Farmer Bros Valuation
| FARM Stock | USD 2.19 0.03 1.39% |
Based on Macroaxis valuation methodology, the firm appears to be undervalued. Farmer Bros shows a prevailing Real Value of $2.88 per share. The current price of the firm is $2.19. Our model computes the value of Farmer Bros from reviewing the firm fundamentals such as Shares Outstanding of 21.35 M, profit margin of (0.03) %, and Current Valuation of 101.5 M as well as analyzing its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Farmer Bros' valuation include:
Price Book 1.1117 | Enterprise Value | Enterprise Value Ebitda 11.2758 | Price Sales 0.1412 | Enterprise Value Revenue 0.2944 |
Undervalued
Today
Please note that Farmer Bros' price fluctuation is very risky at this time. Calculation of the real value of Farmer Bros is based on 3 months time horizon. Increasing Farmer Bros' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Farmer stock is determined by what a typical buyer is willing to pay for full or partial control of Farmer Bros Co. Since Farmer Bros is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Farmer Stock. However, Farmer Bros' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 2.19 | Real 2.88 | Target 5.25 | Hype 2.18 | Naive 1.8 |
The intrinsic value of Farmer Bros' stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Farmer Bros' stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Farmer Bros Co helps investors to forecast how Farmer stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Farmer Bros more accurately as focusing exclusively on Farmer Bros' fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Farmer Bros' intrinsic value based on its ongoing forecasts of Farmer Bros' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Farmer Bros' closest peers.
Farmer Bros Cash |
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Farmer Valuation Trend
Knowing Farmer Bros' actual value is paramount for traders when making sound investment determinations. Using both Farmer Bros' enterprise value as well as its market capitalization is the best way to estimate the value of the company and is usually enough for investors to make market timing decisions.
Farmer Revenue by Product
Farmer Bros Total Value Analysis
Farmer Bros Co is currently projected to have valuation of 101.5 M with market capitalization of 48.69 M, debt of 59.41 M, and cash on hands of 10.14 M. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the Farmer Bros fundamentals before making equity appraisal based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
101.5 M | 48.69 M | 59.41 M | 10.14 M |
Farmer Bros Investor Information
About 24.0% of the company shares are held by company insiders. The company has price-to-book (P/B) ratio of 1.11. 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 0.49. The firm last dividend was issued on the 26th of January 2011. Farmer Bros had 10:1 split on the 11th of May 2004. Based on the key indicators related to Farmer Bros' liquidity, profitability, solvency, and operating efficiency, Farmer Bros Co is not in a good financial situation at this time. It has a very high probability of going through financial hardship in April.Farmer Bros Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Farmer Bros has an asset utilization ratio of 184.16 percent. This suggests that the Company is making $1.84 for each dollar of assets. An increasing asset utilization means that Farmer Bros Co is more efficient with each dollar of assets it utilizes for everyday operations.Farmer Bros Ownership Allocation
Farmer Bros holds a total of 21.35 Million outstanding shares. Farmer Bros Co retains significant amount of outstanding shares owned by insiders. An insider is usually defined as a CEO, other corporate executive, director, or institutional investor who own at least 10% of the company's outstanding shares. Please note that no matter how many assets the company secures, if the real value of the firm is less than the current market value, you may not be able to make money on it.Farmer Bros Profitability Analysis
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 143.15 M.About Farmer Bros Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Farmer Bros Co. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Farmer Bros based exclusively on its fundamental and basic technical indicators. By analyzing Farmer Bros's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Farmer Bros's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Farmer Bros. We calculate exposure to Farmer Bros's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Farmer Bros's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 154 M | 151 M | |
| Pretax Profit Margin | (0.01) | (0.01) | |
| Operating Profit Margin | (0.01) | (0.01) | |
| Net Loss | (0.01) | (0.01) | |
| Gross Profit Margin | 0.45 | 0.52 |
Farmer Bros Growth Indicators
Investing in growth stocks can be very risky. If the company such as Farmer Bros does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 20.9 M | |
| Quarterly Earnings Growth Y O Y | -0.924 |
Farmer Bros Current Valuation Indicators
Farmer Bros' valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Farmer Bros' valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Farmer Bros, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Farmer Bros' valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Farmer Bros' worth.When determining whether Farmer Bros is a strong investment it is important to analyze Farmer Bros' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Farmer Bros' future performance. For an informed investment choice regarding Farmer Stock, refer to the following important reports: 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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.
Quarterly Earnings Growth (0.92) | Earnings Share (0.49) | Revenue Per Share | Quarterly Revenue Growth 0.006 | Return On Assets |
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.
Please note, there is a significant difference between Farmer Bros' value and its price as these two are different measures arrived at by different 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.