The Andersons (ANDE) AI Stock Analysis

• Market Cap: $2.21B
• Dividend Yield: 1.44%
• Average Volume (3M): 239.38K
• Price to Earnings (P/E): 23.4
• Beta (1Y): 0.54
• Revenue Growth: 2.19%
• EPS Growth: -39.07%
• Country: US
• Employees: 2,224
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Distribution
• EPS (TTM): 1.97
• Shares Outstanding: 33,880,130
• 10 Day Avg. Volume: 297,396
• 30 Day Avg. Volume: 239,380
• PEG Ratio: -1.17
• Price to Book (P/B): 1.45
• Price to Sales (P/S): 0.16
• P/FCF Ratio: -32.22
• Enterprise Value/Market Cap: 1.43
• Enterprise Value/Revenue: 0.29
• Enterprise Value/Gross Profit: 4.53
• Enterprise Value/Ebitda: 10.21
• 1Y Price Target: $75.00
• Price Target Upside: 57.86% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 4.56
• Revenue Forecast (FY): $12.23B

• Rating: 64 Neutral
• Price Target: $69.00 ▲(45.23% Upside)
• Action: Downgraded Date: 02/19/26
• Date: Action: Downgraded 02/19/26

The score is held back primarily by mixed financial performance—declining revenue, thin margins, and notably weaker/negative free cash flow—despite a much-improved leverage profile. Technicals are a meaningful support with strong trend and momentum, while valuation is moderate (P/E ~24 with a modest yield). The latest earnings call adds a positive tilt via strong Q4 renewables results and constructive 2026 targets, but full-year softness and policy sensitivity temper the outlook.

Positive Factors

Improved balance sheet and low leverage

Material deleveraging to ~0.26x debt-to-equity and a sizable equity base strengthen financial flexibility. This durable balance-sheet improvement supports capital investment, disciplined M&A, and the ability to absorb cash-flow volatility without forcing asset sales or drastic cost cuts.

Renewables capacity and record ethanol production

Full ownership of ethanol assets, record production and export traction create a recurring earnings pillar less tied to grain merchandising cycles. Capacity investments (e.g., Clymers expansion) and operational gains can sustain margins and cash flow over multiple years.

Strategic asset expansions and Skyland integration

Skyland integration and port/terminal upgrades expand geographic reach, export capability and merchandising scale. These structural assets improve long-term logistics, diversify revenue streams and raise potential run-rate EBITDA as western volumes and export channels normalize.

Negative Factors

Multi-year revenue decline and thin margins

Three-year revenue contraction and very thin distribution margins leave little operating cushion. Structural softness reduces operating leverage, makes profitability sensitive to cost swings, and constrains the firm’s ability to generate surplus earnings for reinvestment or shareholder returns.

Weak, volatile cash generation; recent negative FCF

Significant volatility in operating cash flow and a swing to negative free cash flow in 2025 undermine internal funding for capex and expansions. Persistent cash volatility increases reliance on the balance sheet and could limit execution of multi-year projects without external financing.

Renewables upside partly dependent on policy incentives

A meaningful portion of renewables profitability reflects tax-credit timing and regulatory support. Reliance on evolving incentives and RVO/policy outcomes adds structural regulatory risk to projected earnings, making long-term forecasts contingent on external policy clarity.

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 various channels across its segments. In the Grain segment, the company profits from grain merchandising, storage fees, and handling services, leveraging its extensive network of elevators. The Plant Nutrient segment earns revenue by selling fertilizers and related agricultural products, often through partnerships with manufacturers and suppliers. The Rail segment contributes income through leasing railcars to agricultural and industrial customers, as well as providing repair services. Key factors contributing to The Andersons' earnings include its strategic locations in high agricultural production areas, established relationships with farmers and suppliers, and a focus on efficiency and innovation within its operations.

The Andersons Financial Statement Overview

Summary

Balance sheet strength is a clear positive (debt-to-equity improved to ~0.26x and equity remains sizable), but operating fundamentals are mixed: revenue has declined for three straight years and margins are very thin. Cash flow is the key weakness with highly volatile operating cash flow and negative free cash flow in 2025.

Income Statement

Revenue has been declining for three straight years (2023–2025), with 2025 down ~5% after a flat-to-down 2024, signaling a cooler demand/pricing environment. Profitability is positive but thin, with 2025 gross margin ~6.5% and net margin ~0.9%, which is typical for distribution but leaves little room for error. Earnings have also softened versus 2024 (net income down), and operating profitability appears volatile across the period, pointing to inconsistent operating leverage.

