FARMER BROS CO (FARM)
US3076751086 - Common Stock
FARM gets a fundamental rating of 1 out of 10. The analysis compared the fundamentals against 92 industry peers in the Food Products industry. FARM may be in some trouble as it scores bad on both profitability and health. FARM is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
FARM had negative earnings in the past year.
In the past year FARM has reported a negative cash flow from operations.
In the past 5 years FARM always reported negative net income.
The reported operating cash flow has been mixed in the past 5 years: FARM reported negative operating cash flow in multiple years.
1.2 Ratios
Looking at the Return On Assets, with a value of -31.23%, FARM is doing worse than 79.12% of the companies in the same industry.
With a Return On Equity value of -131.29%, FARM is not doing good in the industry: 81.32% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -31.23% | ||
| ROE | -131.29% | ||
| ROIC | N/A |
ROA(3y)-19.77%
ROA(5y)-17.26%
ROE(3y)-87.88%
ROE(5y)-68.84%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With an excellent Gross Margin value of 41.54%, FARM belongs to the best of the industry, outperforming 94.51% of the companies in the same industry.
In the last couple of years the Gross Margin of FARM has remained more or less at the same level.
FARM does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 41.54% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y6.96%
GM growth 5Y-0.29%
2. Health
2.1 Basic Checks
FARM does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, FARM has more shares outstanding
FARM has more shares outstanding than it did 5 years ago.
FARM has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.54, we must say that FARM is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of FARM (1.54) is worse than 61.54% of its industry peers.
A Debt/Equity ratio of 0.54 indicates that FARM is somewhat dependend on debt financing.
FARM has a Debt to Equity ratio of 0.54. This is comparable to the rest of the industry: FARM outperforms 47.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.54 |
ROIC/WACCN/A
WACC11.71%
2.3 Liquidity
FARM has a Current Ratio of 1.42. This is a normal value and indicates that FARM is financially healthy and should not expect problems in meeting its short term obligations.
FARM has a Current ratio (1.42) which is comparable to the rest of the industry.
A Quick Ratio of 0.67 indicates that FARM may have some problems paying its short term obligations.
The Quick ratio of FARM (0.67) is worse than 68.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.42 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
FARM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -81.41%.
FARM shows a decrease in Revenue. In the last year, the revenue decreased by -0.58%.
The Revenue for FARM have been decreasing by -10.93% on average. This is quite bad
EPS 1Y (TTM)-81.41%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q117.81%
Revenue 1Y (TTM)-0.58%
Revenue growth 3Y-12.14%
Revenue growth 5Y-10.93%
Revenue growth Q2Q-32.59%
3.2 Future
FARM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 39.16% yearly.
The Revenue is expected to decrease by -10.99% on average over the next years. This is quite bad
EPS Next Y93.4%
EPS Next 2Y39.16%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-25.28%
Revenue Next 2Y-10.99%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
FARM reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
A more expensive valuation may be justified as FARM's earnings are expected to grow with 39.16% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y39.16%
EPS Next 3YN/A
5. Dividend
5.1 Amount
FARM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FARMER BROS CO
NASDAQ:FARM (5/3/2024, 8:46:44 AM)
3.14
-0.01 (-0.32%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap66.16M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -31.23% | ||
| ROE | -131.29% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 41.54% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.42 | ||
| Quick Ratio | 0.67 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-81.41%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y93.4%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-0.58%
Revenue growth 3Y-12.14%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y