The Andersons (ANDE) AI Stock Analysis

• Market Cap: $1.23B
• Dividend Yield: 2.15%
• Average Volume (3M): 290.34K
• Price to Earnings (P/E): 11.4
• Beta (1Y): 0.54
• Revenue Growth: -17.58%
• EPS Growth: -11.24%
• Country: US
• Employees: 2,224
• Sector: Industrials
• Sector Strength: 93
• Industry: Food Distribution
• EPS (TTM): 0.01
• Shares Outstanding: 34,187,805
• 10 Day Avg. Volume: 219,411
• 30 Day Avg. Volume: 290,342
• PEG Ratio: -2.62
• Price to Book (P/B): 0.94
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 24.58
• Enterprise Value/Market Cap: 1.56
• Enterprise Value/Revenue: 0.04
• Enterprise Value/Gross Profit: 2.66
• Enterprise Value/Ebitda: 1.41
• 1Y Price Target: $50.00
• Price Target Upside: 38.50% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 67 Neutral
• Price Target: $39.00 ▲(8.03%Upside)

The overall score of 67.2 reflects a moderate performance. The most significant factor is the financial performance, which shows declining revenue and free cash flow, posing risks to growth sustainability. The technical analysis indicates a bearish trend, which could affect investor sentiment. However, the reasonable valuation and positive elements from the earnings call, particularly in the Renewables segment, offer some optimism for strategic growth.

Positive Factors

Acquisition Potential

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

Financial Position

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

Growth Opportunities

Several opportunities exist for ANDE over the balance of 2025 including a strong 2Q setup for fertilizer profits with 95+ million corn acres planted, improved ethanol demand environment in the summer driving season, wheat carry income, and end of year opportunities in grain trading with big expected harvest.

Negative Factors

Challenging Environment

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

Global Challenges

A challenging year ahead is foreseen in 2025 for the Agribusiness trading landscape and ethanol margin environment, reflecting 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.

The Andersons Business Overview & Revenue Model

Company Description

The Andersons, Inc. (ANDE) is a diversified company operating primarily in the agriculture sector. Established in 1947 and headquartered in Maumee, Ohio, The Andersons engages in grain merchandising, ethanol production, plant nutrient formulation and distribution, and railcar leasing and repair. The company's core operations are divided into four segments: Trade, Ethanol, Plant Nutrient, and Rail. These segments enable The Andersons to serve a broad customer base, including farmers, grain processors, and industrial clients, with a range of essential agricultural and industrial products and services.

How the Company Makes Money

The Andersons, Inc. generates revenue through its diverse operations across several key segments. The Trade segment is a primary revenue driver, involving the sourcing, merchandising, and handling of grain and other agricultural commodities, which the company buys from farmers and sells to processors and end-users. The Ethanol segment contributes through the production and sale of ethanol and its co-products, such as corn oil and distillers' grains, serving the renewable fuels market. The Plant Nutrient segment generates income by producing and distributing agricultural nutrients, including fertilizers and specialty chemicals, to enhance crop yields. Additionally, the Rail segment provides revenue through leasing railcars and offering repair services to various industries. Significant partnerships with farmers, processors, and industrial clients, along with strategic acquisitions, further bolster The Andersons' earnings.

The Andersons Financial Statement Overview

Summary

The Andersons faces a challenging landscape with declining revenue and modest profitability. The balance sheet is stable with manageable debt, but cash flow management needs improvement, particularly in sustaining free cash flow growth.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.26B	14.75B	17.33B	12.61B	8.21B
Gross Profit	693.93M	745.36M	684.16M	592.70M	404.92M
EBITDA	359.75M	341.54M	361.35M	378.27M	195.42M
Net Income	114.01M	101.19M	131.08M	103.99M	-14.21M
Balance Sheet
Total Assets	4.12B	3.86B	4.61B	4.57B	4.27B
Cash, Cash Equivalents and Short-Term Investments	561.77M	643.85M	115.27M	216.44M	29.12M
Total Debt	876.22M	665.29M	912.39M	1.17B	1.43B
Total Liabilities	2.52B	2.34B	3.18B	3.26B	3.11B
Stockholders Equity	1.37B	1.28B	1.43B	1.07B	1.16B
Cash Flow
Free Cash Flow	182.32M	796.31M	147.38M	-132.85M	-179.32M
Operating Cash Flow	331.51M	946.75M	287.12M	-51.05M	-74.43M
Investing Cash Flow	-163.07M	-153.88M	-52.90M	487.25M	-86.76M
Financing Cash Flow	-250.36M	-263.99M	-334.73M	-248.77M	136.30M

The Andersons Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 36.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 36.1 is below the 20-day moving average (MA) of 37.23, below the 50-day MA of 36.15, and below the 200-day MA of 40.99, indicating a bearish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 45.06 is Neutral, neither overbought nor oversold. The STOCH value of 28.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ANDE.

The Andersons Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SPTN	71 Outperform	$899.95M	2,245.98	-1.38%	3.30%	0.26%	-119.66%
AVO	69 Neutral	$858.72M	23.54	6.89%	―	29.50%	108.33%
ANDE	67 Neutral	$1.23B	11.40	8.25%	2.15%	-17.58%	-11.24%
Sector *	67 Neutral	€8.35B	21.01	6.46%	2.81%	1.89%	-39.33%
UNFI	62 Neutral	$1.67B	―	-4.11%	―	6.62%	53.12%
CVGW	60 Neutral	$468.58M	45.93	6.90%	3.04%	-14.58%	―
HFFG	49 Neutral	$160.63M	―	-18.85%	―	4.71%	-1754.14%

The Andersons Corporate Events

The Andersons Announces Retirement of Key Executive

On March 24, 2025, Christine M. Castellano, Executive Vice President, General Counsel and Corporate Secretary of The Andersons, Inc., announced her decision to retire effective April 18, 2025. The company will provide her with benefits in line with a qualifying termination under its Change in Control & Severance policy.