Farmer Bros Buy Hold or Sell Recommendation

FARM -- USA Stock  

USD 24.09  0.14  0.58%

Given the investment horizon of 30 days, and your above average risk tolerance our recommendation regarding Farmer Bros Co is 'Hold'. Macroaxis provides Farmer Bros buy hold or sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding FARM positions. The advice algorithm takes into account all of Farmer Bros available fundamental, technical, and predictive indicators you will find on this site. The advice is provided from FARM buy-and-hold prospective. Additionally see Farmer Bros Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for muliple equity instruments please use Instant Ratings tool.

Time Horizon

Risk Tolerance

Symbol
Execute Advice
Sell Farmer BrosBuy Farmer Bros
Hold

Hype Condition

Current Valuation

Odds of Distress

Economic Sensitivity

Analyst Consensus

Piotroski F Score

Financial Leverage

Inapplicable
For the selected time horizon Farmer Bros Co has a risk adjusted performance of (0.09), jensen alpha of (0.034821), total risk alpha of 0.0601, sortino ratio of 0.0 and treynor ratio of (0.32)
Macroaxis buy, hold, or sell recommendation module can be used to complement current analysts and expert consensus on Farmer Bros. Our buy, hold, or sell suggestion engine makes use of analyzes the corporation potential to grow using all fundamental data market data available at the time. To make sure Farmer Bros is not overpriced, please confirm all Farmer Bros fundamentals including its Revenue, Cash Flow from Operations, Current Asset, as well as the relationship between Cash per Share and Beta . Given that Farmer Bros has Price to Earning of 22.93X, we urge you verify Farmer Bros Co market performance and probability of bankruptcy to make sure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

Farmer Bros Thematic Classifications

Food Products IdeaFood Products
USA Equities from Food Products industry as classified by Fama & French

Farmer Bros Returns Distribution Density

Mean Return0.07Value At Risk2.47
Potential Upside2.34Standard Deviation1.52
 Return Density 
      Distribution 

Farmer Bros Greeks

α
Alpha over DOW
=0.03
β
Beta against DOW=0.25
σ
Overall volatility
=1.56
Ir
Information ratio =0.07

Farmer Bros Volatility Alert

Farmer Bros Co exhibits very low volatility with skewness of -0.09 and kurtosis of -0.23. However, we advise investors to further study Farmer Bros Co technical indicators to make sure all market info is available and is reliable.
    
 Better Than Average     
    
 Worse Than Average Compare Farmer Bros to competition

Farmer Bros Fundamental Vs Peers

FundamentalsFarmer BrosPeer Average
Return On Equity(10.06)% (15.17)%
Return On Asset0.52% (15.64)%
Profit Margin(3.55)% (5.50)%
Operating Margin0.61% (10.91)%
Current Valuation487.02M152.14B
Shares Outstanding16.91M1.43B
Shares Owned by Insiders37.16% 6.91%
Shares Owned by Institutions60.66% 18.37%
Number of Shares Shorted464.56K3.24M
Price to Earning22.93X40.69X
Price to Book1.89X14.44X
Price to Sales0.68X17.81X
Revenue622.27M9.85B
Gross Profit207.04M21.75B
EBITDA34.72M1.41B
Net Income(22.64M)517.71M
Cash and Equivalents5.5M3.89B
Cash per Share0.33X5.17X
Total Debt102M7.36B
Debt to Equity45.70% 0.72%
Current Ratio0.91X3.30X
Book Value Per Share13.18X13.64X
Cash Flow from Operations2.83M1.25B
Short Ratio4.70X2.09X
Earnings Per Share(1.34)X2.30X
Price to Earnings To Growth4.60X1.22X
Number of Employees1.5K10.67K
Beta0.530.34
Market Capitalization420.27M29.78B
Total Asset368.99M126.86B
Retained Earnings382.83M38.24B
Working Capital96.53M3.58B
Current Asset153.37M36.8B
   Acquisition by Allison Boersma of 2711 shares of Farmer Bros subject to Rule 16b-3 [view details]

Farmer Bros Alerts

Trading Alerts and Improvement Suggestions

The company currently holds 102M in liabilities with Debt to Equity (D/E) ratio of 45.7 indicating the company may have difficulties to generate enough cash to satisfy its financial obligations. Farmer Bros has Current Ratio of 0.89 indicating that it has a negative working capital and may not be able to pay financial obligations when they are due.
The entity reported previous year revenue of 622.27M. Net Loss for the year was (22.64M) with profit before overhead, payroll, taxes, and interest of 207.04M.
About 61.0% of Farmer Bros shares are owned by institutional investors

Latest Analysts View

Farmer Bros Current Analysts Recommendations

Target Median Price33.00
Target Mean Price33.67
Target High Price36.00
Number Of Analyst Opinions3
Target Low Price32.00
Additionally see Farmer Bros Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for muliple equity instruments please use Instant Ratings tool. Please also try Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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