FARMLAND PARTNERS INC (FPI)
US31154R1095 - REIT
We assign a fundamental rating of 3 out of 10 to FPI. FPI was compared to 28 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.
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
FPI has a Return On Assets of 1.49%. This is in the lower half of the industry: FPI underperforms 67.86% of its industry peers.
FPI's Return On Equity of 3.03% is on the low side compared to the rest of the industry. FPI is outperformed by 60.71% of its industry peers.
With a Return On Invested Capital value of 2.03%, FPI is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
Measured over the past 3 years, the Average Return On Invested Capital for FPI is below the industry average of 5.21%.
The 3 year average ROIC (1.61%) for FPI is below the current ROIC(2.03%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.49% | ||
| ROE | 3.03% | ||
| ROIC | 2.03% |
ROA(3y)0.97%
ROA(5y)0.51%
ROE(3y)1.85%
ROE(5y)0.93%
ROIC(3y)1.61%
ROIC(5y)1.68%
1.3 Margins
FPI has a Profit Margin of 26.30%. This is in the better half of the industry: FPI outperforms 78.57% of its industry peers.
FPI has a Operating Margin of 44.61%. This is in the better half of the industry: FPI outperforms 67.86% of its industry peers.
FPI's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 78.44%, FPI is in the better half of the industry, outperforming 67.86% of the companies in the same industry.
In the last couple of years the Gross Margin of FPI has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 44.61% | ||
| PM (TTM) | 26.3% | ||
| GM | 78.44% |
OM growth 3Y-1.97%
OM growth 5Y-4.87%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.92%
GM growth 5Y-2.28%
2. Health
2.1 Basic Checks
FPI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for FPI has been reduced compared to 1 year ago.
Compared to 5 years ago, FPI has more shares outstanding
FPI has a better debt/assets ratio than last year.
2.2 Solvency
FPI has an Altman-Z score of 0.69. This is a bad value and indicates that FPI is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of FPI (0.69) is worse than 67.86% of its industry peers.
FPI has a Debt/Equity ratio of 0.77. This is a neutral value indicating FPI is somewhat dependend on debt financing.
FPI's Debt to Equity ratio of 0.77 is amongst the best of the industry. FPI outperforms 82.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.69 |
ROIC/WACC0.28
WACC7.19%
2.3 Liquidity
A Current Ratio of 1.44 indicates that FPI should not have too much problems paying its short term obligations.
FPI has a better Current ratio (1.44) than 82.14% of its industry peers.
FPI has a Quick Ratio of 1.25. This is a normal value and indicates that FPI is financially healthy and should not expect problems in meeting its short term obligations.
With an excellent Quick ratio value of 1.25, FPI belongs to the best of the industry, outperforming 82.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.44 | ||
| Quick Ratio | 1.25 |
3. Growth
3.1 Past
The earnings per share for FPI have decreased by -6.25% in the last year.
Looking at the last year, FPI shows a small growth in Revenue. The Revenue has grown by 1.13% in the last year.
FPI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.49% yearly.
EPS 1Y (TTM)-6.25%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-71.43%
Revenue 1Y (TTM)1.13%
Revenue growth 3Y4.27%
Revenue growth 5Y0.49%
Sales Q2Q%14.63%
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 -44.78% yearly.
The Revenue is expected to decrease by -0.64% on average over the next years.
EPS Next Y102%
EPS Next 2Y-63.82%
EPS Next 3Y-44.78%
EPS Next 5YN/A
Revenue Next Year-1.86%
Revenue Next 2Y-9.85%
Revenue Next 3Y-0.64%
Revenue Next 5YN/A
3.3 Evolution
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 38.50, FPI can be considered very expensive at the moment.
FPI's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.54, FPI is valued a bit more expensive.
Based on the Price/Forward Earnings ratio of 163.37, the valuation of FPI can be described as expensive.
FPI's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. FPI is more expensive than 75.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.99. FPI is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.5 | ||
| Fwd PE | 163.37 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FPI is valued more expensive than 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 29.44 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A cheap valuation may be justified as FPI's earnings are expected to decrease with -44.78% in the coming years.
PEG (NY)0.38
PEG (5Y)N/A
EPS Next 2Y-63.82%
EPS Next 3Y-44.78%
5. Dividend
5.1 Amount
FPI has a Yearly Dividend Yield of 1.98%.
Compared to an average industry Dividend Yield of 4.90, 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 2.36, FPI has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.98% |
5.2 History
The dividend of FPI decreases each year by -18.56%.
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 last 3 years.
Dividend Growth(5Y)-18.56%
Div Incr Years2
Div Non Decr Years4
5.3 Sustainability
160.38% 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.
