Farmer Bros. Co. Stock Price and Value Analysis

Should you buy Farmer Bros. Co. stock? (NasdaqGS:FARM). Let's see how it does in our automated value investing analysis system.

FARM Free Cash Flow Trend

Free Cash Flow trendline for FARM
Free Cash Flow trendline for Farmer Bros. Co.

Based on historical returns, we believe that Farmer Bros. Co. can grow its free cash at a rate of about 5%. That's positive!

AdvantagesDisadvantagesNeutral
  • This company is solid.
  • This stock is available at a great discount!
  • This company has wild ups and downs.
  • This company is making money at a modest rate.
  • This company pays no dividend.

Inside the FARM Numbers

FARM Price
(Farmer Bros. Co. stock price per share)
$7.92
[?] FARM Fair Price
(based on intrinsic value)
$19.30
[?] FARM Safety Price (based on a variable margin of safety) $12.55
[?] PE Ratio versus Sector 69% higher than other Consumer Goods stocks
[?] PE Ratio versus Industry 50% lower than other Packaged Foods stocks
[?] Cash Yield 22.66%
[?] Free Cash Flow Jitter 1781%

This stock has short interest! This means that people have shorted it.

Why does that matter? They've made a bet that price will decrease from where they bought it. Maybe there are financial problems, or maybe there's a value play.

As of the latest analysis, there are 666,084 shares shorted. With 14,041,946 shares available for purchase and an average trading volume over the past 10 trading days of 251,928, it would take at least 2.644 days for all of the short holders to cover their shorts.

Is Farmer Bros. Co. Stock on Sale?

We believe that Farmer Bros. Co. may be worth examining further. It's making money, which is a very positive sign. Is it on sale?

Even better, Farmer Bros. Co. looks like a stock on sale. Based on our analysis—if the company keeps making money the way it has been—you may be looking at a bargain. Keep this stock in mind as you put together your portfolio! See Before You Buy for your next steps (and read our disclaimer about investing risk).

Should You Buy FARM Stock?

Does Farmer Bros. Co. have a coherent story? Does it have a plan to continue to make money? Is it worth your time? Only you can decide where to go from here. Our investment guide helps you ask the right questions, including how to buy stocks. Use these research links for more information.