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what it is
Calavo buys, packs, ripens, and sells avocados plus prepared foods like guacamole and salsa.
how it gets paid
Last year Calavo Growers made $648M in revenue. Avocados was the main engine at $410M, or 63% of sales.
why growth slowed
Revenue fell 2.0% last year. The $122M quarter mattered because sales fell 21% while gross margin stayed stuck at 12.4%.
what just happened
$122M in quarterly revenue fell 21%, and EPS dropped to $0.04.
At a glance
B+ balance sheet — decent shape, but not bulletproof
20/100 earnings predictability — expect surprises
29.0x trailing p/e — priced about right
3.4% dividend yield — cash in your pocket every quarter
4.0% return on capital — nothing to write home about
xvary composite: 53/100 — below average
What they do
Calavo buys, packs, ripens, and sells avocados plus prepared foods like guacamole and salsa.
Calavo sits in the ugly middle of the food chain. It sorts, packs, and ripens avocados, tomatoes, and papayas across California, Mexico, and other regions, using 2,106 employees. That means your grocery buyer gets one counterparty for $648M of messy, perishable product.
How they make money
$648M
annual revenue · their business grew -2.0% last year
Avocados
$410M
-21.0%
Prepared foods
$118M
n/a
Tomatoes and papayas
$72M
n/a
Distribution, ripening, and other fresh foods
$48M
n/a
The products that matter
packing and distribution
Fresh Avocados
~$410M · ~63% of revenue
This matches the avocado segment in the revenue table above. It fell about 21% in the latest quarter because average selling prices dropped sharply. When avocado pricing moves, your numbers move with it.
main revenue driver
processing and packaging
Guacamole & Prepared Foods
~$238M · ~37% of revenue
This rolls up prepared foods plus tomatoes, papayas, distribution, and other fresh lines so the two cards sum to the ~$648M total. Strength here was not enough to offset weakness in fresh avocados.
smaller stabilizer
Key numbers
$648M
annual revenue
That is the size of the pile Calavo has to push through packing rooms, trucks, and grocery buyers.
4.3%
op margin
For every $100 of sales, only $4.30 reaches operating profit. That is thin even by grocery standards.
3.4%
dividend yield
You get paid while waiting, but the payout sits on top of a low-margin produce business.
$20M
long-term debt
The balance sheet is not loaded, which helps when fruit pricing gets weird.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 3 — safer than 50% of stocks
- price stability 30 / 100
- long-term debt $20M (4% of capital)
B+ — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for CVGW right now.
source: institutional data · return history unavailable
What just happened
missed estimates
$122M in quarterly revenue fell 21%, and EPS dropped to $0.04.
Avocado pricing weakened, and gross profit came in at $15.2M. Gross margin was 12.4%, so the quarter had very little cushion.
$122M
revenue (Q)
$0.04
eps (Q)
12.4%
gross margin (Q)
the number that mattered
The $122M quarter mattered because sales fell 21% while gross margin stayed stuck at 12.4%.
source: company earnings report, 2026
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What could go wrong
Your primary risk is the Mission Produce acquisition breaking or dragging out. If that happens, you are left owning the standalone avocado business the market is already discounting.
high
deal failure
The stock price is being framed by a stated $32 takeout value and a roughly $490M transaction. If the deal is terminated, the market has to revalue the standalone company fast.
This is the most binary risk on the page.
high
avocado price volatility
A 35% drop in average selling prices produced a 21% revenue decline in the latest quarter. When one commodity drives three quarters of your shown revenue mix, price volatility is not a side issue.
It hits sales first, then squeezes already-thin margins.
med
supply chain and sourcing exposure
Calavo relies on growers and cross-border produce flows. Weather, pests, and disruption in key avocado regions can tighten supply or change pricing without warning.
Thin-margin businesses feel operational friction immediately.
med
leadership transition during a deal process
Former CEO Lecil E. Cole retired in December 2025. John Pawlowski is handling merger execution and a soft operating backdrop at the same time.
You do not usually want fresh management and event risk arriving together.
A delayed or failed deal would matter immediately, but even a closed deal is happening against a business that just reported a 21% revenue decline and only $15.2M in gross profit.
source: institutional data · regulatory filings · risk analysis
Pay attention to
catalyst
Mission Produce close timing
Current page data points to fiscal Q3 2026. If that timing slips, the merger spread can widen fast.
trend
average avocado selling prices
The latest 35% drop was the quarter's defining number. You want to see that pressure stabilize, not repeat.
metric
gross profit, not just EPS
Gross profit fell from $15.7M to $15.2M. In a commodity business, that line tells you more than a one-quarter EPS beat does.
risk
standalone downside if the deal breaks
If the acquisition fails, the market has to price CVGW as a 29x earnings, low-predictability produce distributor again. That is a very different setup.
Analyst rankings
earnings predictability
20 / 100
In human-speak, analysts do not view this as a smooth, easy-to-model earnings story.
risk rank
3
That reads as roughly middle-of-the-pack risk. Safer than the weakest names, but nowhere near bunker status.
source: institutional data
Institutional activity
institutional ownership data for CVGW is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$22
current price
n/a
target midpoint · n/a from current
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