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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.

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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

2. Alico's Transformation Drives Strong Fiscal Year 2025 Results

Alico reported adjusted EBITDA of $22.5 million, exceeding its target of $20 million, and generated $23.8 million in land sales proceeds, surpassing guidance. The company's EPS came in at -$1.1, missing estimates of -$0.39. Revenue growth is expected to decline by 82.4% next year. Alico's financial performance was bolstered by its diversified land usage, with leased land to other agricultural crop growers contributing to the stability of its operations. The company's cash position strengthened, ending the year with $38.1 million in cash and reducing net debt to $47.4 million.

Publication Date: Dec -02

📋 Highlights
  • Adjusted EBITDA Surpass Target:: Achieved $22.5M, exceeding $20M target, with land sales proceeds of $23.8M.
  • Strong Balance Sheet Position:: Ended year with $38.1M cash and reduced net debt to $47.4M.
  • Diversified Agricultural Leases:: Secured 5,250 acres with third-party growers, balancing citrus, cattle, and crop operations.
  • Development Pipeline Progress:: Corkscrew Grove Villages and Stewardship District advance sustainable community growth.
  • Valuation Disparity:: Land portfolio valued at $650–$750M vs. current $240M market cap, indicating growth potential.

Operational Highlights

Alico's transformation from a traditional citrus producer to a diversified land company has lowered financial risk by reducing the volatility associated with weather-dependent and disease-affected citrus agricultural operations. The company has leased approximately 5,250 acres to third-party citrus growers and is seeing strong interest from cattle operators, sugarcane growers, and soy producers, generating revenue during its transition and maintaining productive use of its agricultural lands.

Development Pipeline Advancements

The development pipeline continues to advance, with Corkscrew Grove Villages leading the way. The establishment of the Corkscrew Grove Stewardship District represents a significant regulatory milestone, providing a framework for sustainable community-focused growth. Alico's conservation legacy remains a cornerstone of its strategy, with over 40 years of transferring lands to major conservation areas, enhancing the value and marketability of its development projects.

Valuation and Financial Position

Alico's financial position is strong, with a working capital ratio of 9.56:1 and $92.5 million available under its line of credit. The company's NPV analysis values its land portfolio between $650 million and $750 million. Using the EV/EBITDA ratio of -5.19 and P/S Ratio of 6.1, it appears there is a significant valuation disconnect as the company trades at just $240 million. The P/E Ratio stands at -1.83, indicating potential undervaluation. With a ROE of -100.44% and ROIC of -88.98%, the company's returns are negative, but this is expected given the current EPS.

Outlook and Priorities

Looking ahead, Alico's priorities for fiscal year 2026 include optimizing agricultural operations, advancing residential and commercial development projects, and maintaining operational excellence. The company believes its approach of balancing high-value development projects with diversified agricultural operations creates a business model that leverages its core strengths while adapting to market opportunities.

3. NewsRoom

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Alico: The Real Estate Sleeping Giant

Jan -28

Source: seekingalpha.com

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

Jan -23

Source: globenewswire.com

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Alico to Participate at Oppenheimer 11th Annual Emerging Growth Conference

Jan -22

Source: globenewswire.com

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

Jan -21

Source: defenseworld.net

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Alico, Inc. Closes $26.8 Million Land Sale and Achieves 97% Agricultural Utilization

Jan -15

Source: globenewswire.com

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Alico (ALCO) Upgraded to Buy: What Does It Mean for the Stock?

Jan -14

Source: zacks.com

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Has Alico (ALCO) Outpaced Other Consumer Staples Stocks This Year?

Jan -14

Source: zacks.com

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Alico Conference: CEO Details Exit From Citrus, Land-Leasing Push and Corkscrew Entitlement Timeline

Jan -14

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

Strength

Weaknesses

Opportunities

Threats

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

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
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 ->

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Stock-Card
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 ->

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Stock-Card
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 ->

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Stock-Card
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 ->

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Stock-Card
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 ->

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Stock-Card
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 ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

41.9$

Current Price

41.9$

Potential

-0.00%

Expected Cash-Flows