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AVOMission Produce, Inc.
$12.70$897M
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  4. Financial Ratios

Mission Produce, Inc. (AVO) Financial Ratios

Latest Ratios: P/E Ratio 24.0x · EV/EBITDA 9.7x · ROE 6.3%. (2018–2025 historical series)

Income StatementBalance SheetCash FlowRatios
AnnualQuarterly

AVO Valuation Multiples

Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018
Market Cap$897M$822M$840M$666M$1.2B$1.3B$931M——
Enterprise Value$1.0B$958M$999M$876M$1.3B$1.5B$985M——
P/E Ratio →23.9621.7422.69——30.1432.17——
P/S Ratio0.650.590.680.701.121.511.08——
P/B Ratio1.461.331.461.262.252.531.97——
P/FCF24.1222.0913.73———80.22——
P/OCF10.139.278.9922.8033.4028.7111.79——

P/E links to full P/E history page with 30-year chart

AVO EV Ratios

Enterprise-value multiples — capital-structure-neutral measures of total business value

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018
EV / Revenue—0.690.810.921.281.661.14——
EV / EBITDA9.749.039.6722.05—17.2711.39——
EV / EBIT14.4513.4313.6981.83—21.2114.40——
EV / FCF—25.7516.33———84.93——

AVO Profitability

Margins and return-on-capital ratios measuring operating efficiency

Margins

Full margin charts and quarterly trend are on the Earnings History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018
Gross Margin11.6%11.6%12.4%8.7%8.6%14.0%14.4%17.5%6.3%
Operating Margin5.1%5.1%5.3%0.7%-3.6%6.8%7.9%12.1%2.2%
Net Profit Margin2.7%2.7%3.0%-0.3%-3.3%5.0%3.3%8.1%8.4%

Return on Capital

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018
ROE6.3%6.3%6.6%-0.5%-6.5%8.9%6.8%20.7%23.1%
ROA3.9%3.9%3.9%-0.3%-3.9%5.4%3.9%10.9%11.6%
ROIC7.2%7.2%6.7%0.7%-4.1%7.7%10.0%16.1%2.9%
ROCE8.6%8.6%8.0%0.9%-4.8%8.2%10.4%18.3%3.4%

AVO Leverage & Debt

Solvency and debt-coverage ratios — lower is generally safer

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018
Debt / Equity0.320.320.380.480.410.400.380.490.65
Debt / EBITDA1.891.892.106.37—2.492.061.517.24
Net Debt / Equity—0.220.280.400.310.240.120.320.57
Net Debt / EBITDA1.281.281.545.28—1.500.630.996.30
Debt / FCF—3.662.60———4.711.9432.24
Interest Coverage7.597.595.790.92-4.6718.8410.2110.3017.42

AVO Liquidity & Efficiency

Short-term solvency ratios and asset-utilisation metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018
Current Ratio1.951.951.872.262.242.773.182.592.30
Quick Ratio1.351.351.261.531.522.232.692.031.82
Cash Ratio0.480.480.390.440.520.951.590.810.39
Asset Turnover—1.421.271.041.191.021.111.281.38
Inventory Turnover15.2715.2711.8712.3013.0815.9219.1116.2324.94
Days Sales Outstanding—27.9735.2133.1022.9635.2431.2435.9936.82

AVO Shareholder Yields

Earnings, FCF, buyback, and dividend yields — total returns to shareholders

Dividends

Full dividend history and growth charts are on the Dividend History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018
Dividend Yield——————1.4%——
Payout Ratio——————45.1%7.8%6.2%

Total Shareholder Return Metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018
Earnings Yield4.2%4.6%4.4%——3.3%3.1%——
FCF Yield4.1%4.5%7.3%———1.2%——
Buyback Yield0.7%0.7%0.1%0.1%0.0%0.0%0.2%——
Total Shareholder Yield0.7%0.7%0.1%0.1%0.0%0.0%1.6%——
Shares Outstanding—$71M$71M$71M$71M$71M$71M$71M$69M

Key Metrics

Growth RegimeMixed
ProfitabilityWeak
Balance SheetAdequate
Cash FlowBurning
Top Statement Risk

Acquisition-driven leverage and cash burn

Verified Source

Metrics are mathematically derived from official filings.

SEC 10-K (2026Q3)

Gross Margin Cyclicality Masks SG&A Burden

Mission Produce's gross margin contracted to 9.9% in 2026Q3, as per its income statements, a level insufficient to cover its fixed SG&A expense base and resulting in a negative net margin of -1.4%, highlighting severe earnings power limitations.

