Fresh Del Monte: Healthy Food, Strong Fundamentals And Growing Dividends Support Their Re-Rating
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IWA Research1.87K FollowersFollow5ShareSavePlay(13min)CommentsSummaryFresh Del Monte Produce (FDP) is rated Strong Buy, driven by excellent financial health, portfolio streamlining, and long-term industry tailwinds.FDP expects $130 million in 2025 free cash flow, pays a 3.15% dividend yield that might soon get increased, and continued their recently announced $150 million share buyback program.Strategic divestitures, margin recovery, and specialty ingredient expansion position FDP for improved profitability despite recent production and tariff headwinds.Valuation analysis implies an intrinsic value well above the current level, highlighting significant upside relative to current market cap and robust risk-reward.Macro catalysts including favorable MAHA policies combined with FDP's internal improvements and accelerated debt repayments could support a re-rating or even attract a potential takeover bid. Nathalie Pellenkoft/E+ via Getty Images Introduction & Financials Fresh Del Monte Produce (FDP) has been struggling in recent years given the environment marked by uncertainty around tariffs, consumer weakness, falling margins and even banana fungal disease hurting their production significantly, offeringThis article was written byIWA Research1.87K FollowersFollowAs of 2025, I've got over 10 years of researching companies. In total, throughout my investing life, I estimate that I researched (in depth) well over 1000 companies, from commodities like oil, natural gas, gold and copper to tech like Google or Nokia and many emerging market stocks, which I believe could help me provide useful content for readers. After writing my own blog for about 3 years, I decided to switch to a value investing-focused YouTube channel, where I researched hundreds of different companies so far. I would say my favorite type of company to cover are metals and mining stocks, but I am comfortable with several other industries, such as consumer discretionary/staples, REITs and utilities.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in FDP over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.