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FARMER BROS CO (FARM) Stock Fundamental Analysis

USA - NASDAQ:FARM - US3076751086 - Common Stock

1.9 USD
+0.04 (+2.15%)
Last: 9/19/2025, 8:01:52 PM
1.87 USD
-0.03 (-1.58%)
After Hours: 9/19/2025, 8:01:52 PM
Fundamental Rating

2

We assign a fundamental rating of 2 out of 10 to FARM. FARM was compared to 89 industry peers in the Food Products industry. FARM has a bad profitability rating. Also its financial health evaluation is rather negative. FARM does not seem to be growing, but still is valued expensively.


Dividend Valuation Growth Profitability Health

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2

1. Profitability

1.1 Basic Checks

FARM had negative earnings in the past year.
In the past year FARM had a positive cash flow from operations.
In the past 5 years FARM always reported negative net income.
In the past 5 years FARM reported 4 times negative operating cash flow.
FARM Yearly Net Income VS EBIT VS OCF VS FCFFARM Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 50M -50M

1.2 Ratios

FARM has a worse Return On Assets (-9.00%) than 75.28% of its industry peers.
FARM's Return On Equity of -33.33% is on the low side compared to the rest of the industry. FARM is outperformed by 71.91% of its industry peers.
Industry RankSector Rank
ROA -9%
ROE -33.33%
ROIC 1.65%
ROA(3y)-17.76%
ROA(5y)-14.08%
ROE(3y)-83.24%
ROE(5y)-61.09%
ROIC(3y)N/A
ROIC(5y)N/A
FARM Yearly ROA, ROE, ROICFARM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 -50 -100 -150 -200

1.3 Margins

Looking at the Gross Margin, with a value of 43.51%, FARM belongs to the top of the industry, outperforming 95.51% of the companies in the same industry.
FARM's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 0.55%
PM (TTM) N/A
GM 43.51%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.78%
GM growth 5Y9.57%
FARM Yearly Profit, Operating, Gross MarginsFARM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20 40

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3

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), FARM is destroying value.
The number of shares outstanding for FARM has been increased compared to 1 year ago.
FARM has more shares outstanding than it did 5 years ago.
FARM has a better debt/assets ratio than last year.
FARM Yearly Shares OutstandingFARM Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5M 10M 15M 20M
FARM Yearly Total Debt VS Total AssetsFARM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M

2.2 Solvency

An Altman-Z score of 2.09 indicates that FARM is not a great score, but indicates only limited risk for bankruptcy at the moment.
FARM's Altman-Z score of 2.09 is in line compared to the rest of the industry. FARM outperforms 44.94% of its industry peers.
FARM has a debt to FCF ratio of 2.21. This is a good value and a sign of high solvency as FARM would need 2.21 years to pay back of all of its debts.
FARM has a Debt/Equity ratio of 0.33. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of FARM (0.33) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.33
Debt/FCF 2.21
Altman-Z 2.09
ROIC/WACC0.18
WACC9.01%
FARM Yearly LT Debt VS Equity VS FCFFARM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 50M 100M 150M 200M

2.3 Liquidity

A Current Ratio of 1.20 indicates that FARM should not have too much problems paying its short term obligations.
FARM's Current ratio of 1.20 is on the low side compared to the rest of the industry. FARM is outperformed by 62.92% of its industry peers.
A Quick Ratio of 0.50 indicates that FARM may have some problems paying its short term obligations.
The Quick ratio of FARM (0.50) is worse than 75.28% of its industry peers.
Industry RankSector Rank
Current Ratio 1.2
Quick Ratio 0.5
FARM Yearly Current Assets VS Current LiabilitesFARM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M

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2

3. Growth

3.1 Past

FARM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -55.56%.
The Revenue has been growing slightly by 0.34% in the past year.
Measured over the past years, FARM shows a decrease in Revenue. The Revenue has been decreasing by -7.35% on average per year.
EPS 1Y (TTM)-55.56%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%163.64%
Revenue 1Y (TTM)0.34%
Revenue growth 3Y2.83%
Revenue growth 5Y-7.35%
Sales Q2Q%0.88%

3.2 Future

No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
Based on estimates for the next years, FARM will show a small growth in Revenue. The Revenue will grow by 4.02% on average per year.
EPS Next Y-11.11%
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6.37%
Revenue Next 2Y4.02%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
FARM Yearly Revenue VS EstimatesFARM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 200M 400M 600M
FARM Yearly EPS VS EstimatesFARM Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 1 -1 -2 -3 -4

