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. Both the profitability and the financial health of FPI get a neutral evaluation. Nothing too spectacular is happening here. FPI has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year FPI was profitable.
FPI had a positive operating cash flow in the past year.
In multiple years FPI reported negative net income over the last 5 years.
In the past 5 years FPI always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of FPI (7.04%) is better than 90.00% of its industry peers.
FPI has a Return On Equity of 11.90%. This is in the better half of the industry: FPI outperforms 76.67% of its industry peers.
The Return On Invested Capital of FPI (2.39%) is worse than 70.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FPI 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.
In the last couple of years the Operating Margin of FPI has declined.
Looking at the Gross Margin, with a value of 80.33%, FPI is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
In the last couple of years the Gross Margin of FPI has remained more or less at the same level.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so FPI is destroying value.
Compared to 1 year ago, FPI has less shares outstanding
Compared to 5 years ago, FPI has more shares outstanding
FPI has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.03, we must say that FPI is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.03, FPI perfoms like the industry average, 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.
With a Debt to FCF ratio value of 201.00, FPI is not doing good in the industry: 73.33% of the companies in the same industry are doing better.
A Debt/Equity ratio of 0.42 indicates that FPI is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.42, FPI belongs to the top of the industry, outperforming 96.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 201 | ||
| Altman-Z | 1.03 |
ROIC/WACC0.28
WACC8.45%
2.3 Liquidity
A Current Ratio of 2.59 indicates that FPI has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.59, FPI belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
A Quick Ratio of 2.32 indicates that FPI has no problem at all paying its short term obligations.
FPI's Quick ratio of 2.32 is amongst the best of 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.
Measured over the past years, FPI shows a very strong growth in Earnings Per Share. The EPS has been growing by 90.67% on average per year.
FPI shows a decrease in Revenue. In the last year, the revenue decreased by -0.52%.
Measured over the past years, FPI shows a small growth in Revenue. The Revenue has been growing by 1.68% on average per year.
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 -49.99% yearly.
FPI is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -9.41% yearly.
EPS Next Y-89.42%
EPS Next 2Y-66.5%
EPS Next 3Y-49.99%
EPS Next 5YN/A
Revenue Next Year-15.74%
Revenue Next 2Y-9.41%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
The Price/Earnings ratio is 10.79, which indicates a very decent 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.
Compared to an average S&P500 Price/Earnings ratio of 26.52, FPI is valued rather cheaply.
The Price/Forward Earnings ratio is 98.02, which means the current valuation is very expensive for FPI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FPI indicates a slightly more expensive valuation: FPI is more expensive than 63.33% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of FPI to the average of the S&P500 Index (22.25), we can say FPI is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.79 | ||
| Fwd PE | 98.02 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FPI is valued expensively inside the industry as 80.00% of the companies are valued cheaper.
Based on the Price/Free Cash Flow ratio, FPI is valued a bit more expensive than the industry average as 73.33% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 529.07 | ||
| EV/EBITDA | 24.14 |
4.3 Compensation for Growth
The decent profitability rating of FPI may justify a higher PE ratio.
FPI's earnings are expected to decrease with -49.99% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.12
EPS Next 2Y-66.5%
EPS Next 3Y-49.99%
5. Dividend
5.1 Amount
FPI has a Yearly Dividend Yield of 2.09%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.62, FPI's dividend is way lower than its industry peers. On top of this 86.67% of the companies listed in the same industry pay a better dividend than FPI!
Compared to an average S&P500 Dividend Yield of 2.39, FPI has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.09% |
5.2 History
The dividend of FPI decreases each year by -3.18%.
FPI has paid a dividend for at least 10 years, which is a reliable track record.
FPI has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
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.
The Dividend Rate of FPI has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP118.02%
EPS Next 2Y-66.5%
EPS Next 3Y-49.99%
11.55
+0.07 (+0.61%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners61.11%
Inst Owner Change-3.91%
Ins Owners6.51%
Ins Owner Change4.31%
Market Cap531.18M
Analysts77.5
Price Target12.37 (7.1%)
Short Float %5.98%
Short Ratio6.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.09% |
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)-4.9%
PT rev (3m)-4.9%
EPS NQ rev (1m)119.98%
EPS NQ rev (3m)108.33%
EPS NY rev (1m)0%
EPS NY rev (3m)57.14%
Revenue NQ rev (1m)1.83%
Revenue NQ rev (3m)4.23%
Revenue NY rev (1m)1.92%
Revenue NY rev (3m)1.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.79 | ||
| Fwd PE | 98.02 | ||
| P/S | 9.4 | ||
| P/FCF | 529.07 | ||
| P/OCF | 50.04 | ||
| P/B | 1.11 | ||
| P/tB | 1.12 | ||
| EV/EBITDA | 24.14 |
EPS(TTM)1.07
EY9.26%
EPS(NY)0.12
Fwd EY1.02%
FCF(TTM)0.02
FCFY0.19%
OCF(TTM)0.23
OCFY2%
SpS1.23
BVpS10.43
TBVpS10.34
PEG (NY)N/A
PEG (5Y)0.12
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 | 1.03 |
F-Score8
WACC8.45%
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-89.42%
EPS Next 2Y-66.5%
EPS Next 3Y-49.99%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.52%
Revenue growth 3Y4.02%
Revenue growth 5Y1.68%
Sales Q2Q%-14.5%
Revenue Next Year-15.74%
Revenue Next 2Y-9.41%
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%