📊 FARM Key Takeaways
Is Farmer Brothers Co (FARM) a Good Investment?
Farmer Brothers is experiencing severe operational distress with negative operating income of -7.3M and deteriorating profitability despite flat revenue growth. The company is burning cash with operating cash flow of -5.8M and free cash flow of -9.6M, while carrying 23M in long-term debt against only 4.2M in cash reserves. Structural profitability challenges combined with weak liquidity and negative returns on assets present significant financial stress.
Farmer Brothers shows stable revenue and a workable gross margin, but the business remains structurally unprofitable with negative operating income, negative net income, and negative free cash flow. Financial health is strained by low cash, weak quick liquidity, and negative interest coverage, which limits flexibility if operating improvement does not materialize. Fundamentally, this looks more like a turnaround situation than a healthy compounder.
Why Buy Farmer Brothers Co Stock? FARM Key Strengths
- Maintains reasonable gross margin of 37.9% suggesting core product pricing power
- Current ratio of 1.27x provides basic short-term liquidity buffer
- Stable revenue base at 170.5M with flat YoY growth showing market presence
- Revenue was roughly flat year over year, indicating demand has not collapsed
- Gross margin of 37.9% suggests the core product mix still has economic value before overhead and financing costs
- Debt/equity of 0.65x is not extreme on its own, giving some balance-sheet capacity if operations improve
FARM Stock Risks: Farmer Brothers Co Investment Risks
- Deeply negative operating margins (-4.3%) and persistent net losses (-8.9M) indicate fundamental operational problems
- Critical cash burn with negative free cash flow of -9.6M and negative operating cash flow unsustainable long-term
- Weak cash position of 4.2M against 23M long-term debt and negative interest coverage ratio of -1.2x raises solvency concerns
- Quick ratio of 0.52x well below 1.0 threshold signals severe working capital stress
- Negative ROE of -24.9% and ROA of -5.9% demonstrate value destruction
- Persistent operating losses and a -4.3% operating margin indicate the cost structure is still too heavy
- Negative operating cash flow and -5.6% free cash flow margin show profits are not converting into cash
- Low cash balance, 0.52x quick ratio, and negative interest coverage increase near-term liquidity and refinancing risk
Key Metrics to Watch
- Operating cash flow trajectory and ability to achieve positive OCF
- Gross profit margin sustainability as fixed costs may constrain recovery
- Debt refinancing needs and covenant compliance given negative interest coverage
- Working capital management and inventory turnover efficiency
- Operating margin and operating cash flow improvement
- Liquidity position, especially cash balance and quick ratio
Farmer Brothers Co (FARM) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Farmer Brothers Co presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
FARM Profit Margin, ROE & Profitability Analysis
FARM vs Consumer Sector: How Farmer Brothers Co Compares
How Farmer Brothers Co compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Farmer Brothers Co Stock Overvalued? FARM Valuation Analysis 2026
Based on fundamental analysis, Farmer Brothers Co shows some fundamental concerns relative to the Consumer sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Farmer Brothers Co Balance Sheet: FARM Debt, Cash & Liquidity
FARM Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Farmer Brothers Co's revenue has declined by 43% over the 5-year period, indicating business contraction. The most recent EPS of $-0.19 indicates the company is currently unprofitable.
FARM Revenue Growth, EPS Growth & YoY Performance
FARM Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $88.9M | $210.0K | $0.01 |
| Q1 2026 | $81.6M | -$4.0M | $-0.19 |
| Q3 2025 | $82.1M | $210.0K | $0.03 |
| Q2 2025 | $89.5M | $210.0K | $0.01 |
| Q1 2025 | $81.9M | -$1.3M | $-0.06 |
| Q3 2024 | $85.4M | -$682.0K | $0.03 |
| Q2 2024 | $88.9M | -$1.3M | $0.07 |
| Q1 2024 | $79.8M | -$1.3M | $-0.06 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Farmer Brothers Co Dividends, Buybacks & Capital Allocation
FARM SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Farmer Brothers Co (CIK: 0000034563)
📋 Recent SEC Filings
❓ Frequently Asked Questions about FARM
What is the AI rating for FARM?
Farmer Brothers Co (FARM) has a Combined AI Rating of SELL from Claude (STRONG SELL) and ChatGPT (SELL) with 86% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are FARM's key strengths?
Claude: Maintains reasonable gross margin of 37.9% suggesting core product pricing power. Current ratio of 1.27x provides basic short-term liquidity buffer. ChatGPT: Revenue was roughly flat year over year, indicating demand has not collapsed. Gross margin of 37.9% suggests the core product mix still has economic value before overhead and financing costs.
What are the risks of investing in FARM?
Claude: Deeply negative operating margins (-4.3%) and persistent net losses (-8.9M) indicate fundamental operational problems. Critical cash burn with negative free cash flow of -9.6M and negative operating cash flow unsustainable long-term. ChatGPT: Persistent operating losses and a -4.3% operating margin indicate the cost structure is still too heavy. Negative operating cash flow and -5.6% free cash flow margin show profits are not converting into cash.
What is FARM's revenue and growth?
Farmer Brothers Co reported revenue of $170.5M.
Does FARM pay dividends?
Farmer Brothers Co does not currently pay dividends.
Where can I find FARM SEC filings?
Official SEC filings for Farmer Brothers Co (CIK: 0000034563) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is FARM's EPS?
Farmer Brothers Co has a diluted EPS of $-0.41.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is FARM a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Farmer Brothers Co has a SELL rating with 86% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is FARM stock overvalued or undervalued?
Valuation metrics for FARM: ROE of -24.9% (sector avg: 18%), net margin of -5.2% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.
Should I buy FARM stock in 2026?
Our dual AI analysis gives Farmer Brothers Co a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is FARM's free cash flow?
Farmer Brothers Co's operating cash flow is $-5.8M, with capital expenditures of $3.8M. FCF margin is -5.6%.
How does FARM compare to other Consumer stocks?
Vs Consumer sector averages: Net margin -5.2% (avg: 8%), ROE -24.9% (avg: 18%), current ratio 1.27 (avg: 1.5).