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1. Company Snapshot

1.a. Company Description

Mission Produce, Inc.engages in sourcing, producing, packaging, and distributing avocados in the United States and internationally.The company operates through two segments, Marketing and Distribution, and International Farming.


It also provides value-added services, including ripening, bagging, custom packing, and logistical management.The company serves retail, wholesale, and foodservice customers.The company was founded in 1983 and is headquartered in Oxnard, California.

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1.b. Last Insights on AVO

Mission Produce's recent performance was driven by strong Q2 earnings and revenue beat, with record revenue of $380.3 million, up 28% year-over-year. The company's Marketing & Distribution segment achieved record fiscal second quarter revenue, fueled by global sourcing agility and strategic avocado resilience. Additionally, Mission Produce's International Farming segment is fueling year-round supply, with Peru-led gains in blueberries and expanding avocado portfolio. The company's vertical integration, global sourcing, and ripening technology enable it to navigate avocado price swings and stay competitive.

1.c. Company Highlights

2. Mission Produce's Q3 2025 Earnings: A Strong Performance

Mission Produce reported a record revenue of $357 million in Q3 2025, representing a 10% increase driven by strong avocado volume growth and pricing discipline. The company's gross profit margin stood at 12.6%, with adjusted net income of $18.2 million, or $0.26 per share, surpassing estimates of $0.13 per share. Adjusted EBITDA rose 3% to $32.6 million. The company's financial performance was bolstered by its global sourcing capabilities and vertical integration, as highlighted by CEO Steve Barnard, who noted that their "global sourcing capabilities enabled strategic positioning in key markets."

Publication Date: Sep -13

📋 Highlights

Segment Performance

The Marketing & Distribution segment saw revenue rise 7% to $344.1 million, driven by a 10% increase in avocado volume, despite a 5% decline in pricing. European sales surged 37%, supported by the UK facility, while Asia access was expanded via Peruvian avocados. The International Farming segment reported a 79% jump in revenue to $49 million, with blueberry sales reaching $4.5 million.

Valuation Metrics

With a P/E Ratio of 22.87 and an EV/EBITDA of 10.17, the company's valuation appears to reflect a moderate growth expectation. The ROE of 6.84% and ROIC of 5.27% indicate a decent return on equity and invested capital, respectively. The Net Debt / EBITDA ratio of 1.79 suggests a manageable debt level relative to EBITDA.

Future Outlook

The company is poised for continued growth, driven by its expanding blueberry production, which is expected to reach 1,000 hectares by fiscal 2027-2028. The company's focus on optimizing its Peruvian and Mexican harvest transitions and enhancing its Mexican packhouse capacity is expected to support its future growth plans. Additionally, the company's diversification into mangoes and blueberries is progressing, with blueberry production nearing 700 hectares.

Tariff Impact

The tariff costs, capped at $10 million annually, had a minimal impact on the company's performance, with $5 million in tariff costs recorded through the first nine months of the fiscal year.

3. NewsRoom

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Mission Produce® to Release Fiscal Fourth Quarter 2025 Financial Results on Thursday, December 18, 2025

Dec -04

Source: globenewswire.com

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Avocado Demand Up: Is Mission Produce Set to Become a Global Leader?

Dec -01

Source: zacks.com

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Mission Produce: A Global Orchard Turning Volatility Into Opportunity

Nov -27

Source: seekingalpha.com

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Mission Produce® Appoints Douglas Stone to Board of Directors

Nov -26

Source: globenewswire.com

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AVO's Supply Discipline: A Competitive Edge in an Oversupplied Market?

Nov -25

Source: zacks.com

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Mission Produce Slips Below 200-Day SMA: Growth Ahead or Caution?

Nov -21

Source: zacks.com

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Mission Produce's U.K. Hub Gains Traction: Is Europe the Next Big Bet?

Nov -18

Source: zacks.com

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AVO Beyond Avocados: Can Mangoes & Blueberries Drive Future Growth?

