The Andersons (ANDE) AI Stock Analysis

• Market Cap: $1.42B
• Dividend Yield: 1.87%
• Average Volume (3M): 312.89K
• Price to Earnings (P/E): 17.6
• Beta (1Y): 0.63
• Revenue Growth: -6.66%
• EPS Growth: -21.70%
• Country: US
• Employees: 2,224
• Sector: Consumer Defensive
• Sector Strength: 45
• Industry: Food Distribution
• EPS (TTM): 0.23
• Shares Outstanding: 34,210,457
• 10 Day Avg. Volume: 246,739
• 30 Day Avg. Volume: 312,891
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.34
• Enterprise Value/Revenue: 0.16
• Enterprise Value/Gross Profit: 2.71
• Enterprise Value/Ebitda: 5.56
• 1Y Price Target: $50.00
• Price Target Upside: 22.25% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 70 Outperform
• Price Target: $45.00 ▲(10.02% Upside)

The Andersons' stock score is primarily supported by positive technical trends and strategic corporate events. Financial performance and valuation are stable but face challenges in profitability and liquidity. The earnings call presents a mixed picture, with strategic advancements offset by financial declines.

Positive Factors

Financial Position

ANDE's financial position remains healthy with $219 million in cash on the balance sheet and a leverage ratio well below its target of 2.5x.

Growth Potential

ANDE is expected to pursue growth via acquisitions in ethanol given its stellar balance sheet and significant cash reserves.

Investment Impact

Skyland and Port of Houston investments are expected to add significant EBITDA over the next two to three years.

Negative Factors

Market Challenges

A challenging year is foreseen for 2025 due to abundant global supplies, ongoing tariff wars, and uncertainty over US biofuels policy.

Profit Outlook

The fundamental setup for 2025 is challenging and likely portends to lower year-over-year profits.

Trading Environment

The poor trading environment, specifically in the western corn belt, negatively impacted Agribusiness in 1Q.

The Andersons Business Overview & Revenue Model

Company Description

The Andersons, Inc., an agriculture company, operates in trade, renewables, and plant nutrient sectors in the United States and internationally. The company's Trade segment operates grain elevators; stores commodities; and provides grain marketing, risk management, and origination services to its customers and affiliated ethanol facilities. This segment also engages in the commodity merchandising business, as well as offers logistics for physical commodities, such as whole grains, grain products, feed ingredients, domestic fuel products, and other agricultural commodities. Its Renewables segment produces, purchases, and sells ethanol, and co-products, as well as offers facility operations, risk management, and ethanol and coproducts marketing services to the ethanol plants it invests in and operates. The company's Plant Nutrient segment manufactures, distributes, and retails agricultural and related plant nutrients, corncob-based products, and pelleted lime and gypsum products; and crop nutrients, crop protection chemicals, and seed products, as well as provides application and agronomic services to commercial and family farmers. It also offers warehousing, packaging, and manufacturing services to nutrient producers and other distributors; and manufactures and distributes various industrial products, such as nitrogen reagents for air pollution control systems that are used in coal-fired power plants, and water treatment and dust abatement products. In addition, this segment produces corncob-based products for laboratory animal bedding and private-label cat litter, as well as absorbents, blast cleaners, carriers, and polishers; professional lawn care products for golf course and turf care markets; fertilizer and weed and pest control products; pelleted lime, gypsum, and value add soil amendments; and specialty ag liquids, seed starters, zinc, and industrial liquids. The Andersons, Inc. was founded in 1947 and is based in Maumee, Ohio.

How the Company Makes Money

The Andersons generates revenue through multiple key streams. The Grain segment earns money by purchasing, storing, and selling grain, benefiting from fluctuations in grain prices and providing marketing services to farmers. The Plant Nutrient segment sells fertilizers and related products, capitalizing on the demand for agricultural inputs. The Retail segment operates garden centers and farm supply stores, contributing to sales through consumer and agricultural product offerings. Additionally, the company’s biofuel operations create revenue from the production and sale of renewable energy products. Strategic partnerships with agricultural producers, suppliers, and customers enhance their market reach and operational efficiency, further bolstering revenue generation.

The Andersons Financial Statement Overview

Summary

The Andersons faces a challenging landscape with declining revenue, modest profitability, and strong, though shrinking, cash flows. The balance sheet remains stable with manageable debt levels. While the company shows some operational efficiency, the decreasing revenue trend and declining free cash flow highlight areas needing strategic focus. The overall financial health is moderate, with potential risks in sustaining growth and profitability.

