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LMNR

Limoneira NasdaqGS:LMNR Stock Report

Last Price

US$12.65

Market Cap

US$224.2m

7D

-2.8%

1Y

-18.2%

Updated

27 Sep, 2022

Data

Company Financials +
LMNR fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance0/6
Financial Health1/6
Dividends3/6

LMNR Stock Overview

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

Limoneira Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Limoneira
Historical stock prices
Current Share PriceUS$12.65
52 Week HighUS$16.71
52 Week LowUS$10.44
Beta0.78
1 Month Change-4.31%
3 Month Change-12.40%
1 Year Change-18.18%
3 Year Change-29.53%
5 Year Change-46.71%
Change since IPO462.22%

Recent News & Updates

Sep 21

Limoneira: The Citrus King

Summary Limoneira stock has been great for trading and we think you should consider scaling in on the next bout of weakness. Operating income increased over 200% and the top line jumped 20%, driven by record avocado revenues and increased fresh lemon sales in Q3. The real estate side of the business is helping cash flow. The One World of Citrus plan is increasing cash flow dramatically. Limoneira (LMNR) is a diversified citrus growing, packing, selling and marketing company with related agribusiness activities and real estate development operations. Lemons and avocados are two main staples of the business. With the growing popularity of the high fat keto diet, avocado demand has surged. The stock has been a tough investment, but has been great to trade. We think on the next leg lower you start buying for a trade. The company has some debt, but is battling inflationary costs quite well. The company is upping avocado plantings and strategically selling certain assets to dramatically increase cash flow. That is one thing people do not realize about this company, it not only is a produce type company (and we love the mantra that people need to eat), but they also have a very lucrative portfolio of real estate assets. We think the stock can be bought into weakness for a run higher. Let us discuss. The play Here at BAD BEAT we like to give you the direct plays we are running. No guesswork. Here is how we would play this: Target entry 1: $12.60-$12.80 (33% of a position) Target entry 2: $12.00-$12.20 (33% of a position) Target entry 3: $11.25-$11.50 (33% of a position) Target exit: $15+ Stop loss: $9.90 Discussion So there you have the way we would play this. It is possible you only get one entry, and make a good profit, high quality problem. You still made money. We like scaling in versus buying all at once. It is a big mistake to buy all at once in our opinion. This name is ripe for a trade. Performance has been strong. The company had just started to rebound from the COVID crisis that had lasting impacts and things were seemingly about to be back to normal when the markets took it on the chin starting back in February of this year. It has been a long bear market. Inflation has been horrible, and food prices have rocketed higher. While labor costs and supply costs have risen for the company, the selling price of its products has been mixed, but the company is operating efficiently. In its just reported Q3, the company actually beat consensus estimates on the top and bottom line. After lots of damage to the earnings potential of the company from the pandemic, and then from a tough growing season in 2021, the company has bounced back (even though the stock really has not, though we are off the lows). Revenue jumped year-over-year. While the company still pays a dividend, the selloff in shares has brought the yield to a respectable 2.3%. With bonds falling bond yields have risen so this yield is not impressive, but is a nice bonus for what should really be a growth company. The company has of course increased the size of its acreage year after year, on average, though is selling some now. For years there was a ton of CAPEX spending and a good amount of long-term debt, about $129 million of it. There were a lot of positives in Q3, including the company seeing solid sales and earnings. Total net revenue was $58.9 million, compared to total net revenue of $49.1 million a year ago. A nice 20% jump! Agribusiness revenue was $57.6 million, compared to $48.0 million in the third quarter of last year. Other operations (like specialty citrus and other crops) revenue was similar to the prior fiscal year at $1.3 million. Citrus drives a chunk of sales. Fresh lemon revenue rose to $27.8 million, compared to $24.4 million during the 2021 quarter. Volumes were up significantly with restaurant and food service demand being strong. While volume was strong, fresh lemon pricing was down. Further, supply chain and freight costs are up as is labor. That said, with fresh lemon pricing was down to $18.39 per carton from $21.34 average price per carton a year ago which was a bit of a surprise. But the volumes surged. The company sold 1.512 million cartons vs. 1.144 million cartons a year ago. But growth was not only in lemons. The company saw a brand new record for avocado sales. Winning. In fact there was $12.6 million of avocado revenue, tripling from $4.1 million a year ago. This was due to a massive increase in volume and much higher pricing. Last year only 3.5 million pounds of avocados were sold, while this year volumes normalized and were 5.7 million pounds last year. However, pricing was up 91%. The average price per pound was $2.21 compared to a $1.16 average price per pound last year. The main reason for this was the lower sized avocado due to California droughts. This is a one-time headwind. Orange revenue was strong as well, rising to $3.7 million up from $2.0 million a year ago. Volumes here were much lower than a year ago, but pricing skyrocketed. They sold 0.209 million cartons of oranges at a $17. average price per carton, compared to approximately 0.259 million cartons sold at a $17.88 average price per carton.

