FARMLAND PARTNERS INC (FPI) Stock Fundamental Analysis
NYSE:FPI - US31154R1095 - REIT
11.04 USD
+0.18 (+1.66%)
11.04 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to FPI. FPI was compared to 30 industry peers in the Specialized REITs industry. FPI has only an average score on both its financial health and profitability. FPI does not seem to be growing, but still is valued expensively.
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.
Each year in the past 5 years FPI had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.59%, FPI belongs to the top of the industry, outperforming 96.67% of the companies in the same industry.
FPI has a better Return On Equity (14.32%) than 80.00% of its industry peers.
FPI has a worse Return On Invested Capital (2.43%) 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 5.15%.
The last Return On Invested Capital (2.43%) for FPI is above the 3 year average (2.05%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.59% | ||
| ROE | 14.32% | ||
| 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
Looking at the Profit Margin, with a value of 121.26%, FPI belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
FPI's Profit Margin has improved in the last couple of years.
FPI has a Operating Margin of 42.97%. This is in the better half of the industry: FPI outperforms 63.33% of its industry peers.
In the last couple of years the Operating Margin of FPI has declined.
FPI has a Gross Margin of 79.00%. This is in the better half of the industry: FPI outperforms 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 | 42.97% | ||
| PM (TTM) | 121.26% | ||
| GM | 79% |
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
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 1.06, we must say that FPI is in the distress zone and has some risk of bankruptcy.
FPI has a Altman-Z score of 1.06. This is comparable to the rest of the industry: FPI outperforms 53.33% of its industry peers.
FPI has a debt to FCF ratio of 35.01. This is a negative value and a sign of low solvency as FPI would need 35.01 years to pay back of all of its debts.
FPI has a Debt to FCF ratio (35.01) which is in line with its industry peers.
FPI has a Debt/Equity ratio of 0.41. This is a healthy value indicating a solid balance between debt and equity.
FPI's Debt to Equity ratio of 0.41 is amongst the best of the industry. FPI outperforms 93.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 35.01 | ||
| Altman-Z | 1.06 |
ROIC/WACC0.29
WACC8.34%
2.3 Liquidity
A Current Ratio of 5.55 indicates that FPI has no problem at all paying its short term obligations.
The Current ratio of FPI (5.55) is better than 96.67% of its industry peers.
FPI has a Quick Ratio of 5.29. This indicates that FPI is financially healthy and has no problem in meeting its short term obligations.
FPI's Quick ratio of 5.29 is amongst the best of the industry. FPI outperforms 96.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.55 | ||
| Quick Ratio | 5.29 |
3. Growth
3.1 Past
FPI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 348.57%, 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 -2.90%.
FPI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.68% yearly.
EPS 1Y (TTM)348.57%
EPS 3YN/A
EPS 5Y90.67%
EPS Q2Q%833.33%
Revenue 1Y (TTM)-2.9%
Revenue growth 3Y4.02%
Revenue growth 5Y1.68%
Sales Q2Q%-12.98%
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 -44.26% yearly.
The Revenue is expected to decrease by -9.22% on average over the next years.
EPS Next Y-74.35%
EPS Next 2Y-59.96%
EPS Next 3Y-44.26%
EPS Next 5YN/A
Revenue Next Year-15.02%
Revenue Next 2Y-9.22%
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 7.03 indicates a rather cheap valuation of FPI.
Based on the Price/Earnings ratio, FPI is valued cheaper than 100.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.24, FPI is valued rather cheaply.
The Price/Forward Earnings ratio is 65.58, which means the current valuation is very expensive for FPI.
63.33% of the companies in the same industry are cheaper than FPI, based on the Price/Forward Earnings ratio.
FPI is valuated expensively when we compare the Price/Forward Earnings ratio to 35.82, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.03 | ||
| Fwd PE | 65.58 |
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.
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 | 88.56 | ||
| EV/EBITDA | 21.99 |
4.3 Compensation for Growth
FPI has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as FPI's earnings are expected to decrease with -44.26% in the coming years.