Income Statement

The Andersons showed a mixed income statement performance. The TTM revenue of $11.20 billion slightly decreased from the previous annual figure of $11.26 billion. Gross profit margin is modest at 6.47%, while the net profit margin is 0.97%, indicating low profitability. Revenue has been on a declining trend from $17.33 billion in 2022. EBIT and EBITDA margins are 1.74% and 3.22%, respectively, demonstrating reasonable operational efficiency given the industry context.

Balance Sheet

The balance sheet reflects a moderate financial position. The debt-to-equity ratio is calculated at 0.64, suggesting manageable leverage levels. Return on Equity (ROE) is 8.02%, which indicates decent returns for shareholders though not exceptional. The equity ratio is 35.68%, showing a solid equity base relative to assets. The company has managed to maintain a stable equity position amidst declining revenue.

Cash Flow

Cash flow statements indicate a challenging environment. The free cash flow decreased significantly from $182 million to $52 million, marking a substantial decline. The operating cash flow to net income ratio is 2.03, showing strong cash conversion, yet the free cash flow to net income ratio is 0.48, reflecting lower free cash generation relative to net income. Overall, cash flow management needs improvement, especially in sustaining free cash flow growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.54B	11.26B	14.75B	17.33B	12.61B	8.06B
Gross Profit	701.52M	693.93M	745.36M	684.16M	592.70M	366.20M
EBITDA	341.97M	359.75M	341.54M	386.17M	378.27M	195.42M
Net Income	80.60M	114.01M	101.19M	131.08M	103.99M	7.71M
Balance Sheet
Total Assets	3.45B	4.12B	3.86B	4.61B	4.57B	4.27B
Cash, Cash Equivalents and Short-Term Investments	350.97M	561.77M	643.85M	115.27M	216.44M	29.12M
Total Debt	747.14M	876.22M	687.61M	937.76M	1.17B	1.43B
Total Liabilities	1.84B	2.52B	2.34B	3.18B	3.26B	3.11B
Stockholders Equity	1.36B	1.37B	1.28B	1.20B	1.07B	961.89M
Cash Flow
Free Cash Flow	75.65M	182.32M	796.31M	147.38M	-132.85M	-179.32M
Operating Cash Flow	216.00M	331.51M	946.75M	287.12M	-51.05M	-74.43M
Investing Cash Flow	-180.64M	-163.07M	-153.88M	-52.90M	487.25M	-86.76M
Financing Cash Flow	-217.44M	-250.36M	-263.99M	-334.73M	-248.77M	136.30M

The Andersons Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 40.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ANDE, the sentiment is Positive. The current price of 40.9 is above the 20-day moving average (MA) of 39.93, above the 50-day MA of 38.07, and above the 200-day MA of 39.70, indicating a bullish trend. The MACD of 1.03 indicates Negative momentum. The RSI at 61.30 is Neutral, neither overbought nor oversold. The STOCH value of 63.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ANDE.

The Andersons Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AVO	71 Outperform	$891.91M	24.45	7.12%	―	29.50%	108.33%
ANDE	70 Outperform	$1.42B	17.64	6.03%	1.87%	-6.66%	-21.70%
UNFI	66 Neutral	$1.75B	―	-4.11%	―	6.62%	53.12%
Sector *	62 Neutral	$20.53B	14.80	-2.69%	3.11%	1.95%	-4.97%
SPTN	58 Neutral	$908.07M	2,245.98	-2.08%	3.26%	1.54%	-134.75%
HFFG	57 Neutral	$169.99M	―	-18.35%	―	4.88%	-1359.01%
CVGW	55 Neutral	$484.81M	47.52	6.90%	2.94%	-14.58%	―

The Andersons Corporate Events

The Andersons Elects Steven Oakland to Board

On August 21, 2025, The Andersons, Inc. announced the election of Steven Oakland to its board of directors. Mr. Oakland, who is the chairman, CEO, and president of TreeHouse Foods, brings nearly 40 years of food and beverage industry experience, including leadership roles at The J.M. Smucker Company. His appointment is expected to bolster The Andersons’ strategic growth initiatives.

The Andersons Completes Acquisition of TAMH Stake

On July 31, 2025, The Andersons, Inc. acquired the remaining 49.9% ownership interest in The Andersons Marathon Holdings LLC (TAMH) from Marathon Petroleum Corp. for $425 million, thereby gaining full control of four ethanol plants with a combined production capacity of 500 million gallons. This strategic acquisition aligns with The Andersons’ long-term strategy to enhance its position in the ethanol industry, promising immediate accretion in earnings per share and increased operational efficiency. The company also reported its second-quarter financial results, with a net income of $8 million and adjusted EBITDA of $65 million, while continuing to optimize its portfolio and improve operational efficiency.