The company's profitability profile is highly volatile and tied to commodity-like gross margins. When gross margins dip into the single digits, as seen in multiple quarters like 2026Q2 and 2025Q2, the business structure appears unable to generate positive operating income due to the sticky SG&A burden. The 2026Q4 peak demonstrates the business can be profitable at higher gross margins, but the recent trend suggests this level is not the sustainable norm, making core earning power questionable.

Returns on Capital Hover Near Zero

Over the last ten quarters, Mission Produce's ROIC has swung between -0.1% and 3.3%, with the most recent reading at 0.9% according to its financial data, indicating a business that struggles to generate meaningful returns on its invested capital base.

The company's ROIC trajectory shows no compounding trend and is driven almost entirely by gross margin fluctuations rather than operational efficiency. The collapse from a 3.3% ROIC in 2025Q4 to near zero in subsequent quarters, despite a major acquisition that expanded the asset base, suggests the new capital may not be immediately accretive to returns. This pattern indicates capital is being deployed but not consistently generating excess returns above its cost, a key concern for long-term value creation.

Debt Surge Distorts Interest Coverage

The company's debt-to-equity ratio spiked to 0.65 in 2026Q3 from 0.32 in the prior quarter, as reported in its financial statements, while interest coverage collapsed to 2.57x, signaling a material increase in financial risk from the recent acquisition.

The leverage profile has changed fundamentally with the acquisition. The jump in D/E to 0.65, while still manageable in absolute terms, coincides with interest coverage falling to 2.57x, which is uncomfortably low for a business with negative free cash flow. The D/EBITDA ratio of 18.52x in 2026Q3 is distorted by weak EBITDA, but it highlights that the debt load is significant relative to current earnings power. Investors should monitor whether the acquired operations can generate sufficient cash flow to service this new debt burden.

Cash Conversion Cycle Extends with Inventory Build

Mission Produce's cash conversion cycle lengthened to 50 days in 2026Q3 from a 44-day low in 2025Q3, primarily driven by an increase in days inventory outstanding, as per its quarterly operating data, suggesting potential challenges in moving product or managing supply chain timing.

The extension in the CCC, particularly the rise in DIO, is noteworthy given the recent acquisition. It may indicate integration-related inventory accumulation or a mismatch between acquired inventory levels and current demand. The relatively stable DSO suggests customer collections are not the issue, but the company's ability to efficiently convert its inventory holdings back into cash appears to be deteriorating, which is a negative signal for working capital efficiency.

Thin Liquid Buffer Against Losses

A current ratio of 1.92 in 2026Q3 provides an adequate headline liquidity measure, but when combined with a quick ratio of 1.24, the results from its financial statements suggest the position is heavily dependent on inventory valuation and may be vulnerable under operational stress.

While the current ratio appears healthy, the significant gap between it and the quick ratio indicates that over a third of current assets are tied up in inventory, which could be difficult to liquidate quickly without value erosion if needed. Given the recent quarterly operating losses and negative free cash flow, this liquidity profile offers a limited cushion. The company's ability to meet its short-term obligations without drawing on external financing could become strained if profitability does not improve.

Misapplication of the P/E Multiple

The most commonly misapplied metric for Mission Produce is likely its P/E ratio of 24.55, as reported in market data, which can obscure the company's core cyclicality and recent net losses, rendering the multiple a potentially misleading indicator of intrinsic value.

The P/E ratio is particularly problematic for a business like Mission Produce, which operates with volatile, commodity-driven margins and has recently posted net losses. The multiple is calculated on a trailing basis that may include periods of inorganic or non-recurring profitability, like the 2025Q4 quarter, and fails to capture the current trajectory of losses. An EV/EBITDA multiple, adjusted for the full cycle, or a price-to-sales ratio (currently 0.66) might better reflect the business's underlying asset base and sales generation, as it lessens the distortion from capital structure and tax differences.

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Includes 30+ ratios · 8 years · Updated daily

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AVO — Frequently Asked Questions

Quick answers to the most common questions about buying AVO stock.

What is Mission Produce, Inc.'s P/E ratio?

Mission Produce, Inc.'s current P/E ratio is 24.0x. The historical average is 26.7x. This places it at the 50th percentile of its historical range.

What is Mission Produce, Inc.'s EV/EBITDA?

Mission Produce, Inc.'s current EV/EBITDA is 9.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 13.9x.

What is Mission Produce, Inc.'s ROE?

Mission Produce, Inc.'s return on equity (ROE) is 6.3%. The historical average is 8.2%.

Is AVO stock overvalued?

Based on historical data, Mission Produce, Inc. is trading at a P/E of 24.0x. This is at the 50th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.

What are Mission Produce, Inc.'s profit margins?

Mission Produce, Inc. has 11.6% gross margin and 5.1% operating margin.

How much debt does Mission Produce, Inc. have?

Mission Produce, Inc.'s Debt/EBITDA ratio is 1.9x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.