Limoneira Co (LMNR) AI Stock Analysis

• Market Cap: $284.77M
• Dividend Yield: 1.92%
• Average Volume (3M): 46.22K
• Price to Earnings (P/E): 37.0
• Beta (1Y): 0.67
• Revenue Growth: -0.94%
• EPS Growth: 0.47%
• Country: US
• Employees: 241
• Sector: Consumer Defensive
• Sector Strength: 48
• Industry: Agricultural Farm Products
• EPS (TTM): -0.17
• Shares Outstanding: 18,069,029
• 10 Day Avg. Volume: 37,798
• 30 Day Avg. Volume: 46,216
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.21
• Enterprise Value/Revenue: 1.95
• Enterprise Value/Gross Profit: 16.22
• Enterprise Value/Ebitda: 41.46
• 1Y Price Target: $19.75
• Price Target Upside: 26.20% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 61 Neutral
• Price Target: $16.50 ▲(5.43% Upside)

Limoneira Co's overall stock score reflects a stable financial base with strong cash flow management, but challenges in profitability and revenue growth weigh on the score. Technical indicators suggest neutral momentum, while valuation metrics indicate caution due to recent losses. Strategic partnerships and corporate events provide a positive outlook for long-term growth.

Positive Factors

Avocado Production

The outlook for a strong avocado year continues, and water right monetization appears to be a potential catalyst within FY25.

Earnings Improvement

Limoneira’s citrus sales/marketing team is transitioning back to Sunkist, which should see an immediate lift to earnings.

Strategic Partnership

A major agreement to merge a portion of Limoneira’s operations into Sunkist will meaningfully reduce Limoneira’s fixed costs and OpEx while improving the revenue mix to higher margin businesses.

Negative Factors

Market Performance

Q2’25 came in modestly below estimates behind an especially weak lemon market.

Price Decline

Seasonally weak first quarter results were just that, as lemon prices fell 13% YoY.

Limoneira Co Business Overview & Revenue Model

Company Description

Limoneira Company operates as an agribusiness and real estate development company in the United States and internationally. The company operates through three divisions: Agribusiness, Rental Operations, and Real Estate Development. It grows, processes, packs, markets, and sells lemons. The company also grows avocado, oranges, and specialty citrus and other crops, including Moro blood oranges, Cara Cara oranges, Minneola tangelos, Star Ruby grapefruit, pummelos, pistachios, and wine grapes. It has approximately 6,100 acres of lemons planted primarily in Ventura, Tulare, San Luis Obispo, and San Bernardino Counties in California; and Jujuy, Argentina, as well in Yuma County, Arizona, and La Serena, Chile; 800 acres of avocados planted in Ventura County; 1,000 acres of oranges planted in Tulare County, California; and 900 acres of specialty citrus and other crops. In addition, the company rents residential housing units and commercial office buildings, as well as leases approximately 500 acres of its land to third-party agricultural tenants. Further, it is involved in organic recycling operations; and the development of land parcels, multi-family housing, and single-family homes. The company markets and sells its lemons directly to food service, wholesale, and retail customers; avocados to a packing and marketing company; oranges, specialty citrus, and other crops through Sunkist and other third-party packinghouses; and wine grapes to wine producers. Limoneira Company was founded in 1893 and is headquartered in Santa Paula, California.

How the Company Makes Money

Limoneira generates revenue through multiple streams, primarily from the sale of fresh lemons and avocados. The company sells its produce to wholesalers, retailers, and food service operators, both in the United States and internationally. Key revenue streams include fresh fruit sales, which account for the bulk of its income, and value-added products that cater to food manufacturers and other businesses. Additionally, Limoneira benefits from strategic partnerships with distributors and retailers, enhancing its market reach. The company also engages in agribusiness operations, including land leasing and selling agricultural products, which further contribute to its earnings. Seasonal demand fluctuations, crop yields, and market pricing play crucial roles in influencing the company's overall financial performance.

Limoneira Co Financial Statement Overview

Summary

Limoneira Co demonstrates a stable financial foundation with strong cash flow management, despite challenges in achieving consistent revenue growth and profitability. The company's balance sheet is healthy, with manageable leverage and a strong equity position. However, improving profitability margins and maintaining revenue growth are critical to enhancing financial performance in the future.

Income Statement

Limoneira Co's income statement shows mixed performance. The TTM data reveals a gross profit margin of 12.05%, indicating some efficiency in cost management, but the net profit margin is -0.96%, highlighting challenges in achieving profitability. Revenue growth has been inconsistent, with a decline in the latest TTM period compared to the previous year. The EBIT and EBITDA margins also show weak profitability, with EBIT margin at -1.39% and EBITDA margin at 4.72% for the TTM.

