Overall FPI gets a fundamental rating of 5 out of 10. We evaluated FPI against 30 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 has a valuation in line with the averages, but it does not seem to be growing.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.
In the past 5 years FPI always reported a positive cash flow from operatings.

1.2 Ratios

FPI has a better Return On Assets (8.87%) than 96.67% of its industry peers.
Looking at the Return On Equity, with a value of 14.58%, FPI is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
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 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.
FPI's Profit Margin has improved in the last couple of years.
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.
FPI's Operating Margin has declined in the last couple of years.
FPI's Gross Margin of 78.72% is fine compared to the rest 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	42.35%
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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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.
The number of shares outstanding for FPI has been increased compared to 5 years ago.
FPI has a better debt/assets ratio than last year.

2.2 Solvency

Based on the Altman-Z score of 1.03, we must say that FPI is in the distress zone and has some risk of bankruptcy.
FPI has a Altman-Z score of 1.03. 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 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.
The Debt to FCF ratio of FPI (23.33) 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.
The Debt to Equity ratio of FPI (0.38) is better than 93.33% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.38
Debt/FCF	23.33
Altman-Z	1.03

ROIC/WACC0.29

WACC8.51%

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.
The Current ratio of FPI (2.09) is better than 86.67% of its industry peers.
A Quick Ratio of 1.88 indicates that FPI should not have too much problems paying its short term obligations.
With an excellent Quick ratio value of 1.88, FPI belongs to the best of the industry, outperforming 86.67% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	2.09
Quick Ratio	1.88

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 423.33% over the past year.
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

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

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.

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 6.98, the valuation of FPI can be described as very cheap.
100.00% of the companies in the same industry are more expensive than FPI, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of FPI to the average of the S&P500 Index (27.25), we can say FPI is valued rather cheaply.
FPI is valuated quite expensively with a Price/Forward Earnings ratio of 77.51.
Based on the Price/Forward Earnings ratio, FPI is valued a bit more expensive than the industry average as 63.33% of the companies are valued more cheaply.
When comparing the Price/Forward Earnings ratio of FPI to the average of the S&P500 Index (25.98), we can say FPI is valued expensively.

		Industry Rank	Sector Rank
PE	6.98
Fwd PE	77.51

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 ratio is in line with the industry average.

		Industry Rank	Sector Rank
P/FCF	64.88
EV/EBITDA	23.35

4.3 Compensation for Growth

FPI has a very decent profitability rating, which 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%

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5. Dividend

5.1 Amount

FPI has a Yearly Dividend Yield of 2.21%. Purely for dividend investing, there may be better candidates out there.
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.
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

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%

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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%.