Mission Produce: Possible Undervaluation Combined With Unclear Future Potential

2025-05-13 11:16:58 ET

Summary

• Mission Produce (NASDAQ:AVO) has seen a 16.63% drop in stock price since 2020 despite a 43.22% revenue growth, raising concerns about profitability.
• The company’s net income has been unstable, falling from $72.40M in 2018 to $37.00M in 2024, reflecting long-term performance issues.
• Heavy reliance on avocados (88% of revenue) and exposure to tariffs and inflation pose risks to short-term profitability and revenue.
• Long-term growth might be effected by global warming, which through wildfires and droughts might lower the bottom line.

Everyone loves avocados, and mangos, and blueberries. Therefore, a company that sells these fruits should be doing really well, right? Well, that depends. Mission Produce (NASDAQ: AVO ) is a company that generates most of its revenue through avocado sales, with a percentage of their revenue coming from mangos and blueberries. They became publicly traded in 2020 and since then have lost 16.63% of their trading price, dropping from $12.45 a share to the current price of $10.38....

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