Is Farmer Bros Stock a Good Investment?
Farmer Bros Investment Advice | FARM |
- Examine Farmer Bros' financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Farmer Bros' leadership team and their track record. Good management can help Farmer Bros navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Packaged Foods & Meats space and any emerging trends that could impact Farmer Bros' business and its evolving consumer preferences.
- Compare Farmer Bros' performance and market position to its competitors. Analyze how Farmer Bros is positioned in terms of product offerings, innovation, and market share.
- Check if Farmer Bros pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Farmer Bros' stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Farmer Bros Co stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Farmer Bros Co is a good investment.
Sell | Buy |
Hold
Market Performance | Very Weak | Details | |
Volatility | Risky | Details | |
Hype Condition | Over hyped | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Below Average | Details | |
Economic Sensitivity | Slowly supersedes the market | Details | |
Investor Sentiment | Interested | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Frail | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Farmer Bros Stock
Researching Farmer Bros' stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 18.0% of the company shares are held by company insiders. The company has price-to-book (P/B) ratio of 0.88. Some equities with similar Price to Book (P/B) outperform the market in the long run. Farmer Bros has Price/Earnings To Growth (PEG) ratio of 1.63. The entity recorded a loss per share of 0.37. The firm last dividend was issued on the 26th of January 2011. Farmer Bros had 10:1 split on the 11th of May 2004.
To determine if Farmer Bros is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Farmer Bros' research are outlined below:
| Farmer Bros generated a negative expected return over the last 90 days | |
| Farmer Bros may become a speculative penny stock | |
| Farmer Bros has high historical volatility and very poor performance | |
| The company reported the previous year's revenue of 341.09 M. Net Loss for the year was (3.88 M) with profit before overhead, payroll, taxes, and interest of 140.42 M. | |
| Farmer Bros Co currently holds about 10.14 M in cash with (14.15 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.54. | |
| Farmer Bros has a frail financial position based on the latest SEC disclosures | |
| Roughly 18.0% of the company shares are held by company insiders | |
| Latest headline from gurufocus.com: Toll Brothers Inc Announces Final Home Sales at Twin Oaks - Grove Collection |
Farmer Bros Quarterly Cash And Short Term Investments |
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Farmer Bros uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Farmer Bros Co. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Farmer Bros' previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 14th of February 2024 Upcoming Quarterly Report | View | |
| 8th of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 10th of September 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 30th of June 2023 Last Financial Announcement | View |
Earnings surprises can significantly impact Farmer Bros' stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Farmer Bros' investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2019-02-11 | 2018-12-31 | 0.02 | 0.04 | 0.02 | 100 | ||
2017-11-07 | 2017-09-30 | 0.05 | 0.03 | -0.02 | 40 | ||
2013-11-07 | 2013-09-30 | 0.14 | 0.11 | -0.03 | 21 | ||
2022-02-03 | 2021-12-31 | -0.27 | -0.31 | -0.04 | 14 | ||
2017-09-28 | 2017-06-30 | 0.15 | 0.19 | 0.04 | 26 | ||
2017-05-09 | 2017-03-31 | 0.21 | 0.17 | -0.04 | 19 | ||
2015-05-07 | 2015-03-31 | 0.1 | 0.06 | -0.04 | 40 | ||
2024-09-12 | 2024-06-30 | -0.27 | -0.22 | 0.05 | 18 |
Know Farmer Bros' Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Farmer Bros is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Farmer Bros Co backward and forwards among themselves. Farmer Bros' institutional investor refers to the entity that pools money to purchase Farmer Bros' securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Tocqueville Asset Management L.p. | 2024-09-30 | 203 K | Adage Capital Partners Gp Llc | 2024-09-30 | 171.2 K | Smh Capital Inc. | 2024-09-30 | 154.3 K | State Street Corp | 2024-09-30 | 91.8 K | Bridgeway Capital Management, Llc | 2024-09-30 | 75 K | Advisory Services Network, Llc | 2024-09-30 | 74.3 K | Hodges Capital Management Inc | 2024-09-30 | 58.6 K | Northern Trust Corp | 2024-09-30 | 52.8 K | Ridgewood Investments Llc | 2024-09-30 | 42.5 K | 22nw, Lp | 2024-09-30 | 2 M | Penn Capital Management Company Llc | 2024-09-30 | 1 M |
Farmer Bros' market capitalization trends
The company currently falls under 'Micro-Cap' category with a current market capitalization of 36.08 M.Market Cap |
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Farmer Bros' profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | (0.03) | (0.02) | |
| Return On Capital Employed | (0.02) | (0.02) | |
| Return On Assets | (0.02) | (0.02) | |
| Return On Equity | (0.10) | (0.10) |
Determining Farmer Bros' profitability involves analyzing its financial statements and using various financial metrics to determine if Farmer Bros is a good buy. For example, gross profit margin measures Farmer Bros' profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Farmer Bros' profitability and make more informed investment decisions.
