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Limoneira Co (LMNR)
NASDAQ:LMNR
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Limoneira Co (LMNR) AI Stock Analysis

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LMNR

Limoneira Co

(NASDAQ:LMNR)

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Neutral 62 (OpenAI - 4o)
Rating:62Neutral
Price Target:
$16.50
▲(9.27% Upside)
Limoneira Co's overall stock score reflects a stable financial foundation and strategic growth initiatives, tempered by current profitability challenges and valuation concerns. The company's strong cash flow management and strategic partnerships provide a positive outlook, but immediate financial performance issues need addressing.
Positive Factors
Strategic Partnerships
The strategic partnership with Sunkist is expected to enhance operational efficiency and profitability, providing a durable competitive advantage in citrus sales.
Real Estate Development
The successful real estate development project provides a significant revenue stream, enhancing long-term financial stability and diversifying income sources.
Avocado Production Expansion
The expansion in avocado production capacity supports future revenue growth, capitalizing on increasing consumer demand and strengthening market position.
Negative Factors
Revenue Decline
The decline in revenue highlights challenges in maintaining sales momentum, which could impact long-term growth and profitability if not addressed.
Profitability Challenges
Ongoing profitability challenges, as evidenced by recent losses, may strain financial resources and hinder investment in growth initiatives.
Agribusiness Revenue Decline
The decline in agribusiness revenue, driven by pricing pressures, underscores the volatility in core markets, potentially affecting long-term financial health.

Limoneira Co (LMNR) vs. SPDR S&P 500 ETF (SPY)

Limoneira Co Business Overview & Revenue Model

Company DescriptionLimoneira 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 MoneyLimoneira 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 Earnings Call Summary

Earnings Call Date:Sep 09, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Dec 18, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture for Limoneira. While there were significant strategic initiatives and potential future growth opportunities, particularly through partnerships, real estate developments, and water monetization, the current financial performance showed declines in revenue and profitability. The transition towards future growth is evident, but current challenges in the agribusiness segment, particularly with lemons and avocados, have impacted the bottom line.
Q3-2025 Updates
Positive Updates
Strategic Partnership with Sunkist
Limoneira's partnership with Sunkist for citrus sales and marketing is expected to drive $5 million in annual cost savings and EBITDA enhancements starting in fiscal year 2026.
Real Estate Development Success
The Harvest at Limoneira project is selling homes ahead of schedule, with expected future distributions totaling approximately $155 million over the next 5 fiscal years.
Water Monetization Efforts
Limoneira sold water pumping rights in the Santa Paula Basin for $30,000 per acre foot, generating $1.7 million in proceeds and recording $1.5 million of gains.
Avocado Production Expansion
There are 700 acres of nonbearing avocados expected to become full-bearing over the next 2 to 4 years, enabling strong organic growth and a near 100% increase in avocado producing acreage.
Exploration of Limco Del Mar Property
The company is exploring development options for its 221-acre Limco Del Mar property, which presents an opportunity for residential development to address Ventura County's housing shortage.
Negative Updates
Decrease in Total Net Revenue
Total net revenue for the third quarter of fiscal year 2025 was $47.5 million, down from $63.3 million in the third quarter of the previous fiscal year.
Agribusiness Revenue Decline
Agribusiness revenue decreased to $45.9 million from $61.8 million in the third quarter of the previous fiscal year, primarily due to pricing pressure in the lemon market.
Avocado Revenue Decline
Avocado revenue for the third quarter of fiscal year 2025 was $8.5 million, compared to $13.9 million in the same period of fiscal year 2024, due to lower volumes.
Operating Loss
Operating loss for the third quarter of fiscal year 2025 was $600,000 compared to operating income of $9 million in the third quarter of the previous fiscal year.
Net Loss
Net loss applicable to common stock for the third quarter of fiscal year 2025 was $1 million, compared to net income of $6.5 million in the third quarter of fiscal year 2024.
Company Guidance
During Limoneira's third quarter financial results call, the company provided guidance on several key metrics and strategic initiatives. The company anticipates improved pricing in fiscal year 2026 due to expected shortages in international lemon markets, which should help return lemons to profitability. They also project $5 million in annual cost savings and EBITDA enhancements from their partnership with Sunkist starting in 2026. For avocados, Limoneira expects a near 100% increase in producing acreage as 700 acres of nonbearing plants mature over the next 2 to 4 years. The company's real estate development, including the Harvest at Limoneira project, is expected to generate approximately $155 million in distributions over the next five fiscal years. Limoneira also announced plans to explore development options for their 221-acre Limco Del Mar property, aiming to address Ventura County's housing shortage. In the third quarter of fiscal year 2025, total net revenue was $47.5 million, a decrease from $63.3 million the previous year, with agribusiness revenue contributing $45.9 million. The company reported a third-quarter net loss of $1 million, translating to a $0.06 per diluted share loss.

