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Stock impact report

3 Cash-Producing Stocks We're Skeptical Of [Yahoo! Finance]

Fresh Del Monte Produce, Inc. (FDP) 
Last fresh del monte produce, inc. earnings: 5/2 06:00 am Check Earnings Report
Company Research Source: Yahoo! Finance
Cash flow is valuable, but it's not everything - StockStory helps you identify the companies that truly put it to work. That said, here are three cash-producing companies that don't make the cut and some better opportunities instead. Fresh Del Monte Produce (FDP) Trailing 12-Month Free Cash Flow Margin: 4.2% Translating to "of the mountain" in Spanish, Fresh Del Monte (NYSE:FDP) is a leader in providing high-quality, sustainably grown fresh fruits and vegetables. Why Do We Avoid FDP? Sales were flat over the last three years, indicating it's failed to expand its business Projected sales decline of 2.9% for the next 12 months points to an even tougher demand environment ahead Easily substituted products (and therefore stiff competition) result in an inferior gross margin of 8.8% that must be offset through higher volumes Fresh Del Monte Produce's stock price of $41.17 implies a valuation ratio of 13.3x forward P/E. To fully understand why you should be careful with FDP Show less Read more
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