NasdaqGS:FARM

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Imperfect balance sheet and overvalued.

Risks

  • Farmer Bros has significant price volatility in the past 3 months.

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


Market Performance


7 Day Return

-0.1%

NasdaqGS:FARM

0.2%

US Food

1.1%

US Market


1 Year Return

-49.2%

NasdaqGS:FARM

0.8%

US Food

2.1%

US Market

FARM underperformed the Food industry which returned 0.8% over the past year.

FARM underperformed the Market in United States of America which returned 2.1% over the past year.


Share holder returns

FARMIndustryMarket
7 Day-0.1%0.2%1.1%
30 Day5.0%2.3%3.7%
90 Day-15.5%3.2%2.3%
1 Year-49.2%-49.2%3.8%0.8%4.4%2.1%
3 Year-59.8%-59.8%-0.2%-8.8%47.0%37.4%
5 Year-40.9%-40.9%45.3%27.9%61.6%43.8%

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

1.51x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

Unable to calculate intrinsic value for Farmer Bros to establish if it is available at moderate discount.

Unable to calculate intrinsic value for Farmer Bros to establish if it is available at substantial discount.


Price Based on Earnings

Farmer Bros is loss making, we can't compare its value to the US Food industry average.

Farmer Bros is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

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


Price Based on Value of Assets

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


Next Steps

Future Growth

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

136.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Farmer Bros's revenue is expected to grow by 0.1% yearly, however this is not considered high growth (20% yearly).

Farmer Bros is not considered high growth as it is expected to be loss making for the next 1-3 years.

Farmer Bros's revenue growth is positive but not above the United States of America market average.

Unable to compare Farmer Bros's earnings growth to the United States of America market average as it is expected to be loss making during the next 1-3 years.

Unable to compare Farmer Bros's earnings growth to the low risk savings rate as it is expected to be loss making during the next 1-3 years.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Farmer Bros will efficiently use shareholders’ funds in the future (Return on Equity greater than 20%) as it is not expected to be profitable.


Next Steps

Past Performance

How has Farmer Bros performed over the past 5 years?

-35.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Farmer Bros does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Farmer Bros's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Farmer Bros's 1-year growth to the US Food industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Farmer Bros has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Farmer Bros has efficiently used its assets last year compared to the US Food industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Farmer Bros improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Farmer Bros's financial position?


Financial Position Analysis

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

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


Debt to Equity History and Analysis

Farmer Bros's level of debt (59.4%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (0.1% vs 59.4% today).

Debt is well covered by operating cash flow (37.8%, greater than 20% of total debt).

Unable to confirm if the interest payments on Farmer Bros's debt are well covered by earnings due to lack of past financial data.


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.7x debt.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Farmer Bros's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Farmer Bros's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Farmer Bros has not reported any payouts.

Unable to verify if Farmer Bros's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Farmer Bros has not reported any payouts.


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 Farmer Bros's salary, the management and board of directors tenure and is there insider trading?

3.8yrs

Average board tenure


CEO

Chris Mottern (75yo)

0.3yrs

Tenure

US$173,014

Compensation

Mr. Christopher P. Mottern, also known as Chris, has been Interim Chief Executive Officer at Farmer Brothers Co. since May 07, 2019 and serves as its Director since December 5, 2013. He has been Chief Exec ...


Board Age and Tenure

3.8yrs

Average Tenure

63yo

Average Age

The tenure for the Farmer Bros board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyUS$37,97119 Aug 19
Levin Easterly Partners LLC
EntityCompany
Shares3,002
Max PriceUS$12.65
SellUS$99,62007 Aug 19
Levin Easterly Partners LLC
EntityCompany
Shares7,026
Max PriceUS$14.20
BuyUS$153,85002 Aug 19
Levin Easterly Partners LLC
EntityCompany
Shares9,342
Max PriceUS$16.47
BuyUS$6,00402 Aug 19
Levin Easterly Partners LLC
EntityCompany
Shares330
Max PriceUS$18.20
BuyUS$2,265,19602 Aug 19
Levin Easterly Partners LLC
EntityCompany
Shares129,979
Max PriceUS$17.43
BuyUS$1,686,53024 Jul 19
Levin Easterly Partners LLC
EntityCompany
Shares98,916
Max PriceUS$18.22
BuyUS$16,66430 May 19
Levin Easterly Partners LLC
EntityCompany
Shares902
Max PriceUS$18.48
BuyUS$407,85122 May 19
Levin Easterly Partners LLC
EntityCompany
Shares21,684
Max PriceUS$18.83
BuyUS$316,44803 May 19
Levin Easterly Partners LLC
EntityCompany
Shares15,975
Max PriceUS$19.86
SellUS$003 May 19
Farmer Insurance Trust
EntityCompany
Shares227,690
Max PriceUS$24.91
SellUS$1,572,89003 May 19
Estate Of Roy F. Farmer
EntityCompany
Shares75,930
Max PriceUS$23.75
SellUS$7,721,06703 May 19
2012 Grossman Irrevocable Trust
EntityCompany
Shares387,986
Max PriceUS$23.75
SellUS$003 May 19
Carol Waite
EntityIndividual
Shares743,135
Max PriceUS$24.91
BuyUS$42,46318 Apr 19
Levin Easterly Partners LLC
EntityCompany
Shares2,145
Max PriceUS$19.80
BuyUS$11,154,03316 Apr 19
Levin Easterly Partners LLC
EntityCompany
Shares562,573
Max PriceUS$19.85
BuyUS$106,06920 Mar 19
Levin Capital Strategies, L.P.
EntityCompany
Shares552,742
Max PriceUS$24.62
SellUS$148,47025 Jan 19
Estate Of Roy F. Farmer
EntityCompany
Shares6,060
Max PriceUS$24.50
SellUS$751,52025 Jan 19
2012 Grossman Irrevocable Trust
EntityCompany
Shares30,000
Max PriceUS$25.07
SellUS$1,485,52125 Jan 19
Farmer Insurance Trust
EntityCompany
Shares60,468
Max PriceUS$25.04

Ownership Breakdown


Management Team

  • Chris Mottern (75yo)

    Interim CEO & Director

    • Tenure: 0.3yrs
    • Compensation: US$173.01k
  • David Robson (53yo)

    CFO & Treasurer

    • Tenure: 2.6yrs
    • Compensation: US$899.08k
  • D. Maserang (55yo)

    President

    • Tenure: 0yrs

Board Members

  • Chuck Marcy (69yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$161.26k
  • Chris Mottern (75yo)

    Interim CEO & Director

    • Tenure: 0.3yrs
    • Compensation: US$173.01k
  • Stacy Loretz-Congdon (59yo)

    Director

    • Tenure: 0.8yrs
  • Dave Ritterbush (53yo)

    Director

    • Tenure: 11.8yrs
    • Compensation: US$102.51k
  • Hamideh Assadi (74yo)

    Director

    • Tenure: 0.5yrs
    • Compensation: US$51.22k
  • Randy Clark (67yo)

    Chairman

    • Tenure: 3.8yrs
    • Compensation: US$187.01k
  • D. Maserang (55yo)

    President

    • Tenure: 0yrs
  • Allison Boersma (54yo)

    Director

    • Tenure: 1.8yrs
    • Compensation: US$103.76k

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$238.955m
  • Shares outstanding: 17.09m
  • 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 Analysis2019/09/17 23:36
End of Day Share Price2019/09/17 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.