Farmer Brothers Company (FARM)
NASDAQ:FARM
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Farmer Brothers Company
(NASDAQ:FARM)
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Rating:44Neutral
Price Target:
$1.50
▲(21.95% Upside)
Action:ReiteratedDate:03/05/26
The score is primarily held down by weak financial performance (sharp TTM revenue decline, ongoing operating losses, and high leverage) and a technically weak price trend (below key moving averages with negative MACD). Valuation is also limited by negative earnings, while the announced acquisition provides a meaningful offsetting positive factor.
Positive Factors
Strategic acquisition
The definitive agreement to be acquired by Royal Cup creates scale, broader manufacturing and distribution, and committed financing. This structural consolidation can deliver lasting cost synergies, expanded DSD reach and greater national account competitiveness versus remaining a small standalone roaster.
Negative Factors
Revenue decline
A 32.4% TTM revenue decline reflects significant demand or share loss in core commercial channels. Persistent top-line erosion undermines fixed-cost leverage, constrains margin expansion, and makes sustained recovery dependent on regaining customers or cross-selling after the merger.
Read all positive and negative factors
Positive Factors
Negative Factors
Strategic acquisition
The definitive agreement to be acquired by Royal Cup creates scale, broader manufacturing and distribution, and committed financing. This structural consolidation can deliver lasting cost synergies, expanded DSD reach and greater national account competitiveness versus remaining a small standalone roaster.
Read all positive factors
Farmer Brothers Company (FARM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$27.38M
Dividend YieldN/A
Average Volume (3M)74.51K
Price to Earnings (P/E)―
Beta (1Y)0.71
Revenue Growth-1.58%
EPS Growth-78.08%
CountryUS
Employees1,003
SectorConsumer Defensive
Sector Strength42
IndustryPackaged Foods
Share Statistics
EPS (TTM)-0.22
Shares Outstanding21,727,158
10 Day Avg. Volume116,844
30 Day Avg. Volume74,512
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)0.67
Price to Sales (P/S)0.09
P/FCF Ratio4.51
Enterprise Value/Market Cap3.58
Enterprise Value/Revenue0.29
Enterprise Value/Gross Profit0.71
Enterprise Value/Ebitda-89.34
Forecast
1Y Price Target
$1.50Price Target Upside21.95% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)-0.79
Revenue Forecast (FY)$337.32M
Farmer Brothers Company Business Overview & Revenue Model
Company Description
Farmer Bros. Co. engages in the roasting, wholesale, equipment servicing, and distribution of coffee, tea, and culinary products in the United States. The company offers roast and ground coffee; frozen liquid coffee; flavoured and unflavoured iced...
How the Company Makes Money
Farmer Brothers Company generates revenue primarily through the sale of coffee and related products. The company operates a direct sales model, supplying products to foodservice businesses across the United States. Key revenue streams include whol...
Farmer Brothers Company Earnings Call Summary
Earnings Call Date:Sep 11, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Neutral
Farmer Brothers demonstrated significant operational and financial improvements with increased efficiency and successful brand initiatives. However, the company faces considerable challenges due to decreased coffee volumes, rising costs, and market headwinds that may impact future financial results.Positive Updates
Gross Margin Improvement
Gross margins ended the year above 43%, representing a more than $14 million year-over-year improvement in adjusted EBITDA and a 420 basis point increase compared to the prior year.
Negative Updates
Decrease in Coffee Volume
Total coffee volumes decreased by 10% year-over-year, influenced by a weak food service sector and a significant rise in green coffee prices.
Read all updates
Q4-2025 Updates
Positive
Negative
Gross Margin Improvement
Gross margins ended the year above 43%, representing a more than $14 million year-over-year improvement in adjusted EBITDA and a 420 basis point increase compared to the prior year.
