Del Monte Corporation (DMC) AI Stock Analysis
DMC AI stock analysis summary
AI ResearchDel Monte Corporation is a global producer and distributor of fresh fruits, vegetables, and prepared foods. The company generated $4.30B in trailing twelve-month revenue, but operating margins stood at 3.9% and TTM EPS was $0.70. While shares offer a 4.05% dividend yield, the stock has dropped 14.7% year-to-date.
- Market cap
- $1.40B
- Revenue (TTM)
- $4.30B
- P/E
- 42.3x fwd 17.9x
- 1Y return
- -7.4% S&P 500 16.8%
- Avg. target
- $52.00 75.7% vs last close
Bull case
- The stock offers a 4.05% dividend yield with a payout ratio of 43.8% and 17 consecutive years of dividend payments.
- Free cash flow expanded to $183.8M in FY2025 from $130.8M in FY2024, underpinned by operating cash flow of $247.6M.
- Del Monte has topped EPS expectations in each of the last 4 quarters, with the single analyst target of $52.00 sitting 75.7% above the last close.
Bear case
- Net income and earnings remain volatile, with quarterly earnings falling 62.7% year-over-year in the period ended June 30, 2026.
- Top-line growth has been muted, posting a 5-year revenue CAGR of 0.5% from FY2020 through FY2025.
- Trailing operating margin of 3.9% remains well below the US-listed Consumer Defensive peer median of 9.8%.
What Del Monte does
Del Monte Corporation, formerly known as Fresh Del Monte Produce Inc., produces, markets, and distributes fresh and fresh-cut fruits and vegetables across North America, Europe, the Middle East, North Africa, Asia, and other international markets. The company operates via three segments: Fresh and Value-Added Products, Banana, and Other Products and Services. Its portfolio includes pineapples, fresh-cut produce, melons, avocados, non-tropical fruits, prepared meals, snacks, juices, and third-party freight and logistics services. It sells products under brands including Del Monte, UTC, Rosy, Pinkglow, Honeyglow, Broccolini, and Caulilini to retail stores, club stores, convenience stores, wholesalers, and foodservice operators.
Growth and profitability
Revenue expanded from $4.25B in FY2021 to $4.32B in FY2025, reflecting a 5-year revenue CAGR of 0.5%. Gross margin widened over the same period from 6.9% to 9.2%, while operating margin rose from 2.3% to 4.3%. Annual net income moved from $80.0M in FY2021 to a loss of -$11.4M in FY2023, before rebounding to $142.2M in FY2024 and $90.7M in FY2025, when EPS reached $3.25. For the trailing twelve months ended June 30, 2026, revenue stood at $4.30B with net margin at 0.8%. In the latest quarter, revenue grew 3.1% year-over-year, while quarterly earnings dropped 62.7%.
Balance sheet and cash flow
As of June 30, 2026, Del Monte held $36.1M in cash and short-term investments against $595.1M in total debt, resulting in net debt of $559.0M. The company maintains a current ratio of 2.23 and a debt-to-equity ratio of 0.30 on shareholders' equity of $2.01B. Total assets stood at $3.38B. Operating cash flow reached $247.6M in FY2025, supporting free cash flow of $183.8M. Cash deployment during FY2025 included $63.8M in capital expenditures, $29.8M in share buybacks, and $57.4M in dividends paid.
Valuation and performance
Del Monte trades at a trailing P/E of 42.3x, above the 18.6x median of its US-listed Consumer Defensive peers. Its forward P/E is 17.9x compared to the peer median of 14.3x. However, its price-to-sales multiple of 0.3x and price-to-book of 0.7x sit lower than peer medians. Enterprise value is $2.01B, with an EV/EBITDA of 13.2x versus the peer median of 11.7x. Over the past year, the stock fell 7.4%, trailing the S&P 500 (SPY) gain of 16.8%. Over five years, the stock returned 3.0% against 83.0% for the S&P 500.
DMC dividend
Del Monte pays a forward annual dividend of $1.20 per share, delivering a dividend yield of 4.05%. The company has paid dividends for 17 consecutive years and generated a 5-year annualized dividend growth rate of 32.0%. The dividend is distributed quarterly with a payout ratio of 43.8%, and the last ex-dividend date was August 12, 2026.
What analysts expect
The single covering analyst assigns a Strong Buy rating to Del Monte, with a mean price target of $52.00, representing 75.7% upside over the last close of $29.60. For the fiscal year ending December 31, 2026, consensus calls for revenue of $4.63B and EPS of $2.25, indicating a 38.9% decline in EPS. In FY2027, the analyst forecasts EPS to rebound 40.0% to $3.15 on revenue of $5.00B. The company beat EPS estimates in all 4 of the last quarters, and its next earnings date is October 28, 2026.
Key risks and what to watch
- Operating margins of 3.9% leave the company sensitive to cost swings compared to peer medians of 9.8%.
- Net debt stands at $559.0M with cash reserves of $36.1M, requiring ongoing operating cash flow generation.
- Earnings for FY2026 are projected to drop 38.9% to $2.25 per share.
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 DMC AI stock analysis
This page is an AI-written research summary of Del Monte Corporation (DMC). 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: DMC income statement, DMC balance sheet, DMC key metrics, DMC analyst forecast, DMC chart. See the DMC stock overview for the latest quote and news.
DMC AI stock analysis FAQ
What dividend does Del Monte Corporation pay?
Del Monte pays a quarterly dividend totaling $1.20 per share annually, which yields 4.05% with a 43.8% payout ratio. The company has paid dividends for 17 consecutive years.
What are analysts forecasting for DMC earnings?
The analyst consensus projects FY2026 EPS of $2.25 on $4.63B in revenue, followed by FY2027 EPS of $3.15 on $5.00B in revenue. DMC beat EPS estimates in all of the last 4 quarters.
How much debt does Del Monte have?
As of June 30, 2026, Del Monte had $595.1M in total debt and $36.1M in cash and short-term investments, resulting in net debt of $559.0M. Its debt-to-equity ratio is 0.30.
When does Del Monte report its next quarterly results?
Del Monte Corporation is scheduled to report earnings next on October 28, 2026.