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Limoneira Co (LMNR)
NASDAQ:LMNR
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Limoneira Co
(NASDAQ:LMNR)
61Neutral
Positive Factors
Avocado Production
The expansion of avocado production remains a well-considered shift with a material long-term benefit.
Cost Structure
A much improved cost structure minimized burn, and EBITDA/EPS losses were in line with estimates.
Financial Performance
Limoneira is ending its FY24 in its healthiest position in perhaps a decade.
Negative Factors
Avocado Yield
Record avocado results in FY24 will not be repeated in FY25 given the alternate bearing nature of the crop.
Lemon Prices
Seasonally weak first quarter results were just that, as lemon prices fell 13% YoY.
Limoneira Co (LMNR) vs. S&P 500 (SPY)
Market Cap
$306.95M
Dividend Yield1.76%
Average Volume (3M)66.17K
Price to Earnings (P/E)41.0
Beta (1Y)0.71
Revenue Growth2.39%
EPS GrowthN/A
CountryUS
Employees241
SectorReal Estate
Sector Strength74
IndustryAgricultural Farm Products
Share Statistics
EPS (TTM)0.41
Shares Outstanding18,045,170
10 Day Avg. Volume61,955
30 Day Avg. Volume66,173
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.68
Price to Cash Flow (P/CF)-6.10
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$27.00Price Target Upside58.73% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Limoneira Co Business Overview & Revenue Model
Company DescriptionLimoneira Co (LMNR) is a diversified agribusiness and real estate development company based in Santa Paula, California. Established in 1893, Limoneira is primarily engaged in the production, marketing, and sale of citrus and other agricultural products. The company operates through three main segments: agribusiness, rental operations, and development. Its core products include lemons, avocados, oranges, and specialty citrus crops, which it sells both domestically and internationally. Additionally, Limoneira engages in real estate development and property rentals, leveraging its extensive land holdings.
How the Company Makes MoneyLimoneira Co generates revenue through its agribusiness, rental operations, and real estate development activities. The agribusiness segment is the primary source of income, with the company cultivating and selling citrus fruits like lemons and avocados to a global customer base, including grocery stores, distributors, and food service providers. The rental operations segment contributes to revenue through the leasing of commercial and residential properties located on company-owned land. Furthermore, Limoneira engages in strategic real estate development projects, which involve developing and selling land for residential and commercial use. These developments are often done in partnership with other companies, maximizing the value extracted from its extensive land holdings.
Limoneira Co Financial Statement Overview
Summary
Limoneira Co shows improvement in profitability and operational efficiency, but faces challenges in revenue growth and free cash flow generation. The balance sheet is strong with minimal leverage, providing financial stability. Continued focus on boosting revenue and enhancing cash flow generation will be crucial for sustained growth.Income Statement
The company shows a mixed performance in its income statement. The TTM Gross Profit Margin is healthy at 30.08%, and the company has returned to profitability with a Net Profit Margin of 4.42%. However, revenue has decreased by approximately 2.84% in the TTM compared to the previous annual period, indicating challenges in top-line growth. The EBIT Margin has improved significantly to 15.82%, showcasing operational efficiency improvements.65
Positive
Balance Sheet
Limoneira Co demonstrates a strong balance sheet with a low Debt-to-Equity Ratio of 0.0005, indicating minimal leverage and financial risk. The company’s Equity Ratio is fairly strong at 61.90%, reflecting a solid equity position. Return on Equity is modest at 4.41%, suggesting room for improvement in generating returns on shareholders' equity.70
Positive
Cash Flow
The cash flow performance presents a stable picture with a positive Operating Cash Flow to Net Income Ratio of 1.85, indicating strong cash conversion. However, Free Cash Flow has seen a decline of approximately 53.11% in the TTM, suggesting reduced cash available for growth and investment. The Free Cash Flow to Net Income Ratio is 0.48, which indicates less free cash relative to net income.60
Neutral
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 186.08M | 191.50M | 179.90M | 184.60M | 166.03M | 164.56M |
| Gross Profit | |||||
| 21.31M | 21.42M | 6.12M | 19.52M | 13.20M | 2.77M |
| EBIT | |||||
| -3.73M | -6.18M | 10.78M | -2.30M | -6.22M | -18.51M |
| EBITDA | |||||
| 6.53M | 20.88M | 23.29M | 12.88M | 7.67M | -13.82M |
| Net Income Common Stockholders | |||||
| 8.23M | 7.72M | 9.40M | -474.00K | -3.90M | -17.94M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 258.00K | 3.00M | 3.63M | 857.00K | 439.00K | 501.00K |
| Total Assets | |||||
| 159.69M | 298.81M | 301.21M | 368.52M | 392.28M | 389.60M |
| Total Debt | |||||
| 85.94M | 559.00K | 45.48M | 105.81M | 132.82M | 125.85M |
| Net Debt | |||||
| 85.68M | -2.44M | 41.84M | 104.95M | 132.39M | 125.35M |
| Total Liabilities | |||||
| 107.59M | 96.31M | 100.71M | 176.65M | 193.03M | 183.03M |
| Stockholders Equity | |||||
| 52.10M | 191.95M | 189.29M | 180.25M | 187.28M | 192.83M |
| Cash Flow | Free Cash Flow | ||||
| 3.96M | 8.44M | -26.18M | 4.76M | -229.00K | -21.92M |
| Operating Cash Flow | |||||
| 15.21M | 17.85M | -15.87M | 14.83M | 9.61M | -11.32M |
| Investing Cash Flow | |||||
| -11.04M | -9.19M | 90.58M | 19.43M | -10.24M | 3.85M |
| Financing Cash Flow | |||||
| -3.57M | -9.29M | -71.92M | -33.52M | 534.00K | 7.36M |
Limoneira Co Technical Analysis
Negative
17.01
Price Trends
20.95
Negative
23.33
Negative
23.42
Negative
Market Momentum
-1.18
Negative
29.81
Positive
38.25
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LMNR, the sentiment is Negative. The current price of 17.01 is below the 20-day moving average (MA) of 18.53, below the 50-day MA of 20.95, and below the 200-day MA of 23.42, indicating a bearish trend. The MACD of -1.18 indicates Negative momentum. The RSI at 29.81 is Positive, neither overbought nor oversold. The STOCH value of 38.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LMNR.
