Dole plc (DOLE): A Bull Case Theory

We came across a bullish thesis on Dole plc on Value Don't Lie’s Substack. In this article, we will summarize the bulls’ thesis on DOLE. Dole plc's share was trading at $14.48 as of November 28th. DOLE’s trailing and forward P/E were 11.49 and 9.20 respectively according to Yahoo Finance.

Dole plc engages in sourcing, processing, marketing, and distribution of fresh fruit and vegetables worldwide. DOLE is a vertically integrated fresh produce supplier with leading positions in bananas, pineapples, and grapes across North America and Europe, operating a highly scaled asset base including 85 farms, 110,000 acres of land, 75 packhouses, 20 ripening facilities, and 13 container ships. The company’s strong market positioning, combined with stable post-merger fundamentals, makes it a standout in a highly competitive, low-margin industry.

Despite being sold off recently following the passing of longtime owner and former CEO David Murdock, whose 13% stake was liquidated in September 2025, Dole’s fundamentals remain robust, with EBITDA growth averaging 4.9% annually from 2020–2024 and cash flow stability around $173 million per year. The company has successfully reduced leverage from ~5x post-merger to 1.7x as of 3Q25, while returning capital via small dividends and a recently authorized $100 million share buyback. Dole generates significantly higher returns on invested capital compared to peers like Fresh Del Monte and Chiquita, reflecting efficient use of tangible assets in a capital-intensive business.

The market, however, has mispriced the stock following the non-operational-driven sell-off, creating an attractive entry point. At ~$13 per share, DOLE trades at ~4.9x FY25 EBITDA and 7–8x free cash flow, well below peer multiples of 6–8x EBITDA, offering meaningful upside potential. With a strong balance sheet, improving fundamentals, and capital allocation beginning to shift toward shareholder returns, Dole presents a compelling opportunity for investors to capture value, even at a conservative recovery toward pre-liquidation levels near $15 per share, with further upside possible if the market recognizes its superior operational efficiency and asset returns.

Previously we covered a bullish thesis on Cal-Maine Foods, Inc. (CALM) by Charly AI in April 2025, which highlighted the company’s growth driven by elevated egg prices, strategic acquisitions, and operational efficiency. The company's stock price has depreciated approximately by 10.09% since our coverage. The thesis still stands as CALM’s fundamentals remain strong. Value Don't Lie shares a similar perspective but emphasizes Dole plc’s vertical integration and scale, highlighting an attractive entry point after a non-fundamental sell-off.

Dole plc is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 24 hedge fund portfolios held DOLE at the end of the second quarter which was 26 in the previous quarter. While we acknowledge the potential of DOLE as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.