Farmer Brothers Company Common Stock (FARM)
FairStock Score: 34/100 — RISKY
Key Financials
| Current Price | $1.28 |
| Market Cap | $28M |
| P/E Ratio | -1.49 |
| ROE | -48.26% |
| Dividend Yield | —% |
| Sector | Consumer Defensive |
AI Analysis
AI-generated, general educational analysis — not personal investment advice.
I am a value investor who wants to buy a sound business at a sensible price, not just a low price. Farmer Brothers is a small consumer-defensive coffee, tea, and culinary products company with 865 employees. In the quarter reported as 2025-Q4, revenue was $88.9 million and net income was -$4.9 million, a -5.47% margin. Those are not the marks of a thriving enterprise. Trailing free cash flow is -$2.7 million, and the FairStock calculation of FCF yield is -9.9%. The company has a debt-to-equity ratio of 1.57, a FairStock return on equity of -48.26%, and return on capital employed of -2.18%. Its FairStock Altman Z-Score of 0.30 and Piotroski F-Score of 3/9 suggest financial fragility. The provided growth figures show revenue growth of -1.22% and profit growth of -999.00%, so the trajectory is poor. At a $27.5 million market cap and a $1.28 close on 2026-05-15, the stock trades at a FairStock P/B of 0.78, and the FairStock P/E is negative at -1.49. A low price-to-book can be a starting point, but only if assets earn a decent return and cash flow is positive. Here, the business is burning cash and losing money. I see no clear competitive moat in these figures; it is a competitive packaged-foods and coffee distributor. The FairStock Score is 34/100, and the computed Lynch category is none because there are only 0 years of filed results, needing 3. This looks like a financially stressed company with an uncertain turnaround, not a classic bargain.
In plain English: Farmer Brothers roasts and sells coffee, tea, and related food and drink products, and it services equipment. The business looks weak right now: in its latest quarter it lost money and its cash flow was negative. The stock price is below the value of its net assets on the books, but because profits and cash flow are negative, it is not clearly a bargain.
The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.
Data as of 2026-05-15 close · note generated 2026-10-15 · model deepseek-flash
Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer