FARMER BROS CO (FARM) Stock Fundamental Analysis
USA - NASDAQ:FARM - US3076751086 - Common Stock
1.71 USD
-0.04 (-2.29%)
1.7163 USD
+0.01 (+0.37%)
We assign a fundamental rating of 2 out of 10 to FARM. FARM was compared to 87 industry peers in the Food Products industry. The financial health of FARM is average, but there are quite some concerns on its profitability. FARM is valued expensive and it does not seem to be growing.
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.
In the past 5 years FARM always reported negative net income.
In the past 5 years FARM reported 4 times negative operating cash flow.
1.2 Ratios
FARM has a Return On Assets of -9.00%. This is in the lower half of the industry: FARM underperforms 74.71% of its industry peers.
The Return On Equity of FARM (-33.33%) is worse than 71.26% of its industry peers.
The Return On Invested Capital of FARM (1.65%) is comparable to the rest of the industry.
| Industry Rank | Sector 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
1.3 Margins
Looking at the Operating Margin, with a value of 0.55%, FARM is in line with its industry, outperforming 42.53% of the companies in the same industry.
With an excellent Gross Margin value of 43.51%, FARM belongs to the best of the industry, outperforming 96.55% of the companies in the same industry.
FARM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector 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%
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.
FARM has more shares outstanding than it did 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
FARM has an Altman-Z score of 2.07. This is not the best score and indicates that FARM is in the grey zone with still only limited risk for bankruptcy at the moment.
FARM's Altman-Z score of 2.07 is in line compared to the rest of the industry. FARM outperforms 48.28% of its industry peers.
The Debt to FCF ratio of FARM is 2.21, which is a good value as it means it would take FARM, 2.21 years of fcf income to pay off all of its debts.
FARM's Debt to FCF ratio of 2.21 is amongst the best of the industry. FARM outperforms 85.06% of its industry peers.
A Debt/Equity ratio of 0.33 indicates that FARM is not too dependend on debt financing.
FARM's Debt to Equity ratio of 0.33 is fine compared to the rest of the industry. FARM outperforms 64.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 2.21 | ||
| Altman-Z | 2.07 |
ROIC/WACC0.18
WACC9.02%
2.3 Liquidity
A Current Ratio of 1.20 indicates that FARM should not have too much problems paying its short term obligations.
With a Current ratio value of 1.20, FARM is not doing good in the industry: 72.41% of the companies in the same industry are doing better.
FARM has a Quick Ratio of 1.20. 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 Quick ratio of 0.50. This is in the lower half of the industry: FARM underperforms 75.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 0.5 |
3. Growth
3.1 Past
The earnings per share for FARM have decreased strongly by -55.56% in the last year.
FARM shows a small growth in Revenue. In the last year, the Revenue has grown by 0.34%.
FARM shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -7.35% yearly.
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
Based on estimates for the next years, FARM will show a decrease in Earnings Per Share. The EPS will decrease by -9.64% on average per year.
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-82.14%
EPS Next 2Y-9.64%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.27%
Revenue Next 2Y4.02%
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
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
Based on the Enterprise Value to EBITDA ratio, FARM is valued cheaper than 95.40% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, FARM is valued cheaper than 91.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.67 | ||
| EV/EBITDA | 3.34 |
4.3 Compensation for Growth
A cheap valuation may be justified as FARM's earnings are expected to decrease with -9.64% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-9.64%
EPS Next 3YN/A
5. Dividend
5.1 Amount
FARM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
1.71
-0.04 (-2.29%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners39.58%
Inst Owner Change0.66%
Ins Owners8.61%
Ins Owner Change11.57%
Market Cap36.92M
Revenue(TTM)342.28M
Net Income(TTM)-14515000
Analysts82.5
Price Target3.06 (78.95%)
Short Float %0.96%
Short Ratio0.63
Dividend
| Industry Rank | Sector 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)0%
PT rev (3m)-20%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-120%
EPS NY rev (1m)-63.93%
EPS NY rev (3m)-63.93%
Revenue NQ rev (1m)-1.51%
Revenue NQ rev (3m)-4.01%
Revenue NY rev (1m)-1.98%
Revenue NY rev (3m)-0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.11 | ||
| P/FCF | 5.67 | ||
| P/OCF | 2.29 | ||
| P/B | 0.85 | ||
| P/tB | 1.07 | ||
| EV/EBITDA | 3.34 |
EPS(TTM)-0.28
EYN/A
EPS(NY)-0.51
Fwd EYN/A
FCF(TTM)0.3
FCFY17.62%
OCF(TTM)0.75
OCFY43.6%
SpS15.85
BVpS2.02
TBVpS1.6
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector 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
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 Turnover2.12
Health
| Industry Rank | Sector 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 | 2.07 |
F-Score5
WACC9.02%
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-82.14%
EPS Next 2Y-9.64%
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 Year4.27%
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 Year185.85%
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%