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
60
Neutral
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
65
Positive
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
70
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue160.76M191.50M179.90M184.60M166.03M164.56M
Gross Profit4.67M21.42M6.12M19.52M13.20M2.77M
EBITDA-3.93M21.62M23.29M12.88M7.67M-13.82M
Net Income-9.15M7.72M9.40M-474.00K-3.90M-17.94M
Balance Sheet
Total Assets299.91M298.81M301.21M368.52M392.28M389.60M
Cash, Cash Equivalents and Short-Term Investments2.11M3.00M3.63M857.00K439.00K501.00K
Total Debt39.00K43.70M45.48M105.81M132.82M125.85M
Total Liabilities108.81M96.31M100.71M176.65M193.03M183.03M
Stockholders Equity180.29M191.95M189.29M180.25M187.28M192.83M
Cash Flow
Free Cash Flow-12.67M8.44M-26.18M4.76M-229.00K-21.92M
Operating Cash Flow-364.00K17.85M-15.87M14.83M9.61M-11.32M
Investing Cash Flow-12.36M-9.19M90.58M19.43M-10.24M3.85M
Financing Cash Flow13.71M-9.29M-71.92M-33.52M534.00K7.36M

Limoneira Co Technical Analysis

Technical Analysis Sentiment
Negative
Last Price15.10
Price Trends
50DMA
15.45
Negative
100DMA
15.50
Negative
200DMA
18.26
Negative
Market Momentum
MACD
-0.18
Positive
RSI
42.50
Neutral
STOCH
14.86
Positive
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 15.1 is below the 20-day moving average (MA) of 15.37, below the 50-day MA of 15.45, and below the 200-day MA of 18.26, indicating a bearish trend. The MACD of -0.18 indicates Positive momentum. The RSI at 42.50 is Neutral, neither overbought nor oversold. The STOCH value of 14.86 is Positive, 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 (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
1.68B11.007.30%3.28%1.41%
71
Outperform
379.88M15.906.51%0.32%-42.97%
62
Neutral
$270.36M36.96-4.88%2.00%-14.97%-278.36%
59
Neutral
804.94M22.582.60%4.34%19.45%-82.38%
47
Neutral
256.50M-1.63-140.48%0.60%-4.72%-700.99%
62
Neutral
$20.33B14.63-3.31%3.23%1.93%-12.26%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
LMNR
Limoneira Co
15.10
-11.01
-42.17%
AGRO
Adecoagro SA
8.05
-2.85
-26.15%
ALCO
Alico
33.55
5.77
20.77%
FDP
Fresh Del Monte Produce
35.03
6.49
22.74%
AFRI
Forafric Global
8.90
-2.44
-21.52%
LND
BrasilAgro Cia Brasileira de Propriedades Agricolas
3.84
-0.58
-13.12%

Limoneira Co Corporate Events

M&A TransactionsBusiness Operations and Strategy
Limoneira Co Increases Stake in Del Mar Partnership
Positive
Aug 5, 2025

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.

Private Placements and Financing
Limoneira Co Enters New Master Loan Agreement
Neutral
Jul 2, 2025

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.

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.Date of analysis: Sep 10, 2025