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AVO Stock Analysis - Mission Produce, Inc. AI Rating

AVO Nasdaq Agricultural Services DE CIK: 0001802974
Recently Updated • Analysis: Mar 20, 2026 • SEC Data: 2026-01-31
AI Rating
SELL
78% Confidence

📊 AVO Key Takeaways

Revenue: $278.6M
Net Margin: -0.3%
Free Cash Flow: $-14.9M
Current Ratio: 1.86x
Debt/Equity: 0.17x
EPS: $-0.01
AI Rating: SELL with 78% confidence

Investment Thesis

Mission Produce faces significant operational challenges despite revenue growth, with negative net income, negative free cash flow, and deteriorating profitability margins indicating the company is not effectively converting sales into profits. The weak interest coverage ratio of 0.2x and negative operating cash flow raise serious concerns about debt servicing capacity and financial sustainability.

AVO Strengths

  • + Revenue growth of 12.7% YoY demonstrates market demand and sales expansion
  • + Strong balance sheet liquidity with current ratio of 1.86x and quick ratio of 1.19x providing short-term flexibility
  • + Moderate leverage with debt-to-equity ratio of 0.17x indicating conservative capital structure

AVO Risks

  • ! Negative net margin of -0.3% and deteriorating net income (-6.9% YoY) indicate the company is unprofitable at the bottom line
  • ! Critical cash flow stress with negative operating cash flow of -3.0M and negative free cash flow of -14.9M, unsustainable long-term
  • ! Critically weak interest coverage ratio of 0.2x signals the company cannot adequately service its 100M in long-term debt from operating earnings
  • ! Extremely thin operating margin of 0.9% leaves no buffer for operational disruptions or market volatility

Key Metrics to Watch

AVO Financial Metrics

Revenue
$278.6M
Net Income
$-700.0K
EPS (Diluted)
$-0.01
Free Cash Flow
$-14.9M
Total Assets
$997.7M
Cash Position
$44.8M

💡 AI Analyst Insight

Mission Produce, Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.

AVO Profitability Ratios

Gross Margin 11.3%
Operating Margin 0.9%
Net Margin -0.3%
ROE -0.1%
ROA -0.1%
FCF Margin -5.3%

AVO vs Default Sector

How Mission Produce, Inc. compares to Default sector averages

Net Margin
AVO -0.3%
vs
Sector Avg 12.0%
AVO Sector
ROE
AVO -0.1%
vs
Sector Avg 15.0%
AVO Sector
Current Ratio
AVO 1.9x
vs
Sector Avg 1.8x
AVO Sector
Debt/Equity
AVO 0.2x
vs
Sector Avg 0.7x
AVO Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

AVO Balance Sheet & Liquidity

Current Ratio
1.86x
Quick Ratio
1.19x
Debt/Equity
0.17x
Debt/Assets
37.8%
Interest Coverage
0.20x
Long-term Debt
$100.0M

AVO 5-Year Financial Trend

AVO 5-year financial data: Year 2021: Revenue $891.7M, Net Income $71.7M, EPS $1.13. Year 2022: Revenue $1.0B, Net Income $28.8M, EPS $0.45. Year 2023: Revenue $1.0B, Net Income $44.9M, EPS $0.63. Year 2024: Revenue $1.2B, Net Income -$34.6M, EPS $-0.49. Year 2025: Revenue $1.4B, Net Income -$2.8M, EPS $-0.04.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: Mission Produce, Inc.'s revenue has grown significantly by 56% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.04 indicates the company is currently unprofitable.

AVO Growth Metrics (YoY)

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
-5.3%
Free cash flow / Revenue

AVO Quarterly Performance

Quarterly financial performance data for Mission Produce, Inc. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q1 2026 $278.6M -$700.0K $-0.01
Q3 2025 $324.0M $12.4M $0.17
Q2 2025 $297.6M $3.1M $0.04
Q1 2025 $258.7M N/A $0.00
Q3 2024 $261.4M $6.6M $0.09
Q2 2024 $221.1M -$4.6M $-0.07
Q1 2024 $213.5M N/A $0.00
Q3 2023 $261.4M $6.6M $0.09

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

AVO Capital Allocation

Operating Cash Flow
-$3.0M
Cash generated from operations
Capital Expenditures
$11.9M
Investment in assets
Dividends
None
No dividend program

AVO SEC Filings

Access official SEC EDGAR filings for Mission Produce, Inc. (CIK: 0001802974)

📋 Recent SEC Filings

Date Form Document Action
Mar 18, 2026 4 xslF345X06/form4.xml View →
Mar 17, 2026 4 xslF345X05/form4.xml View →
Mar 12, 2026 10-Q avo-20260131.htm View →
Mar 12, 2026 8-K avo-20260312.htm View →
Mar 9, 2026 4 xslF345X05/wk-form4_1773088660.xml View →

Frequently Asked Questions about AVO

What is the AI rating for AVO?

Mission Produce, Inc. (AVO) has an AI rating of SELL with 78% confidence, based on fundamental analysis of SEC EDGAR filings.

What are AVO's key strengths?

Revenue growth of 12.7% YoY demonstrates market demand and sales expansion. Strong balance sheet liquidity with current ratio of 1.86x and quick ratio of 1.19x providing short-term flexibility.

What are the risks of investing in AVO?

Negative net margin of -0.3% and deteriorating net income (-6.9% YoY) indicate the company is unprofitable at the bottom line. Critical cash flow stress with negative operating cash flow of -3.0M and negative free cash flow of -14.9M, unsustainable long-term.

What is AVO's revenue and growth?

Mission Produce, Inc. reported revenue of $278.6M.

Does AVO pay dividends?

Mission Produce, Inc. does not currently pay dividends.

Where can I find AVO SEC filings?

Official SEC filings for Mission Produce, Inc. (CIK: 0001802974) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is AVO's EPS?

Mission Produce, Inc. has a diluted EPS of $-0.01.

How is the AI analysis conducted?

Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.

Disclaimer: This analysis is generated by Claude AI based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Mar 20, 2026 | Data as of: 2026-01-31 | Powered by Claude AI