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FARM

Farmer BrosNasdaqGS:FARM Stock Report

Market Cap

US$160.0m

7D

-5.6%

1Y

89.3%

Updated

28 Sep, 2021

Data

Company Financials +
FARM fundamental analysis
Snowflake Score
Valuation1/6
Future Growth1/6
Past Performance0/6
Financial Health1/6
Dividends0/6

FARM Overview

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

Farmer Bros Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Farmer Bros
Historical stock prices
Current Share PriceUS$8.50
52 Week HighUS$3.40
52 Week LowUS$13.08
Beta1.64
1 Month Change13.18%
3 Month Change-33.02%
1 Year Change89.31%
3 Year Change-66.08%
5 Year Change-75.43%
Change since IPO-9.09%

Recent News & Updates

Aug 10
Is Farmer Bros (NASDAQ:FARM) Weighed On By Its Debt Load?

Is Farmer Bros (NASDAQ:FARM) Weighed On By Its Debt Load?

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Shareholder Returns

FARMUS FoodUS Market
7D-5.6%0.5%2.0%
1Y89.3%9.8%32.8%

Return vs Industry: FARM exceeded the US Food industry which returned 9.8% over the past year.

Return vs Market: FARM exceeded the US Market which returned 32.8% over the past year.

Price Volatility

Is FARM's price volatile compared to industry and market?
FARM volatility
FARM Beta1.64
Industry Beta0.73
Market Beta1

Stable Share Price: FARM is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: FARM's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19121,064D. Maseranghttps://www.farmerbros.com

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; flavoured and unflavoured iced and hot teas; culinary products, including spices, pancake and biscuit mixes, gravy and sauce mixes, soup bases, dressings, syrups and sauces, and coffee-related products, such as coffee filters, sugar, and creamers; and other beverages comprising cappuccino, cocoa, granitas, and concentrated and ready-to-drink cold brew and iced coffee. It sells its products under the Farmer Brothers, Artisan Collection by Farmer Brothers, Superior, Metropolitan, China Mist, Boyds, Direct Trade, Project D.I.R.E.C.T., Fair Trade Certified, Public Domain, Rainforest Alliance Certified, Un Momento, Collaborative Coffee, Cain's, and McGarvey brands, as well as under various private labels.

Farmer Bros Fundamentals Summary

How do Farmer Bros's earnings and revenue compare to its market cap?
FARM fundamental statistics
Market CapUS$159.95m
Earnings (TTM)-US$42.22m
Revenue (TTM)US$397.85m

0.4x

P/S Ratio

-3.6x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
FARM income statement (TTM)
RevenueUS$397.85m
Cost of RevenueUS$296.93m
Gross ProfitUS$100.93m
ExpensesUS$143.15m
Earnings-US$42.22m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-2.35
Gross Margin25.37%
Net Profit Margin-10.61%
Debt/Equity Ratio86.0%

How did FARM perform over the long term?

See historical performance and comparison

Valuation

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

1.46x

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 (1.5x) compared to the US Food industry average (2.4x).


Future Growth

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

89.6%

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 (13.2% per year) is forecast to grow faster than the US market (9.8% per year).

High Growth Revenue: FARM's revenue (13.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Past Performance

How has Farmer Bros performed over the past 5 years?

-62.2%

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 62.2% 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 (31.7%).


Return on Equity

High ROE: FARM has a negative Return on Equity (-39.68%), as it is currently unprofitable.


Financial Health

How is Farmer Bros's financial position?


Financial Position Analysis

Short Term Liabilities: FARM's short term assets ($139.1M) exceed its short term liabilities ($76.2M).

Long Term Liabilities: FARM's short term assets ($139.1M) do not cover its long term liabilities ($156.8M).


Debt to Equity History and Analysis

Debt Level: FARM's debt to equity ratio (86%) is considered high.

Reducing Debt: FARM's debt to equity ratio has increased from 0.06% to 86% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: FARM has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: FARM has less than a year of cash runway if free cash flow continues to grow at historical rates of 3.3% each year.


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?

1.9yrs

Average management tenure


CEO

D. Maserang (57 yo)

2yrs

Tenure

US$2,122,418

Compensation

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...


CEO Compensation Analysis

Compensation vs Market: D.'s total compensation ($USD2.12M) is above average for companies of similar size in the US market ($USD1.08M).

Compensation vs Earnings: Insufficient data to compare D.'s compensation with company performance.


Leadership Team

Experienced Management: FARM's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

Experienced Board: FARM's board of directors are not considered experienced ( 2.4 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: FARM insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.2%.


Top Shareholders

Company Information

Farmer Bros. Co.'s 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$159.951m
  • Shares outstanding: 17.99m
  • Website: https://www.farmerbros.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/28 22:15
End of Day Share Price2021/09/28 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.