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AVO vs PM

AVO
Mission Produce, Inc.
NEUTRAL
Price
$13.46
Market Cap
$953.5M
Sector
Consumer Defensive
AI Confidence
65%
PM
Philip Morris International Inc.
BULLISH
Price
$155.43
Market Cap
$241.95B
Sector
Consumer Defensive
AI Confidence
92%

Valuation

P/E Ratio
AVO
25.4
PM
22.17
Forward P/E
AVO
16.72
PM
21.59
P/B Ratio
AVO
1.62
PM
-22.17
P/S Ratio
AVO
0.69
PM
6.05
EV/EBITDA
AVO
11.19
PM
16.14

Profitability

Gross Margin
AVO
11.57%
PM
66.92%
Operating Margin
AVO
8.78%
PM
40.75%
Profit Margin
AVO
2.71%
PM
21.57%
ROE
AVO
6.77%
PM
--
ROA
AVO
4.18%
PM
14.94%

Growth

Revenue Growth
AVO
-10.0%
PM
9.4%
Earnings Growth
AVO
-4.2%
PM
13.1%

Financial Health

Debt/Equity
AVO
0.32
PM
--
Current Ratio
AVO
1.95
PM
0.85
Quick Ratio
AVO
1.25
PM
0.37

Dividends

Dividend Yield
AVO
--
PM
3.78%
Payout Ratio
AVO
0.0%
PM
78.76%

AI Verdict

AVO NEUTRAL

The company exhibits a weak financial health profile with a Piotroski F-Score of 4/9, indicating borderline stability. Despite this, Mission Produce has demonstrated strong recent earnings surprises and positive short-term momentum, with a bullish analyst recommendation and significant EPS growth acceleration. However, declining revenue, low profitability margins, and lack of Altman Z-Score data raise concerns about long-term sustainability. The stock trades above its Graham Number of $9.96 at $13.46, suggesting potential overvaluation relative to defensive value standards, though forward P/E of 16.72 implies improving earnings expectations.

Strengths
Strong recent earnings surprise streak: 3 out of last 4 quarters beat estimates with an average surprise of 77.42%
Improving earnings momentum: YoY EPS growth of +10.7% and Q/Q EPS growth of +19.2%
Healthy balance sheet: Current ratio of 1.95 and quick ratio of 1.25 indicate solid short-term liquidity
Risks
Weak Piotroski F-Score of 4/9 suggests suboptimal financial health and limited strength across profitability, leverage, and operating efficiency
Revenue contraction: YoY revenue growth of -10.00% indicates top-line pressure despite earnings growth
Low profitability: Profit margin of 2.71% and ROE of 6.77% lag significantly behind sector averages of 0.36% and 26.66% respectively
PM BULLISH

Philip Morris International (PM) presents a compelling investment case supported by strong profitability, consistent earnings growth, and a resilient dividend profile. Despite near-term price weakness over the past six months (-7.3%), the stock has delivered exceptional long-term returns (+153.1% over 5Y), underpinned by robust YoY EPS growth of 17.3% and a track record of beating earnings estimates in 22 of the last 25 quarters. The company’s high operating margin (40.75%) and gross margin (66.92%) reflect pricing power and cost discipline in a defensive sector, while its forward P/E of 21.59 appears justified given growth and stability. Analysts concur with a unanimous buy rating and a $185.75 target price, implying ~19.5% upside, reinforcing confidence in continued outperformance.

Strengths
Exceptional profitability with operating margin of 40.75% and gross margin of 66.92%, among the highest in consumer defensive sector
Consistent earnings growth: 13.1% YoY and 17.3% most recent Q/Q EPS growth, demonstrating strong underlying momentum
Outstanding earnings surprise record: 22 out of 25 quarters beat estimates, with an average surprise of +4.82% over the last four
Risks
Negative Price/Book ratio (-22.17) suggests deep negative equity, likely due to aggressive share buybacks exceeding retained earnings
Weak liquidity profile: current ratio of 0.85 and quick ratio of 0.37 indicate potential near-term cash flow pressure
Missing key financials (debt/equity, EV, cash/debt) limits full health assessment and raises transparency concerns

Compare Another Pair

AVO vs PM: Head-to-Head Comparison

This page compares Mission Produce, Inc. (AVO) and Philip Morris International Inc. (PM) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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