Alico Story

ALCO -- USA Stock

USD 30.27 0.07 0.23%

Macroaxis Story

Alico Interest Coverage is quite stable at the moment as compared to the past year. The company's current value of Interest Coverage is estimated at 1.39. Long Term Debt to Equity is expected to rise to 0.61 this year, although the value of Net Income Per Employee will most likely fall to about 71.3 K. While some of us are becoming more passionate about consumer defensive space, it makes sense to outline Alico Inc in greater detail. We will cover the possibilities of making Alico into a steady grower in March. Here I will also outline some basic indicators that Alico investors should consider in March.

Published over two weeks ago

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What are the odds of Alico sliding in March?

The company is undervalued at 35.27 per share with modest projections ahead. Alico has performance score of 3 on a scale of 0 to 100. The firm shows a Beta (market volatility) of 0.8576, which signifies possible diversification benefits within a given portfolio. Let's try to break down what Alico's beta means in this case. Alico returns are very sensitive to returns on the market. As the market goes up or down, Alico is expected to follow. Although it is extremely important to respect Alico Inc historical returns, it is better to be realistic regarding the information on equity current trending patterns. The philosophy towards foreseeing future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By analyzing Alico Inc technical indicators, you can presently evaluate if the expected return of 0.11% will be sustainable into the future. Alico Inc right now shows a risk of 1.9%. Please confirm Alico Inc jensen alpha, semi variance, day typical price, as well as the relationship between the maximum drawdown and accumulation distribution to decide if Alico Inc will be following its price patterns.

And What about dividends?

A dividend is the distribution of a portion of Alico earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Alico dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Alico one year expected dividend income is about $0.15 per share.

The value of Payment of Dividends and Other Cash Distributions is expected to slide to about (2.4 M). The value of Dividend Yield is estimated to slide to 0.0124.

	Last Reported	Projected for 2021
Payment of Dividends and Other Cash Distributions	-2.2 M	-2.4 M
Dividend Yield	0.0149	0.0124
Dividends per Basic Common Share	0.41	0.36

Investing in dividend-paying stocks, such as Alico Inc is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Alico must own a stock before its ex-dividend date to receive its next dividend.

This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Alico. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is Alico's Liquidity

Alico financial leverage refers to using borrowed capital as a funding source to finance Alico Inc ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Alico financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Alico's total debt and its cash.

How Alico utilizes its cash?

To perform a cash flow analysis of Alico, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Alico is receiving and how much cash it distributes out in a given period. The Alico cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

Alico Net Cash Flow from Operations is quite stable at the moment as compared to the past year. The company's current value of Net Cash Flow from Operations is estimated at 1.24 Million

What did Alico file with SEC?

The SEC filings are financial statements or other formal documents of Alico Inc that are regularly submitted to the U.S. Securities and Exchange Commission (SEC). Public companies, certain insiders, and broker-dealers are required to make SEC filings and fintech professionals rely on these filings for information about companies they are evaluating for investment purposes. Please note, most SEC filings are available online through the SEC's EDGAR database.

Please check here for more information.

Please note, although all public domestic companies are required to submit their filings via EDGAR, not all public companies are available through our service. Also, keep in mind that the actual annual reports to Alico shareholders may or may not be submitted as SEC does not always require it.

4th of February 2021

Financial Statements and Exhibits. Results of Operations and Financial Condition

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Sale by Remy Trafelet of 49923 shares of Alico

Legal trades by Alico insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:

Alico insider trading alert for sale of alico inc. common stock par value $1.00 by Remy Trafelet, the corporate stakeholder, on 11th of February 2021. This event was filed by Alico Inc with SEC on 2021-02-11. Statement of changes in beneficial ownership - SEC Form 4 [view details]

Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

A Deeper look at Alico

The market capitalization of Alico Inc is $229.16 Million. Alico Inc retains significant amount of outstanding shares owned by insiders. An insider is usually defined as a CEO, other corporate executive, director, or institutional investor who own at least 10% of the company outstanding shares. Since such a large part of the company is owned by insiders, it is advisable to analyze if each of these insiders have been buying or selling the stock in recent months. Please take into account that even companies with profitable outlook can generate negative future returns on their equity. If the true value of the firm is less than the current market value, you may not be able generate positive returns on investment in the long run.

	2018	2019	2020	2021 (projected)
Interest Expense	7.18 M	5.98 M	6.88 M	6.95 M
Gross Profit	60.36 M	17.92 M	20.61 M	26.2 M

Interest Expense Gross Profit

Ownership Breakdown

Retail Investors

9.24%

Insiders

43.02%

Institutions

47.74%

	Retail Investors	9.24
	Insiders	43.02
	Institutions	47.74

Alico is likely finish below $31 in 30 days

Latest Jensen Alpha is up to -0.08. Price may slide again. As of the 4th of February, Alico shows the Risk Adjusted Performance of 0.0593, downside deviation of 1.69, and Mean Deviation of 1.31. Alico Inc technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum, or the prices will eventually revert. We were able to break down and interpolate data for nineteen technical drivers for Alico Inc, which can be compared to its rivals. Please confirm Alico Inc variance, as well as the relationship between the maximum drawdown and semi variance to decide if Alico Inc is priced correctly, providing market reflects its regular price of 30.54 per share. Given that Alico has jensen alpha of (0.08), we suggest you to validate Alico Inc's prevailing market performance to make sure the company can sustain itself at a future point.

Our Final Takeaway

Whereas some companies in the farm products industry are either recovering or due for a correction, Alico may not be performing as strong as the other in terms of long-term growth potentials. To conclude, as of the 4th of February 2021, we believe Alico is currently undervalued. It follows the market closely and projects close to average probability of financial unrest in the next two years. Our primary 30 days buy-hold-sell advice on the company is Buy.

About Contributor

Ellen Johnson is a Member of Macroaxs Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in predictive investment analytics and risk management. View Profile

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Alico Inc. Please refer to our Terms of Use for any information regarding our disclosure principles.

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