Calavo Growers Inc. Common Stock (CVGW)

FairStock Score: 27/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses whose earnings are durable and whose price leaves room for error. Calavo is in fresh produce distribution, where volume matters but pricing power is thin. In the first quarter of 2026, the company reported $122.2 million of revenue and only $732,000 of net income, a 0.60% margin. The supplied growth figures show severe contraction in revenue and profit, though the data do not label the exact period. FairStock's return measures show ROE of 7.97% and ROCE of 4.00%, which are not the hallmarks of a wide-moat compounder. The balance sheet is conservative, with debt/equity of 0.11 and an Altman Z-Score of 4.18, and the 3.07% dividend yield offers some current return. But a Piotroski F-Score of 3/9 signals weak recent fundamentals. On valuation, at the 2026-05-28 close of $26.09, FairStock calculates a P/E of 28.99, P/B of 2.27, EV/EBITDA of 16.03, FCF yield of 2.9%, and a Graham Number of $15.27. That implies a -70.86% margin of safety, meaning the price is well above that conservative value estimate. The FairStock Score of 27/100 and Lynch category of none, because only 0 years of filed results are available against the 3 needed, reinforce that I cannot yet judge a durable earnings record. This may be a low-beta staple with recovery potential, but at this price the evidence does not provide a Graham-style cushion.

In plain English: Calavo Growers packs and sells avocados, tomatoes, papayas, and guacamole. The business is not very profitable right now: in the first quarter of 2026 it made $732,000 of profit on $122.2 million of sales. At $26.09 a share, the stock looks expensive compared with what the company currently earns and owns, so the numbers do not give much safety.

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Data as of 2026-05-28 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer