.35% | ― | 4.01% | 22.46% | |
71 Outperform | $1.38B | 10.95 | 12.14% | 2.22% | 2.79% | -13.96% | |
67 Neutral | $12.24B | 25.06 | 5.53% | 5.37% | -2.00% | -50.02% | |
63 Neutral | $656.62M | 19.82 | 4.07% | 1.55% | -15.89% | -68.54% | |
59 Neutral | $12.22B | 11.08 | 2.81% | 3.66% | 1.51% | -19.21% | |
55 Neutral | $412.92M | ― | 6.85% | 2.59% | -21.19% | ― |
* Consumer Cyclical Sector Average
Performance Comparison
FDP
Fresh Del Monte Produce
29.90
5.78
23.96%
CVGW
Calavo Growers
23.57
-4.77
-16.83%
CAG
Conagra Brands
26.00
-1.49
-5.42%
MGPI
MGP Ingredients
31.57
-51.23
-61.87%
SENEA
Seneca Foods
85.47
30.99
56.88%
DOLE
Dole
14.49
2.81
24.06%
Fresh Del Monte Produce Earnings Call Summary
Earnings Call Date: Feb 24, 2025 | % Change Since: -2.22% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant growth in the fresh and value-added product segments, debt reduction, and innovative sustainability initiatives. However, challenges were noted in the banana segment, weather-related impacts, potential tariff risks, and ongoing manpacking business issues. While the company showed strength in certain areas, the presence of substantial challenges balanced the overall sentiment.Highlights
Strong Performance in Fresh and Value-Added Product Segments
The fresh and value-added product segments, including pineapples, fresh-cut fruit, and avocados, drove growth and improved gross margins. Gross profit increased by 2% to $358 million, and gross margins improved to 8.4% compared to 8.1% in 2023.
Debt Reduction and Dividend Increase
Achieved a reduction in long-term debt by 39% to $144 million and increased the quarterly dividend for the third consecutive year.
Innovation and Sustainability Initiatives
Launched the Ruby Glow pineapple pilot and a biomass initiative focused on sustainability. Received the SEAL Environmental Initiative Award for surpassing emissions reduction targets.
Improvement in Operating Income
Operating income for the full year was $196 million, compared with $59 million last year, driven by lower asset impairment charges and higher gross profit.
Lowlights
Decline in Banana Segment
Net sales for the banana segment decreased to $1.476 billion from $1.638 billion in the prior year, due to competitive market pressures, lower sales volume in Asia, and unfavorable exchange rate fluctuations.
Weather-Related Challenges
Unprecedented weather conditions in parts of the US and Central America in early 2025 affected the production volumes of both bananas and pineapples.
Potential Impact of Tariffs
There is a risk of potential international tariffs on imports from key trade partners, which could add to global trade volatility.
Manpacking Business Challenges
Consolidated three facilities into one and discontinued several product lines in the manpacking operations, reflecting ongoing challenges.
Company Guidance
During Fresh Del Monte Produce's Fourth Quarter and Full Fiscal Year 2024 Earnings Conference Call, the company highlighted several key metrics and strategic initiatives. Despite a 1% year-over-year decline in total net sales to $4.28 billion, gross profit rose by 2% to $358 million, with gross margins improving to 8.4%. The fresh and value-added product segments, including pineapple, fresh-cut fruit, and avocados, drove growth and higher margins. The company reduced its long-term debt and increased its quarterly dividend for the third consecutive year. Pineapples remain central to their strategy, with a five-year growth plan in place to expand production and sourcing operations. The banana segment faced challenges due to competitive pressures and weather-related supply issues but is expected to benefit from the Somalia banana project. Fresh Del Monte also plans to expand its avocado sourcing globally and has consolidated its manpacking operations to improve efficiency. For 2025, the company projects a 2% increase in net sales, with gross margins expected to improve across segments, supported by price increases and operational enhancements.Fresh Del Monte Produce Corporate Events
DividendsBusiness Operations and StrategyFinancial Disclosures
Fresh Del Monte Reports Strong 2024 Financial Performance
Positive
Feb 24, 2025
On February 24, 2025, Fresh Del Monte Produce Inc. announced its financial results for the fourth quarter and full fiscal year 2024. The company reported a significant increase in gross margins and a reduction in long-term debt by 39%, ending the year with $244 million in debt. The company also increased its quarterly dividend for the third consecutive year, reflecting strong cash flow and strategic focus despite challenges faced in 2024. Notable improvements included increased net sales and gross profit in the fresh and value-added products segment, although the banana segment experienced a decline in net sales due to lower prices and volumes. The company’s operating income improved substantially from a loss in the prior year, driven by reduced asset impairments and enhanced operational performance.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.