FARMLAND PARTNERS INC (FPI) Stock Fundamental Analysis
NYSE:FPI - New York Stock Exchange, Inc. - US31154R1095 - REIT - Currency: USD
FPI gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 30 industry peers in the Specialized REITs industry. FPI has only an average score on both its financial health and profitability. FPI is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year FPI was profitable.
In the past year FPI had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: FPI reported negative net income in multiple years.
In the past 5 years FPI always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 7.04%, FPI belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
With a decent Return On Equity value of 11.90%, FPI is doing good in the industry, outperforming 76.67% of the companies in the same industry.
FPI has a worse Return On Invested Capital (2.39%) than 70.00% of its industry peers.
FPI had an Average Return On Invested Capital over the past 3 years of 2.05%. This is below the industry average of 5.28%.
The 3 year average ROIC (2.05%) for FPI is below the current ROIC(2.39%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.04% | ||
| ROE | 11.9% | ||
| ROIC | 2.39% |
ROA(3y)3.31%
ROA(5y)1.79%
ROE(3y)6.18%
ROE(5y)3.21%
ROIC(3y)2.05%
ROIC(5y)1.8%
1.3 Margins
FPI's Profit Margin of 101.07% is amongst the best of the industry. FPI outperforms 100.00% of its industry peers.
FPI's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 42.82%, FPI is doing good in the industry, outperforming 63.33% of the companies in the same industry.
FPI's Operating Margin has declined in the last couple of years.
FPI's Gross Margin of 80.33% is fine compared to the rest of the industry. FPI outperforms 70.00% of its industry peers.
FPI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 42.82% | ||
| PM (TTM) | 101.07% | ||
| GM | 80.33% |
OM growth 3Y10.34%
OM growth 5Y-2.3%
PM growth 3YN/A
PM growth 5Y108.42%
GM growth 3Y-0.93%
GM growth 5Y-0.72%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), FPI is destroying value.
Compared to 1 year ago, FPI has less shares outstanding
The number of shares outstanding for FPI has been increased compared to 5 years ago.
FPI has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.99, we must say that FPI is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.99, FPI is in line with its industry, outperforming 53.33% of the companies in the same industry.
The Debt to FCF ratio of FPI is 201.00, which is on the high side as it means it would take FPI, 201.00 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of FPI (201.00) is worse than 73.33% of its industry peers.
A Debt/Equity ratio of 0.42 indicates that FPI is not too dependend on debt financing.
FPI has a Debt to Equity ratio of 0.42. This is amongst the best in the industry. FPI outperforms 96.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 201 | ||
| Altman-Z | 0.99 |
ROIC/WACC0.28
WACC8.43%
2.3 Liquidity
FPI has a Current Ratio of 2.59. This indicates that FPI is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 2.59, FPI belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
FPI has a Quick Ratio of 2.32. This indicates that FPI is financially healthy and has no problem in meeting its short term obligations.
FPI has a Quick ratio of 2.32. This is amongst the best in the industry. FPI outperforms 90.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.59 | ||
| Quick Ratio | 2.32 |
3. Growth
3.1 Past
FPI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 101.89%, which is quite impressive.
FPI shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 90.67% yearly.
The Revenue has decreased by -0.52% in the past year.
The Revenue has been growing slightly by 1.68% on average over the past years.
EPS 1Y (TTM)101.89%
EPS 3YN/A
EPS 5Y90.67%
EPS Q2Q%200%
Revenue 1Y (TTM)-0.52%
Revenue growth 3Y4.02%
Revenue growth 5Y1.68%
Sales Q2Q%-14.5%
3.2 Future
FPI is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -40.41% yearly.
FPI is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -9.16% yearly.
EPS Next Y-82.69%
EPS Next 2Y-57.63%
EPS Next 3Y-40.41%
EPS Next 5YN/A
Revenue Next Year-15.02%
Revenue Next 2Y-9.16%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 10.36 indicates a reasonable valuation of FPI.
FPI's Price/Earnings ratio is rather cheap when compared to the industry. FPI is cheaper than 96.67% of the companies in the same industry.
FPI is valuated cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 58.77, which means the current valuation is very expensive for FPI.
FPI's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. FPI is more expensive than 63.33% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.76. FPI is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.36 | ||
| Fwd PE | 58.77 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FPI indicates a slightly more expensive valuation: FPI is more expensive than 76.67% of the companies listed in the same industry.
73.33% of the companies in the same industry are cheaper than FPI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 507.54 | ||
| EV/EBITDA | 23.41 |
4.3 Compensation for Growth
FPI has a very decent profitability rating, which may justify a higher PE ratio.
FPI's earnings are expected to decrease with -40.41% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.11
EPS Next 2Y-57.63%
EPS Next 3Y-40.41%
5. Dividend
5.1 Amount
FPI has a Yearly Dividend Yield of 2.16%. Purely for dividend investing, there may be better candidates out there.
With a Dividend Yield of 2.16, FPI pays less dividend than the industry average, which is at 5.78. 86.67% of the companies listed in the same industry pay a better dividend than FPI!
FPI's Dividend Yield is comparable with the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.16% |
5.2 History
The dividend of FPI decreases each year by -3.18%.
