Farmer Bros Buy Hold or Sell Recommendation

FARM -- USA Stock  

USD 30.45  0.05  0.16%

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

Time Horizon

Risk Tolerance

Execute Advice

Farmer Bros Current Recommendation

Strong Buy

Hype Condition

Current Valuation

Odds of Distress

Economic Sensitivity

Analyst Consensus

Piotroski F Score

Financial Leverage

For the selected time horizon Farmer Bros Co has a risk adjusted performance of 0.01, jensen alpha of 0.0, total risk alpha of 0.0, sortino ratio of 0.4597 and treynor ratio of 0.0
Macroaxis buy, hold, or sell suggestion module can be used to complement Farmer Bros buy, hold, or sell recommendation provided by average analyst sentiment. It analyzes the organization potential to grow using fundamental, technical, data market data available at the time. To make sure Farmer Bros is not overpriced, please confirm all Farmer Bros Co 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 Co has Price to Earning of 22.93 times, 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

Returns Distribution Density

Mean Return0.59Value At Risk1.52
Potential Upside2.80Standard Deviation1.54
 Return Density 

Institutional Investors

Security TypeSharesValue
Wellington Management Group LlpCommon Shares1.3 M39.2 M
Trigran Investments IncCommon Shares1.2 M35.6 M
Dimensional Fund Advisors LpCommon Shares870.9 K26.3 M
Blackrock IncCommon Shares588.9 K17.8 M
Capital World InvestorsCommon Shares550 K16.6 M
Vanguard Group IncCommon Shares533.7 K16.1 M
Granite Investment Partners LlcCommon Shares438.1 K13.2 M

Farmer Bros Greeks

Alpha over DOW
Beta against DOW=0.00
Overall volatility
Information ratio =0.38

Farmer Bros Volatility Alert

Farmer Bros Co has relatively low volatility with skewness of 0.39 and kurtosis of -0.21. However, we advise all investors to independently investigate Farmer Bros Co to ensure market all accessible information is consistent with the expectations about its upside potential and future risk-adjusted return.
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Farmer Bros Fundamental Vs Peers

FundamentalsFarmer BrosPeer Average
Return On Equity(10.88) % (15.17) %
Return On Asset2.43 % (15.64) %
Profit Margin(3.82) % (5.50) %
Operating Margin2.90 % (10.91) %
Current Valuation575.33 M152.14 B
Shares Outstanding16.78 M1.43 B
Shares Owned by Insiders35.26 % 6.91 %
Shares Owned by Institutions70.17 % 18.37 %
Number of Shares Shorted743.7 K3.24 M
Price to Earning22.93 times40.69 times
Price to Book2.43 times14.44 times
Price to Sales0.86 times17.81 times
Revenue590.81 M9.85 B
Gross Profit213.74 M21.75 B
EBITDA46.2 M1.41 B
Net Income(22.78 M)517.71 M
Cash and Equivalents6.97 M3.89 B
Cash per Share0.42 times5.17 times
Total Debt86.2 M7.36 B
Debt to Equity41.70 % 0.72 %
Current Ratio0.87 times3.30 times
Book Value Per Share12.55 times13.64 times
Cash Flow from Operations39.94 M1.25 B
Short Ratio11.97 times2.09 times
Earnings Per Share1.03 times2.30 times
Price to Earnings To Growth0.87 times1.22 times
Number of Employees1.6 K10.67 K
Market Capitalization511.01 M29.78 B
Total Asset368.99 M126.86 B
Retained Earnings382.83 M38.24 B
Working Capital96.53 M3.58 B
Current Asset153.37 M36.8 B
   Farmer Bros exotic insider transaction detected [view details]

Farmer Bros Alerts

Trading Alerts and Improvement Suggestions
Farmer Bros Co has high financial leverage indicating that it may have difficulties to generate enough cash to satisfy its financial obligations
The company currently holds 86.2 M in liabilities with Debt to Equity (D/E) ratio of 41.7 indicating the company may have difficulties to generate enough cash to satisfy its financial obligations. Farmer Bros Co has Current Ratio of 0.85 indicating that it has a negative working capital and may not be able to pay financial obligations when they are due.
This company reported previous year revenue of 590.81 M. Net Loss for the year was (22.78 M) with profit before overhead, payroll, taxes, and interest of 213.74 M.
About 70.0% of Farmer Bros Co shares are owned by institutional investors
Latest headline from Analyst Stock Recommendations For Malibu Boats, Inc. , Farmer Bros. Co.

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Additionally see Farmer Bros Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with current analyst consensus. Please also try Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.