Farmmi (FAMI) Stock

2023 Update

About Farmmi

Farmmi, Inc. is a leading processor and seller of agricultural products in China, the United States, Japan, Canada, Europe, Korea, and the Middle East. The company was incorporated in 2015 and is headquartered in Lishui, China. Farmmi strives to provide only the freshest and finest products to chefs, restaurants, cafeterias and specialty stores around the world.

Farmmi offers an assortment of products to its customers, including shiitake and Mu Er mushrooms and other edible fungi, such as bamboo fungi, agrocybe aegerila, pleurotus eryngii, coprinus comatus, grifola frondosa and hericium erinaceus. Farmmi also processes and sells dried mushroom, dried black fungus, and other agricultural products. Farmmi offers its products to restaurants, cafeterias, and local specialty stores, as well as through distributors.

Farmmi operates Farmmi Jicai, an online store that sells edible fungi products under Forasen and Farmmi Liangpin brands, as well as Farmmi Liangpin Market, an online store that sells edible fungi products under the Farmmi Liangpin and Puyangtang brands, as well as other agricultural products.

The company employs a diverse team of 56 full-time employees and is committed to providing only the best quality products and services to its customers. Farmmi is a part of the Consumer Defensive sector and is listed on the Zip Exchange.

More information about Farmmi, Inc. can be found on its website:

Farmmi's Performance

Farmmi, Inc. is performing very well and has demonstrated strong financial performance over the past year. The company’s gross profits have increased from $5.44M to $76.32M in the last 12 months, and operating margins have increased from 0.96% to 0.95%. The company’s total revenue has increased by 155.6% from $9.92M to $99.21M in the same time period. Furthermore, the company’s total debt has decreased from $4.55M to $4.52M, demonstrating a high rate of financial performance.

In terms of profitability, the company has achieved a strong rate of return on equity of 1.41%, and return on assets of 0.36%. The company holds high financial liquidity, with the current ratio standing at 18.48, and quick ratio at 12.51. Moreover, the company has achieved substantial earnings growth of -12.7%, as well as revenue growth of 155.6%.

Farmmi, Inc. has also achieved strong free cash flow of $21.73M and operating cash flow of $20.64M in the last 12 months. Furthermore, the company has maintained a high gross margin of 5.48%, and profit margins of 2.24%. The company has also maintained a relatively low debt-to-equity ratio of 2.94.

Overall, Farmmi, Inc. has been performing to a strong standard and demonstrates excellent financial performance. The company has achieved substantial growth and profitability, with high liquidity, and maintained strong financial ratios in the last 12 months.

How does Farmmi Perform During a Recession?

Farmmi has a long tradition of facing market fluctuations and has accumulated the experience to make snap decisions during challenging times. Farmmi’s team of experienced executives are committed to maintaining the morale, enthusiasm, and commitment to their employees, customers, and stakeholders during a recession. Farmmi is well known for their systemic approach to weathering a recession by cutting costs, boosting efficiency, and redistributing resources to their core areas of the business.

During a recession, Farmmi looks to limit promotional and marketing activities that are not critical. It reallocates those funds with a focus on technological innovation to increase efficiency in their operations. Additionally, Farmmi rebalances its pricing structure to increase their profitability and builds relationships with their suppliers to reduce their material costs.

Farmmi also focuses on cost optimization and wage reduction methods. For cost optimization, Farmmi searches for natural energy sources and implements strategies for reducing energy consumption. It also uses automation and robots for replacing part of manual labor functions. For wage reduction, Farmmi leverages a wide array of labor laws to reduce wage expenses while taking care of their employees and ensures the quality of their services through ongoing training and retraining for their high-skilled employees.

Farmmi is well positioned to survive and even thrive during a recession. By employing solid actions, Farmmi is committed to making it through difficult times and protect their business from any of the recession’s potential effects.

How does Farmmi Perform During High Inflation Economy?

Given the great variance and impact of inflation on the global economy, corporate leaders must be smart and prepared when dealing with volatile change. Farmmi is no exception.

To ensure its stability and profitability in times of volatile inflation, Farmmi pays close attention to changes in currency exchange rates, keeps track of commodity supplies and prices, and adjusts its pricing and pricing policies accordingly. The company invests heavily in research and development to identify current and upcoming trends and potential opportunities. It also updates its products annually in response to customer demand and technological advancements.

In addition, Farmmi is keen to take advantage of economies of scale and minimize risk by forming partnerships, buying key raw materials in bulk, and forging strong relationships with suppliers. In order to keep up the quality of their products, Farmmi also invests heavily in sustainable and green agricultural practices, ensuring that their products are of the highest quality.

Finally, Farmmi places strong emphasis on controlling costs. The company carefully studies the cost structure of its major outputs and gradually reduces purchased raw materials, packaging materials, and other related costs. To further optimize their cost structure, Farmmi encourages employees to devise creative methods to reduce production costs and continuously improve operations efficiency.

In the face of rising inflation, Farmmi takes strategic steps to remain profitable and to protect its bottom line. With informed decisions, careful strategies, and strong leadership, Farmmi is able to remain an international leader in the processed agricultural goods space.

What Are the Risks Associated to Farmmi (FAMI)?

Despite these positive financial indicators, Farmmi does have some risks that potential investors should consider before investing. First, since Farmmi is a Chinese company, it can be subject to changes in foreign exchange rates. Fluctuations in exchange rates can negatively impact the company’s profitability and cash flow, thus hurting investor returns.

Second, Farmmi is operating in a highly competitive industry with many large and established companies. As a result, Farmmi will have to continuously innovate and invest in its product offerings in order to remain competitive.

Third, Farmmi is a relatively small company and its stock is not yet widely traded. Due to this liquidity issue, it may be difficult for investors to buy or sell shares of Farmmi’s stock.

Finally, Farmmi has a large debt load, with total debt liabilities of 416 million USD and total debt equity ratio of 145%. This means that the company has a high level of leverage, making it more risky for investors.

Overall, Farmmi is a good investment opportunity with a strong financial position. While there are some risks associated with investing in this stock, potential investors should conduct further research and analysis before making an investment.