FARMLAND PARTNERS INC (FPI) Stock Fundamental Analysis
NYSE:FPI - New York Stock Exchange, Inc. - US31154R1095 - REIT - Currency: USD
Overall FPI gets a fundamental rating of 4 out of 10. We evaluated FPI against 30 industry peers in the Specialized REITs industry. FPI has an average financial health and profitability rating. 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.
FPI had a positive operating cash flow in the past year.
In multiple years FPI reported negative net income over the last 5 years.
Each year in the past 5 years FPI had a positive operating cash flow.
1.2 Ratios
FPI's Return On Assets of 7.04% is amongst the best of the industry. FPI outperforms 90.00% of its industry peers.
FPI has a better Return On Equity (11.90%) than 76.67% of its industry peers.
FPI's Return On Invested Capital of 2.39% is on the low side compared to the rest of the industry. FPI is outperformed by 70.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FPI is below the industry average of 5.28%.
The last Return On Invested Capital (2.39%) for FPI is above the 3 year average (2.05%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.04% | ||
| ROE | 11.9% | ||
| ROIC | 2.39% |
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 better Profit Margin (101.07%) than 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 42.82%, FPI is in the better half of the industry, outperforming 63.33% of the companies in the same industry.
FPI's Operating Margin has declined in the last couple of years.
FPI has a better Gross Margin (80.33%) than 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 | 42.82% | ||
| PM (TTM) | 101.07% | ||
| GM | 80.33% |
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
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
The debt/assets ratio for FPI has been reduced compared to a year ago.
2.2 Solvency
FPI has an Altman-Z score of 0.99. This is a bad value and indicates that FPI is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.99, FPI is in line with its industry, outperforming 53.33% of the companies in the same industry.
The Debt to FCF ratio of FPI is 201.00, which is on the high side as it means it would take FPI, 201.00 years of fcf income to pay off all of its debts.
FPI has a Debt to FCF ratio of 201.00. This is in the lower half of the industry: FPI underperforms 73.33% of its industry peers.
FPI has a Debt/Equity ratio of 0.42. This is a healthy value indicating a solid balance between debt and equity.
With an excellent Debt to Equity ratio value of 0.42, FPI belongs to the best of the industry, outperforming 96.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 201 | ||
| Altman-Z | 0.99 |
ROIC/WACC0.28
WACC8.43%
2.3 Liquidity
A Current Ratio of 2.59 indicates that FPI has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.59, FPI belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
FPI has a Quick Ratio of 2.32. This indicates that FPI is financially healthy and has no problem in meeting its short term obligations.
FPI has a Quick ratio of 2.32. This is amongst the best in the industry. FPI outperforms 90.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.59 | ||
| Quick Ratio | 2.32 |
3. Growth
3.1 Past
FPI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 101.89%, 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
The Revenue has decreased by -0.52% in the past 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)101.89%
EPS 3YN/A
EPS 5Y90.67%
EPS Q2Q%200%
Revenue 1Y (TTM)-0.52%
Revenue growth 3Y4.02%
Revenue growth 5Y1.68%
Sales Q2Q%-14.5%
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 -40.41% on average per year.
Based on estimates for the next years, FPI will show a decrease in Revenue. The Revenue will decrease by -9.16% on average per year.
EPS Next Y-82.69%
EPS Next 2Y-57.63%
EPS Next 3Y-40.41%
EPS Next 5YN/A
Revenue Next Year-15.02%
Revenue Next 2Y-9.16%
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.
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
FPI is valuated reasonably with a Price/Earnings ratio of 10.36.
Based on the Price/Earnings ratio, FPI is valued cheaply inside the industry as 96.67% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.30. FPI is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 58.77 indicates a quite expensive valuation of FPI.
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 (21.76), we can say FPI is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.36 | ||
| Fwd PE | 58.77 |
4.2 Price Multiples
76.67% of the companies in the same industry are cheaper than FPI, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, FPI is valued a bit more expensive than 73.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 507.54 | ||
| EV/EBITDA | 23.41 |
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 -40.41% in the coming years.