Shareholder Returns

LMNRUS FoodUS Market
7D-2.8%-2.7%-5.8%
1Y-18.2%0.1%-22.1%

Return vs Industry: LMNR underperformed the US Food industry which returned 0.6% over the past year.

Return vs Market: LMNR exceeded the US Market which returned -23.7% over the past year.

Price Volatility

Is LMNR's price volatile compared to industry and market?
LMNR volatility
LMNR Average Weekly Movement5.4%
Food Industry Average Movement5.7%
Market Average Movement6.9%
10% most volatile stocks in US Market15.7%
10% least volatile stocks in US Market2.8%

Stable Share Price: LMNR is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: LMNR's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1893268Harold Edwardshttps://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 CapUS$224.18m
Earnings (TTM)-US$2.98m
Revenue (TTM)US$178.44m

1.3x

P/S Ratio

-75.3x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
LMNR income statement (TTM)
RevenueUS$178.44m
Cost of RevenueUS$159.16m
Gross ProfitUS$19.28m
Other ExpensesUS$22.26m
Earnings-US$2.98m

Last Reported Earnings

Jul 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-0.17
Gross Margin10.80%
Net Profit Margin-1.67%
Debt/Equity Ratio67.5%

How did LMNR perform over the long term?

See historical performance and comparison

Dividends

2.4%

Current Dividend Yield

-177%

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

2/6

Valuation Score 2/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

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.

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/Revenue2.1x
Enterprise Value/EBITDA47.1x
PEG Ration/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.
CompanyPSEstimated GrowthMarket Cap
Peer Average13.1x
LOCL Local Bounti
32.5x87.3%US$228.0m
APPH AppHarvest
15.6x52.5%US$204.4m
ALCO Alico
2.5x9.0%US$233.2m
BHIL Benson Hill
1.8x16.7%US$493.6m
LMNR Limoneira
1.3x5.1%US$224.2m

Price-To-Sales vs Peers: LMNR is good value based on its Price-To-Sales Ratio (1.3x) compared to the peer average (13.1x).


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 (1.3x) 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 Ratio1.3x
Fair PS Ratio0.6x

Price-To-Sales vs Fair Ratio: LMNR is expensive based on its Price-To-Sales Ratio (1.3x) compared to the estimated Fair Price-To-Sales Ratio (0.6x).


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 ($12.65) is trading above our estimate of fair value ($2.55)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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Future Growth

How is Limoneira forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


194.5%

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 (5.1% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: LMNR's revenue (5.1% 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


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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


-52.7%

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 52.7% 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 (0.3%).


Return on Equity

High ROE: LMNR has a negative Return on Equity (-1.21%), as it is currently unprofitable.


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Financial Health

How is Limoneira's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

  • 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 ($42.4M) exceed its short term liabilities ($38.1M).

Long Term Liabilities: LMNR's short term assets ($42.4M) do not cover its long term liabilities ($158.9M).


Debt to Equity History and Analysis

Debt Level: LMNR's net debt to equity ratio (67%) is considered high.

Reducing Debt: LMNR's debt to equity ratio has increased from 67.4% to 67.5% over the past 5 years.

Debt Coverage: LMNR's debt is not well covered by operating cash flow (2.8%).

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

  • Cash Flow Coverage


2.37%

Current Dividend Yield

Dividend Yield vs Market

Limoneira Dividend Yield vs Market
How does Limoneira dividend yield compare to the market?
SegmentDividend Yield
Company (Limoneira)2.4%
Market Bottom 25% (US)1.7%
Market Top 25% (US)4.7%
Industry Average (Food)2.7%
Analyst forecast in 3 Years (Limoneira)2.4%

Notable Dividend: LMNR's dividend (2.37%) is higher than the bottom 25% of dividend payers in the US market (1.67%).

High Dividend: LMNR's dividend (2.37%) is low compared to the top 25% of dividend payers in the US market (4.68%).


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?

1.6yrs

Average management tenure


CEO

Harold Edwards (56 yo)

13.67yrs

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

Harold Edwards's Compensation vs Limoneira Earnings
How has Harold Edwards's remuneration changed compared to Limoneira's earnings?
DateTotal Comp.SalaryCompany Earnings
Jul 31 2022n/an/a

