NYSE:FPI

Stock Analysis Report

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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. More Details


Snowflake Analysis

Second-rate dividend payer with mediocre balance sheet.


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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: FPI's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

3.2%

FPI

-1.1%

US REITs

-3.6%

US Market


1 Year Return

102.4%

FPI

-0.3%

US REITs

36.4%

US Market

Return vs Industry: FPI exceeded the US REITs industry which returned -0.4% over the past year.

Return vs Market: FPI exceeded the US Market which returned 38.5% over the past year.


Shareholder returns

FPIIndustryMarket
7 Day3.2%-1.1%-3.6%
30 Day16.0%1.9%0.9%
90 Day46.2%3.4%6.7%
1 Year108.3%102.4%4.4%-0.3%39.4%36.4%
3 Year66.7%49.9%35.3%18.8%53.4%43.5%
5 Year37.0%11.4%44.8%15.5%117.3%93.0%

Long-Term 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

Valuation

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

1.25x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: FPI ($11.96) is trading above our estimate of fair value ($7.08)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: FPI is good value based on its PB Ratio (1.2x) compared to the US REITs industry average (1.6x).


Next Steps

Future Growth

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

53.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: FPI's revenue (0.5% per year) is forecast to grow slower than the US market (10.4% per year).

High Growth Revenue: FPI's revenue (0.5% 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'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?

-9.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FPI is currently unprofitable.

Growing Profit Margin: FPI is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: FPI is unprofitable, and losses have increased over the past 5 years at a rate of 9.7% per year.

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

Earnings vs Industry: FPI is unprofitable, making it difficult to compare its past year earnings growth to the REITs industry (-6.1%).


Return on Equity

High ROE: FPI has a negative Return on Equity (1.98%), as it is currently unprofitable.


Next Steps

Financial Health

How is Farmland Partners's financial position?


Financial Position Analysis

Short Term Liabilities: FPI's short term assets ($16.6M) do not cover its short term liabilities ($18.1M).

Long Term Liabilities: FPI's short term assets ($16.6M) do not cover its long term liabilities ($508.6M).


Debt to Equity History and Analysis

Debt Level: FPI's debt to equity ratio (92.5%) is considered high.

Reducing Debt: FPI's debt to equity ratio has reduced from 127.3% to 92.5% over the past 5 years.


Balance Sheet


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 has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: FPI is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 28.6% per year.


Next Steps

Dividend

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

1.67%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: FPI's dividend (1.67%) is higher than the bottom 25% of dividend payers in the US market (1.34%).

High Dividend: FPI's dividend (1.67%) is low compared to the top 25% of dividend payers in the US market (3.76%).


Stability and Growth of Payments

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

Growing Dividend: FPI has only been paying a dividend for 7 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (88.5%), FPI's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FPI's dividends in 3 years are forecast to be well covered by earnings (27.7% payout ratio).


Next Steps

Management

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

6.0yrs

Average board tenure


CEO

Paul Pittman (58 yo)

7.08yrs

Tenure

US$1,803,894

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 ($USD1.80M) is about average for companies of similar size in the US market ($USD1.50M).

Compensation vs Earnings: Paul's compensation has increased whilst the company is unprofitable.


Board Members

NamePositionTenureCompensationOwnership
Paul Pittman
Executive Chairman7.08yrsUS$1.80m8.53%
$ 31.3m
Thomas Heneghan
Director0.17yrno data4.55%
$ 16.7m
John Good
Independent Director3.08yrsUS$57.68k0.097%
$ 357.2k
Joseph Glauber
Independent Director6yrsUS$55.68k0.053%
$ 193.2k
Christopher Downey
Lead Independent Director6.08yrsUS$68.93k0.27%
$ 983.6k
Toby O'Rourke
Independent Directorno datano datano data

6.0yrs

Average Tenure

62yo

Average Age

Experienced Board: FPI's board of directors are considered experienced (6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: FPI 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.


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
  • Exchange: NYSE
  • Founded: 2013
  • Industry: Specialized REITs
  • Sector: Real Estate
  • Implied Market Cap: US$366.383m
  • Market Cap: US$346.783m
  • Shares outstanding: 30.63m
  • 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 dat...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/02/27 23:38
End of Day Share Price2021/02/26 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.