Alico (ALCO) Reports Q3 Loss, Lags Revenue Estimates
Alico (ALCO) came out with a quarterly loss of $0.27 per share versus the Zacks Consensus Estimate of a loss of $0.25. This compares to loss of $0.73 per share a year ago.
Alico: The Value Is In The Land
Alico, Inc is a citrus grower and land management company in Florida, trading near 52-week highs. Alico has strong balance sheets, with high shareholder equity and a price/book value of 0.81, making it a potential value play. Despite risks such as hurricanes and citrus diseases, Alico's recent deal with Tropicana and discount to book value make it a buy for value investors.
The Bottom Fishing Club: Buy Alico's Florida Orange Groves At 50% Discount
Alico is a Florida orange grove owner with 54,000+ acres, making it one of the largest U.S. citrus growers. Management estimates its grove and land holdings are worth as much as $635 million based on comparable property sales vs. $114 million listed on its balance sheet at cost. Using company numbers, I estimate a minimum after-tax liquidation value of $51 is available for investors at $26 per share today.
Alico: Thesis Playing Out; Maintain Buy
Alico's citrus groves were negatively impacted by Hurricane Ian in 2023, but improvements are expected in the current harvest. ALCO recently sold off the Alico Ranch, allowing the company to delever. The Company's current portfolio of citrus groves underpin $44/share in real estate value.
