Farmer Bros Company Leadership

Farmer Bros Management Team Effectiveness

The company has return on total asset (ROA) of (0.049) % which means that it has lost $0.049 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of (0.1923) %, meaning that it created substantial loss on money invested by shareholders. Farmer Bros' management efficiency ratios could be used to measure how well Farmer Bros manages its routine affairs as well as how well it operates its assets and liabilities. As of the 1st of December 2024, Return On Tangible Assets is likely to grow to -0.02. In addition to that, Return On Capital Employed is likely to grow to -0.02. At this time, Farmer Bros' Total Assets are very stable compared to the past year. As of the 1st of December 2024, Non Current Assets Total is likely to grow to about 128.7 M, while Other Current Assets are likely to drop about 4.5 M. As of the 1st of December 2024, Common Stock Shares Outstanding is likely to drop to about 14 M. In addition to that, Net Loss is likely to grow to about (67.7 M)

Farmer Bros Workforce Comparison

Farmer Bros Profit Margins

The company has Profit Margin (PM) of (0.02) %, which may suggest that it does not properly executes on its current pricing strategies or is unable to control all of the operational costs. This is way below average. Similarly, it shows Operating Margin (OM) of (0.01) %, which suggests for every $100 dollars of sales, it generated a net operating loss of $0.01.

Farmer Bros Insider Trading History

Farmer Bros Notable Stakeholders

The success or failure of an entity such as Farmer Bros often depends on how effective the management is. Farmer Bros management team is responsible for propelling the future growth in the right direction and administering and controlling the business activities and accounting for the results. Ineffective management usually contributes to failure in the company's future performance for all stakeholders equally, but most importantly, for investors. So it is important to measure the effectiveness of Farmer management before purchasing its stock. In many ways, it's all about finding the answer to one important question - Are they doing the right thing right now? How would we assess whether the Farmer management is utilizing all available resources in the best possible way? Also, how well is the company doing relative to others in its sector and the market as a whole? The answer can be found by analyzing a few important fundamental indicators such as return on assets and return on equity.

Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Farmer Bros Co. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in metropolitan statistical area. You can also try the Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..

Is Packaged Foods & Meats space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Farmer Bros. If investors know Farmer will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Farmer Bros listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.

The market value of Farmer Bros is measured differently than its book value, which is the value of Farmer that is recorded on the company's balance sheet. Investors also form their own opinion of Farmer Bros' value that differs from its market value or its book value, called intrinsic value, which is Farmer Bros' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Farmer Bros' market value can be influenced by many factors that don't directly affect Farmer Bros' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.

Please note, there is a significant difference between Farmer Bros' value and its price as these two are different measures arrived at by different means. Investors typically determine if Farmer Bros is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Farmer Bros' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.