NasdaqGS:ALCO

Stock Analysis Report

Executive Summary

Alico, Inc., together with its subsidiaries, operates as an agribusiness and land management company in the United States.

Snowflake

Fundamentals

Undervalued with mediocre balance sheet.

Risks

  • Alico is not covered by any analysts.

Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

1.4%

NasdaqGS:ALCO

1.8%

US Food

2.9%

US Market


1 Year Return

-0.4%

NasdaqGS:ALCO

-0.3%

US Food

0.2%

US Market

ALCO matched the Food industry (-1.4%) over the past year.

ALCO matched the United States of America Market (-0.7%) over the past year.


Share holder returns

ALCOIndustryMarket
7 Day1.4%1.8%2.9%
30 Day2.5%-1.0%-2.3%
90 Day24.6%2.6%3.1%
1 Year0.4%-0.4%2.7%-0.3%2.4%0.2%
3 Year15.9%13.2%-6.9%-15.0%41.7%32.4%
5 Year-13.5%-16.6%41.0%24.2%55.1%37.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Alico undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Alico's share price is below the future cash flow value, and at a moderate discount (> 20%).

Alico's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Alico is good value based on earnings compared to the US Food industry average.

Alico is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Alico, we can't assess if its growth is good value.


Price Based on Value of Assets

Alico is good value based on assets compared to the US Food industry average.


Next Steps

Future Growth

How is Alico expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

4.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Unable to determine if Alico is high growth as no revenue estimate data is available.

Alico's earnings are expected to grow by 4.6% yearly, however this is not considered high growth (20% yearly).

Unable to compare Alico's revenue growth to the United States of America market average as no estimate data is available.

Alico's earnings growth is positive but not above the United States of America market average.

Alico's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Alico will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Alico performed over the past 5 years?

-19.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Alico's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.

Alico has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.

Alico has become profitable in the last year making it difficult to compare the US Food industry average.


Return on Equity

Alico has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Alico used its assets more efficiently than the US Food industry average last year based on Return on Assets.


Return on Capital Employed

Alico has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Alico's financial position?


Financial Position Analysis

Alico is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Alico's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Alico's level of debt (89.9%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (24.5% vs 89.9% today).

Debt is well covered by operating cash flow (27.1%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 4.8x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.3x debt.


Next Steps

Dividend

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

0.75%

Current Dividend Yield


Dividend Yield and Payments Analysis

Alico's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Alico's dividend is below the markets top 25% of dividend payers in United States of America (3.85%).

Alico is not paying a notable dividend for United States of America, therefore no need to check if the payments are stable.

Alico is not paying a notable dividend for United States of America, therefore no need to check if the payments are increasing.


Current Payout to Shareholders

No need to calculate the sustainability of Alico's dividends as it is not paying a notable one for United States of America.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Alico's salary, the management and board of directors tenure and is there insider trading?

2.1yrs

Average management tenure


CEO

John Kiernan (51yo)

0.1yrs

Tenure

US$1,751,388

Compensation

Mr. John E. Kiernan has been Chief Executive Officer of Alico, Inc., since July 1, 2019. Mr. Kiernan served as the Chief Financial Officer of Alico, Inc. since June 1, 2015 until 2019. Mr. Kiernan served a ...


CEO Compensation Analysis

John's remuneration is higher than average for companies of similar size in United States of America.

John's compensation has increased in line with Alico recently becoming profitable.


Management Age and Tenure

2.1yrs

Average Tenure

51yo

Average Age

The tenure for the Alico management team is about average.


Board Age and Tenure

4.2yrs

Average Tenure

51yo

Average Age

The tenure for the Alico board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$17,851,76810 Oct 18
734 Agriculture, LLC
EntityCompany
Shares525,052
Max PriceUS$34.00

Ownership Breakdown


Management Team

  • David Shobe

    Outside Legal Counsel

    • Tenure: 0.0yrs
  • Richard Rallo (54yo)

    CFO & Chief Accounting Officer

    • Tenure: 0.1yrs
    • Compensation: US$332.66k
  • John Kiernan (51yo)

    Chief Executive Officer

    • Tenure: 0.1yrs
    • Compensation: US$1.75m
  • George Brokaw (51yo)

    Executive Vice Chairman

    • Tenure: 2.7yrs
    • Compensation: US$157.76k
  • James Sampel (54yo)

    Chief Information Officer

    • Tenure: 3.7yrs
    • Compensation: US$274.82k
  • Ben Fishman (42yo)

    Interim President & Chairman

    • Tenure: 0.1yrs
    • Compensation: US$127.50k
  • Chris Ward

    Vice President of Planning and Business Development

    • Tenure: 9.0yrs
  • Chris Moore

    President of Alico Fruit Company

    • Tenure: 8.4yrs

Board Members

  • Hank Slack (69yo)

    Director

    • Tenure: 5.8yrs
    • Compensation: US$261.62k
  • W. Krusen (71yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$112.50k
  • George Brokaw (51yo)

    Executive Vice Chairman

    • Tenure: 2.7yrs
    • Compensation: US$157.76k
  • Ben Fishman (42yo)

    Interim President & Chairman

    • Tenure: 0.1yrs
    • Compensation: US$127.50k
  • Greg Eisner (36yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$120.00k
  • Toby Purse

    Independent Director

    • Tenure: 0.3yrs

Company Information

Alico, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Alico, Inc.
  • Ticker: ALCO
  • Exchange: NasdaqGS
  • Founded: 1960
  • Industry: Agricultural Products
  • Sector: Food, Beverage & Tobacco
  • Market Cap: US$239.847m
  • Shares outstanding: 7.48m
  • Website: https://www.alicoinc.com

Number of Employees


Location

  • Alico, Inc.
  • 10070 Daniels Interstate Court
  • Suite 100
  • Fort Myers
  • Florida
  • 33913
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ALCONasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJan 1969

Biography

Alico, Inc., together with its subsidiaries, operates as an agribusiness and land management company in the United States. The company operates in two segments, Alico Citrus, and Water Resources and Other  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/21 23:31
End of Day Share Price2019/08/21 00:00
Earnings2019/06/30
Annual Earnings2018/09/30


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.