NasdaqGS:FARM

Stock Analysis Report

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Executive Summary

Farmer Bros. Co. engages in the manufacture, wholesale, and distribution of coffee, tea, and culinary products in the United States. More Details


Snowflake Analysis

Overvalued with worrying balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: FARM's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-6.7%

FARM

-1.7%

US Food

-1.1%

US Market


1 Year Return

-70.2%

FARM

6.8%

US Food

15.6%

US Market

Return vs Industry: FARM underperformed the US Food industry which returned 6.8% over the past year.

Return vs Market: FARM underperformed the US Market which returned 15.6% over the past year.


Shareholder returns

FARMIndustryMarket
7 Day-6.7%-1.7%-1.1%
30 Day-7.3%3.1%4.2%
90 Day-26.0%0.05%6.3%
1 Year-70.2%-70.2%9.5%6.8%18.2%15.6%
3 Year-88.1%-88.1%11.5%2.4%39.6%30.4%
5 Year-87.0%-87.0%15.3%-0.4%79.5%59.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

0.63x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate FARM's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate FARM's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: FARM is unprofitable, so we can't compare its PE Ratio to the US Food industry average.

PE vs Market: FARM is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: FARM is good value based on its PB Ratio (0.6x) compared to the US Food industry average (2.1x).


Next Steps

Future Growth

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

117.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FARM is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: FARM is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: FARM is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: FARM's revenue (4.2% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: FARM's revenue (4.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FARM is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Farmer Bros performed over the past 5 years?

-54.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FARM is currently unprofitable.

Growing Profit Margin: FARM is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: FARM is unprofitable, and losses have increased over the past 5 years at a rate of 54.2% per year.

Accelerating Growth: Unable to compare FARM's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: FARM is unprofitable, making it difficult to compare its past year earnings growth to the Food industry (-6.4%).


Return on Equity

High ROE: FARM has a negative Return on Equity (-33.14%), as it is currently unprofitable.


Next Steps

Financial Health

How is Farmer Bros's financial position?


Financial Position Analysis

Short Term Liabilities: FARM's short term assets ($176.7M) exceed its short term liabilities ($64.3M).

Long Term Liabilities: FARM's short term assets ($176.7M) do not cover its long term liabilities ($216.5M).


Debt to Equity History and Analysis

Debt Level: FARM's debt to equity ratio (112.4%) is considered high.

Reducing Debt: FARM's debt to equity ratio has increased from 0.09% to 112.4% over the past 5 years.

Debt Coverage: FARM's debt is not well covered by operating cash flow (1.2%).

Interest Coverage: Insufficient data to determine if FARM's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate FARM's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate FARM's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if FARM's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if FARM's dividend payments have been increasing.


Current Payout to Shareholders

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


Future Payout to Shareholders

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


Next Steps

Management

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

1.1yrs

Average management tenure


CEO

D. Maserang (56 yo)

1.08yrs

Tenure

Mr. D. Deverl Maserang, II has been the President, Chief Executive Officer and Non-Independent Director of Farmer Bros. Co. since September 13, 2019. Mr. Maserang served as Senior Vice President of Value C ...


Leadership Team

NamePositionTenureCompensationOwnership
D. Maserang
President1.08yrsno data0.98%
$ 690.7k
Scott Drake
CFO & Treasurer0.58yrno data0.16%
$ 115.9k
Jennifer Brown
General Counsel & Secretaryno datano datano data
Maurice Moragne
Chief Sales Officer0.33yrno data0.16%
$ 114.2k
Ronald Friedman
Chief Human Resources Officer2.33yrsno data0.15%
$ 103.4k
Gabriela Villalobos
Senior Vice President of Strategy1.17yrsno data0.0067%
$ 4.8k
Jerry Walsh
Senior VP & General Manager - DSD1.75yrsno data0.12%
$ 84.9k
Ruben Inofuentes
Chief Supply Chain Officer0.92yrno data0.17%
$ 120.9k
Scott Lyon
VP & Controllerno datano datano data

1.1yrs

Average Tenure

52.5yo

Average Age

Experienced Management: FARM's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
D. Maserang
President1.08yrsno data0.98%
$ 690.7k
Charles Marcy
Independent Director6.83yrsUS$170.40k0.16%
$ 115.5k
Christopher Mottern
Independent Chairman0.75yrUS$717.68k0.19%
$ 135.1k
Stacy Loretz-Congdon
Independent Director1.83yrsUS$148.76k0.091%
$ 64.3k
David Ritterbush
Independent Director12.83yrsUS$155.01k0.050%
$ 35.4k
Allison Boersma
Independent Director2.83yrsUS$145.01k0.093%
$ 65.4k

2.3yrs

Average Tenure

58yo

Average Age

Experienced Board: FARM's board of directors are not considered experienced ( 2.3 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Farmer Bros. Co.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Farmer Bros. Co.
  • Ticker: FARM
  • Exchange: NasdaqGS
  • Founded: 1912
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: US$70.577m
  • Shares outstanding: 17.43m
  • Website: https://www.farmerbros.com

Number of Employees


Location

  • Farmer Bros. Co.
  • 1912 Farmer Brothers Drive
  • Northlake
  • Texas
  • 76262
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FARMNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDDec 1972
FB1DB (Deutsche Boerse AG)YesCommon StockDEEURDec 1972

Biography

Farmer Bros. Co. engages in the manufacture, wholesale, and distribution of coffee, tea, and culinary products in the United States. The company offers roast and ground coffee; frozen liquid coffee; flavou ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/27 00:36
End of Day Share Price2020/10/26 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.