FARMLAND PARTNERS INC (FPI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FPI - US31154R1095 - REIT
10.95 USD
-0.02 (-0.18%)
11.15 USD
+0.2 (+1.83%)
Taking everything into account, FPI scores 5 out of 10 in our fundamental rating. FPI was compared to 30 industry peers in the Specialized REITs industry. FPI has an average financial health and profitability rating. 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.
- The reported net income has been mixed in the past 5 years: FPI reported negative net income in multiple 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 8.87%, FPI belongs to the top of the industry, outperforming 96.67% of the companies in the same industry.
- 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.
- With a Return On Invested Capital value of 2.43%, FPI is not doing good in the industry: 63.33% of the companies in the same industry are doing better.
- FPI had an Average Return On Invested Capital over the past 3 years of 2.05%. This 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.
- In the last couple of years the Profit Margin of FPI has grown nicely.
- Looking at the Operating Margin, with a value of 42.35%, FPI is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
- In the last couple of years the Operating Margin of FPI has declined.
- The Gross Margin of FPI (78.72%) is better than 70.00% of its industry peers.
- FPI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 42.35% | ||
| 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.
- Compared to 1 year ago, FPI has less shares outstanding
- 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
- FPI has an Altman-Z score of 1.03. This is a bad value and indicates that FPI is not financially healthy and even has some risk of bankruptcy.
- FPI has a Altman-Z score (1.03) which is comparable to the rest of the industry.
- 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 (23.33) which is comparable to the rest of the industry.
- A Debt/Equity ratio of 0.38 indicates that FPI is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.38, FPI belongs to the top of the industry, outperforming 93.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 23.33 | ||
| Altman-Z | 1.03 |
ROIC/WACC0.29
WACC8.5%
2.3 Liquidity
- A Current Ratio of 2.09 indicates that FPI has no problem at all paying its short term obligations.
- With an excellent Current ratio value of 2.09, FPI belongs to the best of the industry, outperforming 86.67% of the companies in the same industry.
- FPI has a Quick Ratio of 1.88. This is a normal value and indicates that FPI is financially healthy and should not expect problems in meeting its short term obligations.
- FPI's Quick ratio of 1.88 is amongst the best of the industry. FPI outperforms 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.
- FPI shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 90.67% yearly.
- Looking at the last year, FPI shows a decrease in Revenue. The Revenue has decreased by -9.27% in the last 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)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.
- FPI is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -12.66% yearly.
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
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- 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
- The Price/Earnings ratio is 6.97, which indicates a rather cheap valuation of FPI.
- Based on the Price/Earnings ratio, FPI is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
- When comparing the Price/Earnings ratio of FPI to the average of the S&P500 Index (28.60), we can say FPI is valued rather cheaply.
- FPI is valuated quite expensively with a Price/Forward Earnings ratio of 77.44.
- 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 (25.83), we can say FPI is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.97 | ||
| Fwd PE | 77.44 |
4.2 Price Multiples
- 66.67% of the companies in the same industry are cheaper than FPI, based on the Enterprise Value to EBITDA ratio.
- FPI's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 64.82 | ||
| EV/EBITDA | 23.37 |
4.3 Compensation for Growth
- The decent profitability rating of FPI may justify a higher PE ratio.
- A cheap valuation may be justified as FPI's earnings are expected to decrease with -46.41% in the coming years.
PEG (NY)N/A
PEG (5Y)0.08
EPS Next 2Y-63.3%
EPS Next 3Y-46.41%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.21%, FPI has a reasonable but not impressive dividend return.
- 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!
- Compared to an average S&P500 Dividend Yield of 1.82, FPI pays a bit more dividend than the S&P500 average.
| 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
- FPI pays out 102.25% 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.
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%.