NYSE:FPI.PRB

Stock Analysis Report

Executive Summary

Farmland Partners Inc. is an internally managed real estate company that owns and seeks to acquire high-quality North American farmland and makes loans to farmers secured by farm real estate.


Snowflake Analysis

Unattractive dividend payer and overvalued.


Similar Companies

Share Price & News

How has Farmland Partners's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: FPI.PRB has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.4%

FPI.PRB

-0.07%

US REITs

-1.1%

US Market


1 Year Return

6.3%

FPI.PRB

16.0%

US REITs

17.9%

US Market

Return vs Industry: FPI.PRB underperformed the US REITs industry which returned 16% over the past year.

Return vs Market: FPI.PRB underperformed the US Market which returned 18% over the past year.


Shareholder returns

FPI.PRBIndustryMarket
7 Day-0.4%-0.07%-1.1%
30 Day-0.1%3.6%1.4%
90 Day3.9%7.8%6.9%
1 Year13.3%6.3%20.7%16.0%20.3%17.9%
3 Yearn/a37.9%20.6%47.8%38.3%
5 Yearn/a60.3%27.3%71.9%53.0%

Price Volatility Vs. Market

How volatile is Farmland Partners's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Farmland Partners undervalued compared to its fair value and its price relative to the market?

0.7x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: FPI.PRB ($25.25) is trading above our estimate of fair value ($21.4)

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


Price To Earnings Ratio

PE vs Industry: FPI.PRB is unprofitable, so we can't compare its PE Ratio to the REITs industry average.

PE vs Market: FPI.PRB 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 FPI.PRB's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: FPI.PRB is good value based on its PB Ratio (0.7x) compared to the US REITs industry average (2.1x).


Next Steps

Future Growth

How is Farmland Partners forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

-84.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FPI.PRB is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: FPI.PRB is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: FPI.PRB is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: FPI.PRB's revenue (2.7% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: FPI.PRB's revenue (2.7% 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 FPI.PRB's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Farmland Partners performed over the past 5 years?

17.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FPI.PRB is currently unprofitable.

Growing Profit Margin: FPI.PRB is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: FPI.PRB is unprofitable, but has reduced losses over the past 5 years at a rate of 17.7% per year.

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

Earnings vs Industry: FPI.PRB is unprofitable, making it difficult to compare its past year earnings growth to the REITs industry (9.3%).


Return on Equity

High ROE: FPI.PRB has a negative Return on Equity (2.36%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Farmland Partners's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

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

Debt Coverage by Assets: FPI.PRB's debt is not covered by short term assets (assets are 0x debt).


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: Whilst unprofitable FPI.PRB has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: FPI.PRB is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 35.4% per year.


Financial Institutions Analysis

Asset Level: FPI.PRB's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if FPI.PRB has a sufficient allowance for bad loans.

Low Risk Liabilities: FPI.PRB reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if FPI.PRB has an acceptable proportion of non-loan assets held.

Low Risk Deposits: FPI.PRB has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if FPI.PRB has an appropriate level of bad loans.


Next Steps

Dividend

What is Farmland Partners's current dividend yield, its reliability and sustainability?

2.94%

Current Dividend Yield


Dividend Yield vs Market

company2.9%marketbottom25%1.4%markettop25%3.7%industryaverage3.5%forecastin3Years2.9%

Current dividend yield vs market & industry

Notable Dividend: FPI.PRB's dividend (2.94%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: FPI.PRB's dividend (2.94%) is low compared to the top 25% of dividend payers in the US market (3.73%).


Stability and Growth of Payments

Stable Dividend: FPI.PRB has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: FPI.PRB has only been paying a dividend for 6 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (124.7%), FPI.PRB's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FPI.PRB's dividends in 3 years are forecast to be thoroughly covered by earnings (1.1% payout ratio).


Next Steps

Management

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

5.0yrs

Average board tenure


CEO

Paul Pittman (57yo)

6.1yrs

Tenure

US$1,100,465

Compensation

Mr. Paul A. Pittman has served Executive Chairman and Chief Executive Officer of Farmland Partners Inc. since its formation in 2014 and its President since May 31, 2018. Mr. Pittman also served as Presiden ...


CEO Compensation Analysis

Compensation vs Market: Paul's total compensation ($USD1.10M) is about average for companies of similar size in the US market ($USD1.12M).

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


Board Members

NamePositionTenureCompensationOwnership
Paul Pittman
Executive Chairman6.1yrsUS$1.10m8.03% $17.3m
John Good
Independent Director2.1yrsUS$50.47k0.048% $103.0k
Joseph Glauber
Independent Director5yrsUS$40.46k0.038% $81.5k
Christopher Downey
Lead Independent Director5.1yrsUS$54.71k0.26% $549.0k

5.0yrs

Average Tenure

62.5yo

Average Age

Experienced Board: FPI.PRB's board of directors are considered experienced (5 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.


Ownership Breakdown

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


Top Shareholders

Company Information

Farmland Partners Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Farmland Partners Inc.
  • Ticker: FPI.PRB
  • Exchange: NYSE
  • Founded: 2013
  • Industry: Specialized REITs
  • Sector: Real Estate
  • Implied Market Cap: US$215.104m
  • Market Cap: US$202.158m
  • Shares outstanding: 31.63m
  • Website: https://www.farmlandpartners.com

Number of Employees


Location

  • Farmland Partners Inc.
  • 4600 South Syracuse Street
  • Suite 1450
  • Denver
  • Colorado
  • 80237
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FPINYSE (New York Stock Exchange)YesCommon StockUSUSDApr 2014
0FABST (Boerse-Stuttgart)YesCommon StockDEEURApr 2014
FPI.PRBNYSE (New York Stock Exchange)6% PFD SER BUSUSDAug 2017

Biography

Farmland Partners Inc. is an internally managed real estate company that owns and seeks to acquire high-quality North American farmland and makes loans to farmers secured by farm real estate. As of the date of this release, the Company owns approximately 158,000 acres in 17 states, including Alabama, Arkansas, California, Colorado, Florida, Georgia, Illinois, Kansas, Louisiana, Michigan, Mississippi, Nebraska, North Carolina, South Carolina, South Dakota, Texas and Virginia. We have approximately 26 crop types and over 100 tenants. The Company elected to be taxed as a real estate investment trust, or REIT, for U.S. federal income tax purposes, commencing with the taxable year ended December 31, 2014. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 02:31
End of Day Share Price2020/02/21 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.