PEG (NY)N/A
PEG (5Y)0.08
EPS Next 2Y-59.96%
EPS Next 3Y-44.26%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.21%, FPI has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.02, FPI's dividend is way lower than its industry peers. On top of this 90.00% 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 2.32.
| 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.
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
100.83% of the earnings are spent on dividend by FPI. 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.
DP100.83%
EPS Next 2Y-59.96%
EPS Next 3Y-44.26%
11.04
+0.18 (+1.66%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners64.46%
Inst Owner Change-1.55%
Ins Owners7.63%
Ins Owner Change3.76%
Market Cap487.53M
Analysts77.5
Price Target12.5 (13.22%)
Short Float %5.05%
Short Ratio4.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.21% |
Yearly Dividend0.52
Dividend Growth(5Y)-3.18%
DP100.83%
Div Incr Years3
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6663.86%
Min EPS beat(2)345.32%
Max EPS beat(2)12982.4%
EPS beat(4)3
Avg EPS beat(4)3369.26%
Min EPS beat(4)-2.79%
Max EPS beat(4)12982.4%
EPS beat(8)5
Avg EPS beat(8)1697.49%
EPS beat(12)8
Avg EPS beat(12)1207.41%
EPS beat(16)10
Avg EPS beat(16)917.68%
Revenue beat(2)2
Avg Revenue beat(2)4.39%
Min Revenue beat(2)1.81%
Max Revenue beat(2)6.97%
Revenue beat(4)4
Avg Revenue beat(4)6.02%
Min Revenue beat(4)1.81%
Max Revenue beat(4)10.53%
Revenue beat(8)4
Avg Revenue beat(8)0.49%
Revenue beat(12)5
Avg Revenue beat(12)-0.06%
Revenue beat(16)8
Avg Revenue beat(16)0.91%
PT rev (1m)1.03%
PT rev (3m)-3.92%
EPS NQ rev (1m)85.73%
EPS NQ rev (3m)533.3%
EPS NY rev (1m)48.15%
EPS NY rev (3m)142.43%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.71%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.03 | ||
| Fwd PE | 65.58 | ||
| P/S | 8.86 | ||
| P/FCF | 88.56 | ||
| P/OCF | 33.58 | ||
| P/B | 1.05 | ||
| P/tB | 1.06 | ||
| EV/EBITDA | 21.99 |
EPS(TTM)1.57
EY14.22%
EPS(NY)0.17
Fwd EY1.52%
FCF(TTM)0.12
FCFY1.13%
OCF(TTM)0.33
OCFY2.98%
SpS1.25
BVpS10.54
TBVpS10.45
PEG (NY)N/A
PEG (5Y)0.08
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.59% | ||
| ROE | 14.32% | ||
| ROCE | 3.08% | ||
| ROIC | 2.43% | ||
| ROICexc | 2.61% | ||
| ROICexgc | 2.62% | ||
| OM | 42.97% | ||
| PM (TTM) | 121.26% | ||
| GM | 79% | ||
| FCFM | 10.01% |
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-Score7
Asset Turnover0.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 35.01 | ||
| Debt/EBITDA | 6.74 | ||
| Cap/Depr | 181.02% | ||
| Cap/Sales | 16.39% | ||
| Interest Coverage | 1.45 | ||
| Cash Conversion | 50.74% | ||
| Profit Quality | 8.25% | ||
| Current Ratio | 5.55 | ||
| Quick Ratio | 5.29 | ||
| Altman-Z | 1.06 |
F-Score7
WACC8.34%
ROIC/WACC0.29
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)348.57%
EPS 3YN/A
EPS 5Y90.67%
EPS Q2Q%833.33%
EPS Next Y-74.35%
EPS Next 2Y-59.96%
EPS Next 3Y-44.26%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.9%
Revenue growth 3Y4.02%
Revenue growth 5Y1.68%
Sales Q2Q%-12.98%
Revenue Next Year-15.02%
Revenue Next 2Y-9.22%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-4.18%
EBIT growth 3Y14.77%
EBIT growth 5Y-0.65%
EBIT Next Year13.12%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y125.68%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-19.33%
OCF growth 3Y27.11%
OCF growth 5Y-2.14%