DP160.38%
EPS Next 2Y-63.82%
EPS Next 3Y-44.78%
FARMLAND PARTNERS INC
NYSE:FPI (12/24/2024, 8:14:30 PM)
After market: 11.6 +0.05 (+0.43%)11.55
+0.31 (+2.76%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners59.35%
Inst Owner Change2.35%
Ins Owners6.48%
Ins Owner Change1.74%
Market Cap556.36M
Analysts77.78
Price Target13.01 (12.64%)
Short Float %8.19%
Short Ratio10.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.98% |
Dividend Growth(5Y)-18.56%
DP160.38%
Div Incr Years2
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)45.05%
Min EPS beat(2)-62%
Max EPS beat(2)152.11%
EPS beat(4)3
Avg EPS beat(4)65.11%
Min EPS beat(4)-62%
Max EPS beat(4)152.11%
EPS beat(8)5
Avg EPS beat(8)125.93%
EPS beat(12)8
Avg EPS beat(12)116.2%
EPS beat(16)9
Avg EPS beat(16)80.66%
Revenue beat(2)1
Avg Revenue beat(2)2.9%
Min Revenue beat(2)-4.74%
Max Revenue beat(2)10.53%
Revenue beat(4)1
Avg Revenue beat(4)-0.14%
Min Revenue beat(4)-4.74%
Max Revenue beat(4)10.53%
Revenue beat(8)1
Avg Revenue beat(8)-3.62%
Revenue beat(12)5
Avg Revenue beat(12)0.81%
Revenue beat(16)6
Avg Revenue beat(16)-1.01%
PT rev (1m)-0.39%
PT rev (3m)-3.41%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1057.89%
EPS NY rev (1m)2300%
EPS NY rev (3m)3949.49%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)14.97%
Revenue NY rev (1m)0.39%
Revenue NY rev (3m)3.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.5 | ||
| Fwd PE | 163.37 | ||
| P/S | 9.54 | ||
| P/FCF | N/A | ||
| P/OCF | 64.06 | ||
| P/B | 1.1 | ||
| P/tB | 1.11 | ||
| EV/EBITDA | 29.44 |
EPS(TTM)0.3
EY2.6%
EPS(NY)0.07
Fwd EY0.61%
FCF(TTM)-0.26
FCFYN/A
OCF(TTM)0.18
OCFY1.56%
SpS1.21
BVpS10.52
TBVpS10.42
PEG (NY)0.38
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.49% | ||
| ROE | 3.03% | ||
| ROCE | 2.57% | ||
| ROIC | 2.03% | ||
| ROICexc | 2.05% | ||
| ROICexgc | 2.06% | ||
| OM | 44.61% | ||
| PM (TTM) | 26.3% | ||
| GM | 78.44% | ||
| FCFM | N/A |
ROA(3y)0.97%
ROA(5y)0.51%
ROE(3y)1.85%
ROE(5y)0.93%
ROIC(3y)1.61%
ROIC(5y)1.68%
ROICexc(3y)1.63%
ROICexc(5y)1.7%
ROICexgc(3y)1.64%
ROICexgc(5y)1.71%
ROCE(3y)2.04%
ROCE(5y)2.12%
ROICexcg growth 3Y4.48%
ROICexcg growth 5Y-2%
ROICexc growth 3Y4.25%
ROICexc growth 5Y-2.13%
OM growth 3Y-1.97%
OM growth 5Y-4.87%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.92%
GM growth 5Y-2.28%
F-Score7
Asset Turnover0.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 12.28 | ||
| Cap/Depr | 358.67% | ||
| Cap/Sales | 36.36% | ||
| Interest Coverage | 1.2 | ||
| Cash Conversion | 27.19% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.44 | ||
| Quick Ratio | 1.25 | ||
| Altman-Z | 0.69 |
F-Score7
WACC7.19%
ROIC/WACC0.28
Cap/Depr(3y)771.91%
Cap/Depr(5y)491.31%
Cap/Sales(3y)102.23%
Cap/Sales(5y)65.73%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-6.25%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-71.43%
EPS Next Y102%
EPS Next 2Y-63.82%
EPS Next 3Y-44.78%
EPS Next 5YN/A
Revenue 1Y (TTM)1.13%
Revenue growth 3Y4.27%
Revenue growth 5Y0.49%
Sales Q2Q%14.63%
Revenue Next Year-1.86%
Revenue Next 2Y-9.85%
Revenue Next 3Y-0.64%
Revenue Next 5YN/A
EBIT growth 1Y8.54%
EBIT growth 3Y2.21%
EBIT growth 5Y-4.4%
EBIT Next Year77.77%
EBIT Next 3Y21.45%
EBIT Next 5YN/A
FCF growth 1Y83.36%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-43.53%
OCF growth 3Y-13.24%
OCF growth 5Y-8.41%