Mission Produce, Inc. (AVO) AI Stock Analysis
AVO AI stock analysis summary
AI ResearchMission Produce, Inc. is a global distributor and marketer of fresh avocados, blueberries, and mangoes. Over the trailing twelve months, the company generated $1.34B in revenue, though profit margins stood thin at 0.1%. Looking ahead, analysts project revenue will reach $1.46B for the fiscal year ending October 31, 2026.
- Market cap
- $1.07B
- Revenue (TTM)
- $1.34B
- P/E
- 406.7x fwd 13.8x
- 1Y return
- 4.1% S&P 500 16.8%
- Avg. target
- $16.50 35.2% vs last close
Bull case
- Quarterly revenue grew 25.8% year-over-year in the quarter ending July 31, 2026, demonstrating strong top-line momentum.
- All 4 covering analysts rate the company a Strong Buy, with an average price target of $16.50 representing 35.2% upside from the recent price of $12.20.
- Analysts project next fiscal year earnings to rebound 26.2% to $0.80 per share on revenue of $1.69B.
Bear case
- The stock trades at an elevated trailing P/E of 406.7x and an EV/EBITDA of 23.5x, well above the peer group medians of 18.6x and 11.7x.
- Trailing twelve-month net profit margin is compressed at 0.1%, paired with an EPS of just $0.03.
- Long-term stock performance has lagged broader markets, with a five-year return of -35.9% compared to 83.0% for the S&P 500.
What Mission Produce does
Mission Produce, Inc. specializes in the sourcing, cultivation, packaging, marketing, and global distribution of avocados, mangoes, and blueberries. Founded in 1983 and headquartered in Oxnard, California, the company serves food retailers, distributors, and foodservice providers worldwide. It operates across three primary business segments: Marketing and Distribution, International Farming, and Blueberries. These segments cover the produce supply chain from farm to market. Additionally, Mission Produce provides value-added customer services, which include fruit ripening, custom packing, logistical management, and merchandising support, along with market trend insights and partner training programs.
Growth and profitability
Mission Produce achieved a five-year revenue compound annual growth rate of 10.0% between FY2020 and FY2025. Annual revenue expanded from $891.7M in FY2021 to $1.39B in FY2025, while net income shifted from $44.9M in FY2021 down to -$34.6M in FY2022 before recovering to $37.7M in FY2025. For the trailing twelve months, revenue reached $1.34B with an operating margin of 2.0% and diluted EPS of $0.03. In the latest quarter ending July 31, 2026, quarterly revenue increased 25.8% year-over-year, while quarterly earnings declined 4.2%.
Balance sheet and cash flow
As of July 31, 2026, Mission Produce held $47.1M in cash and short-term investments against total debt of $518.6M, resulting in net debt of $471.5M. The company maintains a current ratio of 1.92 and a debt-to-equity ratio of 0.68 against shareholders' equity of $764.0M. During FY2025, the business produced $88.6M in operating cash flow and $37.2M in free cash flow. Capital allocation in FY2025 included $51.4M for capital expenditures and $6.1M spent on share buybacks, while the share count increased 16.4% over five years.
Valuation and performance
At a share price of $12.20, Mission Produce trades at an enterprise value of $1.59B and a market capitalization of $1.07B. The stock trades at a trailing price-to-earnings multiple of 406.7x and a forward price-to-earnings ratio of 13.8x, compared to medians of 18.6x and 14.3x for its US-listed Consumer Defensive peers. Its EV-to-EBITDA ratio of 23.5x sits above the peer median of 11.7x. Over the past year, AVO delivered a 4.1% return, trailing the 16.8% return of the S&P 500 (SPY). Over a five-year period, AVO returned -35.9% compared to 83.0% for the S&P 500.
What analysts expect
Wall Street sentiment is positive, with 4 analysts assigning a Strong Buy rating, 0 Buys, 0 Holds, and 0 Sells. The mean price target is $16.50, representing a 35.2% premium over the last closing price of $12.20. Over the last four quarters, the company beat EPS consensus estimates 3 times. For the fiscal year ending October 31, 2026, analysts estimate revenue of $1.46B and EPS of $0.63, a 20.2% decline. For the next fiscal year, 4 analysts project revenue will grow 16.0% to $1.69B, with EPS projected to rebound 26.2% to $0.80.
Key risks and what to watch
- Net debt stands at $471.5M relative to cash reserves of $47.1M, creating ongoing balance sheet obligations.
- Profitability has been volatile, evidenced by annual net income fluctuating from -$34.6M in FY2022 to $37.7M in FY2025.
- Diluted EPS is projected to fall 20.2% to $0.63 in the fiscal year ending October 31, 2026.
- Short interest sits at 8.2% of the public float, indicating negative sentiment among some market participants.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this AVO AI stock analysis
This page is an AI-written research summary of Mission Produce, Inc. (AVO). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: AVO income statement, AVO balance sheet, AVO key metrics, AVO analyst forecast, AVO chart. See the AVO stock overview for the latest quote and news.
AVO AI stock analysis FAQ
Does Mission Produce pay a dividend?
No, Mission Produce does not pay a regular dividend based on its reported cash flow allocation, which instead directed capital toward $51.4M in capex and $6.1M in share buybacks in FY2025.
What is the consensus price target for AVO stock?
Covering analysts have established a mean price target of $16.50, which stands 35.2% above the October 16, 2026 closing price of $12.20.
Who are the major owners of Mission Produce shares?
Company insiders own 38.4% of Mission Produce shares, while institutional investors hold 47.6%.
What are Mission Produce's revenue and earnings expectations for FY2026?
For the fiscal year ending October 31, 2026, analysts estimate revenue of $1.46B and EPS of $0.63, reflecting a 20.2% decline in earnings.