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1. Company Snapshot

1.a. Company Description

Limoneira Company operates as an agribusiness and real estate development company in the United States and internationally.The company operates through three divisions: Agribusiness, Rental Operations, and Real Estate Development.It grows, processes, packs, markets, and sells lemons.


The company also grows avocado, oranges, and specialty citrus and other crops, including Moro blood oranges, Cara Cara oranges, Minneola tangelos, Star Ruby grapefruit, pummelos, pistachios, and wine grapes.It has approximately 6,100 acres of lemons planted primarily in Ventura, Tulare, San Luis Obispo, and San Bernardino Counties in California; and Jujuy, Argentina, as well in Yuma County, Arizona, and La Serena, Chile; 800 acres of avocados planted in Ventura County; 1,000 acres of oranges planted in Tulare County, California; and 900 acres of specialty citrus and other crops.In addition, the company rents residential housing units and commercial office buildings, as well as leases approximately 500 acres of its land to third-party agricultural tenants.


Further, it is involved in organic recycling operations; and the development of land parcels, multi-family housing, and single-family homes.The company markets and sells its lemons directly to food service, wholesale, and retail customers; avocados to a packing and marketing company; oranges, specialty citrus, and other crops through Sunkist and other third-party packinghouses; and wine grapes to wine producers.Limoneira Company was founded in 1893 and is headquartered in Santa Paula, California.

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1.b. Last Insights on LMNR

Recent negative drivers behind Limoneira Company's performance include a mixed fiscal Q4 result, with higher revenue but lower expenses, and an operating loss narrowing significantly from the previous year. The company's recent earnings warning, particularly for avocado production, has likely weighed on investor sentiment. Additionally, the company's fiscal 2025 outlook appears light, which may be a concern for investors.

1.c. Company Highlights

2. Limoneira's Transformation and Financial Performance

Limoneira reported total net revenue of $42.8 million for fiscal year 2025, a decline from $43.9 million in the previous fiscal year's fourth quarter. The company's agribusiness revenue was $41.3 million, with $300,000 from avocado sales, $19.2 million from fresh packed lemon sales, and $2.9 million from orange sales. The net loss applicable to common stock was $8.8 million, compared to a net loss of $2 million in 2024, resulting in a net loss per diluted share of 49¢. Adjusted net loss for diluted EPS was $8 million or 45¢ per diluted share. Notably, the actual EPS came out at '-0.02' relative to estimates at '-0.10667', indicating a better-than-expected performance. With a P/E Ratio of -14.29 and an EV/EBITDA of -28.44, the market is pricing in significant challenges for the company.

Publication Date: Jan -05

📋 Highlights
  • Strategic Partnership Savings: The Sunkist partnership aims to generate $10 million in cost savings by 2026 and enhance access to premium retail accounts.
  • Avocado Production Expansion: 700 acres of avocado farms will come into production, boosting capacity by nearly 100% and generating $12,000–$14,000 profit per acre.
  • Organic Recycling Venture: A 50/50 joint venture with Agerman will process 300,000 tons of organic waste annually, yielding $4–$5 million EBITDA by 2027.
  • Cost-Cutting Initiatives: Operational restructuring reduced SG&A expenses by $10 million in 2025, with 50% further savings expected in 2026.
  • Real Estate Pipeline: $155 million in expected real estate distributions over 5 years, including the Limco Del Mar infill parcel with potential $1M/acre valuation post-entitlement.

Operational Efficiency Improvements

The company has been working on streamlining operations and potential cost-cutting, with expected SG&A savings of around $10 million in the next year. The transition to Sunkist and other projects are expected to contribute to these savings. Limoneira's President and CEO, Harold Edwards, highlighted that the partnership with Sunkist is expected to generate $10 million in cost savings in fiscal year 2026. The company has also been working on integrating computer systems and renegotiating leases, such as the Oxnard Lemon lease, which saved $700,000.

Avocado and Lemon Production Outlook

The company's avocado production is expected to increase with 700 acres coming into production over the next few years. Limoneira expects an average of 7,000 pounds per acre, with prices averaging $1.30 per pound, resulting in operating profit of $12,000 to $14,000 per acre. For fiscal year 2026, the company expects fresh lemon volumes of 4 to 4.5 million cartons and avocado volumes of 5 to 6 million pounds. Lemon pricing is expected to be higher than last year's, with current prices around $20 per carton.

Balance Sheet and Debt Management

The company aims to pay down $40 million in debt and has reworked covenants with its lender, Farm Credit Ag West. Limoneira's strategy is to generate growing cash flows from its core business to sustainably pay down debt and make future capital allocation decisions. With a Net Debt / EBITDA ratio of -6.81, the company's debt levels are significant, but its plans to monetize assets and develop real estate could help alleviate this burden.

Valuation and Growth Prospects

Analysts estimate next year's revenue growth at 15.0%. With a P/S Ratio of 1.45, the market is expecting some growth from the company. However, the negative ROE of -8.86% and ROIC of -6.48% indicate that the company's profitability is a concern. The company's water rights in California and Arizona, as well as its real estate pipeline, including the Limco Del Mar infill land parcel, present potential opportunities for growth and monetization.

