DOLE

We rate Dole plc (DOLE) as a Buy with a composite score of 72.0/100 at a current price of $15.98. The stock scores above average across the majority of our six quantitative factors and ranks #53 out of 7,333 stocks in our universe, reflecting a favorable risk-reward profile.

The rating is primarily driven by strength in value (93th percentile) and investment (85th percentile), which together account for the majority of the composite score. All factors score above the 40th percentile, indicating no material weakness in the quantitative profile. We assign a Wide Moat rating (70/100), Low uncertainty, and Exemplary capital allocation.

Key items to watch: quarterly earnings execution and sector-level competitive dynamics. Any material change in these dynamics could warrant a reassessment of our rating. The moat trend is stable, which suggests the competitive landscape is stable for now.

Dole plc holds a top-quartile position (#1 of 17) within the Agriculture, Forestry, And Fishing sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 72.0/100 places it at rank #53 in our full 7,333-stock universe. At $1.3B in market capitalization, Dole plc is a small-cap player in the Agriculture, Forestry, And Fishing space, which limits certain scale advantages but may allow for more agile strategic execution.

Revenue is growing at 3%, though momentum at the 52th percentile suggests the market has not yet fully recognized this trajectory. This potential disconnect between fundamental improvement and market recognition could represent an opportunity for patient investors if the growth trend persists.

The margin cascade tells an important story: gross margins of 8% (-9.8pp vs sector) narrow to operating margins of 3% (+1.1pp vs sector) and net margins of 1.7%, yielding a gross-to-net conversion rate of 20%. This conversion rate is typical for the sector, suggesting a standard cost structure without notable efficiency advantages or disadvantages.

At a current price of $15.98, Dole plc appears undervalued relative to its fundamentals. Our value factor score of 93/100 reflects a composite assessment across multiple valuation metrics including price-to-earnings, price-to-book, EV/EBITDA, and price-to-sales ratios relative to both sector peers and the broader market. The stock screens as attractively priced on a majority of these measures, suggesting the market may be underappreciating the underlying fundamentals.

The stock currently trades at a P/E of 12.0x (roughly in line with the sector median of 11.1x), EV/EBITDA of 1.3x (discounted to peers), P/B of 1.2x, P/S of 0.0x. The above-sector P/E multiple suggests the market is pricing in superior growth or quality, which our analysis partially supports given strong quality metrics.

We assign a Low uncertainty rating to Dole plc. The company exhibits strong financial stability with a beta of 0.30, and a stability factor in the 77th percentile. The predictable nature of the business model and solid financial position reduce the range of potential outcomes, giving us confidence in our fair value estimate.

Specific risk factors that inform our assessment include: low beta of 0.30 — while defensive, this may indicate limited upside participation in bull markets; the combination of leverage (73% D/E) and thin margins (1.7% net) amplifies downside risk. Each of these factors independently widens the distribution of potential outcomes, and in combination they create a risk profile that demands careful position sizing. The stability factor at the 77th percentile and quality factor at the 84th percentile provide a quantitative summary of the overall risk landscape.

Key risk mitigants include: above-average stability (77th percentile) suggests predictable business dynamics; a 2.36% dividend yield anchors total return. These factors partially offset the identified risks and provide downside protection in adverse scenarios. On balance, the risk-reward profile is favorable for long-term investors.

We rate Dole plc's capital allocation as Exemplary. Management demonstrates a strong track record of balancing reinvestment with shareholder returns, evidenced by returns on equity of 44.4%, a 2.36% dividend yield. Exemplary allocators typically generate returns on equity above 20% while maintaining debt-to-equity below 50% — Dole plc meets this high bar.

The balance sheet remains conservatively managed, providing financial flexibility for opportunistic investments while maintaining a margin of safety for shareholders. The company returns capital via a 2.36% dividend yield, and the combination of 12.9% return on assets and controlled leverage suggests management is deploying capital at rates well above the cost of capital — the hallmark of exemplary stewardship.

In summary, Dole plc receives a Buy rating with a composite score of 72.0/100 (rank #53 of 7,333). Our quantitative framework assigns a Wide Moat (70/100, trend: stable), Low uncertainty, and Exemplary capital allocation. The average factor score across quality, value, momentum, stability, and investment is 78/100.

Our analysis supports a constructive view on Dole plc. The combination of a wide competitive moat, low uncertainty, and exemplary capital allocation creates a risk-reward profile that favors accumulation at current levels. We recommend investors consider adding this name to portfolios aligned with the stock's risk profile.