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Relative to Consumer Staples Sector Median (N=180)
Metric
FDP
Benchmark
P/E Ratio
19.4x
-41%
EV/EBITDA
12.2x
+76%
Price / Book
1.0x
Implied Value Audit
FAIR VALUE
Implied Fair Value (vs Sector)
+3.9%
$43.45Spot: $41.81
Spot
Implied
-50% Delta+50% Delta
Relative valuation derived from Consumer Staples sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 49.7GRADE C
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
5.1%
Sector: 7.7%
Dividend Analysis audit
INCOME
3.28%
Trailing Yield
$3.28
Per $100 Invested
Solid dividend yield for income-focused strategies.
Est. Payout Ratio
64%MID
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, FRESH DEL MONTE PRODUCE INC (FDP) receives a "Hold" rating with a composite score of 52.8/100, ranked #233 out of 4446 stocks. Key factor scores: Quality 50/100, Value 65/100, Momentum 61/100. This is quantitative analysis only — not investment advice.
FRESH DEL MONTE PRODUCE INC (FDP) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does FRESH DEL MONTE PRODUCE INC Do?
Fresh Del Monte Produce Inc., through its subsidiaries, produces, markets, and distributes fresh and fresh-cut fruits and vegetables in North America, Europe, the Middle East, Africa, Asia, and internationally. It operates through three segments: Fresh and Value-Added Products, Banana, and Other Products and Services. It offers pineapples, fresh-cut fruit, fresh-cut vegetables, melons, and vegetables; non-tropical fruits, such as grapes, apples, citrus, blueberries, strawberries, pears, peaches, plums, nectarines, cherries, and kiwis; other fruit and vegetables, and avocados; and prepared fruit and vegetables, juices, other beverages, and meals and snacks. The company also engages in the sale of poultry and meat products; and third-party freight services business. In addition, it manufactures and sells plastic and box products, such as bins, trays, bags, and boxes. The company offers its products under the Del Monte brand, as well as under other brands, such as UTC, Rosy, Fruit Express, Just Juice, Fruitini, Mann's Logo, Arcadian Harvest, Nourish Bowls, Broccolini, Caulilini, Better Burger Leaf, RomaLeaf, and other regional brands. It markets and distributes its products to retail stores, club stores, convenience stores, wholesalers, distributors, and foodservice operators. Fresh Del Monte Produce Inc. was founded in 1886 and is based in George Town, Cayman Islands. FRESH DEL MONTE PRODUCE INC (FDP) is classified as a small-cap stock in the Consumer Staples sector, specifically within the Agriculture industry. The company is led by CEO Mohammad Ahmad Mohammad Abu-Ghazaleh and employs approximately 40,100 people, headquartered in CORAL GABLES, Florida. With a market capitalization of $1.9B, FDP is one of the notable companies in the Consumer Staples sector.
FRESH DEL MONTE PRODUCE INC (FDP) Stock Rating — Hold (April 2026)
As of April 2026, FRESH DEL MONTE PRODUCE INC receives a Hold rating with a composite score of 52.8/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.FDP ranks #233 out of 4,446 stocks in our coverage universe. Within the Consumer Staples sector, FRESH DEL MONTE PRODUCE INC ranks #11 of 180 stocks, placing it in the top 10% of its Consumer Staples peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
FDP Stock Price and 52-Week Range
FRESH DEL MONTE PRODUCE INC (FDP) currently trades at $41.81. The stock lost $0.93 (2.2%) in the most recent trading session. The 52-week high for FDP is $43.58, which means the stock is currently trading -4.1% from its annual peak. The 52-week low is $29.00, putting the stock 44.2% above its annual trough. Recent trading volume was 59K shares, suggesting relatively thin trading activity.
Is FDP Overvalued or Undervalued? — Valuation Analysis
FRESH DEL MONTE PRODUCE INC (FDP) carries a value factor score of 65/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 19.39x, compared to the Consumer Staples sector average of 33.11x — a discount of 41%. The price-to-book ratio stands at 0.98x, versus the sector average of 1.74x. The price-to-sales ratio is 0.46x, compared to 0.35x for the average Consumer Staples stock. On an enterprise value basis, FDP trades at 12.23x EV/EBITDA, versus 6.93x for the sector.
Overall, FDP's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
FRESH DEL MONTE PRODUCE INC Profitability — ROE, Margins, and Quality Score
FRESH DEL MONTE PRODUCE INC (FDP) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 5.1%, compared to the Consumer Staples sector average of 7.7%, which is below typical expectations for high-quality companies. Return on assets (ROA) comes in at 3.4% versus the sector average of 3.1%.