Evaluate Farmer Bros' management efficiency
Farmer Bros has return on total asset (ROA) of (0.049) % which means that it has lost $0.049 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of (0.1923) %, meaning that it created substantial loss on money invested by shareholders. Farmer Bros' management efficiency ratios could be used to measure how well Farmer Bros manages its routine affairs as well as how well it operates its assets and liabilities. As of the 18th of January 2025, Return On Tangible Assets is likely to grow to -0.02. In addition to that, Return On Capital Employed is likely to grow to -0.02. At this time, Farmer Bros' Total Assets are very stable compared to the past year. As of the 18th of January 2025, Non Current Assets Total is likely to grow to about 128.7 M, while Other Current Assets are likely to drop about 4.1 M.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 2.51 | 2.38 | |
| Tangible Book Value Per Share | 1.89 | 1.80 | |
| Enterprise Value Over EBITDA | 7.82 | 8.21 | |
| Price Book Value Ratio | 1.03 | 1.26 | |
| Enterprise Value Multiple | 7.82 | 8.21 | |
| Price Fair Value | 1.03 | 1.26 | |
| Enterprise Value | 88 M | 83.6 M |
The strategic initiatives led by Farmer Bros' management are central to its market success. By analyzing these initiatives, we provide a clear picture of the stock's growth prospects.
Beta 1.779 |
Basic technical analysis of Farmer Stock
As of the 18th of January 2025, Farmer Bros shows the Mean Deviation of 2.16, variance of 11.16, and Standard Deviation of 3.34. Farmer Bros technical analysis allows you to utilize historical prices and volume patterns in order to determine a pattern that computes the direction of the firm's future prices. Please confirm Farmer Bros market risk adjusted performance, information ratio, as well as the relationship between the Information Ratio and skewness to decide if Farmer Bros is priced favorably, providing market reflects its regular price of 1.69 per share. Please also check Farmer Bros Co jensen alpha, which is currently at (0.17) to verify the company can sustain itself at a future point.Farmer Bros' insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Farmer Bros insiders, such as employees or executives, is commonly permitted as long as it does not rely on Farmer Bros' material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Farmer Bros insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Matthew Coffman over six months ago Acquisition by Matthew Coffman of 40000 shares of Farmer Bros subject to Rule 16b-3 | ||
Scott Drake over six months ago Acquisition by Scott Drake of 21021 shares of Farmer Bros subject to Rule 16b-3 | ||
Jared Vitemb over a year ago Acquisition by Jared Vitemb of 45000 shares of Farmer Bros subject to Rule 16b-3 | ||
Jared Vitemb over a year ago Payment of 1426 shares by Jared Vitemb of Farmer Bros subject to Rule 16b-3 | ||
Zaman Waheed over a year ago Acquisition by Zaman Waheed of 23023 shares of Farmer Bros subject to Rule 16b-3 |
Farmer Bros' Outstanding Corporate Bonds
Farmer Bros issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Farmer Bros uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Farmer bonds can be classified according to their maturity, which is the date when Farmer Bros Co has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
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Understand Farmer Bros' technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Farmer Bros' various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | (0.03) | |||
| Market Risk Adjusted Performance | (0.34) | |||
| Mean Deviation | 2.16 | |||
| Coefficient Of Variation | (2,262) | |||
| Standard Deviation | 3.34 | |||
| Variance | 11.16 | |||
| Information Ratio | (0.05) | |||
| Jensen Alpha | (0.17) | |||
| Total Risk Alpha | (0.24) | |||
| Treynor Ratio | (0.35) | |||
| Maximum Drawdown | 25.44 | |||
| Value At Risk | (4.64) | |||
| Potential Upside | 4.71 | |||
| Skewness | 1.66 | |||
| Kurtosis | 8.77 |
| Risk Adjusted Performance | (0.03) | |||
| Market Risk Adjusted Performance | (0.34) | |||
| Mean Deviation | 2.16 | |||
| Coefficient Of Variation | (2,262) | |||
| Standard Deviation | 3.34 | |||
| Variance | 11.16 | |||
| Information Ratio | (0.05) | |||
| Jensen Alpha | (0.17) | |||
| Total Risk Alpha | (0.24) | |||
| Treynor Ratio | (0.35) | |||
| Maximum Drawdown | 25.44 | |||
| Value At Risk | (4.64) | |||
| Potential Upside | 4.71 | |||
| Skewness | 1.66 | |||
| Kurtosis | 8.77 |
Consider Farmer Bros' intraday indicators
Farmer Bros intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Farmer Bros stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Farmer Bros time-series forecasting models is one of many Farmer Bros' stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Farmer Bros' historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.
Farmer Stock media impact
Far too much social signal, news, headlines, and media speculation about Farmer Bros that are available to investors today. That information is available publicly through Farmer media outlets and privately through word of mouth or via Farmer internal channels. However, regardless of the origin, that massive amount of Farmer data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Farmer Bros news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Farmer Bros relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Farmer Bros' headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Farmer Bros alpha.
Farmer Bros Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Farmer Bros can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Farmer Bros Corporate Management
| Jared Vitemb | General VP | Profile | |
| Matthew Coffman | Principal VP | Profile | |
| Deverl II | CEO Pres | Profile | |
| Brad Bollner | Interim Officer | Profile | |
| Vance Fisher | Chief Officer | Profile | |
| Jerry Walsh | Sr DSD | Profile | |
| Scott Drake | Chief Officer | Profile |
Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Farmer Bros Co. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in metropolitan statistical area. You can also try the Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Is Packaged Foods & Meats space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Farmer Bros. If investors know Farmer will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Farmer Bros listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (0.37) | Revenue Per Share | Quarterly Revenue Growth 0.039 | Return On Assets | Return On Equity |
The market value of Farmer Bros is measured differently than its book value, which is the value of Farmer that is recorded on the company's balance sheet. Investors also form their own opinion of Farmer Bros' value that differs from its market value or its book value, called intrinsic value, which is Farmer Bros' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Farmer Bros' market value can be influenced by many factors that don't directly affect Farmer Bros' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Farmer Bros' value and its price, as these two are different measures arrived at by various means. Investors typically determine if Farmer Bros is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Farmer Bros' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.