Alico, Inc. (ALCO) | Investment Case

1. Company Snapshot

1.a. Company Description

Alico, Inc., together with its subsidiaries, operates as an agribusiness and land management company in the United States.The company operates in two segments, Alico Citrus, and Land Management and Other Operations.The Alico Citrus segment cultivates citrus trees to produce citrus for delivery to the processed and fresh citrus markets.

The Land Management and Other Operations segment owns and manages land in Collier, Glades, and Hendry Counties; and leasing of land for recreational and grazing purposes, conservation, and mining activities.As of September 30, 2021, it had 83,000 acres of land situated in eight counties in Florida, which include the Charlotte, Collier, DeSoto, Glades, Hardee, Hendry, Highlands, and Polk.The company was founded in 1960 and is headquartered in Fort Myers, Florida.

Show Full description

1.b. Last Insights on ALCO

Alico, Inc.'s recent performance was driven by a 45% increase in Land Management and Other Operations revenue compared to the prior year. The company also maintained a robust liquidity position with $73.5 million in available credit facilities and no significant debt maturities until 2029. Additionally, Alico expects to realize approximately $20 million in land sales in fiscal year 2025. The company is executing a strategic transformation to become a diversified land company, transitioning from citrus operations to land development, which management believes can unlock $650-750 million in enterprise value.

1.c. Company Highlights

Last Price	38.47
Change Percentage	1.88%
Open	37.89
Previous Close	37.76
Market Cap ( Millions)	295
Volume	86423
Year High	43.2
Year Low	27.61
M A 50	39.85
M A 200	35.25

FCF Yield	6.55%
Dividend Yield	0.52%
ROE	-127.44%
Debt / Equity	85.83%
Net Debt / EBIDTA	1025.15%
Price To Book	2.96
Price Earnings Ratio	-2.08
Price To FCF	15.28
Price To sales	10.14
EV / EBITDA	69.76

2. Alico's Q1 2026 Earnings: A Step in the Right Direction

Alico, Inc. reported a net loss of $3.5 million, or $0.45 per diluted share, in the first quarter of 2026, a significant improvement from the net loss of $9.2 million, or $1.20 per diluted share, in the prior year period. The company's EBITDA was positive $2.4 million, compared to negative $6.7 million in the prior year period. Alico generated $7.7 million in land sales during the quarter, with a gain of approximately $4.9 million. The actual EPS came out at -$0.96, missing estimates at -$0.045. The company's balance sheet remains strong, with $34.8 million in cash and cash equivalents at quarter end.

Publication Date: Mar -08

                                    📋 Highlights
                                    Net Loss Improvement::
                                                Q1 2026 net loss of $3.5M ($0.45/share) versus $9.2M ($1.20/share) in prior year, reflecting a $5.7M reduction in losses.
EBITDA Turnaround::
                                                Positive EBITDA of $2.4M compared to a prior-year loss of $6.7M, signaling operational improvement.
Land Sales Performance::
                                                Generated $7.7M in land sales with a $4.9M gain, plus a post-quarter sale of 2,950 acres for $26.8M.
Balance Sheet Strength::
                                                Held $34.8M in cash and cash equivalents, with a land portfolio estimated at $650–750M versus a $320M market cap.
Strategic Progress::
                                                Achieved 97% farmable acreage utilization, secured a 10-year agricultural research lease, and advanced Corkscrew Grove development with a stewardship district milestone.

                                

Operational Highlights

Alico has made significant progress on its strategic plan, achieving 97% utilization of its farmable agricultural acreage. The company also entered into a ten-year lease with Bear Crop Science to establish an agricultural research station on 100 acres of its TRB property. Subsequent to quarter end, Alico closed on an additional sale of a large Citrus Grove representing approximately 2,950 acres for $26.8 million. The development pipeline continues to advance, with Corkscrew Grove Villages leading the way.

Valuation and Outlook

Alico's management team believes that its land portfolio has a market value of assets between $650 million and $750 million, compared to its current market capitalization of approximately $320 million. The company's P/S Ratio stands at 10.59, while the EV/EBITDA ratio is at 72.43, indicating a potentially overvalued stock. Analysts estimate next year's revenue growth at -44.8%. The company's guidance for fiscal year 2026 expects to deliver adjusted EBITDA of approximately $14 million and ending the year with approximately $50 million in cash.

Strategic Progress and Shareholder Returns

Alico's CEO, John Kiernan, expressed excitement about the company's opportunities ahead, citing its unique combination of strategic land holdings, conservation credibility, and a balanced portfolio approach. The company has returned more than $190 million to shareholders since 2015 through dividends, share repurchase, and voluntary debt reduction. With a Dividend Yield of 0.5%, Alico continues to provide returns to its shareholders.

