Farmer Brothers Company (FARM) AI Stock Analysis

• Market Cap: $38.02M
• Dividend Yield: N/A
• Average Volume (3M): 66.36K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.68
• Revenue Growth: 0.35%
• EPS Growth: -272.31%
• Country: US
• Employees: 1,003
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): -0.22
• Shares Outstanding: 21,602,013
• 10 Day Avg. Volume: 51,042
• 30 Day Avg. Volume: 66,357
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.67
• Price to Sales (P/S): 0.09
• P/FCF Ratio: 4.51
• Enterprise Value/Market Cap: 2.00
• Enterprise Value/Revenue: 0.22
• Enterprise Value/Gross Profit: 0.51
• Enterprise Value/Ebitda: 16.76
• 1Y Price Target: $3.00
• Price Target Upside: 70.45% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 48 Neutral
• Price Target: $1.50 ▼(-14.77% Downside)

Farmer Brothers Company has a mixed outlook. The most significant factor is the company's financial performance, which shows improvements in revenue and gross margins but struggles with profitability and cash flow. The earnings call provided some positive insights into operational improvements, but technical analysis and valuation remain weak, reflecting ongoing challenges and market headwinds.

Farmer Brothers Company Business Overview & Revenue Model

Company Description

Farmer Bros. Co. engages in the roasting, wholesale, equipment servicing, and distribution of coffee, tea, and culinary products in the United States. The company offers roast and ground coffee; frozen liquid coffee; flavoured and unflavoured iced and hot teas; culinary products, including spices, pancake and biscuit mixes, gravy and sauce mixes, soup bases, dressings, and syrups and sauces, as well as coffee filters, cups, sugar, and creamers; and other beverages comprising cappuccino, cocoa, granitas, and other blender-based beverages and concentrated and ready-to-drink cold brew and iced coffee. It serves small independent restaurants, foodservice operators, and large institutional buyers, as well as consumers. The company distributes its products through direct-store-delivery network, and common carriers or third-party distributors, as well as Website. The company was founded in 1912 and is headquartered in Northlake, Texas.

How the Company Makes Money

Farmer Brothers Company generates revenue primarily through the sale of coffee and related products. The company operates a direct sales model, supplying products to foodservice businesses across the United States. Key revenue streams include wholesale coffee distribution, where they offer a wide range of coffee blends and brewing equipment, as well as tea and culinary products. The company also benefits from its strategic partnerships with various coffee growers and suppliers, ensuring a steady supply of high-quality beans. Additionally, Farmer Brothers has invested in technology and logistics to enhance its distribution efficiency, which contributes to cost savings and improved margins. The company’s focus on sustainability and quality also helps in building customer loyalty and repeat business, further driving its revenue growth.

Farmer Brothers Company Financial Statement Overview

Summary

Farmer Brothers Company shows mixed financial performance. While revenue growth and gross profit margins have improved, the company struggles with profitability and cash flow generation. The balance sheet shows some improvement in leverage, but negative return on equity and cash flow challenges highlight areas needing attention.

Income Statement

Farmer Brothers Company shows a mixed performance in its income statement. The gross profit margin has improved over the years, reaching 43.51% in 2025, indicating efficient cost management. However, the company has consistently reported negative net profit margins, with a significant decline in 2025 to -4.24%. Revenue growth is positive, with a notable increase of 21.8% in 2025, but the persistent negative EBIT and EBITDA margins highlight ongoing operational challenges.

Balance Sheet

The balance sheet reveals a moderate financial position. The debt-to-equity ratio has improved to 0.89 in 2025, suggesting better leverage management compared to previous years. However, the return on equity remains negative, indicating that the company is not generating sufficient returns on shareholders' equity. The equity ratio has not been provided, but the overall leverage position shows some improvement.

Cash Flow

Cash flow analysis indicates challenges in generating positive cash flows. The operating cash flow has turned positive in 2025, but the free cash flow growth rate is negative, reflecting difficulties in maintaining cash reserves. The operating cash flow to net income ratio is low, and the free cash flow to net income ratio is below 1, suggesting inefficiencies in converting net income into cash.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	342.28M	342.28M	341.09M	339.96M	314.78M	261.91M
Gross Profit	148.91M	148.91M	133.89M	114.61M	133.81M	95.78M
EBITDA	4.53M	4.53M	15.56M	-3.94M	24.76M	8.81M
Net Income	-14.52M	-14.52M	-3.88M	-79.18M	-15.66M	-41.65M
Balance Sheet
Total Assets	161.23M	161.23M	185.21M	187.78M	350.07M	338.01M
Cash, Cash Equivalents and Short-Term Investments	6.80M	6.80M	5.83M	5.24M	9.82M	10.26M
Total Debt	53.27M	53.27M	59.41M	48.68M	135.41M	115.84M
Total Liabilities	117.68M	117.68M	139.66M	149.67M	245.32M	233.05M
Stockholders Equity	43.55M	43.55M	45.55M	38.11M	104.75M	104.96M
Cash Flow
Free Cash Flow	6.51M	6.51M	-27.99M	-21.90M	-26.62M	-16.60M
Operating Cash Flow	16.10M	16.10M	-14.15M	-6.88M	-11.45M	-1.49M
Investing Cash Flow	-5.90M	-5.90M	14.72M	88.44M	-6.04M	-10.70M
Financing Cash Flow	-9.23M	-9.23M	10.00K	-86.14M	17.05M	-37.39M

Farmer Brothers Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.76
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FARM, the sentiment is Positive. The current price of 1.76 is above the 20-day moving average (MA) of 1.75, below the 50-day MA of 1.84, and below the 200-day MA of 1.83, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 49.16 is Neutral, neither overbought nor oversold. The STOCH value of 28.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FARM.

Farmer Brothers Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SENEA	―	$741.85M	17.30	7.04%	―	7.30%	-13.73%
Sector *	―	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
JVA	―	$23.29M	12.56	7.17%	―	17.92%	64.96%
FARM	―	$38.02M	―	-32.58%	―	0.35%	-272.31%
NAII	―	$16.83M	-1.22	-17.98%	―	13.83%	-82.27%
LSF	―	$51.40M	-46.17	-8.34%	―	22.79%	74.00%

Farmer Brothers Company Corporate Events

Farmer Brothers’ Earnings Call: Mixed Sentiment Amid Challenges

Farmer Brothers’ recent earnings call revealed a mixed sentiment, highlighting significant operational and financial improvements alongside challenges such as decreased coffee volumes and rising costs. The company has made strides in efficiency and brand initiatives, but market headwinds pose potential risks to future financial outcomes.

Farmer Brothers Reports Fiscal 2025 Financial Results

Farmer Brothers Coffee Co., founded in 1912, is a national coffee roaster, wholesaler, and distributor specializing in coffee, tea, and culinary products, serving a diverse range of U.S.-based customers from small restaurants to large institutional buyers.

Farmer Brothers Amends Executive Severance Agreements

On August 12, 2025, Farmer Brothers Company amended its severance agreements with key executives, including the CEO, CFO, and General Counsel, to redefine ‘Good Reason’ and adjust severance terms during a change in control period. Additionally, the company established bonus agreements for these executives, contingent on closing a change in control transaction by January 1, 2026, with alternative compensation arrangements if the target is not met.

The most recent analyst rating on (FARM) stock is a Buy with a $6.00 price target. To see the full list of analyst forecasts on Farmer Brothers Company stock, see the FARM Stock Forecast page.