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Farmland (FPI)
NYSE:FPI
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Farmland
(NYSE:FPI)
73Outperform
Farmland (FPI) vs. S&P 500 (SPY)
Market Cap
$513.84M
Dividend Yield2.2%
Average Volume (3M)434.98K
Price to Earnings (P/E)10.8
Beta (1Y)0.76
Revenue Growth1.32%
EPS Growth108.94%
CountryUS
Employees24
SectorReal Estate
Sector Strength78
IndustryREITs
Share Statistics
EPS (TTM)1.01
Shares Outstanding45,894,405
10 Day Avg. Volume515,608
30 Day Avg. Volume434,980
Financial Highlights & Ratios
PEG Ratio0.10
Price to Book (P/B)N/A
Price to Sales (P/S)8.60
Price to Cash Flow (P/CF)8.60
P/FCF Ratio9.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$13.25Price Target Upside19.91% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Farmland Business Overview & Revenue Model
Company DescriptionFarmland Partners Inc. (FPI) is a real estate investment trust (REIT) that primarily invests in North American farmland. The company focuses on acquiring and managing high-quality farmland and leasing it to independent farmers. FPI's portfolio includes a diverse range of crop types, including corn, soybeans, wheat, rice, and vegetables, providing a stable and diversified revenue base. The company's mission is to provide stockholders with a compelling risk-adjusted return through dividends and capital appreciation.
How the Company Makes MoneyFarmland Partners Inc. generates revenue primarily through the leasing of its farmland properties to independent farmers, who pay rent for the use of the land. This rent can be structured as fixed cash rents or variable rents that are tied to the profitability of the crops grown. Additionally, FPI may earn income from participating in crop share agreements where it receives a percentage of the revenue from the sale of crops. The company also seeks to increase its earnings by acquiring additional farmland and benefiting from appreciation in land values. FPI's revenue model is further supported by strategic partnerships and alliances with agricultural operators and stakeholders, enhancing its ability to manage and optimize its farmland assets effectively.
Farmland Financial Statement Overview
Summary
Farmland demonstrates solid financial health with strong profitability and low leverage, positioning it well within the REITs industry. The company shows robust cash flow generation with positive growth trends, although attention should be given to improving EBIT margins and overall returns on equity.Income Statement
The company has shown a consistent revenue growth with the latest annual report showing a 1.32% increase from the previous year. The net profit margin is strong at 102.87%, indicating high profitability, although the negative EBIT margin of -2.64% is a concern. The EBITDA margin is favorable at 14.75%, showing good cash earnings relative to revenue.78
Positive
Balance Sheet
The balance sheet reflects a very low debt-to-equity ratio of 0.0004, indicating minimal leverage, which is positive for financial stability. The equity ratio stands at 56.94%, suggesting a strong equity base. However, the return on equity (ROE) at 12.11% could be improved to enhance shareholder returns.72
Positive
Cash Flow
Operating cash flow to net income ratio is healthy at 0.27, suggesting strong cash conversion. Free cash flow has grown by 25.26% year-over-year, indicating improved financial flexibility. However, reliance on financing activities could pose future risks if not managed carefully.75
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 58.23M | 57.47M | 61.21M | 51.74M | 50.69M | Gross Profit |
| 46.92M | 44.05M | 47.05M | 42.88M | 39.95M | EBIT |
| -1.54M | 31.50M | 24.97M | 16.79M | 22.33M | EBITDA |
| 85.88M | 60.90M | 32.10M | 33.82M | 30.31M | Net Income Common Stockholders |
| 59.91M | 30.91M | 11.67M | -6.05M | -10.45M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 78.44M | 5.49M | 7.65M | 30.17M | 27.22M | Total Assets |
| 868.56M | 1.02B | 1.16B | 1.12B | 1.09B | Total Debt |
| 194.00K | 361.26M | 437.20M | 511.43M | 506.72M | Net Debt |
| -78.25M | 355.77M | 429.55M | 481.26M | 479.50M | Total Liabilities |
| 272.00M | 391.19M | 455.94M | 528.94M | 645.31M | Stockholders Equity |
| 494.59M | 515.88M | 580.79M | 458.31M | 429.84M |
| Cash Flow | Free Cash Flow | |||
| 16.14M | 12.89M | 12.80M | 5.14M | 17.07M | Operating Cash Flow |
| 16.14M | 12.89M | 17.05M | 7.86M | 19.73M | Investing Cash Flow |
| 268.75M | 158.46M | -60.40M | -18.77M | 18.67M | Financing Cash Flow |
| -211.94M | -173.51M | 20.83M | 13.87M | -23.74M |
Farmland Technical Analysis
Neutral
11.05
Price Trends
11.59
Negative
11.28
Negative
10.45
Positive
Market Momentum
-0.22
Positive
41.75
Neutral
25.05
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FPI, the sentiment is Neutral. The current price of 11.05 is below the 20-day moving average (MA) of 11.46, below the 50-day MA of 11.59, and above the 200-day MA of 10.45, indicating a neutral trend. The MACD of -0.22 indicates Positive momentum. The RSI at 41.75 is Neutral, neither overbought nor oversold. The STOCH value of 25.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FPI.
