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Alico Inc (ALCO)
NASDAQ:ALCO
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Alico
(NASDAQ:ALCO)
Rating:53Neutral
Price Target:
$31.00
▼(-3.85%Downside)
Alico (ALCO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$246.38M
Dividend Yield0.62%
Average Volume (3M)28.59K
Price to Earnings (P/E)33.0
Beta (1Y)0.31
Revenue Growth23.36%
EPS Growth-451.44%
CountryUS
Employees199
SectorUtilities
Sector Strength82
IndustryAgricultural Farm Products
Share Statistics
EPS (TTM)-13.39
Shares Outstanding7,642,085
10 Day Avg. Volume27,994
30 Day Avg. Volume28,586
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)1.82
Price to Sales (P/S)0.00
P/FCF Ratio-11.44
Enterprise Value/Market Cap0.94
Enterprise Value/Revenue1.20
Enterprise Value/Gross Profit-7.17
Enterprise Value/Ebitda-1.70
Forecast
1Y Price Target
$35.00Price Target Upside8.56% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Alico Business Overview & Revenue Model
Company DescriptionAlico, Inc. (ALCO) is a Florida-based agribusiness and land management company primarily engaged in citrus production and conservation. The company operates in two main segments: Alico Citrus and Land Management and Other Operations. Alico Citrus is one of the largest citrus producers in the United States, focusing on the cultivation, harvesting, and marketing of citrus fruits, primarily oranges. The Land Management and Other Operations segment involves managing land holdings, leasing land for recreational and agricultural purposes, and participating in conservation programs.
How the Company Makes MoneyAlico makes money primarily through the sale of citrus products, which include fresh fruit and citrus by-products. The company generates revenue by selling these products to citrus processors who then manufacture orange juice and other related products. Additionally, Alico earns income through its Land Management and Other Operations by leasing land for various uses such as grazing and farming, as well as engaging in land conservation programs that may provide tax incentives or government payments. Partnerships with citrus processors and participation in government conservation initiatives are significant factors contributing to Alico's earnings.
Alico Earnings Call Summary
Earnings Call Date:May 13, 2025
(Q2-2025)
| % Change Since: 9.47%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture, with significant progress in strategic transformation and diversification efforts, alongside increased land sales outlook and improved cash position. However, these positives were tempered by decreased revenue, substantial net losses, and increased operating expenses driven by accelerated depreciation and impairments. The transformation strategy holds promise, but financial challenges remain evident.Q2-2025 Updates
Positive Updates
Strategic Transformation Progress
Alico has made significant progress in its Strategic Transformation, including the completion of the fiscal year 2025 harvest and reduction of workforce from approximately 200 to 25 employees, aligning with its transformed business model.
Increased Land Sales Outlook
Alico raised its fiscal year 2025 land sales outlook to potentially $50 million, a 150% increase from the prior guidance, which could significantly improve annual adjusted EBITDA.
Diversification of Agricultural Operations
Alico is actively engaging with agricultural operators in Florida to diversify its agricultural activities, negotiating agreements for leasing 5,250 acres to third-party citrus growers and expanding into sod production and sand mining.
Corkscrew Grove Villages Development
The Corkscrew Grove Villages development application, a significant transformation milestone, was filed, planning for two mixed-use master plan communities and expected to bring significant economic benefits to the region.
Strong Land Management Revenue
Land Management and Other operations revenue increased by 107% for the quarter, driven by rock and sand royalty income and sod sales.
Improved Cash Position
Cash and cash equivalents increased to $14.7 million from $3.2 million at the end of fiscal year 2024, with operating cash usage reduced from $19.7 million to $0.6 million for the six months ended March 31, 2025.
Negative Updates
Decreased Revenue
Revenue decreased by 1% for the quarter to $18 million and by 9% for the six months, impacted by reduced citrus harvest volumes due to the effects of Hurricane Milton.
