Alico, Inc. operates as an agribusiness and land management company in the United States. The company operates in five segments: Citrus Groves, Improved Farmland, Ranch and Conservation, Agricultural Supply Chain Management and Support, and Other Operations. The company was founded in 1960 and is based in Fort Myers, Florida.
ALCO Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Alico Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Alico Inc ranked in the 79th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. In terms of the factors that were most noteworthy in this DCF analysis for ALCO, they are:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 52. Its equity weight surpasses that of just 23.11% of free cash flow generating stocks in the Consumer Defensive sector.
Alico Inc's weighted average cost of capital (WACC) is 6%; for context, that number is higher than just 4.81% of tickers in our DCF set.
Alico Inc's effective tax rate, as measured by taxes paid relative to net income, is at 19 -- greater than 75.18% of US stocks with positive free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
BTI, SPTN, BRFS, SANW, and NATR can be thought of as valuation peers to ALCO, in the sense that they are in the Consumer Defensive sector and have a similar price forecast based on DCF valuation.
Alico, Inc. ("Alico" or the "Company") (Nasdaq: ALCO) announces today that the State of Florida approved entering into an option agreement submitted by Alico which grants the State an option to purchase approximately 10,684 acres of Alico Ranch for approximately $28.5 million under the Florida Forever program.
Alico, Inc. (“Alico” or the “Company”) (ALCO) today announces it has entered into two new agreements with its largest customer to supply citrus fruit. Alico is proud of the successful business relationship we have been able to develop with this customer in recent years and we are both committed to meeting the challenges facing the Florida citrus industry with near-term patience and long-term focus.