FARMLAND PARTNERS INC (FPI) Stock Fundamental Analysis
NYSE:FPI - New York Stock Exchange, Inc. - US31154R1095 - REIT - Currency: USD
Overall FPI gets a fundamental rating of 4 out of 10. We evaluated FPI 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 does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
FPI had positive earnings in the past year.
In the past year FPI had a positive cash flow from operations.
In multiple years FPI reported negative net income over the last 5 years.
FPI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
FPI's Return On Assets of 6.50% is amongst the best of the industry. FPI outperforms 90.00% of its industry peers.
FPI's Return On Equity of 11.71% is fine compared to the rest of the industry. FPI outperforms 76.67% of its industry peers.
FPI has a Return On Invested Capital of 2.52%. This is in the lower half of the industry: FPI underperforms 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 5.35%.
The 3 year average ROIC (2.05%) for FPI is below the current ROIC(2.52%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.5% | ||
| ROE | 11.71% | ||
| ROIC | 2.52% |
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
With an excellent Profit Margin value of 96.91%, FPI belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Profit Margin of FPI has grown nicely.
FPI has a better Operating Margin (43.80%) than 66.67% of its industry peers.
FPI's Operating Margin has declined in the last couple of years.
FPI has a better Gross Margin (80.58%) than 70.00% of its industry peers.
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 | 43.8% | ||
| PM (TTM) | 96.91% | ||
| GM | 80.58% |
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.
FPI has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, FPI has more shares outstanding
The debt/assets ratio for FPI has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.81, we must say that FPI is in the distress zone and has some risk of bankruptcy.
FPI has a Altman-Z score (0.81) which is comparable to the rest of the industry.
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 | N/A | ||
| Altman-Z | 0.81 |
ROIC/WACC0.3
WACC8.39%
2.3 Liquidity
A Current Ratio of 1.24 indicates that FPI should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.24, FPI is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
A Quick Ratio of 1.20 indicates that FPI should not have too much problems paying its short term obligations.
FPI's Quick ratio of 1.20 is amongst the best of the industry. FPI outperforms 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
FPI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 94.44%, which is quite impressive.
The Earnings Per Share has been growing by 90.67% on average over the past years. This is a very strong growth
The Revenue has been growing slightly by 1.33% in the past year.
FPI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.68% yearly.
EPS 1Y (TTM)94.44%
EPS 3YN/A
EPS 5Y90.67%
EPS Q2Q%227.27%
Revenue 1Y (TTM)1.33%
Revenue growth 3Y4.02%
Revenue growth 5Y1.68%
Sales Q2Q%-0.55%
3.2 Future
The Earnings Per Share is expected to decrease by -49.99% on average over the next years. This is quite bad
FPI is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -9.80% yearly.
EPS Next Y-89.42%
EPS Next 2Y-66.5%
EPS Next 3Y-49.99%
EPS Next 5YN/A
Revenue Next Year-17.32%
Revenue Next 2Y-9.8%
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
With a Price/Earnings ratio of 9.92, the valuation of FPI can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of FPI indicates a rather cheap valuation: FPI is cheaper than 100.00% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.18. FPI is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 93.79, FPI can be considered very expensive at the moment.
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 66.67% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.81, FPI is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.92 | ||
| Fwd PE | 93.79 |
4.2 Price Multiples
FPI's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 19.38 |
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)0.11
EPS Next 2Y-66.5%
EPS Next 3Y-49.99%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.31%, FPI has a reasonable but not impressive dividend return.
With a Dividend Yield of 2.31, FPI pays less dividend than the industry average, which is at 5.72. 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 2.45, FPI has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.31% |
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 last 3 years.
Dividend Growth(5Y)-3.18%
Div Incr Years2
Div Non Decr Years4
5.3 Sustainability
FPI pays out 43.60% of its income as dividend. This is a bit on the high side, but may be sustainable.
FPI's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP43.6%
EPS Next 2Y-66.5%
EPS Next 3Y-49.99%
10.42
+0.04 (+0.39%)
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-10.43%
Ins Owners6.51%
Ins Owner Change3.93%
Market Cap479.22M
Analysts77.5
Price Target13.01 (24.86%)
Short Float %6.61%
Short Ratio6.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.31% |
Yearly Dividend0.52
Dividend Growth(5Y)-3.18%
DP43.6%
Div Incr Years2
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)74.66%
Min EPS beat(2)-2.79%
Max EPS beat(2)152.11%
EPS beat(4)2
Avg EPS beat(4)53.9%
Min EPS beat(4)-62%
Max EPS beat(4)152.11%
EPS beat(8)5
Avg EPS beat(8)129.29%
EPS beat(12)7
Avg EPS beat(12)109.97%
EPS beat(16)9
Avg EPS beat(16)85.05%
Revenue beat(2)2
Avg Revenue beat(2)7.65%
Min Revenue beat(2)4.78%
Max Revenue beat(2)10.53%
Revenue beat(4)2
Avg Revenue beat(4)2.07%
Min Revenue beat(4)-4.74%
Max Revenue beat(4)10.53%
Revenue beat(8)2
Avg Revenue beat(8)-2.85%
Revenue beat(12)5
Avg Revenue beat(12)1.01%
Revenue beat(16)7
Avg Revenue beat(16)0.43%
PT rev (1m)0%
PT rev (3m)-0.97%
EPS NQ rev (1m)0%
EPS NQ rev (3m)122.23%
EPS NY rev (1m)0%
EPS NY rev (3m)57.14%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)7.38%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.92 | ||
| Fwd PE | 93.79 | ||
| P/S | 8.23 | ||
| P/FCF | N/A | ||
| P/OCF | 29.69 | ||
| P/B | 0.99 | ||
| P/tB | 1 | ||
| EV/EBITDA | 19.38 |
EPS(TTM)1.05
EY10.08%
EPS(NY)0.11
Fwd EY1.07%
FCF(TTM)-0.07
FCFYN/A
OCF(TTM)0.35
OCFY3.37%
SpS1.27
BVpS10.48
TBVpS10.39
PEG (NY)N/A
PEG (5Y)0.11
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.5% | ||
| ROE | 11.71% | ||
| ROCE | 3.19% | ||
| ROIC | 2.52% | ||
| ROICexc | 2.79% | ||
| ROICexgc | 2.81% | ||
| OM | 43.8% | ||
| PM (TTM) | 96.91% | ||
| GM | 80.58% | ||
| FCFM | N/A |
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 | N/A | ||
| Debt/EBITDA | 6.55 | ||
| Cap/Depr | 347.01% | ||
| Cap/Sales | 33.3% | ||
| Interest Coverage | 1.22 | ||
| Cash Conversion | 51.92% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.24 | ||
| Quick Ratio | 1.2 | ||
| Altman-Z | 0.81 |
F-Score8
WACC8.39%
ROIC/WACC0.3
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)94.44%
EPS 3YN/A
EPS 5Y90.67%
EPS Q2Q%227.27%
EPS Next Y-89.42%
EPS Next 2Y-66.5%
EPS Next 3Y-49.99%
EPS Next 5YN/A
Revenue 1Y (TTM)1.33%
Revenue growth 3Y4.02%
Revenue growth 5Y1.68%
Sales Q2Q%-0.55%
Revenue Next Year-17.32%
Revenue Next 2Y-9.8%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y6.89%
EBIT growth 3Y14.77%
EBIT growth 5Y-0.65%
EBIT Next Year12.03%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y78.48%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y25.26%
OCF growth 3Y27.11%
OCF growth 5Y-2.14%