Investment Thesis
ALICO faces severe operational distress with negative profitability across all metrics, including -184.5% net margin and -453.4% operating margin, indicating the company is burning cash on minimal revenue of $1.9M. While the balance sheet shows adequate liquidity (14.39x current ratio) and manageable leverage (0.83x debt/equity), the company's core agricultural business is fundamentally unprofitable and negative free cash flow of -$6.0M demonstrates unsustainable operations. Without evidence of operational turnaround or significant revenue recovery, the company faces continued value destruction.
ALCO Strengths
- Strong liquidity position with $34.8M cash and 14.39x current ratio providing runway for operations
- Moderate leverage with 0.83x debt/equity ratio and $99.6M equity base providing financial flexibility
- Substantial asset base of $195.0M provides collateral and potential liquidation value
ALCO Risks
- Severe unprofitability: -184.5% net margin, -453.4% operating margin, and negative gross margin of -294.3% indicate fundamental business model failure
- Negative free cash flow of -$6.0M and negative operating cash flow of -$5.5M demonstrate unsustainable cash burn with only $34.8M in reserves
- Core revenue collapse at $1.9M with no apparent path to profitability or growth, suggesting structural challenges in agricultural production segment
- Negative interest coverage of -8.9x indicates inability to service debt from operations, creating refinancing risk
Key Metrics to Watch
- Operating cash flow trend and quarterly revenue stabilization
- Path to gross profit recovery and operating margin improvement
- Cash runway depletion rate and refinancing requirements on $82.8M long-term debt
ALCO Financial Metrics
ALCO Profitability Ratios
ALCO Balance Sheet & Liquidity
ALCO 5-Year Financial Trend
5-Year Trend Summary: ALICO, INC.'s revenue has declined by 62% over the 5-year period, indicating business contraction. The most recent EPS of $0.91 reflects profitable operations.
ALCO Growth Metrics (YoY)
ALCO Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $8.4M | -$2.0M | $-0.27 |
| Q2 2025 | $18.0M | -$15.8M | $-2.07 |
| Q1 2025 | $1.9M | -$3.5M | $-0.45 |
| Q3 2024 | $7.3M | $895.0K | $0.12 |
| Q2 2024 | $18.1M | -$7.8M | $-1.02 |
| Q1 2024 | $10.6M | -$3.2M | $-0.41 |
| Q3 2023 | $7.3M | $895.0K | $0.12 |
| Q2 2023 | $21.3M | -$7.8M | $-1.02 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
ALCO Capital Allocation
ALCO SEC Filings
Access official SEC EDGAR filings for ALICO, INC. (CIK: 0000003545)