3. NewsRoom

Alico to Participate at 38th Annual Roth Conference

Mar -09

Source: globenewswire.com

Alico Shareholders Re-Elect Directors, Ratify Grant Thornton as Auditor at Virtual Annual Meeting

Mar -04

Source: defenseworld.net

Alico, Inc. (ALCO) Q1 2026 Earnings Call Transcript

Feb -05

Source: seekingalpha.com

Alico, Inc. Announces Financial Results for the First Quarter Ended December 31, 2025

Feb -04

Source: globenewswire.com

Alico: The Real Estate Sleeping Giant

Jan -28

Source: seekingalpha.com

Alico, Inc. to Announce First Quarter 2026 Financial Results on Wednesday, February 4, 2026

Jan -23

Source: globenewswire.com

Alico to Participate at Oppenheimer 11th Annual Emerging Growth Conference

Jan -22

Source: globenewswire.com

Alico (NASDAQ:ALCO) Stock Passes Above 200 Day Moving Average – Here’s Why

Jan -21

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.82%)

6. Segments

Alico Citrus

Expected Growth: 4.83%

Alico Citrus' 4.83% growth is driven by increasing demand for fresh citrus fruits, strategic acquisitions, and effective cost management. Additionally, favorable weather conditions, improved crop yields, and growing exports to countries like China and Japan contribute to the segment's growth.

Land Management and Other Operations

Expected Growth: 4.65%

Alico's Land Management and Other Operations segment growth of 4.65% is driven by increasing agricultural commodity prices, strategic land acquisitions, and effective water conservation practices. Additionally, the company's focus on sustainable farming practices and diversification of crops have contributed to the segment's growth.

7. Detailed Products

Crop Protection

Alico's crop protection products are designed to protect crops from pests, diseases, and weeds, ensuring a healthy and bountiful harvest.

Seed Treatment

Alico's seed treatment products provide protection to seeds from fungal and insect damage, promoting healthy germination and growth.

Fungicides

Alico's fungicides are designed to prevent and control fungal diseases in crops, reducing the risk of crop loss and promoting healthy growth.

Insecticides

Alico's insecticides are designed to control insect pests that can damage crops, reducing the risk of crop loss and promoting healthy growth.

Herbicides

Alico's herbicides are designed to control weeds that can compete with crops for water, nutrients, and light, reducing the risk of crop loss and promoting healthy growth.

8. Alico, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Alico, Inc. faces moderate threat from substitutes due to the availability of alternative products in the market.

Bargaining Power Of Customers

Alico, Inc. has a diverse customer base, which reduces the bargaining power of individual customers.

Bargaining Power Of Suppliers

Alico, Inc. relies on a few key suppliers, which gives them some bargaining power, but the company's large scale of operations mitigates this risk.

Threat Of New Entrants

The agricultural industry is highly competitive, and new entrants can easily enter the market, posing a significant threat to Alico, Inc.'s market share.

Intensity Of Rivalry

The agricultural industry is highly competitive, with many established players, leading to a high intensity of rivalry among companies, including Alico, Inc.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	34.44%
Debt Cost	5.66%
Equity Weight	65.56%
Equity Cost	8.34%
WACC	7.42%
Leverage	52.53%

11. Quality Control: Alico, Inc. passed 4 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

CHS

A-Score: 6.7/10

Value: 6.3

Growth: 5.2

Quality: 3.6

Yield: 10.0

Momentum: 5.0

Volatility: 10.0

1-Year Total Return ->

Limoneira

A-Score: 5.0/10

Value: 8.5

Growth: 5.9

Quality: 4.9

Yield: 4.0

Momentum: 0.0

Volatility: 7.0

1-Year Total Return ->

Vital Farms

A-Score: 5.0/10

Value: 4.8

Growth: 9.6

Quality: 6.5

Yield: 0.0

Momentum: 6.0

Volatility: 3.3

1-Year Total Return ->

Alico

A-Score: 4.9/10

Value: 5.7

Growth: 2.3

Quality: 2.7

Yield: 3.0

Momentum: 8.0

Volatility: 7.7

1-Year Total Return ->

Local Bounti

A-Score: 4.6/10

Value: 9.4

Growth: 4.2

Quality: 5.1

Yield: 0.0

Momentum: 8.5

Volatility: 0.3

1-Year Total Return ->

S&W Seed

A-Score: 2.5/10

Value: 10.0

Growth: 2.0

Quality: 2.2

Yield: 0.0

Momentum: 0.5

Volatility: 0.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

2.01%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

7.42%

Alico, Inc. - US0162301040

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on ALCO

1.c. Company Highlights

Lower Growth

Better Quality

Fairly Valued

Earnings Beats

Revenues Miss

Earnings Miss

Revenues Beats

Average Quality

Average Yield

Stable Momentum

Medium Volatility

Lower Quality

Strong Momentum

2. Alico's Q1 2026 Earnings: A Step in the Right Direction

Operational Highlights

Valuation and Outlook

Strategic Progress and Shareholder Returns

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.82%)

6. Segments

Alico Citrus

Expected Growth: 4.83%

Land Management and Other Operations

Expected Growth: 4.65%

7. Detailed Products

Crop Protection

Seed Treatment

Fungicides

Insecticides

Herbicides

8. Alico, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Alico, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

38.47$

Current Price

38.47$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA