April 15, 2025
CVGW, $24.10, -0.70 (-2.82%) as of Apr 15, 2025 4:00:00 PM ET

The world can’t seem to get enough of avocados. 🥑 Whether it’s smashed on toast, blended into guacamole, or just eaten with a sprinkle of salt (we see you, avocado lovers), avocados are the fruit of the moment. And behind this green obsession? Calavo Growers, Inc. (CVGW), the company that sources, markets, and distributes all things avocado—and more. 🌍🥑

Let’s slice right into what’s going on with Calavo, from insider buys to financials that may (or may not) have you jumping on the avocado bandwagon. 🍞

CEO’s Big Bet: Avocado Dreams and Greenbacks 🍏💸

Here’s the juicy part: CEO Lecil (Lee) Cole is all in. On April 11, 2025, he bought 21,070 shares at $23.73 per share for a cool $500K. That’s a 4% boost to his avocado-loving portfolio, bringing his total to 536,070 shares. 🤩 He’s definitely a believer. And he's not the only one – CFO James Snyder and EVP Michael Browne have also been snacking on Calavo shares recently. 💰

Plus, with 81.82% of the float owned by institutions, this company has some serious backing. 🏦

Financial Scoop: Are We Talking Guac or Just Filler? 🥑🔍

Let’s break down those numbers, shall we? Calavo’s got a nice scoop of growth, but is it the extra guac we’re all craving, or just a side of chips?

Fiscal Year 2024

• Net Sales: $661.5 million (+11.4% YoY) 📈

• Adjusted Net Income: $18.7 million (+$7.2 million YoY) 💵

• Adjusted EBITDA: $37.0 million (+$3.8 million YoY) 💡

While the company is growing moderately and staying profitable, it's no high-flyer. That’s not exactly “flying high” on a guacamole rocket, but it’s not totally crashing either. Calavo’s doing OK, like that avocado you find that’s just ripe enough. 🥑

Q4 2024

• Net Sales: $170 million (+19.5% YoY) 🚀

• Adjusted Net Income: $0.8 million (+$1.2 million YoY) 🥳

• Net Loss from Operations: -$2.5 million (better than the prior year!) 😅

• Gross Profit: $16.3 million (+14.2% YoY) 💪

So, they’re still working on the perfect recipe, but it’s slowly coming together. You’re not getting a Guacapalooza just yet, but it’s looking promising. 💚

The Guac-isn’t-Green-Without Some Risks 🛑

Of course, there are a few seeds of doubt. 🥑 Here’s the rundown:

1. The turnaround is still cooking 🍳 – We’re not in “avocado toast heaven” yet.

2. Tariffs & supply chain woes 🌍🛠️ – We live in a world of trade wars and shipping snafus.

3. Competition is ripe 🍅 – Other avocado suppliers are throwing their hats into the ring.

4. Shares aren’t a bargain 💰 – At a P/E of 31.21, this isn’t exactly a “cheap” avocado. 🤑

But, hey, that doesn’t mean there’s no hope! Calavo is already streamlining operations (by divesting its fresh cut business), and they're betting on double-digit growth in avocado and guacamole sales. 😋

Wait—They Have a Dividend, Too? 💸💚

Calavo isn’t just about guacamole. There’s also a decent dividend (yield: $0.80 / 3.32%). And let’s not forget the share repurchase program of up to $25 million of the Company's outstanding common stock the Board of Directors has authorized in March 2025—because who doesn’t like a little extra avocado on the side? 🥑

Final Thoughts: Should You Take a Bite? 🍴🤔

So, what’s the verdict? Should you buy into the avocado dream? Calavo isn’t setting the world on fire, but it’s staying relevant with strong institutional backing and a growing core business. 💼

With a solid dividend, some good growth potential in its avocado biz, and a seasoned CEO who knows his way around the avocado tree, Calavo Growers could still be worth a nibble for those looking for a long-term investment with a bit of extra guac and spice. 🥑

Just remember: This isn’t the guacamole of the future yet—but it’s definitely a step in the right direction. So, grab your chips, sit back, and enjoy this slowly ripening investment. 😎

Friendly Disclaimer: We’re not saying you should throw all your savings into avocados (or the stock market), but don’t be afraid to enjoy the ride, one avocado toast at a time. 🌿🍞