One-glance verdict
Undervalued
$74.16 our estimate vs market $29.22
Wall Street consensus: $52.00 (-29.9% lower than our fair-value estimate)
61% below our estimate, below the bear case
Fundamentals snapshot
Del Monte Corporation
FDP · NYQ
Current price
$29.22
52-week range
$26.47 - $29.30
Market cap
$1.39B
Balance sheet
Healthy
16.64x Strong cushion
Net debt $562.60M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
0 Risks
2 rewards · 0 risks
- Reward Returns 3.6% on equity, ahead of 20% of its peers.
- Reward Free cash flow was positive in 10/10 years.
What this company does
Del Monte Corporation
Del Monte is a global food company you've likely seen in the grocery store, selling fresh and packaged fruits and vegetables like pineapples, bananas, and pre-cut salads. The company makes most of its money from its fresh produce, with bananas being such a large business that it's reported as its own separate category. This matters because Del Monte's success depends heavily on managing its complex supply chain (the network of farms, ships, and trucks needed to deliver fresh food) and the strength of its household brand name.
How the company got here
The Del Monte brand name first appeared in 1886, used for a premium coffee blend created for a hotel in California. The brand later became known for canned peaches and other fruits, and through a series of mergers of West Coast canning companies, it grew into a major food producer. For many years, the company operated both a fresh produce business and a canned goods business, but in 1989 these were split into two separate companies. Recently, in 2026, the fresh produce company, formerly known as Fresh Del Monte Produce, acquired the vegetable, tomato, and refrigerated fruit businesses from the other Del Monte company (Del Monte Foods) and changed its name to Del Monte Corporation. This brought a significant portion of the brand back under one roof.
What it actually does
Del Monte is a global company that grows, prepares, sells, and transports fresh and prepared fruits and vegetables to supermarkets, convenience stores, and food service operators. You would recognize their products in the produce aisle, like whole pineapples and bananas, as well as in the refrigerated section with fresh-cut fruit and vegetable trays. They also sell prepared foods like juices, snacks, and canned fruits and vegetables in many parts of the world, including Europe, Africa, and the Middle East. The company is known for its Del Monte Gold pineapple and other unique varieties like the pink-fleshed Pinkglow® pineapple.
Fresh and Value-Added Products
This is the company's largest business segment and includes a wide variety of fruits and vegetables you'd find in the grocery store. It sells whole fresh fruits like pineapples, melons, and grapes, as well as avocados and other vegetables. A big part of this segment is also 'value-added' products, which means they've been pre-cut, washed, and packaged for convenience, like fresh-cut fruit salads or vegetable trays. This segment also includes prepared foods like juices, beverages, and snacks sold in Europe, Africa, and the Middle East.
Banana
This segment is dedicated entirely to selling bananas, a major global commodity. Del Monte is one of the top three marketers of bananas in the United States and a leading seller in other parts of the world. The company grows bananas on its own farms and also buys them from independent growers. This part of the business is significant enough to be reported as its own separate operation.
Other Products and Services
This smaller segment covers the company's other business activities that support its main fruit and vegetable operations. A key part of this is a third-party logistics service, where the company uses its large global transportation network to ship goods for other companies. This segment also includes a poultry and meats business located in Jordan.
What management is betting on now
The company's main focus is on expanding the Del Monte brand globally now that it has consolidated ownership of many key product lines. Management is aiming to inspire healthy lifestyles by offering wholesome and convenient products everywhere. They are also focused on innovation, such as developing unique pineapple varieties, and using their global network to deliver high-quality products efficiently. A key part of their strategy involves sustainability (practices that are good for the environment and society), including using more regenerative farming methods and planting millions of trees.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q2
$117.00M
FY2024 Q3
$30.10M
FY2024 Q4
$-22.30M
FY2025 Q1
$36.10M
FY2025 Q2
$101.50M
FY2025 Q3
$60.90M
FY2025 Q4
$-17.20M
FY2026 Q1
$29.70M
Revenue
$1.04B
Net income
$10.00M
Diluted EPS
0.21
Operating cash flow
$44.10M
Free cash flow
$29.70M
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Sources
Revenue
$1.02B
Net income
$31.90M
Diluted EPS
0.67
Operating cash flow
$10.90M
Free cash flow
$-17.20M
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Sources
Revenue
$1.02B
Net income
$-29.10M
Diluted EPS
-0.61
Operating cash flow
$75.00M
Free cash flow
$60.90M
Fetching…
Sources
Revenue
$1.18B
Net income
$56.80M
Diluted EPS
1.18
Operating cash flow
$113.10M
Free cash flow
$101.50M
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Sources
Revenue
$1.10B
Net income
$31.10M
Diluted EPS
0.64
Operating cash flow
$46.10M
Free cash flow
$36.10M
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Sources
Revenue
$1.01B
Net income
$20.40M
Diluted EPS
0.41
Operating cash flow
$-4.70M
Free cash flow
$-22.30M
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Sources
Revenue
$1.02B
Net income
$42.10M
Diluted EPS
0.88
Operating cash flow
$43.50M
Free cash flow
$30.10M
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Sources
Revenue
$1.14B
Net income
$53.60M
Diluted EPS
1.12
Operating cash flow
$125.00M
Free cash flow
$117.00M
Fetching…
Sources
Is it cheap or expensive?
Fair value $74.16 vs current price $29.22
Wall Street consensus is the average analyst price target: $52.00 (-29.9% lower than our fair-value estimate).
Our most-likely fair value is $74.16 a share — about 153.8% above today's price of $29.22, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net debt $562.6M. Interest coverage 16.6x.
Net debt
$562.60M
Interest coverage
16.64x
Del Monte Corporation's profit covers its interest bill about 16.6 times over. which is stronger than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
FDP
BASELINE
Del Monte Corporation
Total debt $628.90M Interest coverage 16.64x This is the baseline the peer rows are being compared against.
Total debt $1.33B Interest coverage 3.29x -80% vs FDP Carries about 5.1x less debt cushion than FDP.
Total debt $99.83M Interest coverage -15.48x -100% vs FDP This peer has almost no interest-payment cushion compared with FDP.
Total debt $217.70M Interest coverage 6.94x -58% vs FDP Carries about 2.4x less debt cushion than FDP.
Total debt $0.00 Interest coverage 2,510.52x +14,985% vs FDP Carries about 150.8x more debt cushion than FDP.
What you should know
The case for and against FDP
2 Rewards
0 Risks
Rewards
-
Returns 3.6% on equity, ahead of 20% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
20.15x
Forward P/E
8.67x
P/B
0.69x
P/S
0.33x
EV/EBITDA
7.84x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
9.3%
Operating margin
3.5%
Net margin
1.6%
ROE
3.6%
ROA
3.3%
Health
Liquidity and balance-sheet strength
Debt / equity
0.31x
Current ratio
2.34x
Quick ratio
1.00x
Total debt
$628.90M
Total cash
$66.30M
Growth
How the business has been compounding
Revenue TTM
$4.27B
Revenue 5Y CAGR
0.4%
EPS TTM
1.45
EPS 5Y CAGR
-3.0%
Cash flow
How much cash the business throws off
Operating CF TTM
$243.10M
Free CF TTM
$181.30M
FCF margin
4.2%
Dividend
Shareholder payout
Yield
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Payout ratio
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Last ex-div date
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