1.57 USD
+0.03 (+1.95%)
1.52 USD
-0.05 (-3.18%)
We assign a fundamental rating of 2 out of 10 to FARM. FARM was compared to 87 industry peers in the Food Products industry. Both the profitability and financial health of FARM have multiple concerns. FARM has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year FARM has reported negative net income.
In the past year FARM had a positive cash flow from operations.
FARM had negative earnings in each of the past 5 years.
In the past 5 years FARM reported 4 times negative operating cash flow.
1.2 Ratios
The Return On Assets of FARM (-8.53%) is worse than 72.41% of its industry peers.
FARM has a Return On Equity of -33.84%. This is in the lower half of the industry: FARM underperforms 70.11% of its industry peers.
FARM has a Return On Invested Capital (0.79%) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -8.53% | ||
| ROE | -33.84% | ||
| ROIC | 0.79% |
ROA(3y)-17.76%
ROA(5y)-14.08%
ROE(3y)-83.24%
ROE(5y)-61.09%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
FARM's Operating Margin of 0.26% is in line compared to the rest of the industry. FARM outperforms 41.38% of its industry peers.
With an excellent Gross Margin value of 42.51%, FARM belongs to the best of the industry, outperforming 95.40% of the companies in the same industry.
In the last couple of years the Gross Margin of FARM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.26% | ||
| PM (TTM) | N/A | ||
| GM | 42.51% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.78%
GM growth 5Y9.57%
2. Health
2.1 Basic Checks
FARM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
Compared to 1 year ago, FARM has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.02 indicates that FARM is not a great score, but indicates only limited risk for bankruptcy at the moment.
FARM has a Altman-Z score (2.02) which is in line with its industry peers.
FARM has a debt to FCF ratio of 45.42. This is a negative value and a sign of low solvency as FARM would need 45.42 years to pay back of all of its debts.
FARM's Debt to FCF ratio of 45.42 is in line compared to the rest of the industry. FARM outperforms 48.28% of its industry peers.
A Debt/Equity ratio of 0.46 indicates that FARM is not too dependend on debt financing.
FARM has a Debt to Equity ratio of 0.46. This is comparable to the rest of the industry: FARM outperforms 47.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 45.42 | ||
| Altman-Z | 2.02 |
ROIC/WACC0.09
WACC9.18%
2.3 Liquidity
A Current Ratio of 1.24 indicates that FARM should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.24, FARM is doing worse than 66.67% of the companies in the same industry.
FARM has a Quick Ratio of 1.24. This is a bad value and indicates that FARM is not financially healthy enough and could expect problems in meeting its short term obligations.
FARM has a worse Quick ratio (0.46) than 77.01% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.46 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 36.11% over the past year.
FARM shows a decrease in Revenue. In the last year, the revenue decreased by -1.58%.
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)36.11%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%20.83%
Revenue 1Y (TTM)-1.58%
Revenue growth 3Y2.83%
Revenue growth 5Y-7.35%
Sales Q2Q%-4.07%
3.2 Future
FARM is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -24.43% yearly.
FARM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.34% yearly.
EPS Next Y-113.11%
EPS Next 2Y-24.43%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.37%
Revenue Next 2Y3.34%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for FARM. In the last year negative earnings were reported.
Also next year FARM is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
90.80% of the companies in the same industry are more expensive than FARM, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FARM is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 83.94 | ||
| EV/EBITDA | 3.97 |
4.3 Compensation for Growth
A cheap valuation may be justified as FARM's earnings are expected to decrease with -24.43% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-24.43%
EPS Next 3YN/A
5. Dividend
5.1 Amount
FARM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
1.57
+0.03 (+1.95%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners36.76%
Inst Owner Change-2.74%
Ins Owners4.13%
Ins Owner Change11.05%
Market Cap33.91M
Revenue(TTM)338.82M
Net Income(TTM)-13.54M
Analysts80
Price Target2.3 (46.5%)
Short Float %0.68%
Short Ratio1.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)52.43%
Min EPS beat(2)-69.34%
Max EPS beat(2)174.19%
EPS beat(4)2
Avg EPS beat(4)36.32%
Min EPS beat(4)-77.4%
Max EPS beat(4)174.19%
EPS beat(8)6
Avg EPS beat(8)51.21%
EPS beat(12)7
Avg EPS beat(12)12.28%
EPS beat(16)9
Avg EPS beat(16)11.61%
Revenue beat(2)1
Avg Revenue beat(2)-2.52%
Min Revenue beat(2)-7.26%
Max Revenue beat(2)2.21%
Revenue beat(4)1
Avg Revenue beat(4)-4.46%
Min Revenue beat(4)-9.59%
Max Revenue beat(4)2.21%
Revenue beat(8)2
Avg Revenue beat(8)-2.99%
Revenue beat(12)3
Avg Revenue beat(12)0.17%
Revenue beat(16)5
Avg Revenue beat(16)-9.92%
PT rev (1m)0%
PT rev (3m)-25%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-30.77%
EPS NY rev (1m)0%
EPS NY rev (3m)-17%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.25%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.1 | ||
| P/FCF | 83.94 | ||
| P/OCF | 3.94 | ||
| P/B | 0.85 | ||
| P/tB | 1.08 | ||
| EV/EBITDA | 3.97 |
EPS(TTM)-0.23
EYN/A
EPS(NY)-0.43
Fwd EYN/A
FCF(TTM)0.02
FCFY1.19%
OCF(TTM)0.4
OCFY25.35%
SpS15.69
BVpS1.85
TBVpS1.46
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -8.53% | ||
| ROE | -33.84% | ||
| ROCE | 1% | ||
| ROIC | 0.79% | ||
| ROICexc | 0.82% | ||
| ROICexgc | 0.92% | ||
| OM | 0.26% | ||
| PM (TTM) | N/A | ||
| GM | 42.51% | ||
| FCFM | 0.12% |
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
ROICexgc growth 3YN/A
ROICexgc 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 Turnover2.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 45.42 | ||
| Debt/EBITDA | 1.52 | ||
| Cap/Depr | 73.38% | ||
| Cap/Sales | 2.42% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 71.35% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.46 | ||
| Altman-Z | 2.02 |
F-Score5
WACC9.18%
ROIC/WACC0.09
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)36.11%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%20.83%
EPS Next Y-113.11%
EPS Next 2Y-24.43%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-1.58%
Revenue growth 3Y2.83%
Revenue growth 5Y-7.35%
Sales Q2Q%-4.07%
Revenue Next Year3.37%
Revenue Next 2Y3.34%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y107.74%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year193.81%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y102.5%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y1532.83%
OCF growth 3YN/A
OCF growth 5Y61.61%
FARMER BROS CO / FARM FAQ
What is the fundamental rating for FARM stock?
ChartMill assigns a fundamental rating of 2 / 10 to FARM.
Can you provide the valuation status for FARMER BROS CO?
ChartMill assigns a valuation rating of 1 / 10 to FARMER BROS CO (FARM). This can be considered as Overvalued.
Can you provide the profitability details for FARMER BROS CO?
FARMER BROS CO (FARM) has a profitability rating of 2 / 10.
Can you provide the expected EPS growth for FARM stock?
The Earnings per Share (EPS) of FARMER BROS CO (FARM) is expected to decline by -113.11% in the next year.