Significant Net Loss
Alico reported a net loss of $111.4 million for the quarter, significantly higher than the $15.8 million loss in the same period of the prior year, primarily due to $119.3 million in accelerated depreciation and impairment charges.
Increased Operating Expenses
Operating expenses increased substantially, driven by non-cash accelerated depreciation and impairment of assets, totaling $167.7 million for the quarter, compared to $36.3 million in the prior year.
Challenges in Citrus Operations
Harvest volumes were lower compared to the prior year, driven by the impact of Hurricane Milton, and the company concluded its major capital investment in Citrus Operations.
Company Guidance
During Alico's Second Quarter 2025 earnings call, the company provided updated guidance reflecting its Strategic Transformation progress. Alico completed the fiscal year 2025 citrus harvest and reduced its workforce from 200 to 25 employees, greatly lowering operating expenses. The company increased its land sales outlook to potentially exceed $50 million, a 150% increase from prior guidance, which could significantly improve adjusted EBITDA. Alico reported revenue of $18 million, a 1% decrease from the prior year, and a net loss of $111.4 million attributed primarily to $119.3 million in accelerated depreciation from winding down Citrus Operations. The company's adjusted EBITDA reached a gain of $12.7 million, improving from a loss of $16.5 million in the prior year. Looking ahead, Alico expects to end the fiscal year with a cash balance of $25 million and a net debt of approximately $60 million, supported by potential land sales and the 2024-2025 citrus harvest.Alico Financial Statement Overview
Summary
Alico's financial health is under pressure, with persistent profitability issues and cash flow constraints. The company faces significant financial challenges with high leverage and operational inefficiencies, which could impact its ability to sustain growth in the competitive consumer products industry.Income Statement
The company's income statement shows significant challenges with profitability, as evidenced by negative gross profit and net profit margins in the TTM period. Revenue growth has been inconsistent, with a significant decline in recent years. The EBIT and EBITDA margins are also negative, indicating operational inefficiencies.35
Negative
Balance Sheet
The balance sheet reveals a high debt-to-equity ratio, suggesting a leveraged position. However, the company's equity ratio indicates a reasonable proportion of equity financing. Return on equity has been volatile, reflecting fluctuating net income levels.45
Neutral
Cash Flow
Cash flow analysis shows negative free cash flow growth, with operating cash flow consistently negative, impacting liquidity. The ratios of operating and free cash flow to net income highlight cash flow challenges despite occasional positive net income.40
Negative
| Breakdown | |||||
| TTM | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | Sep 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 49.42M | 46.64M | 39.85M | 91.95M | 108.56M | 92.51M | Gross Profit |
| -32.21M | -56.38M | 6.45M | -14.77M | 23.89M | 17.92M | EBIT |
| -193.36M | -67.45M | -4.20M | -24.84M | 14.44M | 6.92M | EBITDA |
| -177.17M | 29.50M | 22.86M | 31.51M | 29.56M | 51.88M | Net Income Common Stockholders |
| -140.72M | 6.97M | 1.83M | 12.46M | 34.86M | 23.66M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 14.66M | 3.15M | 1.06M | 865.00K | 886.00K | 3.16M | Total Assets |
| 243.16M | 398.72M | 428.35M | 409.25M | 433.22M | 423.94M | Total Debt |
| 7.90M | 92.12M | 128.70M | 110.88M | 125.31M | 150.04M | Net Debt |
| -6.75M | 88.97M | 127.64M | 110.01M | 124.42M | 146.88M | Total Liabilities |
| 107.95M | 142.42M | 177.98M | 160.39M | 185.61M | 202.16M | Stockholders Equity |
| 130.21M | 251.16M | 244.99M | 243.74M | 242.20M | 216.34M |
| Cash Flow | Free Cash Flow | ||||
| -20.78M | -48.37M | -22.91M | -14.34M | -24.73M | -21.11M | Operating Cash Flow |
| -11.33M | -30.50M | -6.25M | 6.52M | 16.50M | 1.05M | Investing Cash Flow |
| 16.90M | 68.18M | -4.12M | 22.47M | -3.27M | 9.49M | Financing Cash Flow |
| 3.88M | -37.98M | 13.20M | -29.01M | -32.04M | -14.69M |
Alico Technical Analysis
Positive
32.24
Price Trends
29.69
Positive
29.78
Positive
28.27
Positive
Market Momentum
0.78
Negative
71.55
Negative
94.49
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALCO, the sentiment is Positive. The current price of 32.24 is above the 20-day moving average (MA) of 30.53, above the 50-day MA of 29.69, and above the 200-day MA of 28.27, indicating a bullish trend. The MACD of 0.78 indicates Negative momentum. The RSI at 71.55 is Negative, neither overbought nor oversold. The STOCH value of 94.49 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ALCO.
