Limoneira Co Stock Upgraded (LMNR)

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

NEW YORK ( TheStreet) -- Limoneira (Nasdaq: LMNR) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

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Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 7.0%. Since the same quarter one year prior, revenues slightly increased by 6.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • LIMONEIRA CO has improved earnings per share by 9.8% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, LIMONEIRA CO increased its bottom line by earning $0.12 versus $0.01 in the prior year. This year, the market expects an improvement in earnings ($0.34 versus $0.12).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Food Products industry average. The net income increased by 9.6% when compared to the same quarter one year prior, going from $4.64 million to $5.08 million.
  • 43.50% is the gross profit margin for LIMONEIRA CO which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 20.60% is above that of the industry average.
  • Net operating cash flow has increased to $7.54 million or 24.41% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -5.03%.
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Limoneira Company engages in agribusiness and real estate development businesses primarily in the United States. The Company operates in three reportable operating segments; Agribusiness, Rental Operations, and Real Estate Development. The company has a P/E ratio of 79.8, equal to the average food & beverage industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Limoneira has a market cap of $259.3 million and is part of the consumer goods sector and food & beverage industry. Shares are up 36.6% year to date as of the close of trading on Friday.

You can view the full Limoneira Ratings Report or get investment ideas from our investment research center.

-- Written by a member of TheStreet Ratings Staff

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

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