Read all positive updates
Company Guidance
In the Farmer Brothers Fiscal Fourth Quarter and Year-End 2025 earnings call, the company reported significant financial improvements, including a year-over-year increase in adjusted EBITDA of over $14 million and gross margins exceeding 43%. A strategic focus on operational efficiency led to a reduction in SG&A expenses and significant debt repayment. Despite facing a challenging macroeconomic environment, including a 65% rise in green coffee prices and a 50% tariff on Brazilian imports, the company successfully launched its Sum>One specialty brand and completed its SKU rationalization initiative. Farmer Brothers also improved its technology platforms, enhancing supply chain optimization and customer analytics. With new leadership appointments and a focus on driving top-line revenue, the company aims to leverage its distribution network and improve customer retention while navigating anticipated financial pressures in fiscal 2026.Farmer Brothers Company Financial Statement Overview
Summary
Income Statement
32
Negative
Balance Sheet
35
Negative
Cash Flow
40
Negative
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 337.72M | 342.28M | 341.09M | 339.96M | 314.78M | 261.91M |
| Gross Profit | 137.46M | 148.91M | 133.89M | 114.61M | 133.81M | 95.78M |
| EBITDA | -1.10M | 4.53M | 15.56M | -3.03M | 25.97M | 21.24M |
| Net Income | -18.61M | -14.52M | -3.88M | -79.18M | -15.66M | -41.65M |
Balance Sheet | ||||||
| Total Assets | 151.45M | 161.23M | 185.21M | 187.78M | 350.07M | 338.01M |
| Cash, Cash Equivalents and Short-Term Investments | 4.36M | 6.80M | 5.83M | 5.24M | 9.82M | 10.26M |
| Total Debt | 75.08M | 53.36M | 59.41M | 48.68M | 136.01M | 115.84M |
| Total Liabilities | 115.79M | 117.68M | 139.66M | 149.67M | 245.32M | 233.05M |
| Stockholders Equity | 35.66M | 43.55M | 45.55M | 38.11M | 104.75M | 104.96M |
Cash Flow | ||||||
| Free Cash Flow | -2.73M | 6.51M | -27.99M | -21.90M | -26.62M | -16.60M |
| Operating Cash Flow | 5.25M | 16.10M | -14.15M | -6.88M | -11.45M | -1.49M |
| Investing Cash Flow | -4.42M | -5.90M | 14.72M | 88.44M | -6.04M | -10.70M |
| Financing Cash Flow | -2.20M | -9.23M | 10.00K | -86.14M | 17.05M | -37.39M |
Farmer Brothers Company Technical Analysis
Negative
1.23
Price Trends
1.47
Negative
1.51
Negative
1.60
Negative
Market Momentum
-0.07
Negative
29.82
Positive
66.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FARM, the sentiment is Negative. The current price of 1.23 is below the 20-day moving average (MA) of 1.30, below the 50-day MA of 1.47, and below the 200-day MA of 1.60, indicating a bearish trend. The MACD of -0.07 indicates Negative momentum. The RSI at 29.82 is Positive, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FARM.
Farmer Brothers Company Risk Analysis
Farmer Brothers Company disclosed 38 risk factors in its most recent earnings report. Farmer Brothers Company reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Farmer Brothers Company Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $991.14M | 4.20 | 13.51% | ― | 8.33% | 47.71% | |
70 Outperform | $25.80M | 2.76 | 6.84% | ― | 17.92% | 64.96% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
52 Neutral | $23.98M | -15.26 | -14.36% | ― | 17.73% | -34.71% | |
46 Neutral | $17.11M | -2.11 | -17.43% | ― | 18.19% | -35.22% | |
44 Neutral | $27.38M | -1.63 | -48.26% | ― | -1.58% | -78.08% |
* Consumer Defensive Sector Average
FARM
Farmer Brothers Company
1.26
-1.17
-48.15%
BRID
Bridgford Foods
7.90
-0.61
-7.17%
JVA
Coffee Holding Co
4.52
1.13
33.37%
NAII
Natural Alternatives International
2.77
-0.68
-19.71%
SENEA
Seneca Foods
146.50
57.27
64.18%
LSF
Laird Superfood
2.24
-4.76
-68.00%
Farmer Brothers Company Corporate Events
Business Operations and StrategyDelistings and Listing ChangesM&A TransactionsPrivate Placements and Financing
Farmer Brothers to Be Acquired by Royal Cup
Positive
Mar 4, 2026
On March 3, 2026, Farmer Brothers Coffee Co. agreed to be acquired by Royal Cup, Inc. through a merger that will take the publicly traded roaster and distributor private, with each outstanding share converted into $1.29 in cash and all equity awar...
Executive/Board Changes
Farmer Brothers Updates Executive Bonus and Incentive Structure
Neutral
Feb 20, 2026
On February 16, 2026, Farmer Bros. Co. amended previously disclosed bonus opportunity agreements with its president and chief executive officer, chief financial officer, and vice president, general counsel, chief compliance officer, and secretary....
Executive/Board Changes
Farmer Brothers Amends Executive Bonus Agreements
Neutral
Dec 11, 2025
On December 8, 2025, Farmer Bros. Co. amended its Bonus Opportunities Letter Agreements with key executives, including the CEO, CFO, and Vice President, to adjust the timing of bonuses and performance-based stock units. This change allows the exec...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.