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 29 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.
The reported net income has been mixed in the past 5 years: FPI reported negative net income in multiple 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 89.29% of its industry peers.
The Return On Equity of FPI (11.71%) is better than 71.43% of its industry peers.
The Return On Invested Capital of FPI (2.52%) is worse than 71.43% 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 5.33%.
The last Return On Invested Capital (2.52%) for FPI is above the 3 year average (2.05%), which is a sign of increasing profitability.
| 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.
The Operating Margin of FPI (43.80%) is better than 64.29% of its industry peers.
FPI's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 80.58%, FPI is doing good in the industry, outperforming 67.86% 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 | 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.
Compared to 1 year ago, FPI has less shares outstanding
FPI has more shares outstanding than it did 5 years ago.
The debt/assets ratio for FPI has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.94, we must say that FPI is in the distress zone and has some risk of bankruptcy.
FPI has a Altman-Z score (0.94) 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.
FPI has a better Debt to Equity ratio (0.42) than 96.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.94 |
ROIC/WACC0.3
WACC8.49%
2.3 Liquidity
A Current Ratio of 1.24 indicates that FPI should not have too much problems paying its short term obligations.
FPI's Current ratio of 1.24 is fine compared to the rest of the industry. FPI outperforms 75.00% of its industry peers.
A Quick Ratio of 1.20 indicates that FPI should not have too much problems paying its short term obligations.
The Quick ratio of FPI (1.20) is better than 82.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 94.44% 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 small growth in Revenue. In the last year, the Revenue has grown by 1.33%.
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)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
Based on estimates for the next years, FPI will show a very negative growth in Earnings Per Share. The EPS will decrease by -70.58% on average per year.
Based on estimates for the next years, FPI will show a decrease in Revenue. The Revenue will decrease by -0.02% on average per year.
EPS Next Y-93.27%
EPS Next 2Y-70.58%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-17.19%
Revenue Next 2Y-0.02%
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
The Price/Earnings ratio is 11.09, which indicates a very decent valuation of FPI.
Based on the Price/Earnings ratio, FPI is valued cheaper than 100.00% of the companies in the same industry.
FPI is valuated cheaply when we compare the Price/Earnings ratio to 29.75, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 164.64, which means the current valuation is very expensive for FPI.
Based on the Price/Forward Earnings ratio, FPI is valued a bit more expensive than the industry average as 75.00% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 22.44. FPI is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.09 | ||
| Fwd PE | 164.64 |
4.2 Price Multiples
75.00% of the companies in the same industry are cheaper than FPI, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 22.06 |
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 -70.58% in the coming years.
PEG (NY)N/A
PEG (5Y)0.12
EPS Next 2Y-70.58%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.07%, FPI has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.49, FPI's dividend is way lower than its industry peers. On top of this 85.71% of the companies listed in the same industry pay a better dividend than FPI!
Compared to an average S&P500 Dividend Yield of 2.30, FPI has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.07% |
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
43.60% of the earnings are spent on dividend by FPI. 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-70.58%
EPS Next 3YN/A
11.64
-0.09 (-0.77%)
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 Change1.65%
Ins Owners6.51%
Ins Owner Change4.3%
Market Cap560.70M
Analysts80
Price Target13.13 (12.8%)
Short Float %7.94%
Short Ratio11.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.07% |
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)0.32%
EPS NQ rev (1m)33.33%
EPS NQ rev (3m)33.33%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)2.29%
Revenue NQ rev (3m)2.29%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.09 | ||
| Fwd PE | 164.64 | ||
| P/S | 9.63 | ||
| P/FCF | N/A | ||
| P/OCF | 34.74 | ||
| P/B | 1.16 | ||
| P/tB | 1.17 | ||
| EV/EBITDA | 22.06 |
EPS(TTM)1.05
EY9.02%
EPS(NY)0.07
Fwd EY0.61%
FCF(TTM)-0.07
FCFYN/A
OCF(TTM)0.34
OCFY2.88%
SpS1.21
BVpS10
TBVpS9.92
PEG (NY)N/A
PEG (5Y)0.12
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 | 0.94 |
F-Score8
WACC8.49%
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-93.27%
EPS Next 2Y-70.58%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)1.33%
Revenue growth 3Y4.02%
Revenue growth 5Y1.68%
Sales Q2Q%-0.55%
Revenue Next Year-17.19%
Revenue Next 2Y-0.02%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y6.89%
EBIT growth 3Y14.77%
EBIT growth 5Y-0.65%
EBIT Next Year15.83%
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%