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Dole PLC AI Insights

Informational only. Not investment advice.
As of 2025-12-24

Snapshot

  • Net margin TTM of 0.2% vs industry median 0% - razor-thin profitability despite 9B revenue. Interest expense (69M) consumes 39% of operating income.[Net Margin TTM]
  • Asset turnover TTM of 2.0x vs industry median 0.69x - capital efficiency 3x peers, offsetting weak margins through volume.[Asset Turnover TTM]
  • EPS 3Y CAGR of -35% while paying 0.33/share dividends - dividend sustainability questionable with only 15M net income TTM.[EPS Growth 3Y]

Watch Triggers

  • Gross Margin TTM: Falls below 7%At 8% gross margin, any compression eliminates operating income given 5.4% opex ratio
  • Interest Expense TTM: Rises above 80MWould consume >35% of operating income, threatening dividend sustainability
  • Free Cash Flow TTM: Turns negative65M FCF barely covers 32M dividends - negative FCF forces dividend cut or more debt

Bull Case

P/S ratio of 0.16x vs industry median 1.28x - trading at 87% discount on sales multiple despite positive profitability when peers lose money.

PS RatioNet Margin TTMOperating Income TTM

Asset turnover 2.0x (3x industry) generates 9B revenue from 4.5B assets - operational efficiency creates earnings leverage if margins improve even 50bps.

Asset Turnover TTMTotal Revenue TTMTotal Assets

Bear Case

Net margin of 0.2% leaves zero buffer - any cost inflation, weather event, or logistics disruption could push to losses. EPS already down 35% over 3 years.

Net Margin TTMEPS Growth 3YGross Margin TTM

Goodwill 449M is 33% of equity (604M tangible book) - impairment would materially impact already thin equity base with debt/equity near 1.0x.

GoodwillTangible Book ValueDebt to Equity

Bull vs Bear Balance

AI-generated sentiment analysis based on fundamental metrics and market conditions.

BearBull
40%

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Forward Thesis

Debt reduction will unlock margin expansion as interest burden drops from 39% of operating income

1-3ymed
  • Net debt paydown of 132M TTM
  • Interest expense 69M on 1.3B debt
  • Operating income 225M provides deleveraging capacity
Debt/equity 0.96x, net debt 657MFCF 65M TTM covers debt serviceOperating cash flow 183M TTM

Valuation Context

Caveats

Data Partners
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Fundamental company data provided by Morningstar, updated daily.

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