Balance Sheet

The balance sheet reflects a moderate financial position. The debt-to-equity ratio is 0.31, suggesting a manageable level of leverage. The equity ratio stands at 61.66%, indicating a strong equity base relative to total assets. However, the return on equity (ROE) is negative at -0.93% for the TTM, signaling inefficiencies in generating returns on equity capital.

Cash Flow

Cash flow analysis shows positive trends in operational efficiency. The operating cash flow to net income ratio is robust at 15.98 for TTM, indicating strong cash conversion from earnings. Free cash flow has improved significantly, with a growth rate of 77.58% compared to the previous period, reflecting better capital expenditure management. The free cash flow to net income ratio is also strong at -8.81, showing effective cash flow generation even with a net loss.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	176.59M	191.50M	179.90M	184.60M	166.03M	164.56M
Gross Profit	21.29M	21.42M	6.12M	19.52M	13.20M	2.77M
EBITDA	8.33M	21.62M	23.29M	12.88M	7.67M	-13.82M
Net Income	-1.70M	7.72M	9.40M	-474.00K	-3.90M	-17.94M
Balance Sheet
Total Assets	296.63M	298.81M	301.21M	368.52M	392.28M	389.60M
Cash, Cash Equivalents and Short-Term Investments	2.08M	3.00M	3.63M	857.00K	439.00K	501.00K
Total Debt	56.66M	43.70M	45.48M	105.81M	132.82M	125.85M
Total Liabilities	103.17M	96.31M	100.71M	176.65M	193.03M	183.03M
Stockholders Equity	182.95M	191.95M	189.29M	180.25M	187.28M	192.83M
Cash Flow
Free Cash Flow	14.99M	8.44M	-26.18M	4.76M	-229.00K	-21.92M
Operating Cash Flow	27.16M	17.85M	-15.87M	14.83M	9.61M	-11.32M
Investing Cash Flow	-12.77M	-9.19M	90.58M	19.43M	-10.24M	3.85M
Financing Cash Flow	-13.75M	-9.29M	-71.92M	-33.52M	534.00K	7.36M

Limoneira Co Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 15.65
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 15.65 is below the 20-day moving average (MA) of 15.78, above the 50-day MA of 15.54, and below the 200-day MA of 19.23, indicating a neutral trend. The MACD of 0.13 indicates Positive momentum. The RSI at 48.93 is Neutral, neither overbought nor oversold. The STOCH value of 35.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LMNR.

Limoneira Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FDP	76 Outperform	$1.74B	11.57	7.49%	3.18%	1.41%	―
LND	71 Outperform	$383.47M	6.72	15.25%	6.31%	1.09%	21.46%
Sector *	63 Neutral	$20.41B	14.67	-2.93%	3.10%	2.04%	-6.12%
LMNR	61 Neutral	$284.77M	36.96	-0.97%	1.92%	-0.94%	0.47%
AGRO	59 Neutral	$845.94M	23.67	2.63%	4.17%	19.45%	-82.38%
ALCO	47 Neutral	$258.72M	32.96	-82.35%	0.59%	-4.72%	-700.99%
AFRI	―	$233.77M	―	-230.12%	―	―	―

Limoneira Co Corporate Events

Limoneira Co Increases Stake in Del Mar Partnership

On August 4, 2025, Limoneira Company completed a purchase of 80,608 limited partnership units from Del Mar’s limited partners, increasing its ownership from 28.8% to 54.5%. This strategic move, initiated on March 21, 2025, aims to enhance long-term financial returns and provide liquidity, potentially strengthening Limoneira’s position in the agricultural sector.

Limoneira Co Enters New Master Loan Agreement

On June 26, 2025, Limoneira Company entered into a Master Loan Agreement with AgWest Farm Credit, PCA, amending their previous agreement from March 27, 2024. The new agreement includes a revolving credit facility of $114 million and a non-revolving credit facility of $1 million, both due by July 1, 2030. The interest rates are initially set at 6.600% and 6.900% per annum, respectively, with adjustments based on the company’s financial ratios. The agreement is secured by the company’s assets, including agricultural properties in Ventura County, California, and includes covenants and default provisions that could impact the company’s financial operations if not adhered to.

Limoneira Co Partners with Sunkist for Citrus Operations

On June 6, 2025, Limoneira Company entered into a Commercial Packinghouse License Agreement with Sunkist Growers, Inc., merging its citrus sales and marketing operations with Sunkist. This strategic partnership is expected to generate $5 million in annual cost savings and EBITDA improvement starting in fiscal year 2026. Limoneira will transition its sales and marketing team to Sunkist, leveraging shared resources to enhance supply chain efficiency and operational synergies. The merger positions Limoneira for growth in the food service and retail markets, providing access to Sunkist’s comprehensive citrus portfolio and customer base, and is anticipated to close on November 1, 2025.