Limoneira (NasdaqGS:LMNR) - Share price, News & Analysis

Q: What is the Fair Price of LMNR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

LMNR ($14.69) is trading above our estimate of [[fair value]] ($2.66)

LMNR fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	4/6
Past Performance	0/6
Financial Health	2/6
Dividends	3/6

LMNR Stock Overview

Limoneira Company operates as an agribusiness and real estate development company in the United States and internationally.

Rewards

Earnings are forecast to grow 162.92% per year

Risk Analysis

Debt is not well covered by operating cash flow

Dividend of 2.04% is not well covered by earnings or forecast to be in the next 3 years

Limoneira Competitors

CAT9 Group

OTCPK:CATN

US$240.1m

Alico

NasdaqGS:ALCO

US$266.8m

Local Bounti

NYSE:LOCL

US$322.8m

Forafric Global

NasdaqCM:AFRI

US$180.2m

Price History & Performance

Summary of all time highs, changes and price drops for Limoneira
Historical stock prices
Current Share Price	US$14.69
52 Week High	US$18.98
52 Week Low	US$10.44
Beta	1.05
1 Month Change	26.42%
3 Month Change	8.17%
1 Year Change	-17.70%
3 Year Change	-26.33%
5 Year Change	-37.83%
Change since IPO	552.89%

Recent News & Updates

Jun 27

Limoneira Company: Approach With Caution

Although revenue at Limoneira Company has grown over the past five years, profitability has been an issue. The company is not showing any real signs of improvement, with the most recent financial performance looking disappointing on the bottom line. Even in the best case, shares would be more or less fairly valued, while it's more likely that the company is overvalued.

Shareholder Returns

	LMNR	US Food	US Market
7D	8.7%	4.6%	6.6%
1Y	-17.7%	-1.8%	-18.4%

Return vs Industry: LMNR underperformed the US Food industry which returned -1.8% over the past year.

Return vs Market: LMNR matched the US Market which returned -18.4% over the past year.

Price Volatility

Is LMNR's price volatile compared to industry and market?
LMNR volatility
LMNR Average Weekly Movement	8.2%
Food Industry Average Movement	7.1%
Market Average Movement	8.1%
10% most volatile stocks in US Market	16.6%
10% least volatile stocks in US Market	3.2%

Stable Share Price: LMNR is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: LMNR's weekly volatility (8%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1893	268	Harold Edwards	https://www.limoneira.com

Limoneira Company operates as an agribusiness and real estate development company in the United States and internationally. The company operates through three divisions: Agribusiness, Rental Operations, and Real Estate Development. It grows, processes, packs, markets, and sells lemons.

Limoneira Fundamentals Summary

How do Limoneira's earnings and revenue compare to its market cap?
LMNR fundamental statistics
Market Cap	US$260.33m
Earnings (TTM)	-US$6.65m
Revenue (TTM)	US$168.64m

1.5x

P/S Ratio

-39.1x

P/E Ratio

Is LMNR overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
LMNR income statement (TTM)
Revenue	US$168.64m
Cost of Revenue	US$158.28m
Gross Profit	US$10.36m
Other Expenses	US$17.02m
Earnings	-US$6.65m

Last Reported Earnings

Apr 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-0.38
Gross Margin	6.14%
Net Profit Margin	-3.94%
Debt/Equity Ratio	73.0%

How did LMNR perform over the long term?

See historical performance and comparison

Dividends

2.0%

Current Dividend Yield

-79%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is LMNR undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for LMNR?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for LMNR. This is calculated by dividing LMNR's market cap by their current preferred multiple.
What is LMNR's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$260.33m

LMNR key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	2.5x
Enterprise Value/EBITDA	2955x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does LMNR's PS Ratio compare to its peers?

LMNR PS Ratio vs Peers

The above table shows the PS ratio for LMNR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	142.5x
CATN CAT9 Group	192.8x	n/a	US$240.1m
ALCO Alico	2.6x	8.0%	US$266.8m
LOCL Local Bounti	374x	83.3%	US$322.8m
AFRI Forafric Global	0.8x	n/a	US$180.2m
LMNR Limoneira	1.5x	14.0%	US$260.3m

Forward PS

Price-To-Sales vs Peers: LMNR is good value based on its Price-To-Sales Ratio (1.5x) compared to the peer average (142.5x).

