FARMLAND PARTNERS INC (FPI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FPI - US31154R1095 - REIT
11.09 USD
+0.14 (+1.28%)
Overall FPI gets a fundamental rating of 5 out of 10. We evaluated FPI 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 correctly, but 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.
- 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 has a Return On Assets of 8.87%. This is amongst the best in the industry. FPI outperforms 96.67% of its industry peers.
- FPI's Return On Equity of 14.58% is fine compared to the rest of the industry. FPI outperforms 80.00% of its industry peers.
- FPI has a Return On Invested Capital of 2.43%. This is in the lower half of the industry: FPI underperforms 63.33% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for FPI is below the industry average of 4.86%.
- The 3 year average ROIC (2.05%) for FPI is below the current ROIC(2.43%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.87% | ||
| ROE | 14.58% | ||
| ROIC | 2.43% |
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 has a Profit Margin of 123.81%. This is amongst the best in the industry. FPI outperforms 100.00% of its industry peers.
- FPI's Profit Margin has improved in the last couple of years.
- FPI has a Operating Margin of 42.35%. This is in the better half of the industry: FPI outperforms 66.67% of its industry peers.
- In the last couple of years the Operating Margin of FPI has declined.
- Looking at the Gross Margin, with a value of 78.72%, FPI is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
- FPI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 42.35% | ||
| PM (TTM) | 123.81% | ||
| GM | 78.72% |
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.
- The number of shares outstanding for FPI has been reduced compared to 1 year ago.
- The number of shares outstanding for FPI has been increased compared to 5 years ago.
- Compared to 1 year ago, FPI has an improved debt to assets ratio.
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.
- FPI has a Altman-Z score (1.03) which is in line with its industry peers.
- The Debt to FCF ratio of FPI is 23.33, which is on the high side as it means it would take FPI, 23.33 years of fcf income to pay off all of its debts.
- FPI has a Debt to FCF ratio of 23.33. This is comparable to the rest of the industry: FPI outperforms 46.67% of its industry peers.
- FPI has a Debt/Equity ratio of 0.38. This is a healthy value indicating a solid balance between debt and equity.
- FPI's Debt to Equity ratio of 0.38 is amongst the best of the industry. FPI outperforms 93.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 23.33 | ||
| Altman-Z | 1.03 |
ROIC/WACC0.29
WACC8.5%
2.3 Liquidity
- FPI has a Current Ratio of 2.09. This indicates that FPI is financially healthy and has no problem in meeting its short term obligations.
- Looking at the Current ratio, with a value of 2.09, FPI belongs to the top of the industry, outperforming 86.67% of the companies in the same industry.
- A Quick Ratio of 1.88 indicates that FPI should not have too much problems paying its short term obligations.
- FPI has a better Quick ratio (1.88) than 86.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.09 | ||
| Quick Ratio | 1.88 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 423.33% over the past year.
- 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 -9.27%.
- 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)423.33%
EPS 3YN/A
EPS 5Y90.67%
EPS Q2Q%0%
Revenue 1Y (TTM)-9.27%
Revenue growth 3Y4.02%
Revenue growth 5Y1.68%
Sales Q2Q%-15.51%
3.2 Future
- Based on estimates for the next years, FPI will show a very negative growth in Earnings Per Share. The EPS will decrease by -46.41% on average per year.
- The Revenue is expected to decrease by -12.66% on average over the next years. This is quite bad
EPS Next Y-72.1%
EPS Next 2Y-63.3%
EPS Next 3Y-46.41%
EPS Next 5YN/A
Revenue Next Year-15.37%
Revenue Next 2Y-12.66%
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 7.06, the valuation of FPI can be described as very cheap.
- Based on the Price/Earnings ratio, FPI is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
- FPI is valuated cheaply when we compare the Price/Earnings ratio to 28.60, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 78.43, FPI can be considered very expensive at the moment.
- 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.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.83, FPI is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.06 | ||
| Fwd PE | 78.43 |
4.2 Price Multiples
- FPI's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. FPI is more expensive than 66.67% of the companies in the same industry.
- FPI's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 65.65 | ||
| EV/EBITDA | 23.34 |
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 -46.41% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.08
EPS Next 2Y-63.3%
EPS Next 3Y-46.41%
5. Dividend
5.1 Amount
- FPI has a Yearly Dividend Yield of 2.21%.
- With a Dividend Yield of 2.21, FPI pays less dividend than the industry average, which is at 5.51. 90.00% of the companies listed in the same industry pay a better dividend than FPI!
- FPI's Dividend Yield is a higher than the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.21% |
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
- 102.25% of the earnings are spent on dividend by FPI. 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.
DP102.25%
EPS Next 2Y-63.3%
EPS Next 3Y-46.41%
FARMLAND PARTNERS INC / FPI FAQ
What is the ChartMill fundamental rating of FARMLAND PARTNERS INC (FPI) stock?
ChartMill assigns a fundamental rating of 5 / 10 to FPI.
What is the valuation status of FARMLAND PARTNERS INC (FPI) stock?
ChartMill assigns a valuation rating of 4 / 10 to FARMLAND PARTNERS INC (FPI). This can be considered as Fairly Valued.
Can you provide the profitability details for FARMLAND PARTNERS INC?
FARMLAND PARTNERS INC (FPI) has a profitability rating of 6 / 10.
Can you provide the expected EPS growth for FPI stock?
The Earnings per Share (EPS) of FARMLAND PARTNERS INC (FPI) is expected to decline by -72.1% in the next year.
How sustainable is the dividend of FARMLAND PARTNERS INC (FPI) stock?
The dividend rating of FARMLAND PARTNERS INC (FPI) is 3 / 10 and the dividend payout ratio is 102.25%.