3. NewsRoom

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Reviewing Limoneira (NASDAQ:LMNR) & Scotts Miracle-Gro (NYSE:SMG)

Jan -14

Source: defenseworld.net

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Limoneira Co (NASDAQ:LMNR) Given Average Recommendation of “Hold” by Brokerages

Jan -11

Source: defenseworld.net

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Limoneira Q4 Earnings Call Highlights

Dec -25

Source: defenseworld.net

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After Another Enormous Earnings Miss, Limoneira Tries To Spin Transition Away From Lemons

Dec -24

Source: seekingalpha.com

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Limoneira Company (LMNR) Q4 2025 Earnings Call Transcript

Dec -24

Source: seekingalpha.com

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Market Today: GDP Jumps, S&P Record; Novo Nordisk (NVO) Pill OK

Dec -23

Source: gurufocus.com

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Limoneira Company Announces Fourth Quarter and Full Fiscal Year 2025 Financial Results

Dec -23

Source: businesswire.com

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Stock Market Today: Nasdaq, S&P 500 Futures Rise As Street Awaits Q3 GDP Report—Parsons, ZIM, Trump Media & Technology In Focus

Dec -23

Source: feeds.benzinga.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.55%)

6. Segments

Fresh Lemons

Expected Growth: 10%

Limoneira Company's 10% growth in fresh lemons is driven by increasing demand for healthy beverages, expanding distribution channels, and strategic partnerships. Rising consumer preference for natural ingredients, growing popularity of e-commerce, and effective supply chain management also contribute to the growth. Additionally, Limoneira's commitment to sustainability and certifications like Fair Trade and Organic further boost sales.

Other Agribusiness

Expected Growth: 8%

Limoneira's Other Agribusiness segment growth is driven by increasing demand for avocados, lemons, and oranges, supported by strategic acquisitions, expansion into new markets, and investments in sustainable farming practices. Additionally, the company's diversified customer base, strong supply chain management, and favorable weather conditions contribute to its 8% growth.

Lemon Packing

Expected Growth: 9%

Limoneira's Lemon Packing segment growth is driven by increasing demand for fresh lemons, expanding distribution channels, and strategic partnerships. The company's strong brand reputation, high-quality products, and efficient supply chain management also contribute to its 9% growth. Additionally, growing consumer preference for healthy and organic products, as well as increasing use of lemons in foodservice and beverages, further support the segment's growth.

Avocados

Expected Growth: 11%

Limoneira Company's 11% avocado growth is driven by increasing demand for healthy and sustainable food, expanding distribution channels, and strategic partnerships. Rising consumer awareness of avocados' nutritional benefits, growing popularity of plant-based diets, and increasing use in foodservice and retail applications also contribute to the growth.

Corporate and Other

Expected Growth: 7%

Limoneira's Corporate and Other segment growth of 7% is driven by strategic acquisitions, expansion of its real estate development business, and increased licensing revenue from its intellectual property portfolio. Additionally, the company's focus on sustainability and environmental stewardship has led to increased demand for its eco-friendly products and services, contributing to the segment's growth.

7. Detailed Products

Lemons

Fresh lemons grown in Limoneira's orchards, available in various sizes and grades for foodservice, retail, and industrial use.

Avocados

High-quality avocados grown in Limoneira's orchards, available in various sizes and grades for foodservice, retail, and industrial use.

Orchard Real Estate

Agricultural land and orchards available for lease or purchase, ideal for farming and ranching operations.

Water Banking

Water storage and management services, providing a reliable source of water for agricultural and municipal use.

Solar Energy

Renewable energy solutions, including solar panels and energy storage systems, for agricultural and commercial use.

Agricultural Services

Specialized agricultural services, including farming, harvesting, and packing, for citrus and avocado crops.

8. Limoneira Company's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Limoneira Company is medium due to the availability of alternative products in the market, such as other types of citrus fruits and beverages.

Bargaining Power Of Customers

The bargaining power of customers for Limoneira Company is low due to the company's strong brand reputation and the lack of price sensitivity among its customers.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Limoneira Company is medium due to the presence of multiple suppliers in the market, but the company's large scale of operations gives it some bargaining power.

Threat Of New Entrants

The threat of new entrants for Limoneira Company is low due to the high barriers to entry in the citrus industry, including the need for significant capital investment and expertise.

Intensity Of Rivalry

The intensity of rivalry for Limoneira Company is high due to the presence of several established players in the market, leading to intense competition and pricing pressure.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 17.81%
Debt Cost 3.95%
Equity Weight 82.19%
Equity Cost 6.65%
WACC 6.17%
Leverage 21.66%

11. Quality Control: Limoneira Company passed 3 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
Village Super Market

A-Score: 6.6/10

Value: 7.9

Growth: 4.9

Quality: 4.7

Yield: 7.0

Momentum: 7.5

Volatility: 7.7

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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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

14.32$

Current Price

14.32$

Potential

-0.00%

Expected Cash-Flows