FARMLAND PARTNERS INC (FPI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FPI - US31154R1095 - REIT
10.81 USD
-0.05 (-0.46%)
10.81 USD
0 (0%)
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 is valued correctly, but it does not seem to be growing.
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.
- 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
- FPI's Return On Assets of 8.87% is amongst the best of the industry. FPI outperforms 96.67% of its industry peers.
- FPI has a better Return On Equity (14.58%) than 80.00% of its industry peers.
- The Return On Invested Capital of FPI (2.43%) is worse than 63.33% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for FPI is below the industry average of 4.86%.
- The 3 year average ROIC (2.05%) for FPI is below the current ROIC(2.43%), indicating increased profibility in the last year.
| 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.
- FPI has a better Operating Margin (42.35%) than 66.67% of its industry peers.
- In the last couple of years the Operating Margin of FPI has declined.
- 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%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), FPI is destroying value.
- FPI has less shares outstanding than it did 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
- FPI has an Altman-Z score of 1.02. 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 (1.02) 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.
- 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.
- FPI's Debt to Equity ratio of 0.38 is amongst the best of the industry. FPI outperforms 93.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 23.33 | ||
| Altman-Z | 1.02 |
ROIC/WACC0.29
WACC8.51%
2.3 Liquidity
- A Current Ratio of 2.09 indicates that FPI has no problem at all paying 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.
- 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 |
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
- 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.
- 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.
- 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
- Based on the Price/Earnings ratio of 6.89, the valuation of FPI can be described as very cheap.
- Based on the Price/Earnings ratio, FPI is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
- When comparing the Price/Earnings ratio of FPI to the average of the S&P500 Index (27.21), we can say FPI is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 76.45, the valuation of FPI can be described as expensive.
- 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.
- FPI is valuated expensively when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.89 | ||
| Fwd PE | 76.45 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, FPI is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
- The rest of the industry has a similar Price/Free Cash Flow ratio as FPI.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 63.99 | ||
| EV/EBITDA | 23.11 |
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 -46.41% in the coming years.
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!
- Compared to an average S&P500 Dividend Yield of 1.81, FPI pays a bit more dividend than the S&P500 average.
| 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
- FPI pays out 102.25% of its income as dividend. This is not a sustainable payout ratio.
- The Dividend Rate of FPI has been decling, while earnings will also be 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%.