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FARMER BROS CO (FARM) Stock Fundamental Analysis

NASDAQ:FARM - Nasdaq - US3076751086 - Common Stock - Currency: USD

1.47  -0.03 (-2%)

After market: 1.45 -0.02 (-1.36%)

Fundamental Rating

2

We assign a fundamental rating of 2 out of 10 to FARM. FARM was compared to 90 industry peers in the Food Products industry. Both the profitability and financial health of FARM have multiple concerns. 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

In the past year FARM has reported negative net income.
FARM had a positive operating cash flow in the past year.
FARM had negative earnings in each of the past 5 years.
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 0 50M -50M

1.2 Ratios

FARM's Return On Assets of -8.80% is on the low side compared to the rest of the industry. FARM is outperformed by 74.44% of its industry peers.
FARM's Return On Equity of -38.54% is on the low side compared to the rest of the industry. FARM is outperformed by 73.33% of its industry peers.
Industry RankSector Rank
ROA -8.8%
ROE -38.54%
ROIC N/A
ROA(3y)-16.31%
ROA(5y)-14.19%
ROE(3y)-77.32%
ROE(5y)-61.13%
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 0 -50 -100 -150 -200

1.3 Margins

Looking at the Gross Margin, with a value of 41.99%, FARM belongs to the top of the industry, outperforming 95.56% of the companies in the same industry.
FARM's Gross Margin has improved in the last couple of years.
The Profit Margin and Operating Margin are not available for FARM so they could not be analyzed.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 41.99%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.38%
GM growth 5Y5.49%
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 0 20 -20 40

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2

2. Health

2.1 Basic Checks

FARM does not have a ROIC to compare to the WACC, probably because it is not profitable.
FARM has more shares outstanding than it did 1 year ago.
The number of shares outstanding for FARM has been increased compared to 5 years ago.
FARM has a worse 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 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 100M 200M 300M 400M

2.2 Solvency

FARM has an Altman-Z score of 1.95. 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 has a Altman-Z score (1.95) which is in line with its industry peers.
FARM has a Debt/Equity ratio of 0.63. This is a neutral value indicating FARM is somewhat dependend on debt financing.
FARM has a Debt to Equity ratio of 0.63. This is comparable to the rest of the industry: FARM outperforms 44.44% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.63
Debt/FCF N/A
Altman-Z 1.95
ROIC/WACCN/A
WACC9.24%
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 0 50M 100M 150M 200M

2.3 Liquidity

A Current Ratio of 1.30 indicates that FARM should not have too much problems paying its short term obligations.
With a Current ratio value of 1.30, FARM is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
A Quick Ratio of 0.51 indicates that FARM may have some problems paying its short term obligations.
FARM has a Quick ratio of 0.51. This is in the lower half of the industry: FARM underperforms 73.33% of its industry peers.
Industry RankSector Rank
Current Ratio 1.3
Quick Ratio 0.51
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 50M 100M 150M

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3

3. Growth

3.1 Past

FARM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 72.05%, which is quite impressive.
The Revenue has grown by 31.41% in the past year. This is a very strong growth!
The Revenue for FARM have been decreasing by -10.56% on average. This is quite bad
EPS 1Y (TTM)72.05%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-533.33%
Revenue 1Y (TTM)31.41%
Revenue growth 3Y9.21%
Revenue growth 5Y-10.56%
Sales Q2Q%-3.87%

3.2 Future

Based on estimates for the next years, FARM will show a very negative growth in Earnings Per Share. The EPS will decrease by -31.47% on average per year.
FARM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.28% yearly.
EPS Next Y-262.67%
EPS Next 2Y-31.47%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year1.22%
Revenue Next 2Y2.28%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
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 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.
Also next year FARM is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
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 74.44% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 7.81
FARM Per share dataFARM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10 15

4.3 Compensation for Growth

FARM's earnings are expected to decrease with -31.47% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-31.47%
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 (5/21/2025, 8:00:02 PM)

After market: 1.45 -0.02 (-1.36%)

1.47

-0.03 (-2%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)05-08 2025-05-08/amc
Earnings (Next)09-10 2025-09-10/amc
Inst Owners42.25%
Inst Owner Change-5.93%
Ins Owners7.22%
Ins Owner Change3.6%
Market Cap31.38M
Analysts82.5
Price Target5.36 (264.63%)
Short Float %0.96%
Short Ratio0.9
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)20.21%
Min EPS beat(2)-77.4%
Max EPS beat(2)117.83%
EPS beat(4)3
Avg EPS beat(4)15.62%
Min EPS beat(4)-77.4%
Max EPS beat(4)117.83%
EPS beat(8)6
Avg EPS beat(8)13.76%
EPS beat(12)7
Avg EPS beat(12)6.16%
EPS beat(16)9
Avg EPS beat(16)6.88%
Revenue beat(2)0
Avg Revenue beat(2)-6.39%
Min Revenue beat(2)-9.59%
Max Revenue beat(2)-3.19%
Revenue beat(4)1
Avg Revenue beat(4)-3.14%
Min Revenue beat(4)-9.59%
Max Revenue beat(4)1.06%
Revenue beat(8)2
Avg Revenue beat(8)2.08%
Revenue beat(12)2
Avg Revenue beat(12)-12.91%
Revenue beat(16)5
Avg Revenue beat(16)-17.86%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)-23.33%
EPS NQ rev (3m)-23.33%
EPS NY rev (1m)-36.17%
EPS NY rev (3m)-36.17%
Revenue NQ rev (1m)-4.88%
Revenue NQ rev (3m)-4.88%
Revenue NY rev (1m)-2.42%
Revenue NY rev (3m)-2.86%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 0.09
P/FCF N/A
P/OCF 5.86
P/B 0.84
P/tB 1.13
EV/EBITDA 7.81
EPS(TTM)-0.64
EYN/A
EPS(NY)-0.31
Fwd EYN/A
FCF(TTM)-0.26
FCFYN/A
OCF(TTM)0.25
OCFY17.07%
SpS16
BVpS1.75
TBVpS1.3
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -8.8%
ROE -38.54%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 41.99%
FCFM N/A
ROA(3y)-16.31%
ROA(5y)-14.19%
ROE(3y)-77.32%
ROE(5y)-61.13%
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 3Y2.38%
GM growth 5Y5.49%
F-Score4
Asset Turnover2.09
Health
Industry RankSector Rank
Debt/Equity 0.63
Debt/FCF N/A
Debt/EBITDA 3.54
Cap/Depr 94.47%
Cap/Sales 3.2%
Interest Coverage N/A
Cash Conversion 81.38%
Profit Quality N/A
Current Ratio 1.3
Quick Ratio 0.51
Altman-Z 1.95
F-Score4
WACC9.24%
ROIC/WACCN/A
Cap/Depr(3y)83.63%
Cap/Depr(5y)72.87%
Cap/Sales(3y)4.43%
Cap/Sales(5y)4.51%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)72.05%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-533.33%
EPS Next Y-262.67%
EPS Next 2Y-31.47%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)31.41%
Revenue growth 3Y9.21%
Revenue growth 5Y-10.56%
Sales Q2Q%-3.87%
Revenue Next Year1.22%
Revenue Next 2Y2.28%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y67.29%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year529.97%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y78.13%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y166.14%
OCF growth 3YN/A
OCF growth 5YN/A