The capital turnover (annual revenue relative to shareholder's equity) for FPI is 0.2 -- better than merely 17.01% of US stocks.
FPI's one year PEG ratio, measuring expected growth in earnings next year relative to current common stock price is 1,490.65 -- higher than 97.38% of US-listed equities with positive expected earnings growth.
For FPI, its debt to operating expenses ratio is greater than that reported by 97.67% of US equities we're observing.
Stocks that are quantitatively similar to FPI, based on their financial statements, market capitalization, and price volatility, are ATAX, NXRT, LAND, HIW, and STWD.
Farmland Partners owns and operates farmland located in agricultural markets throughout North America. The company was founded in 2013 and is based in Westminster, Colorado.
FPI Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for FPI, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Farmland Partners Inc ranked in the 77th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 277.5%. In terms of the factors that were most noteworthy in this DCF analysis for FPI, they are:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 38. Notably, its equity weight is greater than only 23.17% of US equities in the Real Estate sector yielding a positive free cash flow.
Farmland Partners Inc's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than only 0% of US stocks with positive free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
SAFE, HIW, DEI, MPW, and JLL can be thought of as valuation peers to FPI, in the sense that they are in the Real Estate sector and have a similar price forecast based on DCF valuation.
The sell thesis I'm intentionally using the word sell and not short here because Gladstone Land (LAND) is a great company with strong assets. It has performed quite well for shareholders over the past five years and the presently strong market pricing is providing a great opportunity to recycle that...
Farmland Partners Inc. (NYSE: FPI) (the "Company" or "FPI") announced today that its previously disclosed negotiations relating to an opportunity zone fund have resulted in the signing of a property sale and long-term management agreements with Promised Land Opportunity Zone Farms I, LLC ("OZ Fund"), a private investment fund focused on acquiring and improving farmland in qualified opportunity zones in the United States ("QOZs"), as designated under U.S. tax provisions enacted in 2017. FPI will serve in a property management capacity for the OZ Fund and will have the ability to acquire equity interests in the OZ Fund. The Company will also have a right of first offer to purchase properties owned by the OZ Fund.