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.


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

-2.2%

ALCO

-1.0%

US Food

1.0%

US Market


1 Year Return

-1.5%

ALCO

0.07%

US Food

8.0%

US Market

Return vs Industry: ALCO underperformed the US Food industry which returned 0.1% over the past year.

Return vs Market: ALCO underperformed the US Market which returned 8% over the past year.


Shareholder returns

ALCOIndustryMarket
7 Day-2.2%-1.0%1.0%
30 Day0.7%-3.2%-0.07%
90 Day7.5%-2.6%-1.0%
1 Year-0.7%-1.5%3.0%0.07%10.4%8.0%
3 Year27.2%24.2%-3.2%-11.7%46.2%36.7%
5 Year-0.2%-3.8%42.3%25.3%64.3%46.2%

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 compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ALCO ($33.36) is trading below our estimate of fair value ($313.37)

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


Price To Earnings Ratio

PE vs Industry: ALCO is good value based on its PE Ratio (11.6x) compared to the Food industry average (25.5x).

PE vs Market: ALCO is good value based on its PE Ratio (11.6x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ALCO's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ALCO is good value based on its PB Ratio (1.4x) compared to the US Food industry average (2.1x).


Next Steps

Future Growth

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

5.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ALCO's forecast earnings growth (5.3% per year) is above the savings rate (2.7%).

Earnings vs Market: ALCO's earnings (5.3% per year) are forecast to grow slower than the US market (14.5% per year).

High Growth Earnings: ALCO's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if ALCO's revenue is forecast to grow faster than the US market.

High Growth Revenue: Insufficient data to determine if ALCO's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if ALCO's Return on Equity is forecast to be high in 3 years time


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

Earnings Trend: ALCO's earnings have declined by -19.1% per year over the past 5 years.

Accelerating Growth: ALCO has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: ALCO has become profitable in the last year, making it difficult to compare its past year earnings growth to the Food industry (-24%).


Return on Equity

High ROE: ALCO's Return on Equity (11.8%) is considered low.


Return on Assets

ROA vs Industry: ALCO has a higher Return on Assets than the Food industry average last year.


Return on Capital Employed

ROCE Improving: ALCO has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Alico's financial position?


Financial Position Analysis

Short Term Liabilities: ALCO's short term assets ($44.1M) exceeds its short term liabilities ($23.4M)

Long Term Liabilities: ALCO's short term assets (44.1M) do not cover its long term liabilities (192.9M)


Debt to Equity History and Analysis

Debt Level: ALCO's debt to equity ratio (89.9%) is considered high

Reducing Debt: ALCO's debt to equity ratio has increased from 24.5% to 89.9% over the past 5 years.

Debt Coverage: ALCO's debt is well covered by operating cash flow (27.1%).

Interest Coverage: ALCO's interest payments on its debt are well covered by EBIT (4.8x coverage).


Balance Sheet

Inventory Level: ALCO has a high level of physical assets or inventory.

Debt Coverage by Assets: ALCO's 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?

0.72%

Current Dividend Yield


Dividend Yield vs Market

company0.7%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: ALCO's dividend (0.72%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: ALCO's dividend (0.72%) is low compared to the top 25% of dividend payers in the US market (3.68%).

Stable Dividend: ALCO is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: ALCO is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: ALCO is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ALCO's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

3.8yrs

Average management tenure


CEO

John Kiernan (51yo)

0.3yrs

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

Compensation vs. Market: John has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

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


Management Age and Tenure

3.8yrs

Average Tenure

52.5yo

Average Age

Experienced Management: ALCO's management team is considered experienced (3.8 years average tenure).


Board Age and Tenure

4.4yrs

Average Tenure

51yo

Average Age

Experienced Board: ALCO's board of directors are considered experienced (4.4 years average tenure).


Insider Trading

Insider Buying: ALCO insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$237,65016 Oct 19
734 Agriculture, LLC
EntityCompany
Shares7,000
Max PriceUS$33.95
SellUS$2,453,08527 Sep 19
Remy Trafelet
EntityIndividual
Shares84,266
Max PriceUS$34.00

Ownership Breakdown


Management Team

  • David Shobe

    Outside Legal Counsel

    • Tenure: 0yrs
  • Richard Rallo (54yo)

    CFO & Chief Accounting Officer

    • Tenure: 0.3yrs
    • Compensation: US$332.66k
  • John Kiernan (51yo)

    Chief Executive Officer

    • Tenure: 0.3yrs
    • Compensation: US$1.75m
  • George Brokaw (51yo)

    Executive Vice Chairman

    • Tenure: 2.8yrs
    • Compensation: US$157.76k
  • James Sampel (54yo)

    Chief Information Officer

    • Tenure: 3.8yrs
    • Compensation: US$274.82k
  • Chris Ward

    Vice President of Planning and Business Development

    • Tenure: 9.2yrs
  • Chris Moore

    President of Alico Fruit Company

    • Tenure: 8.6yrs

Board Members

  • Hank Slack (69yo)

    Director

    • Tenure: 5.9yrs
    • Compensation: US$261.62k
  • W. Krusen (71yo)

    Independent Director

    • Tenure: 5.9yrs
    • Compensation: US$112.50k
  • George Brokaw (51yo)

    Executive Vice Chairman

    • Tenure: 2.8yrs
    • Compensation: US$157.76k
  • Ben Fishman (42yo)

    Chairman

    • Tenure: 0.3yrs
    • Compensation: US$127.50k
  • Greg Eisner (36yo)

    Independent Director

    • Tenure: 5.9yrs
    • Compensation: US$120.00k
  • Toby Purse

    Independent Director

    • Tenure: 0.5yrs

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$249.416m
  • 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 Analysis2019/10/21 23:31
End of Day Share Price2019/10/21 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.