Farmland (FPI) AI Stock Analysis

• Market Cap: $471.23M
• Dividend Yield: 13.16%
• Average Volume (3M): 454.35K
• Price to Earnings (P/E): 8.7
• Beta (1Y): 0.53
• Revenue Growth: -2.90%
• EPS Growth: 282.07%
• Country: US
• Employees: 23
• Sector: Real Estate
• Sector Strength: 60
• Industry: REIT - Specialty
• EPS (TTM): 0.14
• Shares Outstanding: 44,164,368
• 10 Day Avg. Volume: 520,303
• 30 Day Avg. Volume: 454,352
• PEG Ratio: 0.36
• Price to Book (P/B): 1.01
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 33.40
• Enterprise Value/Market Cap: 0.93
• Enterprise Value/Revenue: 7.25
• Enterprise Value/Gross Profit: 44.61
• Enterprise Value/Ebitda: 13.81
• 1Y Price Target: $13.00
• Price Target Upside: 23.11% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 65 Neutral
• Price Target: $11.50 ▲(8.90%Upside)

FPI's strong valuation due to low P/E ratio and high dividend yield is a significant strength. However, technical analysis reveals bearish momentum, and financial performance, although solid, faces challenges in revenue growth. The recent earnings call highlighted strategic moves but also noted risks related to regulatory challenges. The corporate governance issue adds a slight negative element.

Farmland Business Overview & Revenue Model

Company Description

Farmland Partners Inc. is an internally managed real estate company that owns and seeks to acquire high-quality North American farmland and makes loans to farmers secured by farm real estate. As of the date of this release, the Company owns approximately 155,000 acres in 16 states, including Alabama, Arkansas, California, Colorado, Florida, Georgia, Illinois, Kansas, Louisiana, Michigan, Mississippi, Nebraska, North Carolina, South Carolina, South Dakota and Virginia. We have approximately 26 crop types and over 100 tenants. The Company elected to be taxed as a real estate investment trust, or REIT, for U.S. federal income tax purposes, commencing with the taxable year ended December 31, 2014.

How the Company Makes Money

Farmland Partners Inc. generates revenue primarily through leasing its farmland properties to farmers and agricultural operators. The company enters into long-term lease agreements, collecting rent payments from tenants who utilize the land for crop production. This rental income is the main revenue stream for FPI. Additionally, FPI may engage in strategic acquisitions and sales of farmland properties, aiming to capitalize on appreciation in land value. The company also benefits from economies of scale and operational efficiencies due to its extensive and diverse farmland portfolio. Partnerships with agricultural operators and other stakeholders in the sector further bolster its revenue-generating capacity.

Farmland Financial Statement Overview

Summary

Farmland's financials reflect a company with strong operational profitability and reasonable leverage. While there are challenges in maintaining consistent revenue growth, the company efficiently manages its cash flows and maintains a healthy balance sheet.

Income Statement

The income statement shows a mixed performance. While there is a significant improvement in net income and profitability metrics like the net profit margin and gross profit margin have improved, the revenue has shown volatility with a recent decline. The EBIT and EBITDA margins are healthy, indicating strong operational efficiency.

Balance Sheet

The balance sheet reflects moderate financial health. The debt-to-equity ratio is reasonable but shows a reliance on debt financing. However, the equity ratio is solid, suggesting that the company is well-capitalized. Return on Equity is robust, indicating effective use of shareholder funds.

Cash Flow

Cash flow analysis indicates stable cash generation capabilities. Free cash flow growth is positive, although operating cash flow fluctuated. The company maintains a healthy operating cash flow to net income ratio, suggesting good cash conversion efficiency.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	58.23M	57.47M	61.21M	51.74M	50.69M
Gross Profit	46.92M	44.05M	47.05M	42.88M	39.95M
EBITDA	85.88M	31.36M	31.93M	24.52M	30.31M
Net Income	59.91M	30.91M	11.67M	9.99M	7.12M
Balance Sheet
Total Assets	868.56M	1.02B	1.16B	1.12B	1.09B
Cash, Cash Equivalents and Short-Term Investments	78.44M	5.49M	7.65M	30.17M	27.22M
Total Debt	203.88M	361.26M	437.20M	511.43M	506.72M
Total Liabilities	272.00M	391.19M	455.94M	528.94M	645.31M
Stockholders Equity	481.91M	515.88M	580.79M	458.31M	429.84M
Cash Flow
Free Cash Flow	16.14M	12.89M	12.80M	5.14M	17.07M
Operating Cash Flow	16.14M	12.89M	17.05M	7.86M	19.73M
Investing Cash Flow	268.75M	158.46M	-60.40M	-18.77M	18.67M
Financing Cash Flow	-211.94M	-173.51M	20.83M	13.87M	-23.74M

Farmland Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 10.56
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 10.56 is below the 20-day moving average (MA) of 11.17, below the 50-day MA of 11.21, and below the 200-day MA of 10.95, indicating a bearish trend. The MACD of -0.14 indicates Positive momentum. The RSI at 34.49 is Neutral, neither overbought nor oversold. The STOCH value of 13.03 is Positive, 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	74 Outperform	$3.69B	10.19	18.78%	12.37%	12.61%	111.99%
PCH	69 Neutral	$3.27B	79.53	2.07%	4.26%	-1.15%	14.51%
FPI	65 Neutral	$471.23M	8.74	14.30%	13.16%	-2.90%	282.07%
Sector *	63 Neutral	$6.86B	17.00	-2.14%	7.13%	4.56%	-27.45%
WY	62 Neutral	$18.72B	67.52	2.85%	3.27%	-6.57%	-62.32%

Farmland Corporate Events

Farmland Faces Shareholder Rejection on Executive Pay

At the Annual Meeting of Stockholders on May 6, 2025, Farmland Partners Inc. presented four proposals for consideration. The proposals included the election of six director nominees, ratification of Crowe LLP as the accounting firm, an advisory vote on executive compensation, and an amendment to the equity incentive plan. Notably, the proposal on executive compensation did not pass, prompting the company to engage further with stockholders to align management incentives with shareholder interests.