Balance Sheet

Leverage has improved materially: debt-to-equity declined from ~1.43x (2020) to ~0.26x (2025) alongside lower total debt, strengthening financial flexibility. Equity remains sizable (~$1.24B in 2025) versus the debt load (~$321M), supporting balance sheet resilience. Return on equity is moderate (~7.7% in 2025) and below the stronger 2022 level, suggesting returns are acceptable but not standout.

Cash Flow

Cash generation is the main weak spot recently: 2025 operating cash flow fell to ~$177M from ~$332M in 2024 and ~$947M in 2023, showing meaningful volatility. Free cash flow swung to negative in 2025 (about -$56M) from a positive 2024, indicating reinvestment and/or working-capital needs consumed cash. While operating cash flow remains positive, conversion versus earnings looks weaker in 2025, increasing reliance on balance sheet strength during softer periods.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	11.01B	11.26B	14.75B	17.33B	12.61B
Gross Profit	696.53M	687.31M	831.94M	670.63M	441.64M
EBITDA	309.06M	359.75M	341.54M	386.30M	378.27M
Net Income	95.71M	114.01M	101.19M	131.08M	103.99M
Balance Sheet
Total Assets	3.71B	4.12B	3.86B	4.61B	4.57B
Cash, Cash Equivalents and Short-Term Investments	98.28M	561.77M	643.85M	115.27M	216.44M
Total Debt	1.04B	876.22M	665.29M	912.39M	1.17B
Total Liabilities	2.42B	2.52B	2.34B	3.18B	3.26B
Stockholders Equity	1.24B	1.37B	1.28B	1.20B	1.07B
Cash Flow
Free Cash Flow	-56.13M	182.32M	796.31M	147.38M	-132.85M
Operating Cash Flow	177.00M	331.51M	946.75M	287.12M	-51.05M
Investing Cash Flow	-195.31M	-163.07M	-153.88M	-52.90M	487.25M
Financing Cash Flow	-447.15M	-250.36M	-263.99M	-334.73M	-248.77M

The Andersons Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 47.51
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 47.51 is below the 20-day moving average (MA) of 65.77, below the 50-day MA of 59.96, and above the 200-day MA of 45.65, indicating a neutral trend. The MACD of 1.39 indicates Positive momentum. The RSI at 57.33 is Neutral, neither overbought nor oversold. The STOCH value of 30.39 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
WILC	81 Outperform	$350.39M	13.21	15.15%	3.55%	9.33%	72.31%
AVO	72 Outperform	$1.01B	26.77	6.65%	―	12.68%	3.09%
CVGW	71 Outperform	$479.74M	24.27	9.72%	3.70%	-5.33%	―
ANDE	64 Neutral	$2.21B	23.42	5.85%	1.44%	2.19%	-39.07%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
UNFI	52 Neutral	$2.33B	-22.92	-6.37%	―	1.45%	-5.49%

The Andersons Corporate Events

The Andersons Sets Ambitious 2028 Growth Target

On December 11, 2025, The Andersons, Inc. announced its growth target for 2028 during its Investor Day. The company aims for a run-rate earnings per share of $7.00 by the end of 2028, representing a 36% compounded annual growth rate. The strategic plan includes significant investments such as a $60 million upgrade to the Clymers, Indiana ethanol plant, and an expansion of the export terminal at the Port of Houston. These initiatives are expected to increase ethanol capacity and enhance export capabilities, respectively. The company also plans to leverage its acquisition of Skyland Grain to expand its geographic presence and merchandising capabilities. The Andersons is focused on maintaining efficient ethanol plants and maximizing tax credits, while continuing its tradition of returning capital to shareholders through dividends and share repurchases.

The most recent analyst rating on (ANDE) stock is a Buy with a $65.00 price target. To see the full list of analyst forecasts on The Andersons stock, see the ANDE Stock Forecast page.

The Andersons Highlights Growth at Investor Day

On December 9, 2025, The Andersons, Inc. held its 2025 Investor Day in New York City, highlighting its strategic focus on profitable growth and operational excellence. The event showcased the company’s commitment to leveraging its strong balance sheet and leadership expertise to drive long-term shareholder value, with a particular emphasis on expanding its presence in the North American ag and renewable fuels supply chains. The company aims to capitalize on industry tailwinds such as increased ethanol blending rates and biofuels policy support, positioning itself for continued growth and resilience.

The most recent analyst rating on (ANDE) stock is a Buy with a $53.00 price target. To see the full list of analyst forecasts on The Andersons stock, see the ANDE Stock Forecast page.