Limoneira Co (LMNR) AI Stock Analysis

• Market Cap: $283.13M
• Dividend Yield: 1.95%
• Average Volume (3M): 89.79K
• Price to Earnings (P/E): 37.8
• Beta (1Y): 0.56
• Revenue Growth: 2.39%
• EPS Growth: N/A
• Country: US
• Employees: 241
• Sector: Real Estate
• Sector Strength: 69
• Industry: Agricultural Farm Products
• EPS (TTM): -0.14
• Shares Outstanding: 18,045,170
• 10 Day Avg. Volume: 72,192
• 30 Day Avg. Volume: 89,788
• PEG Ratio: 0.17
• Price to Book (P/B): 1.48
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 70.78
• Enterprise Value/Market Cap: 1.20
• Enterprise Value/Revenue: 0.45
• Enterprise Value/Gross Profit: 15.90
• Enterprise Value/Ebitda: 198.50
• 1Y Price Target: $27.00
• Price Target Upside: 72.08% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 62 Neutral
• Price Target: $16.50 ▲(5.16%Upside)

The overall stock score is driven by a solid financial foundation with profitable operations and strategic initiatives. However, the high P/E ratio, bearish technical indicators, and challenges in revenue growth weigh down the score. Positive corporate events and strategic diversification efforts provide a potential upside.

Positive Factors

Avocado Production

The expansion of avocado production remains a well-considered shift with a material long-term benefit.

Financial Performance

Limoneira is ending its FY24 in its healthiest position in perhaps a decade.

Water Rights Monetization

Limoneira sold 58 acre feet of water rights for $1.7M, indicating potential for further significant monetization.

Negative Factors

Earnings

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 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 Co. generates revenue through multiple channels. The primary source of income is the sale of fresh citrus and other agricultural products such as lemons, avocados, oranges, and specialty crops. The company operates its own packing facilities and maintains a global distribution network to deliver its products to domestic and international markets. Additionally, Limoneira earns revenue from its rental operations, which include leasing property and facilities to third parties. Another significant revenue stream is its real estate development segment, where the company engages in the development and sale of residential and commercial properties. These diverse revenue streams, along with strategic partnerships in the agriculture and real estate sectors, contribute to Limoneira's earnings.

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.

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.

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.

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	21.62M	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
1.13M	3.00M	3.63M	857.00K	439.00K	501.00K
	Total Assets
301.37M	298.81M	301.21M	368.52M	392.28M	389.60M
	Total Debt
59.91M	43.70M	45.48M	105.81M	132.82M	125.85M
	Net Debt
58.77M	40.71M	41.84M	104.95M	132.39M	125.35M
	Total Liabilities
104.02M	96.31M	100.71M	176.65M	193.03M	183.03M
	Stockholders Equity
186.84M	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

• Technical Analysis Sentiment: Negative
• Last Price: 15.69
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 15.69 is above the 20-day moving average (MA) of 15.64, below the 50-day MA of 16.37, and below the 200-day MA of 22.54, indicating a neutral trend. The MACD of -0.24 indicates Negative momentum. The RSI at 45.86 is Neutral, neither overbought nor oversold. The STOCH value of 23.26 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	$1.65B	11.25	7.51%	3.05%	-0.64%	―
LND	68 Neutral	$378.29M	6.52	15.25%	6.65%	1.09%	21.46%
AGRO	64 Neutral	$946.94M	15.12	4.51%	3.60%	17.05%	-73.53%
LMNR	62 Neutral	$283.13M	37.78	4.34%	1.95%	2.39%	―
Sector *	60 Neutral	$2.76B	10.59	0.51%	8507.90%	5.51%	-19.44%
ALCO	53 Neutral	$244.70M	32.96	-70.02%	0.64%	23.36%	-451.44%
AFRI		$209.83M	―	-230.12%	―	―	―

Limoneira Co Corporate Events

Limoneira Co Receives $10M from Joint Venture

On April 9, 2025, Limoneira Co announced it received a $10 million distribution from its joint venture with The Lewis Group of Companies. This development is part of Limoneira’s strategic efforts to unlock shareholder value through land-use conversion and water monetization, while expanding its citrus and avocado operations.