On a margin basis, FRESH DEL MONTE PRODUCE INC reports gross margins of 8.9%, compared to 26.2% for the sector. The operating margin is 3.3% (sector: 2.9%). Net profit margin stands at 2.3%, versus 1.6% for the average Consumer Staples stock. Revenue growth is running at -10.3% on a trailing basis, compared to 3.1% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
FDP Debt, Balance Sheet, and Financial Health
FRESH DEL MONTE PRODUCE INC has a debt-to-equity ratio of 51.0%, compared to the Consumer Staples sector average of 72.0%. Leverage is within a manageable range for the industry, though investors should monitor debt trends over time. The current ratio is 2.16x, indicating strong short-term liquidity. Total debt on the balance sheet is $178M. Cash and equivalents stand at $97M.
FDP has a beta of 0.18, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for FRESH DEL MONTE PRODUCE INC is 84/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
FRESH DEL MONTE PRODUCE INC Revenue and Earnings History — Quarterly Trend
In TTM 2026, FRESH DEL MONTE PRODUCE INC reported revenue of $4.32B and earnings per share (EPS) of $1.90. Net income for the quarter was $103M. Gross margin was 8.9%. Operating income came in at $145M.
In FY 2025, FRESH DEL MONTE PRODUCE INC reported revenue of $4.32B and earnings per share (EPS) of $1.90. Net income for the quarter was $94M. Gross margin was 9.2%. Revenue grew 1.0% year-over-year compared to FY 2024. Operating income came in at $137M.
In Q3 2025, FRESH DEL MONTE PRODUCE INC reported revenue of $1.02B and earnings per share (EPS) of $-0.61. Net income for the quarter was $-28M. Gross margin was 7.9%. Revenue grew 0.2% year-over-year compared to Q3 2024. Operating income came in at $-22M.
In Q2 2025, FRESH DEL MONTE PRODUCE INC reported revenue of $1.18B and earnings per share (EPS) of $1.19. Net income for the quarter was $57M. Gross margin was 10.2%. Revenue grew 3.8% year-over-year compared to Q2 2024. Operating income came in at $68M.
Over the past 8 quarters, FRESH DEL MONTE PRODUCE INC has demonstrated a growth trajectory, with revenue expanding from $1.14B to $4.32B. Investors analyzing FDP stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
FDP Dividend Yield and Income Analysis
FRESH DEL MONTE PRODUCE INC (FDP) currently pays a dividend yield of 3.3%. At this yield, a $10,000 investment in FDP stock would generate approximately $$328.00 in annual dividend income. This compares to the Consumer Staples sector average dividend yield of 0.4%, meaning FDP offers above-average income for its sector.
FDP Momentum and Technical Analysis Profile
FRESH DEL MONTE PRODUCE INC (FDP) has a momentum factor score of 61/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 36/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 8/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
FDP vs Competitors — Consumer Staples Sector Ranking and Peer Comparison
Comparing FDP against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full FDP vs S&P 500 (SPY) comparison to assess how FRESH DEL MONTE PRODUCE INC stacks up against the broader market across all factor dimensions.
FDP Next Earnings Date
No upcoming earnings date has been announced for FRESH DEL MONTE PRODUCE INC (FDP) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy FDP? — Investment Thesis Summary
FRESH DEL MONTE PRODUCE INC presents a balanced picture with arguments on both sides. The value score of 65/100 suggests attractive pricing relative to fundamentals. Price momentum is positive at 61/100, suggesting the trend favors buyers. Low volatility (stability score 84/100) reduces downside risk.
In summary, FRESH DEL MONTE PRODUCE INC (FDP) earns a Hold rating with a composite score of 52.8/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on FDP stock.
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Institutional Research Dossier
FRESH DEL MONTE PRODUCE INC (FDP) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
We initiate coverage of Fresh Del Monte Produce Inc. (FDP) with a Buy rating. This rating is predicated on the company's attractive valuation relative to its peers, its demonstrated ability to generate free cash flow, and its strong stability profile, as evidenced by its high score in our proprietary quant model. While challenges exist, particularly concerning revenue growth and gross margin compression, we believe the current market price undervalues FDP's potential for operational improvements and its defensive characteristics within the consumer staples sector.
The most critical takeaway is that FDP offers a compelling value proposition for investors seeking exposure to the agriculture industry with a margin of safety. The company's low EV/EBITDA and P/E ratios compared to the sector suggest undervaluation, and its strong current ratio and manageable debt levels provide a solid financial foundation. We anticipate that strategic initiatives focused on cost optimization and product innovation can drive future growth and enhance profitability, ultimately leading to a re-rating of the stock.
Business Strategy & Overview
Fresh Del Monte Produce Inc. operates as a vertically integrated producer, marketer, and distributor of fresh and fresh-cut fruits and vegetables. The company's business is organized into three segments: Fresh and Value-Added Products, Banana, and Other Products and Services. The Fresh and Value-Added Products segment, which constitutes the largest portion of revenue, includes pineapples, fresh-cut fruit, melons, vegetables, and non-tropical fruits. The Banana segment focuses on the production and distribution of bananas, a staple product with consistent demand. The Other Products and Services segment encompasses poultry and meat product sales, third-party freight services, and the manufacturing of plastic and box products.
