Farmer Story

FARM -- USA Stock

USD 5.65 0.04 0.71%

Macroaxis Story

As many millenniums are trying to avoid consumer defensive space, it makes sense to summarize Farmer Brothers a little further and try to understand its current market patterns. As we have suggested previously, Farmer Brothers is beginning its pull down as stakeholders shift to be more bearish due to the increased sector volatility. Farmer Brothers hyperactively responds to market trends. A great deal of the actions of the company stock price movements has been a reflection of what is happening in the market overall. Steady technical and fundamental indicators of the company may denote signs of medium-term price drift for stakeholders. Farmer Brothers is scheduled to announce its earnings today. The next earnings report is expected on the 5th of November 2020. The stock continues to experience an active downward rally.

Published over three months ago

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Is Farmer Brothers (NASDAQ:FARM) moving to revert?

Farmer Brothers's average rating is Hold from 2 analysts. Do analysts base this consensus on technical analyses? We know that typical technical analysis utilizes price momentum, patterns, and trends looking at historical prices. It aims to identify signals based on Farmer Brothers market sentiment investors' perception of the future value of Farmer. Let us look at a few aspects of Farmer technical analysis.

Using predictive technical analysis, we will analyze different prices and returns patterns and diagnose historical swings to determine the real value of Farmer Brothers. In general, we focus on analyzing Farmer Brothers stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build Farmer Brothers's daily price indicators and compare them against related drivers such as momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional technical analysis and fundamental analysis, we attempt to find the most accurate representation of Farmer Brothers's intrinsic value. In addition to deriving basic predictive indicators for Farmer Brothers, we also check how macroeconomic factors affect Farmer Brothers price patterns. Please read more on our technical analysis page or use our predictive modules below to complement your research.

Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Farmer Brothers' stock price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Farmer Brothers in the context of predictive analytics.

Please note, it is not enough to conduct a financial or market analysis of a single entity such as Farmer Brothers. Your research has to be compared to or analyzed against Farmer Brothers' peers to derive any actionable benefits. When done correctly, Farmer Brothers' competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Farmer Brothers.

How does Farmer Stands against Peers?

Analyzing Farmer Brothers competition or peers my help you to expand the diversification possibilities of your existing portfolios and to get a better perspective on locking in new positions. Try to analyze the advantages of investing in traded instruments related to Farmer Brothers across multiple sectors and thematic ideas. A good competitive analysis can cover a lot of different areas. But what areas to choose depends on who you are. The more exhaustive you are in your analysis, the more effective your competitive analysis will be.

Check out Farmer Brothers Competition Details

How Farmer utilizes its cash?

To perform a cash flow analysis of Farmer Brothers, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Farmer Brothers is receiving and how much cash it distributes out in a given period. The Farmer Brothers cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Farmer Brothers Net Cash Flow from Operations is relatively stable at the moment as compared to the past year. The company's current value of Net Cash Flow from Operations is estimated at 1.72 Million

What is driving Farmer Brothers Investor Appetite?

The entity has a beta of 2.1123. Let's try to break down what Farmer's beta means in this case. Farmer Brothers returns are very sensitive to returns on the market. As the market goes up or down, Farmer Brothers is expected to follow. The beta indicator helps investors understand whether Farmer Brothers moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if Farmer deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns. The firm reported the previous year's revenue of 562.29 M. Net Loss for the year was (36.68 M) with profit before overhead, payroll, taxes, and interest of 179.1 M.

Farmer Brothers to fall back in October

New standard deviation is at 6.07. Farmer Brothers is displaying above-average volatility over the selected time horizon. Investors should scrutinize Farmer Brothers independently to ensure intended market timing strategies are aligned with expectations about Farmer Brothers volatility.

The Current Takeaway on Farmer Brothers Investment

While some companies in the packaged foods industry are either recovering or due for a correction, Farmer Brothers may not be performing as strong as the other in terms of long-term growth potentials. The bottom line, as of the 10th of September 2020, we believe that Farmer Brothers is currently undervalued with below average chance of distress in the next two years. Our current 30 days buy vs. sell advice on the company is Cautious Hold.

About Contributor

Raphi Shpitalnik is a Junior Member of Macroaxs Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time base at the beginning of the pandemic and eventually acquired a real test for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI. 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 Raphi Shpitalnik do not own shares of Farmer Brothers. Please refer to our Terms of Use for any information regarding our disclosure principles.

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Farmer Story

USD 5.65 0.04 0.71%

How does Farmer Stands against Peers?

How Farmer utilizes its cash?

What is driving Farmer Brothers Investor Appetite?

Farmer Brothers to fall back in October

The Current Takeaway on Farmer Brothers Investment

About Contributor

Would you like to provide feedback on the content of this article?

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