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.


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

2.8%

FARM

-1.3%

US Food

0.4%

US Market


1 Year Return

-42.3%

FARM

-0.2%

US Food

6.9%

US Market

Return vs Industry: FARM underperformed the US Food industry which returned -0.2% over the past year.

Return vs Market: FARM underperformed the US Market which returned 6.9% over the past year.


Shareholder returns

FARMIndustryMarket
7 Day2.8%-1.3%0.4%
30 Day1.4%-3.3%-1.2%
90 Day-14.8%-1.6%-0.4%
1 Year-42.3%-42.3%2.8%-0.2%9.3%6.9%
3 Year-54.0%-54.0%-1.9%-10.5%45.8%36.4%
5 Year-48.2%-48.2%43.7%26.6%62.9%45.1%

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?

1.53x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

Significantly Undervalued: 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 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

Low 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 (2.1x).


Next Steps

Future Growth

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

127.1%

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 (0.1% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: FARM's revenue (0.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High 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?

-35.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: FARM is unprofitable, and losses have increased over the past 5 years at a rate of -35.1% 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 (-22.7%).


Return on Equity

High ROE: FARM has a negative Return on Equity (-46.55%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: FARM is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: FARM is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Farmer Bros's financial position?


Financial Position Analysis

Short Term Liabilities: FARM's short term assets ($159.9M) exceeds its short term liabilities ($96.1M)

Long Term Liabilities: FARM's short term assets (159.9M) do not cover its long term liabilities (170.4M)


Debt to Equity History and Analysis

Debt Level: FARM's debt to equity ratio (59.4%) is considered high

Reducing Debt: FARM's debt to equity ratio has increased from 0.09% to 59.4% over the past 5 years.

Debt Coverage: FARM's debt is well covered by operating cash flow (37.8%).

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


Balance Sheet

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

Debt Coverage by Assets: FARM's debt is covered by short term assets (assets are 1.703950x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

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

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

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

0.8yrs

Average management tenure


CEO

D. Maserang (55yo)

0.08yrs

Tenure

0

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


Management Age and Tenure

0.8yrs

Average Tenure

53yo

Average Age

Experienced Management: FARM's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Age and Tenure

2.8yrs

Average Tenure

63yo

Average Age

Experienced Board: FARM's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: FARM insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$42,33018 Sep 19
Randy Clark
EntityIndividual
Role
Chairman of the Board
Independent Chairman
Shares3,000
Max PriceUS$14.11
BuyUS$13,74118 Sep 19
Charles Marcy
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$13.74
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$7,721,06703 May 19
2012 Grossman Irrevocable Trust
EntityCompany
Shares387,986
Max PriceUS$23.75
SellUS$1,572,89003 May 19
Estate Of Roy F. Farmer
EntityCompany
Shares75,930
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$1,485,52125 Jan 19
Farmer Insurance Trust
EntityCompany
Shares60,468
Max PriceUS$25.04
SellUS$751,52025 Jan 19
2012 Grossman Irrevocable Trust
EntityCompany
Shares30,000
Max PriceUS$25.07
SellUS$148,47025 Jan 19
Estate Of Roy F. Farmer
EntityCompany
Shares6,060
Max PriceUS$24.50

Ownership Breakdown


Management Team

  • David Robson (53yo)

    CFO & Treasurer

    • Tenure: 2.7yrs
    • Compensation: US$899.08k
  • Gabriela Villalobos (51yo)

    Senior VP of Strategy

    • Tenure: 0.2yrs
  • D. Maserang (55yo)

    President

    • Tenure: 0.08yrs
  • Jerry Walsh (53yo)

    Senior VP & General Manager - DSD

    • Tenure: 0.8yrs
  • Jennifer Brown

    General Counsel & Secretary

    • Tenure: 0yrs
  • Ronald Friedman (49yo)

    Chief Human Resources Officer

    • Tenure: 1.3yrs

Board Members

  • Chuck Marcy (69yo)

    Independent Director

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

    Director

    • Tenure: 5.8yrs
    • Compensation: US$173.01k
  • Stacy Loretz-Congdon (59yo)

    Independent Director

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

    Independent Director

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

    Independent Director

    • Tenure: 0.6yrs
    • Compensation: US$51.22k
  • Randy Clark (67yo)

    Independent Chairman

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

    President

    • Tenure: 0.08yrs
  • Allison Boersma (54yo)

    Independent 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$242.039m
  • 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 Analysis2019/10/18 23:34
End of Day Share Price2019/10/18 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.