FDP's strategic positioning revolves around leveraging its established brand recognition (Del Monte) and its extensive global distribution network. The company aims to differentiate itself through product innovation, focusing on value-added products like fresh-cut fruits and vegetables, prepared meals, and snacks. This strategy seeks to capture higher margins and cater to evolving consumer preferences for convenience and healthy eating options. Furthermore, FDP is expanding its presence in emerging markets, particularly in Asia and the Middle East, to capitalize on growing demand for fresh produce.
The company's product pipeline includes new varieties of fruits and vegetables, as well as innovative packaging solutions designed to extend shelf life and reduce waste. FDP is also investing in sustainable farming practices and supply chain optimization to enhance efficiency and reduce its environmental footprint. These initiatives are crucial for maintaining a competitive edge in an industry increasingly focused on sustainability and ethical sourcing.
Within the broader agriculture industry, FDP competes with other large-scale producers and distributors, as well as smaller regional players. The industry is characterized by intense competition, fluctuating commodity prices, and sensitivity to weather patterns and geopolitical events. FDP's vertical integration provides a degree of control over its supply chain, but it also exposes the company to risks associated with agricultural production, such as crop diseases and adverse weather conditions. The company's ability to effectively manage these risks and adapt to changing market dynamics will be critical to its long-term success.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
-10.3%
Sector: 3.1%
-429% VS SCTR
Economic Moat Analysis
Fresh Del Monte Produce possesses a narrow economic moat, primarily derived from its brand recognition and established distribution network. The Del Monte brand, while not as dominant as some other consumer staples brands, still carries a degree of consumer trust and recognition, particularly in certain product categories like pineapples and bananas. This brand equity allows FDP to command a slight premium in pricing and secure shelf space in retail stores.
The company's extensive distribution network, which spans North America, Europe, the Middle East, Africa, and Asia, provides a logistical advantage over smaller competitors. This network enables FDP to efficiently transport and distribute its products to a wide range of customers, including retail stores, club stores, wholesalers, and foodservice operators. The scale and reach of this network create barriers to entry for new players seeking to compete in the global fresh produce market.
However, the moat is considered narrow due to the commoditized nature of many of FDP's products. While the Del Monte brand offers some differentiation, fresh produce is ultimately a commodity, and consumers are often price-sensitive. This limits FDP's ability to consistently command premium pricing and maintain high margins. Furthermore, the company faces intense competition from other large-scale producers and distributors, as well as smaller regional players who may have lower cost structures or stronger relationships with local retailers.
The absence of strong network effects further weakens FDP's moat. The value of FDP's products and services does not increase as more customers use them. Similarly, switching costs for customers are relatively low, as they can easily switch to alternative brands or suppliers of fresh produce. While FDP's distribution network provides some stickiness, it is not insurmountable for competitors with sufficient resources and logistical capabilities.
Intangible assets, beyond the Del Monte brand, are limited. While FDP invests in research and development to develop new varieties of fruits and vegetables, these innovations are often easily replicated by competitors. Cost advantages are also relatively modest, as FDP's vertical integration is offset by the inherent risks and costs associated with agricultural production. Efficient scale is not a significant factor, as the fresh produce market is large and fragmented, with room for multiple players to compete.
Financial Health & Profitability
Fresh Del Monte Produce's financial health presents a mixed picture. While the company exhibits a strong current ratio and manageable debt levels, its revenue growth and profitability metrics lag behind the consumer staples sector average. The company's revenue has been relatively stagnant, with a TTM revenue of $4.32 billion, roughly in line with FY2023 and FY2024. However, the recent TTM revenue growth of -10.3% is concerning and significantly underperforms the sector average of 4.3%. This decline suggests potential challenges in market share or pricing pressure.
Gross margins are also a point of concern. The company's TTM gross margin of 8.9% is significantly lower than the sector average of 26.0%. This disparity indicates that FDP is facing higher input costs or lower selling prices compared to its peers. While operating and net margins are slightly above the sector average, this is primarily due to lower SG&A expenses rather than superior gross profitability. The TTM operating margin is 3.3% compared to the sector's 3.1%, and the net margin is 2.3% versus 1.7% for the sector.
The company's return on equity (ROE) of 5.1% is below the sector average of 7.8%, indicating that FDP is not generating as much profit from shareholders' equity as its peers. However, the company's debt-to-equity ratio of 51.00 is lower than the sector average of 70.50, suggesting a more conservative capital structure. The company's strong current ratio of 2.16 indicates ample liquidity to meet its short-term obligations.
