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FARMER BROS CO (FARM) Stock Fundamental Analysis

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

1.83  -0.03 (-1.61%)

Fundamental Rating

2

Taking everything into account, FARM scores 2 out of 10 in our fundamental rating. FARM was compared to 89 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.


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.
In the past year FARM had a positive cash flow from operations.
In the past 5 years FARM always reported negative net income.
FARM had negative operating cash flow in 4 of the past 5 years.
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 has a worse Return On Assets (-5.62%) than 73.03% of its industry peers.
The Return On Equity of FARM (-24.26%) is worse than 76.40% of its industry peers.
Industry RankSector Rank
ROA -5.62%
ROE -24.26%
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

FARM has a Gross Margin of 41.51%. This is amongst the best in the industry. FARM outperforms 95.51% of its industry peers.
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 41.51%
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.
The number of shares outstanding for FARM has been increased compared to 1 year ago.
The number of shares outstanding for FARM has been increased compared to 5 years ago.
Compared to 1 year ago, FARM has a worse debt to assets ratio.
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 1.84. 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.
With a Altman-Z score value of 1.84, FARM perfoms like the industry average, outperforming 48.31% of the companies in the same industry.
FARM has a Debt/Equity ratio of 0.56. This is a neutral value indicating FARM is somewhat dependend on debt financing.
FARM's Debt to Equity ratio of 0.56 is in line compared to the rest of the industry. FARM outperforms 46.07% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.56
Debt/FCF N/A
Altman-Z 1.84
ROIC/WACCN/A
WACC9.11%
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

FARM has a Current Ratio of 1.28. This is a normal value and indicates that FARM is financially healthy and should not expect problems in meeting its short term obligations.
FARM's Current ratio of 1.28 is in line compared to the rest of the industry. FARM outperforms 41.57% of its industry peers.
A Quick Ratio of 0.60 indicates that FARM may have some problems paying its short term obligations.
FARM has a worse Quick ratio (0.60) than 68.54% of its industry peers.
Industry RankSector Rank
Current Ratio 1.28
Quick Ratio 0.6
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

The Earnings Per Share has grown by an impressive 83.04% over the past year.
FARM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.43%.
The Revenue for FARM have been decreasing by -10.56% on average. This is quite bad
EPS 1Y (TTM)83.04%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-92.31%
Revenue 1Y (TTM)15.43%
Revenue growth 3Y9.21%
Revenue growth 5Y-10.56%
Sales Q2Q%0.63%

3.2 Future

FARM is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -7.78% yearly.
FARM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.80% yearly.
EPS Next Y-166.33%
EPS Next 2Y-7.78%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.73%
Revenue Next 2Y4.8%
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.
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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0

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

FARM's Enterprise Value to EBITDA is on the same level as the industry average.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 12.89
FARM Per share dataFARM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10 15

4.3 Compensation for Growth

A cheap valuation may be justified as FARM's earnings are expected to decrease with -7.78% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-7.78%
EPS Next 3YN/A

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0

5. Dividend

5.1 Amount

FARM does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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FARMER BROS CO

NASDAQ:FARM (4/25/2025, 8:04:18 PM)

1.83

-0.03 (-1.61%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)02-06 2025-02-06/amc
Earnings (Next)05-08 2025-05-08
Inst Owners42.25%
Inst Owner Change-72.12%
Ins Owners7.22%
Ins Owner Change11.99%
Market Cap39.07M
Analysts82.5
Price Target5.36 (192.9%)
Short Float %1.07%
Short Ratio0.53
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)2
Avg EPS beat(2)59.89%
Min EPS beat(2)1.96%
Max EPS beat(2)117.83%
EPS beat(4)4
Avg EPS beat(4)55.38%
Min EPS beat(4)1.96%
Max EPS beat(4)117.83%
EPS beat(8)6
Avg EPS beat(8)18.47%
EPS beat(12)8
Avg EPS beat(12)14.23%
EPS beat(16)9
Avg EPS beat(16)4.69%
Revenue beat(2)0
Avg Revenue beat(2)-2.01%
Min Revenue beat(2)-3.19%
Max Revenue beat(2)-0.83%
Revenue beat(4)1
Avg Revenue beat(4)-2.1%
Min Revenue beat(4)-5.44%
Max Revenue beat(4)1.06%
Revenue beat(8)2
Avg Revenue beat(8)2.14%
Revenue beat(12)3
Avg Revenue beat(12)-12.03%
Revenue beat(16)5
Avg Revenue beat(16)-18.19%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)8.7%
EPS NY rev (1m)0%
EPS NY rev (3m)16.81%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.26%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.45%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 0.11
P/FCF N/A
P/OCF 22.12
P/B 0.94
P/tB 1.25
EV/EBITDA 12.89
EPS(TTM)-0.48
EYN/A
EPS(NY)-0.21
Fwd EYN/A
FCF(TTM)-0.5
FCFYN/A
OCF(TTM)0.08
OCFY4.52%
SpS16.15
BVpS1.94
TBVpS1.47
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -5.62%
ROE -24.26%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 41.51%
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 Turnover1.93
Health
Industry RankSector Rank
Debt/Equity 0.56
Debt/FCF N/A
Debt/EBITDA 5.27
Cap/Depr 106.36%
Cap/Sales 3.58%
Interest Coverage N/A
Cash Conversion 39.89%
Profit Quality N/A
Current Ratio 1.28
Quick Ratio 0.6
Altman-Z 1.84
F-Score4
WACC9.11%
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)83.04%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-92.31%
EPS Next Y-166.33%
EPS Next 2Y-7.78%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)15.43%
Revenue growth 3Y9.21%
Revenue growth 5Y-10.56%
Sales Q2Q%0.63%
Revenue Next Year3.73%
Revenue Next 2Y4.8%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y67.47%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year529.97%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y34.94%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y148.73%
OCF growth 3YN/A
OCF growth 5YN/A