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1

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for FARM. In the last year negative earnings were reported.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for FARM. No positive earnings are expected for the next year.
Industry RankSector Rank
PE N/A
Fwd PE N/A
FARM Price Earnings VS Forward Price EarningsFARM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 10 20

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, FARM is valued a bit cheaper than the industry average as 61.80% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 6.3
EV/EBITDA 3.64
FARM Per share dataFARM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10 15

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2YN/A
EPS Next 3YN/A

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0

5. Dividend

5.1 Amount

No dividends for FARM!.
Industry RankSector Rank
Dividend Yield N/A

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FARMER BROS CO

NASDAQ:FARM (9/19/2025, 8:01:52 PM)

After market: 1.87 -0.03 (-1.58%)

1.9

+0.04 (+2.15%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)09-11 2025-09-11/amc
Earnings (Next)11-05 2025-11-05
Inst Owners41.37%
Inst Owner Change-4.2%
Ins Owners6.72%
Ins Owner Change-2.42%
Market Cap40.96M
Analysts82.5
Price Target3.06 (61.05%)
Short Float %1.1%
Short Ratio0.77
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)48.39%
Min EPS beat(2)-77.4%
Max EPS beat(2)174.19%
EPS beat(4)3
Avg EPS beat(4)54.14%
Min EPS beat(4)-77.4%
Max EPS beat(4)174.19%
EPS beat(8)7
Avg EPS beat(8)69.84%
EPS beat(12)7
Avg EPS beat(12)17.54%
EPS beat(16)10
Avg EPS beat(16)19.87%
Revenue beat(2)1
Avg Revenue beat(2)-3.69%
Min Revenue beat(2)-9.59%
Max Revenue beat(2)2.21%
Revenue beat(4)1
Avg Revenue beat(4)-2.85%
Min Revenue beat(4)-9.59%
Max Revenue beat(4)2.21%
Revenue beat(8)2
Avg Revenue beat(8)-2.78%
Revenue beat(12)3
Avg Revenue beat(12)-2.08%
Revenue beat(16)6
Avg Revenue beat(16)-9.39%
PT rev (1m)-20%
PT rev (3m)-20%
EPS NQ rev (1m)-120%
EPS NQ rev (3m)-120%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-2.54%
Revenue NQ rev (3m)-2.54%
Revenue NY rev (1m)1.77%
Revenue NY rev (3m)1.77%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 0.12
P/FCF 6.3
P/OCF 2.54
P/B 0.94
P/tB 1.19
EV/EBITDA 3.64
EPS(TTM)-0.28
EYN/A
EPS(NY)-0.31
Fwd EYN/A
FCF(TTM)0.3
FCFY15.88%
OCF(TTM)0.75
OCFY39.3%
SpS15.88
BVpS2.02
TBVpS1.6
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -9%
ROE -33.33%
ROCE 2.09%
ROIC 1.65%
ROICexc 1.79%
ROICexgc 2%
OM 0.55%
PM (TTM) N/A
GM 43.51%
FCFM 1.9%
ROA(3y)-17.76%
ROA(5y)-14.08%
ROE(3y)-83.24%
ROE(5y)-61.09%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.78%
GM growth 5Y9.57%
F-Score5
Asset Turnover2.12
Health
Industry RankSector Rank
Debt/Equity 0.33
Debt/FCF 2.21
Debt/EBITDA 1.07
Cap/Depr 83.78%
Cap/Sales 2.8%
Interest Coverage 0.8
Cash Conversion 120.72%
Profit Quality N/A
Current Ratio 1.2
Quick Ratio 0.5
Altman-Z 2.09
F-Score5
WACC9.01%
ROIC/WACC0.18
Cap/Depr(3y)90.33%
Cap/Depr(5y)77.88%
Cap/Sales(3y)3.76%
Cap/Sales(5y)4.37%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-55.56%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%163.64%
EPS Next Y-11.11%
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)0.34%
Revenue growth 3Y2.83%
Revenue growth 5Y-7.35%
Sales Q2Q%0.88%
Revenue Next Year6.37%
Revenue Next 2Y4.02%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y109.85%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year247.05%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y123.24%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y213.78%
OCF growth 3YN/A
OCF growth 5Y61.61%