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 only an average score on both its financial health and profitability. FPI has a valuation in line with the averages, but it does not seem to be growing.
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.
- FPI had a positive operating cash flow in each of the past 5 years.
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.
- With a decent Return On Equity value of 14.58%, FPI is doing good in the industry, outperforming 80.00% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 2.43%, FPI is doing worse than 63.33% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for FPI is below the industry average of 4.86%.
- 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 | 8.87% | ||
| 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
- With an excellent Profit Margin value of 123.81%, 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.
- FPI's Operating Margin of 42.35% is fine compared to the rest of the industry. FPI outperforms 66.67% of its industry peers.
- In the last couple of years the Operating Margin of FPI has declined.
- FPI has a better Gross Margin (78.72%) 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
- FPI has more shares outstanding than it did 5 years ago.
- FPI has a better debt/assets ratio than last year.
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.
- FPI has a debt to FCF ratio of 23.33. This is a negative value and a sign of low solvency as FPI would need 23.33 years to pay back of 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.
- With an excellent Debt to Equity ratio value of 0.38, FPI belongs to the best 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
- 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.
- FPI has a Current ratio of 2.09. This is amongst the best in the industry. FPI outperforms 86.67% of its industry peers.
- 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 has a Quick ratio of 1.88. This is amongst the best in 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
- FPI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 423.33%, which is quite impressive.
- The Earnings Per Share has been growing by 90.67% on average over the past years. This is a very strong growth
- Looking at the last year, FPI shows a decrease in Revenue. The Revenue has decreased by -9.27% in the last year.
- 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
- FPI is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -46.41% yearly.
- 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.
- 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
- Based on the Price/Earnings ratio of 6.97, the valuation of FPI can be described as very cheap.
- FPI's Price/Earnings ratio is rather cheap when compared to the industry. FPI is cheaper than 100.00% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.60. FPI is valued rather cheaply when compared to this.
- The Price/Forward Earnings ratio is 77.44, 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.
- 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
- 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 | 64.82 | ||
| EV/EBITDA | 23.34 |
4.3 Compensation for Growth
- The decent profitability rating of FPI 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.
- 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%.