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CVGW Stock Analysis - CALAVO GROWERS INC AI Rating

CVGW Nasdaq Agricultural Services CA CIK: 0001133470
Recently Updated • Analysis: Mar 23, 2026 • SEC Data: 2026-01-31
AI Rating
SELL
75% Confidence

📊 CVGW Key Takeaways

Revenue: $122.2M
Net Margin: 0.6%
Free Cash Flow: $-9.4M
Current Ratio: 2.21x
Debt/Equity: 0.02x
EPS: $0.04
AI Rating: SELL with 75% confidence

Investment Thesis

Calavo Growers faces significant operational challenges with negative operating income, deteriorating cash flows, and minimal profitability despite maintaining adequate liquidity. The company's core business is struggling with declining revenues and negative free cash flow of -9.4M, indicating the business is consuming rather than generating cash.

CVGW Strengths

  • + Strong liquidity position with current ratio of 2.21x and $47.7M cash reserves
  • + Very low debt burden with debt-to-equity of only 0.02x providing financial flexibility
  • + Healthy balance sheet with $205.7M stockholders equity relative to $298.2M total assets

CVGW Risks

  • ! Negative operating income of -1.4M and operating margin of -1.2% indicates core business is unprofitable
  • ! Severely negative free cash flow of -9.4M means operations are destroying shareholder value despite minimal net income
  • ! Declining revenues (-2.0% YoY) and minimal net margin of 0.6% suggest structural profitability issues in the agricultural business
  • ! Negative operating cash flow of -8.7M indicates working capital deterioration and cash burn from operations

Key Metrics to Watch

CVGW Financial Metrics

Revenue
$122.2M
Net Income
$732.0K
EPS (Diluted)
$0.04
Free Cash Flow
$-9.4M
Total Assets
$298.2M
Cash Position
$47.7M

💡 AI Analyst Insight

Strong liquidity with a 2.21x current ratio provides a solid financial cushion.

CVGW Profitability Ratios

Gross Margin 12.4%
Operating Margin -1.2%
Net Margin 0.6%
ROE 0.4%
ROA 0.2%
FCF Margin -7.7%

CVGW vs Default Sector

How CALAVO GROWERS INC compares to Default sector averages

Net Margin
CVGW 0.6%
vs
Sector Avg 12.0%
CVGW Sector
ROE
CVGW 0.4%
vs
Sector Avg 15.0%
CVGW Sector
Current Ratio
CVGW 2.2x
vs
Sector Avg 1.8x
CVGW Sector
Debt/Equity
CVGW 0.0x
vs
Sector Avg 0.7x
CVGW Sector

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

CVGW Balance Sheet & Liquidity

Current Ratio
2.21x
Quick Ratio
1.66x
Debt/Equity
0.02x
Debt/Assets
0.0%
Interest Coverage
-0.81x
Long-term Debt
$4.8M

CVGW 5-Year Financial Trend

CVGW 5-year financial data: Year 2021: Revenue $1.2B, Net Income $36.6M, EPS $2.08. Year 2022: Revenue $1.2B, Net Income -$13.6M, EPS $-0.78. Year 2023: Revenue $1.2B, Net Income -$11.8M, EPS $-0.67. Year 2024: Revenue $769.7M, Net Income -$6.2M, EPS $-0.35. Year 2025: Revenue $661.5M, Net Income -$8.3M, EPS $-0.47.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: CALAVO GROWERS INC's revenue has declined by 45% over the 5-year period, indicating business contraction. The most recent EPS of $-0.47 indicates the company is currently unprofitable.

CVGW 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
-7.7%
Free cash flow / Revenue

CVGW Quarterly Performance

Quarterly financial performance data for CALAVO GROWERS INC including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q1 2026 $122.2M $732.0K $0.04
Q3 2025 $178.8M -$732.0K $-0.04
Q2 2025 $184.4M -$205.0K $-0.01
Q1 2025 $127.6M $4.4M $0.25
Q3 2024 $160.9M -$437.0K $-0.02
Q2 2024 $158.3M -$205.0K $-0.01
Q1 2024 $127.6M -$3.1M $-0.17
Q3 2023 $259.9M -$437.0K $-0.02

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

CVGW Capital Allocation

Operating Cash Flow
-$8.7M
Cash generated from operations
Stock Buybacks
$4.8M
Shares repurchased (TTM)
Capital Expenditures
$788.0K
Investment in assets
Dividends Paid
$3.6M
Returned to shareholders

CVGW SEC Filings

Access official SEC EDGAR filings for CALAVO GROWERS INC (CIK: 0001133470)

📋 Recent SEC Filings

Date Form Document Action
Mar 12, 2026 8-K cvgw-20260312x8k.htm View →
Mar 12, 2026 10-Q cvgw-20260131x10q.htm View →
Mar 2, 2026 10-K/A cvgw-20251031x10ka.htm View →
Jan 20, 2026 8-K cvgw-20260114x8k.htm View →
Jan 15, 2026 8-K d27429d8k.htm View →

Frequently Asked Questions about CVGW

What is the AI rating for CVGW?

CALAVO GROWERS INC (CVGW) has an AI rating of SELL with 75% confidence, based on fundamental analysis of SEC EDGAR filings.

What are CVGW's key strengths?

Strong liquidity position with current ratio of 2.21x and $47.7M cash reserves. Very low debt burden with debt-to-equity of only 0.02x providing financial flexibility.

What are the risks of investing in CVGW?

Negative operating income of -1.4M and operating margin of -1.2% indicates core business is unprofitable. Severely negative free cash flow of -9.4M means operations are destroying shareholder value despite minimal net income.

What is CVGW's revenue and growth?

CALAVO GROWERS INC reported revenue of $122.2M.

Does CVGW pay dividends?

CALAVO GROWERS INC pays dividends, with $3.6M distributed to shareholders in the trailing twelve months.

Where can I find CVGW SEC filings?

Official SEC filings for CALAVO GROWERS INC (CIK: 0001133470) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is CVGW's EPS?

CALAVO GROWERS INC has a diluted EPS of $0.04.

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 23, 2026 | Data as of: 2026-01-31 | Powered by Claude AI