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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 Q3 Earnings: A Mixed Bag

Limoneira reported a 23% decline in Q3 2025 revenue to $47.5M vs. $63.3M in Q3 2024, driven by weaker lemon prices and lower avocado volumes. The actual EPS came out at -$0.06, beating estimates at -$0.10667. Adjusted EBITDA fell to $3M vs. $13.8M. The company's financial performance was impacted by the decline in lemon and avocado sales.

Publication Date: Sep -23

📋 Highlights
  • Q3 Revenue Decline:: Total revenue dropped to $47.5M (vs. $63.3M in Q3 2024), driven by lower lemon prices and avocado volumes.
  • Avocado Growth Outlook:: Production expected to grow 100% over 2-4 years as 700 acres of nonbearing avocados mature by 2027.
  • Sunkist Partnership Savings:: Projected $5M annual EBITDA savings starting 2026 via the supply chain efficiency deal.
  • Real Estate Value:: Anticipated $155M in total real estate distributions over five years, including $10M from joint venture cash flow in 2024.
  • Water Rights Monetization:: $1.7M generated from basin water rights sales in Q3.

Financial Performance

The company's Agribusiness revenue declined to $45.9M from $61.8M, with operating loss widening to $600K vs. $9M. Net loss was $1M ($0.06 EPS) vs. $6.5M ($0.35 EPS). The Sunkist partnership is projected to generate $5M annual EBITDA savings starting 2026.

Operational Highlights

Mark Palamountain highlighted lemon price trends, noting Q3’s average was $17, with August prices reaching $23 due to U.S. East Coast shortages and European import shifts. Weather disruptions in Turkey and Spain caused expected 20-30% supply gaps, favoring Southern Hemisphere growers.

Future Outlook

Harold Edwards stated that 2026 avocado production is unlikely to exceed 2025 levels, with a significant rebound expected in 2027. The company expects lemon profitability to normalize in 2026 with 4.5–5M carton volumes and avocado production to grow 100% over 2–4 years as 700 acres of non-bearing avocados mature.

Valuation Metrics

With a P/E Ratio of -29.15 and an EV/EBITDA of -68.15, the market is pricing in significant growth expectations. The company's ROE is -4.93%, and the Net Debt / EBITDA is 0.53. The Dividend Yield is 2.01%, providing some return to shareholders despite the challenging financial performance.

3. NewsRoom

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Limoneira Declares Quarterly Dividend

Sep -24

Source: businesswire.com

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Q3 Miss Highlights Ongoing Struggles For Limoneira's Strategy

Sep -10

Source: seekingalpha.com

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Limoneira Company (LMNR) Q3 2025 Earnings Call Transcript

Sep -09

Source: seekingalpha.com

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Limoneira Explores Providing Housing on the Limco Del Mar Ranch to Address Ventura County's Housing Needs

Sep -09

Source: businesswire.com

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Mission Produce vs. Limoneira: Who Holds the Reins in Fresh Produce?

Aug -18

Source: zacks.com

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Stock Picks From Seeking Alpha's June 2025 New Analysts

Jul -08

Source: seekingalpha.com

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Limoneira Company: Ready For A Turnaround

Jun -25

Source: seekingalpha.com

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Limoneira Declares Quarterly Dividend

Jun -25

Source: businesswire.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

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Village Super Market

A-Score: 6.7/10

Value: 7.4

Growth: 4.9

Quality: 4.7

Yield: 7.0

Momentum: 8.5

Volatility: 7.7

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CHS

A-Score: 6.2/10

Value: 6.2

Growth: 3.7

Quality: 3.6

Yield: 10.0

Momentum: 3.5

Volatility: 10.0

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Limoneira

A-Score: 4.9/10

Value: 8.4

Growth: 6.0

Quality: 4.9

Yield: 4.0

Momentum: 0.0

Volatility: 6.3

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Vital Farms

A-Score: 4.9/10

Value: 4.5

Growth: 9.6

Quality: 6.6

Yield: 0.0

Momentum: 5.0

Volatility: 3.7

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Alico

A-Score: 4.5/10

Value: 5.0

Growth: 0.9

Quality: 2.0

Yield: 3.0

Momentum: 8.0

Volatility: 8.0

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Local Bounti

A-Score: 4.1/10

Value: 9.4

Growth: 4.2

Quality: 5.1

Yield: 0.0

Momentum: 5.5

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

13.84$

Current Price

13.84$

Potential

-0.00%

Expected Cash-Flows