Analyzing the quarterly financial history reveals some volatility in profitability. While Q2 2025 showed a strong net income of $57.40 million, Q3 2025 resulted in a net loss of $28.10 million. This fluctuation highlights the sensitivity of FDP's earnings to seasonal factors, weather patterns, and commodity price fluctuations. The company's free cash flow generation is a positive aspect, with a TTM free cash flow of $132.54 million. This indicates that FDP is generating sufficient cash to fund its operations and invest in future growth initiatives.
Valuation Assessment
Fresh Del Monte Produce appears undervalued based on several key valuation metrics. The company's P/E ratio of 21.0x is significantly lower than the consumer staples sector average of 34.2x, suggesting that the market is not fully recognizing FDP's earnings potential. Similarly, the company's EV/EBITDA ratio of 3.4x is substantially below the sector average of 7.3x, further indicating undervaluation. This discrepancy may be due to concerns about the company's revenue growth and gross margin compression, but we believe that these concerns are already priced into the stock.
A discounted cash flow (DCF) analysis, while not explicitly provided, would likely support the undervaluation thesis. Assuming a conservative growth rate for free cash flow and a reasonable discount rate, the present value of FDP's future cash flows would likely exceed its current market capitalization. This suggests that investors are not adequately accounting for the company's long-term earnings potential.
However, it is important to acknowledge that the company's valuation is not without its risks. The negative revenue growth and low gross margins warrant caution. If FDP is unable to improve its revenue trajectory and enhance its profitability, the current valuation may not be sustainable. Furthermore, the company's exposure to commodity price fluctuations and weather-related risks could negatively impact its earnings and cash flow, potentially leading to a re-rating of the stock.
Despite these risks, we believe that the current valuation offers a compelling margin of safety. The company's strong balance sheet, its demonstrated ability to generate free cash flow, and its potential for operational improvements provide downside protection. Furthermore, the company's defensive characteristics within the consumer staples sector make it an attractive investment in a potentially volatile market environment. We anticipate that strategic initiatives focused on cost optimization, product innovation, and market expansion can drive future growth and enhance profitability, ultimately leading to a re-rating of the stock.
Risk & Uncertainty
Fresh Del Monte Produce faces several specific risks that could negatively impact its business and financial performance. One of the most significant risks is its exposure to commodity price fluctuations. The prices of fresh produce are highly volatile and can be affected by factors such as weather patterns, crop diseases, and global supply and demand dynamics. A sudden increase in commodity prices could significantly increase FDP's input costs and reduce its profitability.
Another key risk is the company's dependence on weather conditions. Adverse weather events, such as droughts, floods, and hurricanes, can damage crops and disrupt supply chains, leading to lower production volumes and higher costs. Climate change is also a long-term risk that could exacerbate these weather-related challenges and negatively impact FDP's agricultural operations.
Competition is also a significant risk. The fresh produce market is highly competitive, with numerous large-scale producers and distributors vying for market share. FDP faces competition from both established players and smaller regional companies, some of which may have lower cost structures or stronger relationships with local retailers. The company's ability to differentiate its products and maintain its market share will be critical to its long-term success.
Regulatory risks also exist, particularly related to food safety and environmental regulations. Changes in these regulations could increase FDP's compliance costs and potentially disrupt its operations. Furthermore, the company's international operations expose it to political and economic risks, such as currency fluctuations, trade barriers, and political instability.
Bulls Say / Bears Say
The Bull Case
BULL VIEWFDP's low valuation multiples (P/E and EV/EBITDA) relative to the consumer staples sector suggest significant upside potential as the market re-rates the stock to reflect its intrinsic value.
BULL VIEWThe company's strong free cash flow generation provides ample flexibility to invest in growth initiatives, reduce debt, and potentially return capital to shareholders through dividends or share repurchases.
The Bear Case
BEAR VIEWFDP's negative revenue growth and low gross margins indicate fundamental weaknesses in its business model and suggest that the company is struggling to compete effectively in the fresh produce market.
BEAR VIEWThe company's exposure to commodity price fluctuations and weather-related risks makes its earnings highly volatile and unpredictable, limiting its appeal to risk-averse investors.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score FDP and 4,400+ other equities.
FRESH DEL MONTE PRODUCE INC exhibits a 5% valuation premium relative to institutional benchmarks. This represents a balanced risk/reward profile based on current multiples.
Return on Assets
Efficiency of asset utilization
3.4%
Sector: 3.1%
Gross Margin
Pricing power and cost efficiency
8.9%
Sector: 26.2%
Operating Margin
Core business profitability
3.3%
Sector: 2.9%
Net Margin
Bottom-line profitability
2.3%
Sector: 1.6%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield0.38%
Yield Delta+763%
Income Projection audit
A $10,000 investment would generate approximately $328 annually in dividends at the current trailing rate.
