Alico, Inc. (NASDAQ: ALCO)

Sector: Consumer Defensive Industry: Farm Products CIK: 0000003545
Market Cap 300.19 Mn
P/B 2.75
P/E -77.55
P/S 3.80
ROIC (Qtr) -92.09
Div Yield % 0.46
Rev 1y % (Qtr) -88.83
Total Debt (Qtr) 85.50 Mn
Debt/Equity (Qtr) 0.86
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About

Alico, Inc., also known as ALCO, is a company that operates in the agriculture industry, with a particular focus on the production and sale of citrus fruits, sugarcane, and cattle. The company is based in Florida and has been in operation since 1960. Alico's main business activities revolve around the cultivation and sale of agricultural products, specifically citrus fruits, sugarcane, and cattle. These operations are carried out in the United States, primarily in Florida. The company's agricultural portfolio includes oranges, grapefruits, lemons,...

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Investment thesis

Bull case

  • Healthy cash reserves of 35.52M provide 142.07x coverage of short-term debt 250000, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 22.25M provides strong 30.40x coverage of stock compensation 732000, indicating sustainable incentive practices.
  • Strong operating cash flow of 22.25M provides 1.84x coverage of SG&A expenses 12.12M, showing efficient operational cost management.
  • Robust tangible asset base of 192.72M provides 4.24x coverage of working capital 45.41M, indicating strong operational backing.
  • Retained earnings of 96.53M provide full 1.13x coverage of long-term debt 85.25M, indicating strong internal capital position.

Bear case

  • Operating cash flow of 22.25M barely covers its investment activities of 29.43M, with a coverage ratio of 0.76, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 22.25M provides thin coverage of dividend payments of (1.53M) with a -14.55 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Cash reserves of 35.52M provide limited coverage of acquisition spending of (5.07M), which is -7x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Free cash flow of 56.19M provides weak coverage of capital expenditures of (33.93M), with a -1.66 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (173.57M) show weak coverage of depreciation charges of 178.73M, with a -0.97 ratio indicating high capital intensity and potential reinvestment needs.

Segments Breakdown of Revenue (2025)

Segments Breakdown of Revenue (2025)

Peer comparison

Companies in the Farm Products
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ADM Archer-Daniels-Midland Co 33.15 Bn 30.75 0.41 9.76 Bn
2 TSN Tyson Foods, Inc. 21.32 Bn 106.61 0.39 8.36 Bn
3 BG Bunge Global SA 15.29 Bn 238.98 0.33 17.78 Bn
4 CALM Cal-Maine Foods Inc 3.98 Bn 1,160.43 2.88 0.00 Bn
5 FDP Fresh Del Monte Produce Inc 2.34 Bn 23.44 0.67 0.34 Bn
6 DOLE Dole plc 1.56 Bn 105.27 0.17 1.33 Bn
7 VITL Vital Farms, Inc. 1.26 Bn 20.76 1.77 0.06 Bn
8 AGRO Adecoagro S.A. 0.87 Bn 37.23 0.63 1.61 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.86 0.83
EV to Cash from Ops. EV/CFO 34.13 2.92
EV to Debt EV to Debt 4.23 3.55
EV to EBIT EV/EBIT -603.29 0.40
EV to EBITDA EV/EBITDA -327.58 -24.51
EV to Free Cash Flow [EV/FCF] EV/FCF 94.91 1.40
EV to Market Cap EV to Market Cap 1.21 3.04
EV to Revenue EV/Rev 4.59 0.77
Price to Book Value [P/B] P/B 2.75 0.54
Price to Earnings [P/E] P/E -77.55 89.91
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) -92.64 -21.77
Dividend Payout Ratio % Div Payout % (Qtr) -0.80 42.88
Dividend per Basic Share Div per Share (Qtr) 0.20 0.97
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 2.72 6.76
Interest Coverage Int. cover (Qtr) -35.32 -31.98
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 450.95 -1,577.17
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 589.67 86.77
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 11.26
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -220.74 -87.64
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 49.90 -202.55
EBIT Growth (1y) % EBIT 1y % (Qtr) -213.07 -99.71
EBT Growth (1y) % EBT 1y % (Qtr) -206.29 -133.79
EPS Growth (1y) % EPS 1y % (Qtr) -213.01 -151.42
FCF Growth (1y) % FCF 1y % (Qtr) 262.42 135.44
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -276.27 -28.83
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.15 1.37
Cash Payout Ratio Cash Payout (Qtr) -0.13 0.12
Cash Ratio Cash Ratio (Qtr) 10.47 0.98
Current Ratio Curr Ratio (Qtr) 14.39 2.56
Debt to Equity Ratio Debt/Equity (Qtr) 0.86 -1.90
Interest Cover Ratio Int Coverage (Qtr) -35.32 -31.98
Times Interest Earned Times Interest Earned (Qtr) -35.32 -31.98
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 17.70 691.86
EBIT Margin % EBIT Margin % (Qtr) -597.32 650.76
EBT Margin % EBT Margin % (Qtr) -614.23 644.45
Gross Margin % Gross Margin % (Qtr) -652.20 -69.17
Net Profit Margin % Net Margin % (Qtr) -487.40 644.34