Limoneira Co Risk Analysis
Limoneira Co disclosed 48 risk factors in its most recent earnings report. Limoneira Co 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
Limoneira Co Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $620.78M | 15.90 | 6.35% | ― | 4.01% | 22.46% | |
71 Outperform | $1.49B | 10.50 | 7.32% | 3.35% | -0.95% | ― | |
71 Outperform | $1.38B | 11.03 | 12.14% | 2.17% | 2.79% | -13.96% | |
61 Neutral | $306.95M | 40.96 | 4.34% | 1.76% | 2.39% | ― | |
61 Neutral | $4.72B | 17.64 | -3.07% | 10.89% | 5.99% | -21.86% | |
58 Neutral | $375.60M | ― | 1.89% | 5.39% | -5.73% | -5.33% | |
55 Neutral | $425.58M | 45.28 | 6.85% | 2.51% | -21.19% | ― |
* Real Estate Sector Average
Performance Comparison
LMNR
Limoneira Co
17.01
-2.06
-10.80%
CVGW
Calavo Growers
23.86
-0.94
-3.79%
FDP
Fresh Del Monte Produce
31.39
6.87
28.02%
SENEA
Seneca Foods
88.88
32.21
56.84%
LAND
Gladstone Land
10.51
-1.93
-15.51%
DOLE
Dole
14.75
3.41
30.07%
Limoneira Co Earnings Call Summary
Earnings Call Date: Mar 12, 2025 | % Change Since: -20.03% | Next Earnings Date: Jun 10, 2025
Earnings Call Sentiment Neutral
Limoneira's earnings call highlights strategic initiatives like land and water monetization, avocado production expansion, and operational improvements, which are counterbalanced by challenges in the lemon market and reduced agribusiness revenue. The company's efforts in diversifying and optimizing asset usage are promising, but immediate financial impacts from market conditions remain a concern.Highlights
Land and Water Monetization
Limoneira successfully monetized its water pumping rights for a gain of $1.5 million and plans further land and water monetization opportunities in fiscal year 2025.
Improved Operating Loss and Expenses
Agribusiness operating loss improved by 17%, costs and expenses decreased by 14%, and total operating loss improved over 30% compared to last year.
Avocado Production Expansion
The company recorded avocado revenue, which wasn't present in the previous year, and plans to expand avocado production by 1,000 acres through fiscal year 2027.
Drone Spray Application Approval
Received FAA approval for drone spray application in California, enhancing precision, cost efficiency, and sustainability.
Residential Joint Venture Proceeds
The joint venture with Lewis Group is expected to generate $165 million over the next 6 fiscal years.
Lowlights
Decline in Agribusiness Revenue
Agribusiness revenue fell from $38.3 million to $32.9 million due to an oversupplied lemon market, placing downward pressure on prices.
Lower Lemon Sales and Prices
Fresh packed lemon sales decreased from $23.9 million to $21.2 million, with carton prices dropping from $21.06 to $18.44.
Decreased Farm Management Revenues
Farm management revenues fell from $2 million to $1.2 million due to decisions based on weather and crop conditions.
Company Guidance
During Limoneira's first quarter fiscal year 2025 conference call, the company highlighted several key metrics and strategic initiatives. The agribusiness operating loss improved by 17%, and costs and expenses decreased by 14%, leading to a total operating loss improvement of over 30% year-over-year. The company recorded $162,000 in avocado revenue from 73,000 pounds sold at an average price of $2.25 per pound, a new revenue stream compared to last year. Lemon revenue was challenged due to an oversupplied market, with $21.2 million in fresh packed lemon sales, though the average price per carton decreased to $18.44 from $21.06. Additionally, Limoneira successfully sold water pumping rights for a gain of $1.5 million. Looking ahead, the company expects fresh lemon volumes between 5 and 5.5 million cartons and avocado volumes of 7 to 8 million pounds for fiscal year 2025. They also anticipate $165 million in proceeds from a real estate joint venture over the next six fiscal years. Overall, Limoneira's transition to an asset-lighter model and diversification strategy, including expanding avocado production, are expected to enhance long-term shareholder value.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.