Farmland Risk Analysis
Farmland disclosed 62 risk factors in its most recent earnings report. Farmland reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Farmland Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $513.84M | 10.82 | 11.91% | 2.20% | 1.32% | 108.94% | |
64 Neutral | $1.08B | 12.00 | 7.09% | 3.17% | 7.47% | 10.22% | |
61 Neutral | $4.76B | 18.61 | -3.83% | 10.24% | 6.21% | -20.06% | |
58 Neutral | $391.52M | ― | 1.89% | 5.17% | -5.73% | -5.33% | |
51 Neutral | $432.38M | 161.64 | 0.57% | ― | -6.38% | -17.99% | |
47 Neutral | $757.64M | ― | -8.05% | 8.78% | -3.06% | -124.82% | |
44 Neutral | $221.53M | 32.96 | -17.05% | 0.69% | 14.59% | -194.05% |
* Real Estate Sector Average
Performance Comparison
FPI
Farmland
11.05
1.52
15.95%
AGRO
Adecoagro SA
10.79
0.73
7.26%
ALCO
Alico
28.99
0.88
3.13%
CRESY
Cresud Sociedad
10.84
3.44
46.49%
TRC
Tejon Ranch Company
16.18
0.74
4.79%
LAND
Gladstone Land
10.87
-1.48
-11.98%
Farmland Earnings Call Summary
Earnings Call Date: Feb 19, 2025 | % Change Since: -5.07% | Next Earnings Date: May 6, 2025
Earnings Call Sentiment Neutral
The earnings call presented a balanced view with significant highlights such as strong asset sales, debt reduction, and increased AFFO, but also noted some lowlights including decreased fixed farm rent, increased G&A expenses, and challenges in the California farmland market.Highlights
Substantial Asset Sales and Special Dividend
Farmland Partners completed significant asset sales, resulting in high gains and distributed a $1.15 special dividend to shareholders.
Debt Reduction and Interest Expense Savings
The company reduced outstanding debt by $158.5 million, which lowered interest expenses and contributed to financial stability.
Increased AFFO and Net Income
AFFO for 2024 was $14.1 million, or $0.29 per share, significantly higher than 2023. Net income was $61.5 million, or $1.19 per share.
Successful Lease Renewals and Increased Variable Farm Rents
Strong lease renewals and increased variable farm rents boosted revenue, alongside direct operation revenue from specialty crops.
Guidance for 2025 Above Current Dividend Rate
AFFO per share guidance for 2025 is between $0.25 and $0.30, which is above the current dividend rate of $0.24.
Lowlights
Decreased Fixed Farm Rent
Fixed farm rent decreased due to dispositions in 2023, although partially offset by strong lease renewal rates.
General and Administrative Expenses Increase
G&A expenses increased due to a $1.4 million severance expense and a $2.1 million special bonus to executive officers.
Challenges in California Farmland Market
The California farmland market remains dislocated with issues such as water availability and overplanting, affecting asset values.
Flat to Slightly Down Lease Renewal Rates
Lease renewal rates were slightly down by 0.8% for 2024, reflecting a plateau in land values and rents.
Concerns Over USDA Funding Programs
Potential funding freezes in USDA programs could impact farmers, but Farmland Partners has limited exposure to these risks.
Company Guidance
During the Farmland Partners Q4 and fiscal year 2024 earnings call, several key metrics were highlighted as part of the company's guidance for 2025. The company expects Adjusted Funds from Operations (AFFO) per share to be between $0.25 and $0.30, surpassing the current dividend rate of $0.24 per share. The guidance reflects a focus on increasing rents, particularly from specialty crop farms, and reducing costs, which have been driving revenue and AFFO higher. The company has also successfully reduced its indebtedness by $158.5 million and engaged in stock buybacks, which have contributed to a significant reduction in interest expenses. Additionally, Farmland Partners reported a net income of $61.5 million for 2024, or $1.19 per share available to common stockholders, and an AFFO of $14.1 million, or $0.29 per weighted average share. The guidance suggests a continued focus on maintaining financial health and delivering value to shareholders in the coming year.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.