ENXTAM:FFARM

Stock Analysis Report

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Executive Summary

ForFarmers N.V. provides feed solutions for organic livestock farming in the Netherlands, Germany, Belgium, Poland, the United Kingdom, other European Union countries, and internationally.


Snowflake Analysis

Excellent balance sheet with moderate growth potential.

Share Price & News

How has ForFarmers's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: FFARM has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.2%

FFARM

-0.6%

NL Food

1.6%

NL Market


1 Year Return

-21.0%

FFARM

-1.7%

NL Food

-16.0%

NL Market

Return vs Industry: FFARM underperformed the Dutch Food industry which returned -1.9% over the past year.

Return vs Market: FFARM underperformed the Dutch Market which returned -16.8% over the past year.


Shareholder returns

FFARMIndustryMarket
7 Day0.2%-0.6%1.6%
30 Day-6.3%-1.5%4.3%
90 Day-1.0%-5.3%-12.8%
1 Year-17.3%-21.0%0.4%-1.7%-13.2%-16.0%
3 Year-31.6%-38.8%17.5%10.8%-0.6%-10.9%
5 Yearn/a41.0%28.4%16.7%-5.2%

Price Volatility Vs. Market

How volatile is ForFarmers's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is ForFarmers undervalued compared to its fair value and its price relative to the market?

41.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FFARM (€5.78) is trading below our estimate of fair value (€9.86)

Significantly Below Fair Value: FFARM is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: FFARM is poor value based on its PE Ratio (32.5x) compared to the Food industry average (17.4x).

PE vs Market: FFARM is poor value based on its PE Ratio (32.5x) compared to the Dutch market (14.6x).


Price to Earnings Growth Ratio

PEG Ratio: FFARM is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: FFARM is overvalued based on its PB Ratio (1.4x) compared to the XE Food industry average (1.1x).


Next Steps

Future Growth

How is ForFarmers forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

24.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FFARM's forecast earnings growth (24.3% per year) is above the savings rate (0.4%).

Earnings vs Market: FFARM's earnings (24.3% per year) are forecast to grow faster than the Dutch market (20.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: FFARM's revenue is expected to decline over the next 3 years (-1.4% per year).

High Growth Revenue: FFARM's revenue is forecast to decline over the next 3 years (-1.4% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FFARM's Return on Equity is forecast to be low in 3 years time (9.8%).


Next Steps

Past Performance

How has ForFarmers performed over the past 5 years?

-5.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FFARM has a large one-off loss of €22.3M impacting its December 31 2019 financial results.

Growing Profit Margin: FFARM's current net profit margins (0.7%) are lower than last year (2.4%).


Past Earnings Growth Analysis

Earnings Trend: FFARM's earnings have declined by -5.9% per year over the past 5 years.

Accelerating Growth: FFARM's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: FFARM had negative earnings growth (-69.8%) over the past year, making it difficult to compare to the Food industry average (-0.9%).


Return on Equity

High ROE: FFARM's Return on Equity (4.3%) is considered low.


Next Steps

Financial Health

How is ForFarmers's financial position?


Financial Position Analysis

Short Term Liabilities: FFARM's short term assets (€393.1M) exceed its short term liabilities (€332.0M).

Long Term Liabilities: FFARM's short term assets (€393.1M) exceed its long term liabilities (€115.1M).


Debt to Equity History and Analysis

Debt Level: FFARM's debt to equity ratio (16.7%) is considered satisfactory.

Reducing Debt: FFARM's debt to equity ratio has increased from 14.2% to 16.7% over the past 5 years.

Debt Coverage: FFARM's debt is well covered by operating cash flow (137.8%).

Interest Coverage: FFARM's interest payments on its debt are well covered by EBIT (18.8x coverage).


Balance Sheet


Next Steps

Dividend

What is ForFarmers's current dividend yield, its reliability and sustainability?

3.29%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: FFARM's dividend (3.29%) is higher than the bottom 25% of dividend payers in the Dutch market (2.64%).

High Dividend: FFARM's dividend (3.29%) is low compared to the top 25% of dividend payers in the Dutch market (7.5%).


Stability and Growth of Payments

Stable Dividend: FFARM has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: FFARM has only been paying a dividend for 3 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (106.7%), FFARM's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FFARM's dividends in 3 years are forecast to be well covered by earnings (48.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.3yrs

Average management tenure


CEO

Yoram Knoop (50yo)

6.33yrs

Tenure

€979,470

Compensation

Mr. Yoram Knoop has been Chief Executive Officer and Member of Management Board at ForFarmers N.V. (formerly known as ForFarmers B.V.) since January 2014 and serves as its Chairman of Executive Board and G ...


CEO Compensation Analysis

Compensation vs Market: Yoram's total compensation ($USD1.07M) is about average for companies of similar size in the Dutch market ($USD1.22M).

Compensation vs Earnings: Yoram's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Yoram Knoop
Chairman of Executive Board6.33yrs€979.47k0.34% 1.9m
Adrie J. van der Ven
COO of Germany/Poland & Member of Executive Board1.08yrs€446.58k0.023% 128.1k
Roeland Tjebbes
CFO & Member of Executive Board0.083yrno data0.027% 150.5k
Caroline Vogelzang
Director of Investor Relations & Communicationsno datano datano data
Steven Read
Chief Operating Officer of United Kingdom2.33yrsno datano data
Pieter Wolleswinkel
Chief Operating Officer of Netherlands1.33yrsno datano data
David Fousert
Chief Operating Officer of Reudink1.33yrsno datano data

1.3yrs

Average Tenure

50yo

Average Age

Experienced Management: FFARM's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Cornelis de Jong
Independent Chairman of Supervisory Board2.08yrs€77.37kno data
Sandra J. W. Berendsen
Independent Vice Chairwoman of Supervisory Board3.08yrs€63.41k0.023% 126.8k
Vincent A. Hulshof
Member of Supervisory Board5.67yrs€50.02k0.0089% 50.0k
W. Wunnekink
Independent Member of Supervisory Board5.33yrs€51.82kno data
Roger Gerritzen
Member of Supervisory Board2.33yrs€50.62kno data
Annemieke den Otter
Member of Supervisory Board0.083yrno datano data

2.7yrs

Average Tenure

49yo

Average Age

Experienced Board: FFARM's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

ForFarmers N.V.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: ForFarmers N.V.
  • Ticker: FFARM
  • Exchange: ENXTAM
  • Founded: 1896
  • Industry: Agricultural Products
  • Sector: Food, Beverage & Tobacco
  • Market Cap: €558.874m
  • Shares outstanding: 96.69m
  • Website: https://www.forfarmersgroup.eu

Number of Employees


Location

  • ForFarmers N.V.
  • Kwinkweerd 12
  • Lochem
  • Gelderland
  • 7241 CW
  • Netherlands

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FFARMENXTAM (Euronext Amsterdam)YesOrdinary SharesNLEURMay 2016
FFARMABATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURMay 2016
0RHZLSE (London Stock Exchange)YesOrdinary SharesGBEURMay 2016
5FFDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 2016

Biography

ForFarmers N.V. provides feed solutions for organic livestock farming in the Netherlands, Germany, Belgium, Poland, the United Kingdom, other European Union countries, and internationally. The company offers compound feeds, animal feeds, liquid co-products, loose raw materials, seeds, and fertilizers. The company was founded in 1896 and is headquartered in Lochem, the Netherlands. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/25 23:45
End of Day Share Price2020/05/25 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.