Nov -11

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.79%)

6. Segments

Marketing & Distribution

Expected Growth: 1.8%

Mission Produce's 1.8% growth in Marketing & Distribution is driven by increasing avocado demand, strategic partnerships, and expanded distribution channels. The company's ability to adapt to changing consumer preferences, invest in digital marketing, and optimize logistics has enabled it to capitalize on the growing demand for avocados, resulting in sustained growth.

Blueberries

Expected Growth: 1.5%

Mission Produce's blueberries growth is driven by increasing demand for healthy and convenient food options, expanding distribution channels, and strategic partnerships. The company's focus on sustainability, quality, and year-round supply also contributes to its 1.5% growth. Additionally, the rising popularity of plant-based diets and blueberries' perceived health benefits further support the segment's growth.

International Farming

Expected Growth: 2.2%

Mission Produce's 2.2% growth in international farming is driven by increasing global demand for avocados, strategic partnerships with local farmers, and expansion into new markets. Additionally, investments in technology and logistics have improved operational efficiency, enabling the company to capitalize on emerging trends in the fresh produce market.

7. Detailed Products

Avocados

Mission Produce, Inc. offers a wide range of avocado varieties, including Hass, Fuerte, and Lamb Hass, sourced from its own farms and partner growers.

Ripening and Distribution Services

The company provides ripening and distribution services to ensure that avocados are delivered to customers at the optimal ripeness and quality.

Avocado Oil

Mission Produce, Inc. offers high-quality avocado oil, extracted from ripe avocados, suitable for cooking, cosmetics, and pharmaceutical applications.

Avocado-Based Products

The company offers a range of avocado-based products, including frozen avocado, avocado puree, and avocado chunks, suitable for food manufacturing and foodservice industries.

8. Mission Produce, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Mission Produce, Inc. faces moderate threat from substitutes as consumers have limited alternatives for avocados, but other fruits and vegetables can be used as substitutes in some recipes.

Bargaining Power Of Customers

Mission Produce, Inc. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's strong brand and high-quality products make it difficult for customers to negotiate prices.

Bargaining Power Of Suppliers

Mission Produce, Inc. relies on a network of farmers and suppliers for its avocado supply. While the company has some bargaining power due to its large scale, suppliers can still negotiate prices and terms.

Threat Of New Entrants

Entering the avocado market requires significant investment in land, labor, and equipment. Mission Produce, Inc.'s established brand and distribution network create barriers to entry for new competitors.

Intensity Of Rivalry

The avocado market is highly competitive, with several large players competing for market share. Mission Produce, Inc. must continuously innovate and improve its products and services to maintain its market position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 33.41%
Debt Cost 3.95%
Equity Weight 66.59%
Equity Cost 6.49%
WACC 5.64%
Leverage 50.18%

11. Quality Control: Mission Produce, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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SpartanNash

A-Score: 5.3/10

Value: 7.3

Growth: 3.3

Quality: 2.1

Yield: 7.0

Momentum: 8.5

Volatility: 3.3

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Chefs Warehouse

A-Score: 5.2/10

Value: 3.9

Growth: 8.7

Quality: 5.2

Yield: 0.0

Momentum: 8.0

Volatility: 5.7

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AMCON

A-Score: 4.6/10

Value: 7.5

Growth: 6.7

Quality: 3.6

Yield: 4.0

Momentum: 2.0

Volatility: 4.0

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UNFI

A-Score: 4.4/10

Value: 7.0

Growth: 4.6

Quality: 1.9

Yield: 0.0

Momentum: 10.0

Volatility: 3.0

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Mission Produce

A-Score: 4.2/10

Value: 5.1

Growth: 4.7

Quality: 4.3

Yield: 0.0

Momentum: 5.0

Volatility: 6.3

1-Year Total Return ->

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HF Foods Group

A-Score: 3.3/10

Value: 9.5

Growth: 3.2

Quality: 3.1

Yield: 0.0

Momentum: 1.5

Volatility: 2.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

12.03$

Current Price

12.03$

Potential

-0.00%

Expected Cash-Flows