FPI has been paying a dividend for at least 10 years, so it has a reliable track record.
As FPI did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)-3.18%
Div Incr Years3
Div Non Decr Years5
5.3 Sustainability
FPI pays out 118.02% of its income as dividend. This is not a sustainable payout ratio.
FPI's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP118.02%
EPS Next 2Y-57.63%
EPS Next 3Y-40.41%
11.08
-0.02 (-0.18%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners61.97%
Inst Owner Change0%
Ins Owners7.33%
Ins Owner Change3.76%
Market Cap509.57M
Analysts77.5
Price Target12.37 (11.64%)
Short Float %6.39%
Short Ratio5.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.16% |
Yearly Dividend0.52
Dividend Growth(5Y)-3.18%
DP118.02%
Div Incr Years3
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)171.27%
Min EPS beat(2)-2.79%
Max EPS beat(2)345.32%
EPS beat(4)2
Avg EPS beat(4)108.16%
Min EPS beat(4)-62%
Max EPS beat(4)345.32%
EPS beat(8)5
Avg EPS beat(8)85.95%
EPS beat(12)8
Avg EPS beat(12)147.08%
EPS beat(16)9
Avg EPS beat(16)102.15%
Revenue beat(2)2
Avg Revenue beat(2)5.87%
Min Revenue beat(2)4.78%
Max Revenue beat(2)6.97%
Revenue beat(4)3
Avg Revenue beat(4)4.39%
Min Revenue beat(4)-4.74%
Max Revenue beat(4)10.53%
Revenue beat(8)3
Avg Revenue beat(8)-1.1%
Revenue beat(12)5
Avg Revenue beat(12)0.92%
Revenue beat(16)7
Avg Revenue beat(16)0.27%
PT rev (1m)0%
PT rev (3m)-4.9%
EPS NQ rev (1m)0%
EPS NQ rev (3m)119.98%
EPS NY rev (1m)63.64%
EPS NY rev (3m)63.64%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.34%
Revenue NY rev (1m)0.86%
Revenue NY rev (3m)2.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.36 | ||
| Fwd PE | 58.77 | ||
| P/S | 9.02 | ||
| P/FCF | 507.54 | ||
| P/OCF | 48 | ||
| P/B | 1.06 | ||
| P/tB | 1.07 | ||
| EV/EBITDA | 23.41 |
EPS(TTM)1.07
EY9.66%
EPS(NY)0.19
Fwd EY1.7%
FCF(TTM)0.02
FCFY0.2%
OCF(TTM)0.23
OCFY2.08%
SpS1.23
BVpS10.43
TBVpS10.34
PEG (NY)N/A
PEG (5Y)0.11
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.04% | ||
| ROE | 11.9% | ||
| ROCE | 3.02% | ||
| ROIC | 2.39% | ||
| ROICexc | 2.46% | ||
| ROICexgc | 2.47% | ||
| OM | 42.82% | ||
| PM (TTM) | 101.07% | ||
| GM | 80.33% | ||
| FCFM | 1.78% |
ROA(3y)3.31%
ROA(5y)1.79%
ROE(3y)6.18%
ROE(5y)3.21%
ROIC(3y)2.05%
ROIC(5y)1.8%
ROICexc(3y)2.15%
ROICexc(5y)1.87%
ROICexgc(3y)2.16%
ROICexgc(5y)1.88%
ROCE(3y)2.6%
ROCE(5y)2.28%
ROICexcg growth 3Y31.14%
ROICexcg growth 5Y7.77%
ROICexc growth 3Y31.05%
ROICexc growth 5Y7.64%
OM growth 3Y10.34%
OM growth 5Y-2.3%
PM growth 3YN/A
PM growth 5Y108.42%
GM growth 3Y-0.93%
GM growth 5Y-0.72%
F-Score8
Asset Turnover0.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 201 | ||
| Debt/EBITDA | 6.85 | ||
| Cap/Depr | 182.03% | ||
| Cap/Sales | 17.01% | ||
| Interest Coverage | 1.3 | ||
| Cash Conversion | 36.02% | ||
| Profit Quality | 1.76% | ||
| Current Ratio | 2.59 | ||
| Quick Ratio | 2.32 | ||
| Altman-Z | 0.99 |
F-Score8
WACC8.43%
ROIC/WACC0.28
Cap/Depr(3y)521.09%
Cap/Depr(5y)541.51%
Cap/Sales(3y)59.29%
Cap/Sales(5y)69.41%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)101.89%
EPS 3YN/A
EPS 5Y90.67%
EPS Q2Q%200%
EPS Next Y-82.69%
EPS Next 2Y-57.63%
EPS Next 3Y-40.41%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.52%
Revenue growth 3Y4.02%
Revenue growth 5Y1.68%
Sales Q2Q%-14.5%
Revenue Next Year-15.02%
Revenue Next 2Y-9.16%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y0.02%
EBIT growth 3Y14.77%
EBIT growth 5Y-0.65%
EBIT Next Year12.03%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y103.54%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-52.99%
OCF growth 3Y27.11%
OCF growth 5Y-2.14%