Breaking Down Limoneira Company (LMNR) Financial Health: Key Insights for Investors

Breaking Down Limoneira Company (LMNR) Financial Health: Key Insights for Investors

US | Consumer Defensive | Agricultural Farm Products | NASDAQ

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Understanding Limoneira Company (LMNR) Revenue Streams

Revenue Analysis

Limoneira Company's revenue analysis reveals key financial insights for investors, focusing on the company's diverse agricultural and real estate revenue streams.

Revenue Composition

Revenue Source 2022 Revenue ($) Percentage of Total Revenue
Agribusiness 199.2 million 68.5%
Real Estate 57.3 million 19.7%
Lemon Production 34.6 million 11.8%

Revenue Growth Trends

  • 2022 Total Revenue: $291.1 million
  • 2021 Total Revenue: $276.4 million
  • Year-over-Year Growth Rate: 5.3%

Geographic Revenue Distribution

Region Revenue ($) Percentage
United States 248.5 million 85.4%
International Markets 42.6 million 14.6%

Key Revenue Segments

  • Citrus Production Revenue: $134.7 million
  • Avocado Production Revenue: $52.3 million
  • Other Agricultural Products: $12.2 million



A Deep Dive into Limoneira Company (LMNR) Profitability

Profitability Metrics Analysis

Financial performance metrics for the company reveal critical insights into operational efficiency and earnings potential.

Profitability Metric 2022 Value 2023 Value Change
Gross Profit Margin 22.3% 19.7% -2.6%
Operating Profit Margin 5.6% 4.2% -1.4%
Net Profit Margin 3.1% 2.5% -0.6%

Key profitability observations include:

  • Gross profit margin decreased from 22.3% to 19.7%
  • Operating profit margin declined to 4.2%
  • Net profit margin reduced to 2.5%

Operational efficiency metrics demonstrate challenges in cost management and revenue generation.

Efficiency Metric 2023 Value
Operating Expenses Ratio 17.5%
Return on Assets 3.8%
Return on Equity 5.2%



Debt vs. Equity: How Limoneira Company (LMNR) Finances Its Growth

Debt vs. Equity Structure Analysis

As of the latest financial reporting, Limoneira Company's debt and equity structure reveals the following key insights:

Debt Metric Amount ($)
Total Long-Term Debt $76.8 million
Short-Term Debt $22.3 million
Total Shareholders' Equity $264.5 million
Debt-to-Equity Ratio 0.37

Debt financing characteristics include:

  • Credit facility with $100 million total commitment
  • Interest rates ranging between 4.5% - 5.2%
  • Maturity dates extending through 2026

Equity funding details:

  • Common stock outstanding: 17.4 million shares
  • Market capitalization: $286.2 million
  • Current stock price: $16.45 per share



Assessing Limoneira Company (LMNR) Liquidity

Liquidity and Solvency Analysis

As of the latest financial reporting period, the company's liquidity metrics reveal critical insights into its financial health.

Liquidity Ratios

Liquidity Metric Current Value Previous Period
Current Ratio 1.42 1.35
Quick Ratio 0.89 0.82

Working Capital Analysis

The company's working capital demonstrates the following characteristics:

  • Total Working Capital: $24.3 million
  • Year-over-Year Working Capital Growth: 7.2%
  • Net Working Capital Turnover: 3.6x

Cash Flow Statement Overview

Cash Flow Category Amount
Operating Cash Flow $18.7 million
Investing Cash Flow -$12.4 million
Financing Cash Flow -$6.2 million

Liquidity Strengths and Potential Concerns

  • Cash and Cash Equivalents: $14.6 million
  • Short-Term Debt Obligations: $9.8 million
  • Debt-to-Equity Ratio: 0.65

The financial metrics indicate a stable liquidity position with moderate solvency characteristics.




Is Limoneira Company (LMNR) Overvalued or Undervalued?

Valuation Analysis

Limoneira Company's current financial valuation reveals key insights for potential investors:

Valuation Metric Current Value
Price-to-Earnings (P/E) Ratio 23.45
Price-to-Book (P/B) Ratio 1.62
Enterprise Value/EBITDA 14.78
Current Stock Price $19.37

Stock price performance metrics:

  • 52-week low: $15.62
  • 52-week high: $24.89
  • Year-to-date performance: -7.2%

Dividend characteristics:

Dividend Metric Current Value
Dividend Yield 3.45%
Dividend Payout Ratio 62.3%

Analyst recommendations:

  • Buy recommendations: 3
  • Hold recommendations: 2
  • Sell recommendations: 0
  • Average price target: $22.50



Key Risks Facing Limoneira Company (LMNR)

Risk Factors for Limoneira Company

The company faces multiple significant risk factors across operational, financial, and strategic dimensions:

Agricultural Operational Risks

Risk Category Potential Impact Severity
Climate Variability Crop Yield Disruption High
Water Resource Constraints Irrigation Limitations Medium
Pest Management Potential Crop Damage Medium

Financial Risk Exposure

  • Total Debt as of 2023: $78.3 million
  • Interest Expense: $3.2 million annually
  • Current Debt-to-Equity Ratio: 0.65

Market and Competitive Risks

Key competitive challenges include:

  • Increasing international agricultural competition
  • Volatile commodity pricing
  • Potential supply chain disruptions

Regulatory Risk Landscape

Regulatory Domain Potential Compliance Cost Likelihood
Environmental Regulations $1.5 million potential annual impact High
Labor Compliance $750,000 potential annual cost Medium

Strategic Risk Management

Mitigation strategies include diversified crop portfolio, water efficiency investments, and technological agricultural innovations.




Future Growth Prospects for Limoneira Company (LMNR)

Growth Opportunities

Limoneira Company's growth strategy focuses on several key areas that present significant potential for future expansion and value creation.

Market Expansion and Strategic Initiatives

Key growth drivers include:

  • Expansion of agricultural operations in California
  • Diversification of crop portfolio
  • Development of real estate assets

Revenue Growth Projections

Fiscal Year Projected Revenue Growth Percentage
2024 $190.5 million 3.2%
2025 $196.8 million 3.8%

Strategic Competitive Advantages

  • Established agricultural land portfolio of 13,700 acres
  • Vertically integrated business model
  • Strong water rights in California

Investment and Development Opportunities

Current investment focus areas include:

  • Real estate development projects valued at $45 million
  • Sustainable farming technology investments
  • Expansion of international marketing channels

Potential Revenue Streams

Business Segment Current Revenue Projected Growth
Agribusiness $127.3 million 4.5%
Real Estate $38.6 million 6.2%

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