NYSE:FPI

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

Fundamentals

Second-rate dividend payer with questionable track record.


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


Market Performance


7 Day Return

0.9%

FPI

1.5%

US REITs

0.5%

US Market


1 Year Return

-1.8%

FPI

20.3%

US REITs

6.8%

US Market

Return vs Industry: FPI underperformed the US REITs industry which returned 20.3% over the past year.

Return vs Market: FPI underperformed the US Market which returned 6.8% over the past year.


Shareholder returns

FPIIndustryMarket
7 Day0.9%1.5%0.5%
30 Day1.4%1.7%-0.8%
90 Day8.9%7.6%-0.9%
1 Year1.6%-1.8%25.7%20.3%9.2%6.8%
3 Year-28.8%-37.9%35.8%18.5%45.6%36.2%
5 Year-19.2%-35.6%64.6%29.8%63.2%45.4%

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?

47.29x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: FPI ($6.7) is trading above our estimate of fair value ($4.5)

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


Price To Earnings Ratio

PE vs Industry: FPI is poor value based on its PE Ratio (47.3x) compared to the REITs industry average (36.2x).

PE vs Market: FPI is poor value based on its PE Ratio (47.3x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: FPI's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: FPI is good value based on its PB Ratio (0.7x) compared to the US REITs industry average (2x).


Next Steps

Future Growth

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

-98.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FPI's earnings are forecast to decline over the next 3 years (-98.5% per year).

Earnings vs Market: FPI's earnings are forecast to decline over the next 3 years (-98.5% per year).

High Growth Earnings: FPI's earnings are forecast to decline over the next 3 years.

Revenue vs Market: FPI's revenue (0.3% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: FPI's revenue (0.3% 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?

23.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: FPI has become profitable over the past 5 years, growing earnings by 23% per year.

Accelerating Growth: FPI has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: FPI has become profitable in the last year, making it difficult to compare its past year earnings growth to the REITs industry (17.6%).


Return on Equity

High ROE: FPI's Return on Equity (3.3%) is considered low.


Return on Assets

ROA vs Industry: FPI's Return on Assets is below or equal to the REITs industry average last year.


Return on Capital Employed

ROCE Improving: FPI has significantly improved its Return on Capital Employed over the past 3 years.


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 has a high level of physical assets or inventory.

Debt Coverage by Assets: FPI's debt is not covered by short term assets (assets are 0.1x debt).


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

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

2.99%

Current Dividend Yield


Dividend Yield vs Market

company3.0%marketbottom25%1.4%markettop25%3.7%industryaverage3.6%forecastin3Years3.0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: FPI's dividend (2.99%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: FPI's dividend (2.99%) is low compared to the top 25% of dividend payers in the US market (3.73%).

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 5 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (94.4%), FPI's payments are covered by earnings.


Future Payout to Shareholders

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


Next Steps

Management

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

4.8yrs

Average board tenure


CEO

Paul Pittman (57yo)

5.8yrs

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 ($USD1.10M) is about average for companies of similar size in the US market ($USD1.16M).

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


Board Age and Tenure

4.8yrs

Average Tenure

61yo

Average Age

Experienced Board: FPI's board of directors are considered experienced (4.8 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyUS$13,08027 Sep 19
Paul Pittman
EntityIndividual
Role
Chief Executive Officer
Executive Chairman
Shares2,000
Max PriceUS$6.54
BuyUS$3,21326 Aug 19
Christopher Downey
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares489
Max PriceUS$6.57
BuyUS$3,15026 Aug 19
Luca Fabbri
EntityIndividual
Role
Chief Financial Officer
CFO & Treasurer
Shares500
Max PriceUS$6.30
BuyUS$12,62016 Aug 19
Paul Pittman
EntityIndividual
Role
Chief Executive Officer
Executive Chairman
Shares2,000
Max PriceUS$6.31
BuyUS$6,77025 Jun 19
Paul Pittman
EntityIndividual
Role
Chief Executive Officer
Executive Chairman
Shares1,000
Max PriceUS$6.77
BuyUS$12,02022 May 19
Paul Pittman
EntityIndividual
Role
Chief Executive Officer
Executive Chairman
Shares2,000
Max PriceUS$6.01
BuyUS$15,65020 May 19
John Good
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,500
Max PriceUS$6.26
SellUS$79908 Apr 19
Jay Bartels
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares125
Max PriceUS$6.39
BuyUS$25,52027 Mar 19
Paul Pittman
EntityIndividual
Role
Chief Executive Officer
Executive Chairman
Shares4,000
Max PriceUS$6.38
BuyUS$24,00026 Mar 19
Paul Pittman
EntityIndividual
Role
Chief Executive Officer
Executive Chairman
Shares4,000
Max PriceUS$6.00
SellUS$7,90022 Mar 19
Jay Bartels
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,250
Max PriceUS$6.32
BuyUS$3,16106 Feb 19
Christopher Downey
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares525
Max PriceUS$6.02
BuyUS$29,12527 Dec 18
John Good
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares6,250
Max PriceUS$4.66
BuyUS$4,73021 Dec 18
Luca Fabbri
EntityIndividual
Role
Chief Financial Officer
CFO & Treasurer
Shares1,000
Max PriceUS$4.73
BuyUS$53,02021 Dec 18
Paul Pittman
EntityIndividual
Role
Chief Executive Officer
Executive Chairman
Shares11,000
Max PriceUS$4.92
BuyUS$5,25019 Dec 18
Paul Pittman
EntityIndividual
Role
Chief Executive Officer
Executive Chairman
Shares1,000
Max PriceUS$5.25
BuyUS$5,26017 Dec 18
Paul Pittman
EntityIndividual
Role
Chief Executive Officer
Executive Chairman
Shares1,000
Max PriceUS$5.26
BuyUS$2,77013 Dec 18
Paul Pittman
EntityIndividual
Role
Chief Executive Officer
Executive Chairman
Shares500
Max PriceUS$5.54
BuyUS$2,83511 Dec 18
Paul Pittman
EntityIndividual
Role
Chief Executive Officer
Executive Chairman
Shares500
Max PriceUS$5.67
BuyUS$5,92010 Dec 18
Paul Pittman
EntityIndividual
Role
Chief Executive Officer
Executive Chairman
Shares1,000
Max PriceUS$5.92
BuyUS$6,14028 Nov 18
Paul Pittman
EntityIndividual
Role
Chief Executive Officer
Executive Chairman
Shares1,000
Max PriceUS$6.14
BuyUS$12,40026 Nov 18
Paul Pittman
EntityIndividual
Role
Chief Executive Officer
Executive Chairman
Shares2,000
Max PriceUS$6.20

Ownership Breakdown


Management Team

  • Paul Pittman (57yo)

    Executive Chairman

    • Tenure: 5.8yrs
    • Compensation: US$1.10m
  • Luca Fabbri (50yo)

    CFO & Treasurer

    • Tenure: 6.1yrs
    • Compensation: US$653.18k
  • Erica Borenstein (49yo)

    General Counsel & Secretary

    • Tenure: 0yrs
    • Compensation: US$290.92k

Board Members

  • Paul Pittman (57yo)

    Executive Chairman

    • Tenure: 5.8yrs
    • Compensation: US$1.10m
  • John Good (61yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$50.47k
  • Joe Glauber (64yo)

    Independent Director

    • Tenure: 4.7yrs
    • Compensation: US$40.46k
  • Chris Downey (68yo)

    Lead Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$54.71k
  • Jay Bartels (54yo)

    Independent Director

    • Tenure: 5.5yrs
    • Compensation: US$41.71k

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$211.784m
  • Market Cap: US$195.728m
  • Shares outstanding: 31.61m
  • 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 Analysis2019/10/21 00:23
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
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.