Alico Risk Analysis
Alico disclosed 35 risk factors in its most recent earnings report. Alico reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks
1.
Our workforce reduction may not result in our intended outcomes and may yield unintended consequences and additional costs. Q4, 2024
Alico Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
84 Outperform | $5.01B | 4.65 | 48.27% | 7.20% | 60.00% | 259.01% | |
65 Neutral | $371.57M | 6.42 | 15.25% | 6.67% | 1.09% | 21.46% | |
64 Neutral | $931.94M | 14.71 | 4.51% | 3.67% | 17.05% | -73.53% | |
64 Neutral | $284.39M | 38.02 | 4.34% | 1.90% | 2.39% | ― | |
64 Neutral | $8.52B | 10.27 | 4.70% | 4.37% | 4.26% | -13.05% | |
53 Neutral | $246.38M | 32.96 | -70.02% | 0.62% | 23.36% | -451.44% |
* Utilities Sector Average
Performance Comparison
ALCO
Alico
32.25
6.55
25.49%
AGRO
Adecoagro SA
9.21
-0.17
-1.81%
CALM
Cal-Maine Foods
95.93
39.06
68.68%
LMNR
Limoneira Co
15.79
-3.98
-20.13%
LND
BrasilAgro Cia Brasileira de Propriedades Agricolas
3.78
-0.96
-20.25%
Alico Corporate Events
Business Operations and Strategy
Alico Ends Orange Purchase Agreement with Tropicana
Neutral
May 23, 2025
Alico, Inc. announced that on May 23, 2025, it mutually terminated its Orange Purchase Agreement with Tropicana Manufacturing Company, Inc., originally dated April 11, 2024. The termination, effective immediately, includes a mutual release clause and requires all obligations for the 2024/2025 Crop Year to be settled by July 15, 2025.
The most recent analyst rating on (ALCO) stock is a Buy with a $35.00 price target. To see the full list of analyst forecasts on Alico stock, see the ALCO Stock Forecast page.
M&A TransactionsBusiness Operations and Strategy
Alico’s Land Sale Agreement Terminated by Harford Farms
Neutral
May 2, 2025
On April 22, 2025, Alico, Inc. and 734 LMC Groves, LLC entered into a Purchase and Sale Agreement with Harford Farms LLC to sell specified acreages of land for approximately $183.7 million, excluding certain personal property and existing citrus crops. The agreement included customary representations, warranties, and a financing contingency allowing termination if financing approval was not obtained within 30 days. On May 1, 2025, Harford Farms LLC terminated the agreement due to an inability to meet the financing contingency, with no penalties incurred by either party.
Executive/Board ChangesShareholder Meetings
Alico Shareholders Approve Stock Plan Extension and Board Elections
Neutral
Feb 28, 2025
On February 28, 2025, Alico, Inc. held its Annual Meeting of Shareholders where key decisions were made regarding the company’s governance and incentive plans. The shareholders approved the amendment and restatement of the Alico, Inc. Stock Incentive Plan of 2015, extending its term through December 17, 2035. Additionally, the election of eight directors to the board and the ratification of Grant Thornton LLP as the independent registered public accounting firm for the fiscal year ending September 30, 2025, were confirmed.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.