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Farmland (FPI)
NYSE:FPI
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Farmland
(NYSE:FPI)
Rating:70Outperform
Price Target:
$12.00
â–²(9.89% Upside)
Positive Factors
Strong Profitability Margins
High profitability margins reflect efficient operations and strong pricing power, contributing to sustained financial health and investor confidence.
Asset Sales and Gains
Successful asset sales enhance liquidity and provide capital for strategic investments, supporting long-term growth and financial flexibility.
Debt Reduction
Reducing debt levels lowers financial risk and interest expenses, improving cash flow and enabling more strategic financial planning.
Negative Factors
Revenue Decline
Declining revenue indicates challenges in maintaining market share or pricing, which could impact long-term growth and profitability.
Impairment Charges in California
Impairments due to regulatory issues highlight operational risks in key markets, potentially affecting asset values and future earnings.
Challenges in California Market
Regulatory challenges in California could lead to further asset write-downs and impair revenue, affecting overall market positioning.
Farmland (FPI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$482.27M
Dividend Yield12.73%
Average Volume (3M)344.56K
Price to Earnings (P/E)8.7
Beta (1Y)0.52
Revenue Growth-2.90%
EPS Growth282.07%
CountryUS
Employees23
SectorReal Estate
Sector Strength57
IndustryREIT - Specialty
Share Statistics
EPS (TTM)0.14
Shares Outstanding44,164,368
10 Day Avg. Volume301,682
30 Day Avg. Volume344,563
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.81
Enterprise Value/Revenue15.85
Enterprise Value/Gross Profit20.60
Enterprise Value/Ebitda10.77
Forecast
1Y Price Target
$12.00Price Target Upside9.89% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Farmland Business Overview & Revenue Model
Company DescriptionFarmland 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 MoneyFarmland Partners generates revenue primarily through leasing farmland to farmers who cultivate the land and pay rent. The company employs a triple-net lease structure, where tenants are responsible for property taxes, insurance, and maintenance, thus providing a stable income stream for FPI. Additionally, FPI benefits from the appreciation of farmland value over time, which contributes to its overall asset value. The company also engages in the sale of farmland, which can generate capital gains. Strategic partnerships with agricultural operators and investors further enhance its revenue potential, allowing for more effective management and optimization of its farmland assets.
Farmland Earnings Call Summary
Earnings Call Date:Jul 23, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 22, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a mixed sentiment with notable successes in asset sales and financial metrics improvements. However, significant challenges persist, particularly regarding regulatory issues in California that led to substantial impairments.Q2-2025 Updates
Positive Updates
Asset Sales and Gains
Year-to-date asset sales totaled approximately $80 million, realizing gains of about $25 million, primarily from sales in the High Plains and Class B soil farms in Illinois.
Stock Repurchases
The company repurchased about 2.3 million shares, which is about 5% of fully diluted shares outstanding prior to the buybacks, at an average price of $11.24, totaling approximately $26 million.
Debt Reduction
Significant debt reductions resulted in interest savings of $2.8 million during the quarter and $5.2 million year-to-date compared to the prior year.
Increased AFFO
AFFO was $1.3 million or $0.03 per share for the quarter, and $3.6 million or $0.08 per share year-to-date, both higher than the same periods in 2024, driven by lower interest expense and higher interest income.
Negative Updates
Impairment Charges in California
The company recorded $16.8 million in impairments on four farms in California due to regulatory water issues and market conditions, particularly affecting pistachio and walnut farms.
Challenges in California Market
California farms face ongoing struggles with regulatory water access, impacting farm valuations and leading to significant write-downs.
Potential Tax Impacts
Future asset sales, especially those involving farms with impairments, may have tax implications that are currently uncertain.
Company Guidance
During the Q2 2025 earnings call for Farmland Partners, Inc., several key financial metrics and strategic actions were highlighted. The company reported net income of $7.8 million, or $0.15 per share available to common shareholders for the quarter, attributed to gains from dispositions of 32 properties, reduced G&A costs, lower interest expenses, and increased interest income. Year-to-date, the company has sold assets worth approximately $80 million, realizing gains of $25 million, and repurchased 2.3 million shares at an average price of $11.24, totaling $26 million. The company also took a significant impairment of $16.8 million on certain California farms due to water access issues and market conditions. Updated guidance for 2025 forecasts adjusted funds from operations (AFFO) between $12.8 million and $15.5 million, or $0.28 to $0.34 per share. The company's financial strategy includes disciplined acquisition plans, stock repurchases, and potential debt repayments, all while maintaining a positive cash flow from investments.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.72
Positive
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.65
Positive
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.68
Positive
| 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
Positive
10.92
Price Trends
10.95
Negative
10.87
Positive
11.02
Negative
Market Momentum
-0.05
Negative
52.93
Neutral
44.85
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FPI, the sentiment is Positive. The current price of 10.92 is above the 20-day moving average (MA) of 10.82, below the 50-day MA of 10.95, and below the 200-day MA of 11.02, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 52.93 is Neutral, neither overbought nor oversold. The STOCH value of 44.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FPI.
Farmland Risk Analysis
Farmland disclosed 62 risk factors in its most recent earnings report. Farmland 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
Farmland Peers Comparison
Overall Rating
UnderperformOutperform
Sector (53)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $4.04B | 11.18 | 36.96% | 10.89% | 9.90% | 137.73% | |
70 Outperform | $482.27M | 8.74 | 14.30% | 12.73% | -2.90% | 282.07% | |
65 Neutral | $18.64B | 65.33 | 2.85% | 3.21% | -6.57% | -62.32% | |
65 Neutral | $3.21B | 78.79 | 2.07% | 4.22% | -1.15% | 14.51% | |
53 Neutral | $1.28B | 3.13 | -6.08% | 5.51% | -8.21% | -81.31% |
* Real Estate Sector Average
Performance Comparison
FPI
Farmland
10.92
1.37
14.35%
PCH
PotlatchDeltic
42.66
-1.23
-2.80%
RYN
Rayonier
26.77
-2.20
-7.59%
WY
Weyerhaeuser
25.83
-5.68
-18.03%
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.