Farmer Brothers Company (FARM) AI Stock Analysis

• Market Cap: $31.97M
• Dividend Yield: N/A
• Average Volume (3M): 76.00K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.70
• Revenue Growth: -1.58%
• EPS Growth: -78.08%
• Country: US
• Employees: 1,003
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): -0.19
• Shares Outstanding: 21,602,013
• 10 Day Avg. Volume: 99,770
• 30 Day Avg. Volume: 75,999
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.67
• Price to Sales (P/S): 0.09
• P/FCF Ratio: 4.51
• Enterprise Value/Market Cap: 2.75
• Enterprise Value/Revenue: 0.26
• Enterprise Value/Gross Profit: 0.61
• Enterprise Value/Ebitda: 19.00
• 1Y Price Target: $2.50
• Price Target Upside: 68.92% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): -0.31
• Revenue Forecast (FY): $353.26M

• Rating: 41 Neutral
• Price Target: $1.50 ▲(1.35% Upside)

Farmer Brothers Company is currently facing significant financial and operational challenges. The most impactful factors are the weak financial performance and bearish technical indicators, which are compounded by a poor valuation. While there are some positive developments from the earnings call, they are not enough to offset the overall negative outlook.

Farmer Brothers Company Business Overview & Revenue Model

Company Description

Farmer Brothers Company (FARM) is a leading national coffee roaster and distributor based in the United States, specializing in providing high-quality coffee, tea, and culinary products to a diverse range of customers, including restaurants, hotels, and convenience stores. Established in 1912, the company operates in the foodservice sector, focusing on both coffee and tea distribution, alongside a variety of related products such as spices, creamers, and other food items. Farmer Brothers is committed to sustainability and sourcing premium ingredients, which strengthens its brand reputation in the competitive coffee industry.

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 wholesale coffee distribution, where they offer a wide range of coffee blends and brewing equipment, as well as tea and culinary products. The company also benefits from its strategic partnerships with various coffee growers and suppliers, ensuring a steady supply of high-quality beans. Additionally, Farmer Brothers has invested in technology and logistics to enhance its distribution efficiency, which contributes to cost savings and improved margins. The company’s focus on sustainability and quality also helps in building customer loyalty and repeat business, further driving its revenue growth.

Farmer Brothers Company Financial Statement Overview

Summary

Farmer Brothers Company is facing a challenging financial landscape with declining revenues and profitability issues. Despite some improvement in leverage, significant cash flow challenges persist. Strategic initiatives to enhance operational efficiency and cash flow management are crucial for future stability and growth.

Income Statement

Farmer Brothers Company shows a declining revenue trend with a negative revenue growth rate of -1.2% TTM. The gross profit margin is relatively healthy at 42.5% TTM, but the company struggles with profitability, as indicated by a negative net profit margin of -4.0% TTM and negative EBIT and EBITDA margins. The company needs to address its operational inefficiencies to improve its bottom line.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.91 TTM from previous periods, indicating a reduction in leverage. However, the return on equity remains negative at -33.4% TTM, reflecting ongoing challenges in generating returns for shareholders. The equity ratio is not provided, but the overall balance sheet shows a need for improved financial stability.

Cash Flow

Farmer Brothers Company faces significant challenges in cash flow management, with a drastic decline in free cash flow growth of -93.8% TTM. The operating cash flow to net income ratio is low at 0.12 TTM, indicating limited cash generation from operations. The company must focus on enhancing its cash flow efficiency to support its financial health.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	338.82M	342.28M	341.09M	339.96M	314.78M	261.91M
Gross Profit	144.03M	148.91M	133.89M	114.61M	133.81M	95.78M
EBITDA	4.62M	4.53M	15.56M	-3.03M	25.97M	21.24M
Net Income	-13.54M	-14.52M	-3.88M	-79.18M	-15.66M	-41.65M
Balance Sheet
Total Assets	158.78M	161.23M	185.21M	187.78M	350.07M	338.01M
Cash, Cash Equivalents and Short-Term Investments	3.82M	6.80M	5.83M	5.24M	9.82M	10.26M
Total Debt	54.85M	53.36M	59.41M	48.68M	136.01M	115.84M
Total Liabilities	118.78M	117.68M	139.66M	149.67M	245.32M	233.05M
Stockholders Equity	40.01M	43.55M	45.55M	38.11M	104.75M	104.96M
Cash Flow
Free Cash Flow	404.00K	6.51M	-27.99M	-21.90M	-26.62M	-16.60M
Operating Cash Flow	8.60M	16.10M	-14.15M	-6.88M	-11.45M	-1.49M
Investing Cash Flow	-4.52M	-5.90M	14.72M	88.44M	-6.04M	-10.70M
Financing Cash Flow	-5.22M	-9.23M	10.00K	-86.14M	17.05M	-37.39M

Farmer Brothers Company Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.48
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 1.48 is below the 20-day moving average (MA) of 1.69, below the 50-day MA of 1.78, and below the 200-day MA of 1.83, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 30.71 is Neutral, neither overbought nor oversold. The STOCH value of 20.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FARM.

Farmer Brothers Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SENEA	63 Neutral	$808.60M	13.72	9.41%	―	8.33%	47.71%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
JVA	57 Neutral	$22.83M	12.04	7.17%	―	17.92%	64.96%
LSF	46 Neutral	$47.88M	-43.01	-14.63%	―	17.73%	-34.71%
NAII	45 Neutral	$16.86M	-1.22	-17.98%	―	13.83%	-82.27%
FARM	41 Neutral	$31.97M	―	-33.46%	―	-1.58%	-78.08%

Farmer Brothers Company Corporate Events

Farmer Brothers Reports Q1 Fiscal 2026 Results

Farmer Brothers Coffee Co., a prominent player in the coffee roasting, wholesaling, and distribution sector, offers a diverse range of coffee, tea, and culinary products to various U.S.-based customers, from small restaurants to large institutional buyers.

Farmer Brothers’ Earnings Call: Mixed Sentiment Amid Challenges

Farmer Brothers’ recent earnings call revealed a mixed sentiment, highlighting significant operational and financial improvements alongside challenges such as decreased coffee volumes and rising costs. The company has made strides in efficiency and brand initiatives, but market headwinds pose potential risks to future financial outcomes.

Farmer Brothers Reports Fiscal 2025 Financial Results

Farmer Brothers Coffee Co., founded in 1912, is a national coffee roaster, wholesaler, and distributor specializing in coffee, tea, and culinary products, serving a diverse range of U.S.-based customers from small restaurants to large institutional buyers.

Farmer Brothers Amends Executive Severance Agreements

On August 12, 2025, Farmer Brothers Company amended its severance agreements with key executives, including the CEO, CFO, and General Counsel, to redefine ‘Good Reason’ and adjust severance terms during a change in control period. Additionally, the company established bonus agreements for these executives, contingent on closing a change in control transaction by January 1, 2026, with alternative compensation arrangements if the target is not met.

The most recent analyst rating on (FARM) stock is a Buy with a $6.00 price target. To see the full list of analyst forecasts on Farmer Brothers Company stock, see the FARM Stock Forecast page.