Price to Earnings Ratio vs Industry

How does LMNR's PE Ratio compare vs other companies in the US Food Industry?

Price-To-Sales vs Industry: LMNR is expensive based on its Price-To-Sales Ratio (1.5x) compared to the US Food industry average (1.1x)

Price to Sales Ratio vs Fair Ratio

What is LMNR's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

LMNR PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	1.5x
Fair PS Ratio	0.7x

Price-To-Sales vs Fair Ratio: LMNR is expensive based on its Price-To-Sales Ratio (1.5x) compared to the estimated Fair Price-To-Sales Ratio (0.7x).

Share Price vs Fair Value

What is the Fair Price of LMNR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: LMNR ($14.69) is trading above our estimate of fair value ($2.66)

Significantly Below Fair Value: LMNR is trading above our estimate of fair value.

Price to Earnings Growth Ratio

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

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Future Growth

How is Limoneira forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

162.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: LMNR is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).

Earnings vs Market: LMNR is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: LMNR is expected to become profitable in the next 3 years.

Revenue vs Market: LMNR's revenue (14% per year) is forecast to grow faster than the US market (8.4% per year).

High Growth Revenue: LMNR's revenue (14% 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 LMNR's Return on Equity is forecast to be high in 3 years time

Discover growth companies

Past Performance

How has Limoneira performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-55.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: LMNR is currently unprofitable.

Growing Profit Margin: LMNR is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: LMNR is unprofitable, and losses have increased over the past 5 years at a rate of 55.5% per year.

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

Earnings vs Industry: LMNR is unprofitable, making it difficult to compare its past year earnings growth to the Food industry (13.1%).

Return on Equity

High ROE: LMNR has a negative Return on Equity (-3.42%), as it is currently unprofitable.

Discover strong past performing companies

Financial Health

How is Limoneira's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: LMNR's short term assets ($42.0M) exceed its short term liabilities ($37.8M).

Long Term Liabilities: LMNR's short term assets ($42.0M) do not cover its long term liabilities ($162.1M).

Debt to Equity History and Analysis

Debt Level: LMNR's net debt to equity ratio (72.5%) is considered high.

Reducing Debt: LMNR's debt to equity ratio has reduced from 77.1% to 73% over the past 5 years.

Debt Coverage: LMNR's debt is not well covered by operating cash flow (2.7%).

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

Balance Sheet

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Dividend

What is Limoneira current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

2.04%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: LMNR's dividend (2.04%) is higher than the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: LMNR's dividend (2.04%) is low compared to the top 25% of dividend payers in the US market (4.24%).

Stability and Growth of Payments

Stable Dividend: LMNR's dividends per share have been stable in the past 10 years.

Growing Dividend: LMNR's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: LMNR is paying a dividend but the company is unprofitable.

Cash Payout to Shareholders

Cash Flow Coverage: LMNR is paying a dividend but the company has no free cash flows.

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Management

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

4.4yrs

Average management tenure

CEO

Harold Edwards (55 yo)

17.58yrs

Tenure

US$1,319,648

Compensation

Mr. Harold S. Edwards has been the Chief Executive Officer and President at Limoneira Company since November 2003. Mr. Edwards has been a Director of Limoneira Company since 2009. Mr. Edwards served as the...

CEO Compensation Analysis

Compensation vs Market: Harold's total compensation ($USD1.32M) is about average for companies of similar size in the US market ($USD1.69M).

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

Leadership Team

Experienced Management: LMNR's management team is considered experienced (4.4 years average tenure).

Board Members

Experienced Board: LMNR's board of directors are considered experienced (7.7 years average tenure).

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.

Data	Last Updated (UTC time)
Company Analysis	2022/06/26 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/04/30
Annual Earnings	2021/10/31