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Mission Produce Inc T.AVO


Primary Symbol: AVO

Mission Produce, Inc. is engaged in the farming, packaging, marketing, and distribution of avocados to food retailers, distributors and produce wholesalers. It operates through three segments: Marketing and Distribution, International Farming, and Blueberries. Its Marketing and Distribution segment sources fruit from growers and then distributes the fruit through its global distribution network. Its International Farming segment owns and operates orchards from which all fruit produced is sold to its Marketing and Distribution segment. Its farming activities range from cultivating early-stage plantings to harvesting from mature trees. Its Blueberries segment is a farming operation that cultivates blueberry plants in Peru. It provides value-added services including ripening, bagging, custom packaging, logistical management, and quality assurance. The Company also provides its customers with merchandising and promotional support, insights on market trends and hands-on training.


NDAQ:AVO - Post by User

Bullboard Posts
Post by abolduc3106on Mar 09, 2015 12:27pm
423 Views
Post# 23502631

Not sure what there isn't to like

Not sure what there isn't to like
Avigilon isn't a cash cow. It's a growth company in a growing market.
 
Net income has been steadily higher as a percentatge of revenue and they are reinvesting that money to continue growing which is what growth companies do.
 
Net income as a % of revenue
 
2011  6.4%
2012  7.1%
2013 12.1%
2014 12.9%
 
And with With the recently announced investments in Vancouver office real estate and the new U.S. manufacturing facility, what they are doing is exactly that.
 
Their soon to be new head office building is 3+ times the size of the space they currently occupy, which makes sense with their new focus on analytics and software capabilities which means they need to beef up in the development department, and the new Texas manufacturing plant will allow them to double their output  of physical product to $1B from what they are currently able to, so they are readying themselves to continue on the the growth path they've been on for the next several years.
 
They've also invested heavily in building an IP moat which will allow them to gain an edge and fend off the competiton going forward, and will continue to do that according to management.
 
And to those who focus on the recent FX gains, I would say that they are doing exactly what they should be doing with those under the circumstances. Yes, those do create a temporary windfall, but they aren't sitting on that extra cash, paying the money out to shareholders, or otherwise wasting that opportunity because they don't see anything better to do with the extra cash.. They' are reinvesting that money in the business so that it can keep on growing.
 
And they are doing all of this while maintaing their gross margins and steadily growing net income as a percentage of revenue, so I don't see what's not to like about this company.
Bullboard Posts