PEG (NY)N/A
PEG (5Y)0.11
EPS Next 2Y-57.63%
EPS Next 3Y-40.41%
5. Dividend
5.1 Amount
FPI has a Yearly Dividend Yield of 2.16%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.78, FPI's dividend is way lower than its industry peers. On top of this 86.67% of the companies listed in the same industry pay a better dividend than FPI!
Compared to an average S&P500 Dividend Yield of 2.35, FPI has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.16% |
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 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 118.02% 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.
DP118.02%
EPS Next 2Y-57.63%
EPS Next 3Y-40.41%
11.08
-0.02 (-0.18%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners61.97%
Inst Owner Change0%
Ins Owners7.33%
Ins Owner Change3.76%
Market Cap509.57M
Analysts77.5
Price Target12.37 (11.64%)
Short Float %6.39%
Short Ratio5.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.16% |
Yearly Dividend0.52
Dividend Growth(5Y)-3.18%
DP118.02%
Div Incr Years3
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)171.27%
Min EPS beat(2)-2.79%
Max EPS beat(2)345.32%
EPS beat(4)2
Avg EPS beat(4)108.16%
Min EPS beat(4)-62%
Max EPS beat(4)345.32%
EPS beat(8)5
Avg EPS beat(8)85.95%
EPS beat(12)8
Avg EPS beat(12)147.08%
EPS beat(16)9
Avg EPS beat(16)102.15%
Revenue beat(2)2
Avg Revenue beat(2)5.87%
Min Revenue beat(2)4.78%
Max Revenue beat(2)6.97%
Revenue beat(4)3
Avg Revenue beat(4)4.39%
Min Revenue beat(4)-4.74%
Max Revenue beat(4)10.53%
Revenue beat(8)3
Avg Revenue beat(8)-1.1%
Revenue beat(12)5
Avg Revenue beat(12)0.92%
Revenue beat(16)7
Avg Revenue beat(16)0.27%
PT rev (1m)0%
PT rev (3m)-4.9%
EPS NQ rev (1m)0%
EPS NQ rev (3m)119.98%
EPS NY rev (1m)63.64%
EPS NY rev (3m)63.64%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.34%
Revenue NY rev (1m)0.86%
Revenue NY rev (3m)2.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.36 | ||
| Fwd PE | 58.77 | ||
| P/S | 9.02 | ||
| P/FCF | 507.54 | ||
| P/OCF | 48 | ||
| P/B | 1.06 | ||
| P/tB | 1.07 | ||
| EV/EBITDA | 23.41 |
EPS(TTM)1.07
EY9.66%
EPS(NY)0.19
Fwd EY1.7%
FCF(TTM)0.02
FCFY0.2%
OCF(TTM)0.23
OCFY2.08%
SpS1.23
BVpS10.43
TBVpS10.34
PEG (NY)N/A
PEG (5Y)0.11
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.04% | ||
| ROE | 11.9% | ||
| ROCE | 3.02% | ||
| ROIC | 2.39% | ||
| ROICexc | 2.46% | ||
| ROICexgc | 2.47% | ||
| OM | 42.82% | ||
| PM (TTM) | 101.07% | ||
| GM | 80.33% | ||
| FCFM | 1.78% |
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 | 201 | ||
| Debt/EBITDA | 6.85 | ||
| Cap/Depr | 182.03% | ||
| Cap/Sales | 17.01% | ||
| Interest Coverage | 1.3 | ||
| Cash Conversion | 36.02% | ||
| Profit Quality | 1.76% | ||
| Current Ratio | 2.59 | ||
| Quick Ratio | 2.32 | ||
| Altman-Z | 0.99 |
F-Score8
WACC8.43%
ROIC/WACC0.28
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)101.89%
EPS 3YN/A
EPS 5Y90.67%
EPS Q2Q%200%
EPS Next Y-82.69%
EPS Next 2Y-57.63%
EPS Next 3Y-40.41%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.52%
Revenue growth 3Y4.02%
Revenue growth 5Y1.68%
Sales Q2Q%-14.5%
Revenue Next Year-15.02%
Revenue Next 2Y-9.16%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y0.02%
EBIT growth 3Y14.77%
EBIT growth 5Y-0.65%
EBIT Next Year12.03%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y103.54%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-52.99%
OCF growth 3Y27.11%
OCF growth 5Y-2.14%