Farmland (FPI) AI Stock Analysis

• Market Cap: $418.91M
• Dividend Yield: 13.77%
• Average Volume (3M): 510.88K
• Price to Earnings (P/E): 8.1
• Beta (1Y): 0.47
• Revenue Growth: -9.27%
• EPS Growth: 333.85%
• Country: US
• Employees: 23
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Specialty
• EPS (TTM): 0.00
• Shares Outstanding: 43,097,553
• 10 Day Avg. Volume: 578,795
• 30 Day Avg. Volume: 510,882
• PEG Ratio: 0.08
• Price to Book (P/B): 1.16
• Price to Sales (P/S): 9.60
• P/FCF Ratio: 34.64
• Enterprise Value/Market Cap: 1.76
• Enterprise Value/Revenue: 13.91
• Enterprise Value/Gross Profit: 17.67
• Enterprise Value/Ebitda: 9.44
• 1Y Price Target: $14.00
• Price Target Upside: 35.79% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.35
• Revenue Forecast (FY): $33.38M

• Rating: 67 Neutral
• Price Target: $10.50 ▲(1.84% Upside)

The overall stock score of 67 reflects strong financial health and attractive valuation, offset by bearish technical indicators and concerns about future earnings sustainability. The company's robust cash flow and strategic initiatives provide a positive outlook, but the decline in revenue growth and potential AFFO moderation next year are key risks.

Positive Factors

Strong Profitability Margins

High profitability margins indicate efficient operations and strong pricing power, which can support long-term financial stability and growth.

Strategic Asset Management

Strategic asset exchanges and appreciation enhance asset value and shareholder returns, supporting long-term growth and financial health.

Improved Leverage Management

Improved leverage management reduces financial risk, providing greater flexibility for future investments and stability in economic downturns.

Negative Factors

Revenue Decline

A decline in revenue can hinder growth prospects and affect the company's ability to invest in new opportunities, impacting long-term performance.

Sustainability Concerns

Reliance on one-time events for financial performance raises concerns about the sustainability of earnings, affecting long-term investor confidence.

Increased Legal Expenses

Rising legal expenses can strain financial resources and distract management, potentially affecting operational efficiency and strategic focus.

Farmland Business Overview & Revenue Model

Company Description

Farmland Partners Inc. (FPI) is a publicly traded real estate investment trust (REIT) that specializes in the acquisition and management of high-quality farmland in the United States. The company focuses on investing in agricultural properties that generate income through leasing arrangements with farmers, enabling it to capitalize on the growing demand for food and agricultural products. Farmland's portfolio primarily includes row crops, permanent crops, and specialty crops, catering to various sectors within the agriculture industry.

How the Company Makes Money

Farmland Partners generates revenue primarily through leasing its farmland to farmers, who pay rent on a per-acre basis. This rental income is the company's main revenue stream and can come from both fixed-rate leases and variable-rate leases, which may depend on the crop yield or market prices. Additionally, Farmland may earn income from capital appreciation of its land holdings as farmland values rise over time. The company focuses on maintaining a diversified portfolio of agricultural properties across various states, minimizing risk and enhancing revenue stability. Strategic partnerships with agricultural producers and market participants also play a crucial role in optimizing land use and increasing profitability.

Farmland Financial Statement Overview

Summary

Farmland's financial health is robust with strong profitability margins but faces challenges in revenue growth. The balance sheet shows improved leverage risk, while cash flow remains steady without showing growth. Overall, the company is in a solid financial position but should focus on sustaining revenue and cash flow growth.

Income Statement

The TTM shows a gross profit margin of 76.9% and a net profit margin of 127.6%, indicating strong profitability. However, revenue decreased by 5.5% from 2024 to the TTM, which is a concern. The EBIT margin is 37.8%, reflecting good operational efficiency, while the EBITDA margin at 147.2% is exceptionally high due to a one-time gain, suggesting inflated profitability that may not be sustainable.

Balance Sheet

The debt-to-equity ratio has improved drastically to 0.001, indicating strong leverage management. The ROE stands at 14.8%, showing effective use of equity to generate profit. However, the equity ratio decreased to 61.0% in the TTM, reflecting potential risk if liabilities grow faster than assets.

Cash Flow

Free cash flow remains stable at $14.52 million with no growth, indicating consistent cash generation. The operating cash flow to net income ratio is 0.21, suggesting limited cash conversion from earnings. Nevertheless, free cash flow covers net income, showing adequate liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	52.94M	58.23M	57.47M	61.21M	51.74M	50.69M
Gross Profit	41.67M	46.92M	44.05M	47.05M	42.88M	39.95M
EBITDA	78.03M	85.88M	61.67M	35.29M	24.52M	30.31M
Net Income	68.87M	59.91M	30.91M	11.67M	9.99M	7.12M
Balance Sheet
Total Assets	738.55M	868.56M	1.02B	1.16B	1.12B	1.09B
Cash, Cash Equivalents and Short-Term Investments	13.47M	78.44M	5.49M	7.65M	30.17M	27.22M
Total Debt	541.00K	203.88M	361.26M	437.20M	511.43M	506.72M
Total Liabilities	180.15M	272.00M	391.19M	455.94M	528.94M	524.80M
Stockholders Equity	457.32M	481.91M	515.88M	580.79M	458.31M	429.84M
Cash Flow
Free Cash Flow	16.85M	16.14M	12.89M	12.80M	7.86M	19.73M
Operating Cash Flow	16.85M	16.14M	12.89M	17.05M	7.86M	19.73M
Investing Cash Flow	346.60M	268.75M	158.46M	-60.40M	-18.77M	18.67M
Financing Cash Flow	-358.06M	-211.94M	-173.51M	20.83M	13.87M	-23.74M

Farmland Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 10.31
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FPI, the sentiment is Negative. The current price of 10.31 is above the 20-day moving average (MA) of 9.71, above the 50-day MA of 10.16, and below the 200-day MA of 10.66, indicating a neutral trend. The MACD of -0.13 indicates Negative momentum. The RSI at 44.59 is Neutral, neither overbought nor oversold. The STOCH value of 86.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FPI.

Farmland Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RYN	70 Outperform	$3.33B	8.91	38.06%	12.66%	8.88%	131.78%
FPI	67 Neutral	$418.91M	8.12	14.30%	13.77%	-9.27%	333.85%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
PCH	64 Neutral	$3.02B	47.76	3.25%	4.61%	5.40%	294.38%
WY	59 Neutral	$15.95B	48.46	3.42%	3.80%	-1.64%	-37.58%

Farmland Corporate Events

Farmland Partners’ Earnings Call Highlights Strategic Gains

The recent earnings call of Farmland Partners Inc. painted a picture of robust financial performance for the current quarter, underscored by strategic sales and exchanges that have bolstered shareholder value. Despite the positive results, there are concerns about the sustainability of these achievements into the next year, alongside increased legal expenses, which introduce a note of caution.

Farmland Partners Reports Q3 2025 Earnings and Strategic Moves

Farmland Partners Inc. is a real estate investment trust (REIT) specializing in the acquisition and management of high-quality North American farmland, providing loans to farmers and landowners, and leasing agricultural equipment dealerships. The company is known for its extensive farmland holdings across 15 U.S. states and its strategic focus on farmland investments.