-US$3m

Apr 30 2022n/an/a

-US$7m

Jan 31 2022n/an/a

-US$6m

Oct 31 2021US$1mUS$640k

-US$4m

Jul 31 2021n/an/a

-US$7m

Apr 30 2021n/an/a

-US$8m

Jan 31 2021n/an/a

-US$15m

Oct 31 2020US$1mUS$663k

-US$17m

Jul 31 2020n/an/a

-US$13m

Apr 30 2020n/an/a

-US$16m

Jan 31 2020n/an/a

-US$8m

Oct 31 2019US$2mUS$615k

-US$6m

Jul 31 2019n/an/a

-US$7m

Apr 30 2019n/an/a

US$3m

Jan 31 2019n/an/a

US$6m

Oct 31 2018US$2mUS$588k

US$20m

Jul 31 2018n/an/a

US$20m

Apr 30 2018n/an/a

US$20m

Jan 31 2018n/an/a

US$17m

Oct 31 2017US$864kUS$560k

US$6m

Jul 31 2017n/an/a

US$9m

Apr 30 2017n/an/a

US$12m

Jan 31 2017n/an/a

US$9m

Oct 31 2016US$840kUS$534k

US$7m

Jul 31 2016n/an/a

US$8m

Apr 30 2016n/an/a

US$3m

Jan 31 2016n/an/a

US$4m

Oct 31 2015US$672kUS$519k

US$6m

Compensation vs Market: Harold's total compensation ($USD1.32M) is about average for companies of similar size in the US market ($USD1.68M).

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 not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

Experienced Board: LMNR's board of directors are considered experienced (9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: LMNR insiders have only sold shares in the past 3 months.


Recent Insider Transactions

NasdaqGS:LMNR Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
28 Jun 22SellUS$57,320Mark PalamountainIndividual4,000US$14.33
15 Mar 22BuyUS$527,917Jesus LozaIndividual41,300US$12.80
18 Jan 22BuyUS$132,041Jesus LozaIndividual8,791US$15.02
18 Jan 22SellUS$72,706Mark PalamountainIndividual4,823US$15.07
14 Jan 22SellUS$22,520Alex TeagueIndividual1,500US$15.01
11 Jan 22SellUS$186,484Donald RudkinIndividual11,648US$16.01
06 Oct 21BuyUS$156,500Jesus LozaIndividual10,000US$15.65

Ownership Breakdown

What is the ownership structure of LMNR?
Owner TypeNumber of SharesOwnership Percentage
Individual Insiders1,166,5856.6%
Public Companies1,719,1859.7%
General Public7,141,39940.3%
Institutions7,694,38243.4%

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


Top Shareholders

Top 25 shareholders own 52.71% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
12.11%
Global Alpha Capital Management Ltd.
2,146,224$27.1m2.89%1.19%
9.7%
Calavo Growers, Inc.
1,719,185$21.7m0%no data
3.82%
The Vanguard Group, Inc.
677,167$8.6m-8.45%no data
3.66%
Dimensional Fund Advisors LP
648,361$8.2m6.76%no data
3.51%
First Wilshire Securities Management, Inc.
622,627$7.9m42.8%3.26%
3.3%
Old West Investment Management, LLC
584,060$7.4m0.17%5.55%
2.38%
Jesus Loza
421,377$5.3m0%no data
1.55%
Millennium Management LLC
274,066$3.5m0%no data
1.49%
BlackRock, Inc.
264,544$3.3m-74.25%no data
1.31%
Teton Advisors, LLC
232,000$2.9m0%0.58%
1.02%
AXA Investment Managers S.A.
180,129$2.3m0%no data
0.9%
Harold Edwards
159,083$2.0m0%no data
0.85%
Crown Capital Management
150,000$1.9m0%1.87%
0.84%
Alex Teague
149,471$1.9m0%no data
0.82%
GAMCO Investors, Inc.
145,300$1.8m2.48%0.01%
0.78%
Geode Capital Management, LLC
137,651$1.7m-45.99%no data
0.77%
Elizabeth Chess
137,237$1.7m0%no data
0.72%
Robert Sawyer
127,808$1.6m0%no data
0.68%
Citadel Advisors LLC
121,211$1.5m0%no data
0.6%
Marshall Wace LLP
106,804$1.4m0%no data
0.41%
Rathbone Investment Management Limited
73,360$928.0k0%no data
0.39%
Ergoteles LLC
69,200$875.4k0%0.03%
0.39%
Two Sigma Advisers, LP
68,800$870.3k82.98%no data
0.36%
Fuller & Thaler Asset Management, Inc.
63,280$800.5k0.64%0.01%
0.35%
State Street Global Advisors, Inc.
62,823$794.7k-78.59%no data

Company Information

Limoneira Company's employee growth, exchange listings and data sources


Key Information

  • Name: Limoneira Company
  • Ticker: LMNR
  • Exchange: NasdaqGS
  • Founded: 1893
  • Industry: Agricultural Products
  • Sector: Food, Beverage & Tobacco
  • Implied Market Cap: US$224.178m
  • Shares outstanding: 17.72m
  • Website: https://www.limoneira.com

Number of Employees


Location

  • Limoneira Company
  • 1141 Cummings Road
  • Santa Paula
  • California
  • 93060
  • United States


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LMNRNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDNov 1994
2L2DB (Deutsche Boerse AG)YesCommon StockDEEURNov 1994

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/27 00:00
End of Day Share Price2022/09/27 00:00
Earnings2022/07/31
Annual Earnings2021/10/31


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.