The price/operating cash flow metric for Farmer Brothers Co is higher than 92.41% of stocks in our set with a positive cash flow.
With a price/sales ratio of 0.14, Farmer Brothers Co has a higher such ratio than just 4.05% of stocks in our set.
Farmer Brothers Co's shareholder yield -- a measure of how much capital is returned to stockholders via dividends and buybacks -- is -42.02%, greater than the shareholder yield of just 9.84% of stocks in our set.
Stocks that are quantitatively similar to FARM, based on their financial statements, market capitalization, and price volatility, are FSTR, RUSHA, KNL, MOD, and GES.
Farmer Bros. Company manufactures, wholesales, and distributes coffee, tea, and culinary products in the United States. The company was founded in 1912 and is based in Torrance, California.
FARM Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Farmer Brothers Co with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Farmer Brothers Co ranked in the 52th 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 FARM, they are:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 33. Its equity weight surpasses that of only 6.72% of free cash flow generating stocks in the Consumer Defensive sector.
Farmer Brothers Co's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -2.56. This coverage rate is greater than that of just 15.38% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
VLGEA, GIS, DL, UN, and KDP can be thought of as valuation peers to FARM, in the sense that they are in the Consumer Defensive sector and have a similar price forecast based on DCF valuation.
Farmer Bros. (FARM) trades lower in early action after the company misses estimates with both lines of its FQ4 report. The volume of green coffee processed and sold decreased 28% Y/Y to 19.7M pounds during the quarter, due in part to the impact of the pandemic. Gross margin plunged to...
Farmer Bros. Co. (FARM) Q4 2020 Earnings Conference Call September 10, 2020, 05:00 PM ET Company Participants Rachel Goldman - Senior Account Executive, Joele Frank, IR Deverl Maserang - President and CEO Scott Drake - CFO Conference Call Participants Kara Anderson - B. Riley FBR Presentation Operator Good afternoon, ladies...
SA Transcripts on Seeking Alpha | September 11, 2020
Insider Monkey has processed numerous 13F filings of hedge funds and successful value investors to create an extensive database of hedge fund holdings. The 13F filings show the hedge funds' and successful investors' positions as of the end of the first quarter. You can find articles about an individual hedge fund's trades on numerous financial […]
Mr. Moragne brings over thirty years of experience in the consumer goods industry with deep knowledge of the food & beverage category and valuable expertise working in the Direct Store Delivery (DSD), Retail, and Omni Distribution Models. Farmer Brothers believes his knowledge of value added functional beverage ingredients, partnerships within the industry and a proven track record of innovation in the US foods and beverage market will reinforce and position Farmer Brothers as a leader in beverage innovation. Prior to that, Mr. Moragne served as General Manager of the Chiquita Fruit Solutions business division of Chiquita Brands International, Inc., where he oversaw Sales, Marketing and Customer Service among other key operating functions.