📊 CVGW Key Takeaways
Is Calavo Growers Inc. (CVGW) a Good Investment?
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.
Calavo Growers shows a mixed fundamental profile: the balance sheet is strong with high liquidity, low debt, and substantial cash, but core earnings quality remains weak because operating income is negative and cash flow is materially negative. The company appears financially stable in the near term, yet sustained improvement in operating margin and free cash flow is necessary for the fundamentals to become clearly stronger.
Why Buy Calavo Growers Inc. Stock? CVGW 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
- Healthy balance sheet with $205.7M stockholders equity relative to $298.2M total assets
- Strong liquidity profile with a 2.21x current ratio, 1.66x quick ratio, and $47.67M in cash
- Very low leverage with just 0.02x debt-to-equity and only $4.84M of long-term debt
- Net income remained positive and diluted EPS improved sharply year over year
CVGW Stock Risks: Calavo Growers Inc. Investment 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
- Operating profitability is weak, with negative operating income and a -1.2% operating margin
- Cash generation is poor, with negative operating cash flow and negative free cash flow
- Revenue declined year over year, suggesting limited growth momentum and weak growth quality
Key Metrics to Watch
- Operating cash flow trend and path to positive cash generation
- Gross margin sustainability and pricing power in avocado markets
- Revenue stabilization and return to growth trajectory
- Operating leverage and path to positive operating income
- Operating cash flow and free cash flow trend
- Operating margin improvement versus revenue growth
Calavo Growers Inc. (CVGW) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.21x current ratio provides a solid financial cushion.
CVGW Profit Margin, ROE & Profitability Analysis
CVGW vs Services Sector: How Calavo Growers Inc. Compares
How Calavo Growers Inc. compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Calavo Growers Inc. Stock Overvalued? CVGW Valuation Analysis 2026
Based on fundamental analysis, Calavo Growers Inc. has mixed fundamental signals relative to the Services sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Calavo Growers Inc. Balance Sheet: CVGW Debt, Cash & Liquidity
CVGW Revenue & Earnings Growth: 5-Year Financial Trend
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 Revenue Growth, EPS Growth & YoY Performance
CVGW Quarterly Earnings & Performance
| 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.
Calavo Growers Inc. Dividends, Buybacks & Capital Allocation
CVGW SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Calavo Growers Inc. (CIK: 0001133470)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CVGW
What is the AI rating for CVGW?
Calavo Growers Inc. (CVGW) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (HOLD) with 74% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CVGW's key strengths?
Claude: 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. ChatGPT: Strong liquidity profile with a 2.21x current ratio, 1.66x quick ratio, and $47.67M in cash. Very low leverage with just 0.02x debt-to-equity and only $4.84M of long-term debt.
What are the risks of investing in CVGW?
Claude: 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. ChatGPT: Operating profitability is weak, with negative operating income and a -1.2% operating margin. Cash generation is poor, with negative operating cash flow and negative free cash flow.
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?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is CVGW a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Calavo Growers Inc. has a SELL rating with 74% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is CVGW stock overvalued or undervalued?
Valuation metrics for CVGW: ROE of 0.4% (sector avg: 16%), net margin of 0.6% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy CVGW stock in 2026?
Our dual AI analysis gives Calavo Growers Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is CVGW's free cash flow?
Calavo Growers Inc.'s operating cash flow is $-8.7M, with capital expenditures of $788.0K. FCF margin is -7.7%.
How does CVGW compare to other Services stocks?
Vs Services sector averages: Net margin 0.6% (avg: 10%), ROE 0.4% (avg: 16%), current ratio 2.21 (avg: 1.5).