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The Andersons (ANDE)
NASDAQ:ANDE
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The Andersons
(NASDAQ:ANDE)
64Neutral
Positive Factors
Acquisitions
The Andersons is expected to pursue growth via acquisitions in ethanol, leveraging its stellar balance sheet and significant cash reserves.
Financial Performance
The company's profit stream is predictable due to its heavy exposure to US-based revenues and top tier operator status.
Investments
Investments such as Skyland Grain and the Port of Houston are anticipated to significantly contribute to EBITDA growth over the next two to three years.
Negative Factors
Ethanol Market
A challenging year ahead is foreseen for the ethanol margin environment, reflecting abundant global supplies and policy uncertainty.
Market Challenges
A challenging year is foreseen due to abundant global supplies, ongoing tariff wars, and uncertainty over US biofuels policy.
Operational Disruptions
Investments in growth are taking some capacity offline amid construction in 2025.
The Andersons (ANDE) vs. S&P 500 (SPY)
Market Cap
$1.19B
Dividend Yield2.22%
Average Volume (3M)280.12K
Price to Earnings (P/E)11.1
Beta (1Y)0.54
Revenue Growth-17.58%
EPS Growth-11.24%
CountryUS
Employees2,224
SectorIndustrials
Sector Strength82
IndustryFood Distribution
Share Statistics
EPS (TTM)0.01
Shares Outstanding34,187,805
10 Day Avg. Volume224,979
30 Day Avg. Volume280,124
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.65
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit2.84
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$50.00Price Target Upside44.26% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
The Andersons Business Overview & Revenue Model
Company DescriptionThe Andersons, Inc. is a diversified agribusiness and retail company based in the United States. It operates through several segments, including Trade, Ethanol, Plant Nutrient, and Rail. The company is involved in grain merchandising and handling, ethanol production, plant nutrient formulation and distribution, and leasing, marketing, and management of railcar fleets. The Andersons is known for its strong agricultural presence, catering to a wide array of customers in the agricultural supply chain.
How the Company Makes MoneyThe Andersons, Inc. generates revenue through various streams, primarily anchored in its four main business segments. The Trade segment involves the merchandising and handling of grains, where the company earns from buying, storing, and selling grains in domestic and international markets. The Ethanol segment generates revenue from the production and sale of ethanol and related co-products, such as distillers' grains. In the Plant Nutrient segment, the company makes money by formulating, distributing, and retailing fertilizers and other crop inputs to agricultural producers. The Rail segment contributes to revenue through the leasing, marketing, and management of railcars, as well as the sale of rail components. The company's diverse operations, along with strategic partnerships and an extensive supply chain network, enable it to efficiently serve the agricultural sector and capitalize on market opportunities.
The Andersons Financial Statement Overview
Summary
The Andersons shows a mixed financial picture. The income statement reflects challenges with low profit margins and declining revenues. However, the balance sheet is strong with reduced debt and a healthy equity position. Cash flow is robust despite a decline in free cash flow growth, signaling stability but with growth challenges.Income Statement
The Andersons shows a mixed performance in its income statement. The TTM period sees a gross profit margin of 6.22% and a net profit margin of 1.01%, both of which are relatively low. Revenue has declined over recent years, indicating potential challenges in maintaining top-line growth. However, the company has managed to maintain positive net income, showcasing some stability in profitability.72
Positive
Balance Sheet
The balance sheet reflects a solid financial position with a significant reduction in total debt in the TTM period, leading to a lower debt-to-equity ratio. The equity ratio stands at a healthy 38.8%, indicative of a strong equity base. Return on equity is modest at 7.13%, suggesting room for improvement in generating returns on shareholder equity.79
Positive
Cash Flow
Cash flow analysis reveals a decrease in free cash flow growth, with TTM free cash flow lower compared to the previous year. The operating cash flow to net income ratio is strong at 2.91, indicating efficient cash generation from operations relative to net income. However, financing activities have consistently consumed cash, which could be a concern if operating cash flow weakens.68
Positive
| 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 | EBIT |
| 190.31M | 253.10M | 251.43M | 206.38M | 26.80M | EBITDA |
| 359.75M | 341.54M | 361.35M | 378.27M | 195.42M | Net Income Common Stockholders |
| 114.01M | 101.19M | 131.08M | 103.99M | -14.21M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 561.77M | 643.85M | 115.27M | 216.44M | 29.12M | Total Assets |
| 4.12B | 3.86B | 4.61B | 4.57B | 4.27B | Total Debt |
| 876.22M | 665.29M | 912.39M | 1.17B | 1.43B | Net Debt |
| 314.44M | 21.43M | 797.13M | 949.41M | 1.40B | 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
Negative
34.66
Price Trends
39.84
Negative
40.84
Negative
44.42
Negative
Market Momentum
-1.51
Positive
38.76
Neutral
34.22
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 34.66 is below the 20-day moving average (MA) of 36.99, below the 50-day MA of 39.84, and below the 200-day MA of 44.42, indicating a bearish trend. The MACD of -1.51 indicates Positive momentum. The RSI at 38.76 is Neutral, neither overbought nor oversold. The STOCH value of 34.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ANDE.
The Andersons Risk Analysis
The Andersons disclosed 22 risk factors in its most recent earnings report. The Andersons reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
The Andersons Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $737.01M | 18.14 | 7.69% | ― | 31.14% | 576.83% | |
64 Neutral | $4.30B | 11.84 | 5.23% | 249.82% | 4.10% | -10.59% | |
64 Neutral | $1.19B | 11.13 | 8.25% | 2.22% | -17.58% | -11.24% | |
63 Neutral | $646.46M | 2,221.84 | 0.04% | 4.57% | -2.66% | 8.18% | |
57 Neutral | $210.42M | ― | -18.45% | ― | 4.63% | -2188.56% | |
55 Neutral | $474.09M | 51.40 | 6.85% | 2.74% | -21.19% | ― | |
53 Neutral | $1.62B | ― | -4.94% | ― | 4.73% | 29.70% |
* Industrials Sector Average
Performance Comparison
ANDE
The Andersons
34.66
-16.49
-32.24%
CVGW
Calavo Growers
25.54
-2.05
-7.43%
SPTN
SpartanNash Co
19.10
-0.40
-2.05%
UNFI
United Natural Foods
27.61
17.61
176.10%
HFFG
HF Foods Group
4.35
1.33
44.04%
AVO
Mission Produce
10.38
-1.98
-16.02%
The Andersons Earnings Call Summary
Earnings Call Date:May 06, 2025
(Q1-2025)
| % Change Since: -0.80%|
Next Earnings Date:Aug 12, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with strong performance in the Renewables segment and cash flow improvements, but faced challenges in the Agribusiness segment due to global trade uncertainties and lower net income. Despite the setbacks, there is optimism for future growth, especially in Renewables and Agronomy.Q1-2025 Updates
Positive Updates
Strong Performance in Renewables
The Renewables Group had one of its best first quarters with improved yields and solid margins from ethanol production, coupled with contributions from ethanol and renewable diesel feedstock merchandising. Renewables generated a pretax income of $15 million compared to $14 million in the first quarter of 2024.
Increased Cash Flow and Strong Balance Sheet
The company generated $57 million in cash flow from operations before changes in working capital, an increase of more than $8 million from 2024. The cash position was $219 million at the end of the quarter.
Positive EBITDA Growth
Adjusted EBITDA for the first quarter of 2025 was $57 million compared to $51 million in 2024.
Improved Agronomy Performance
Increased agronomy volumes and margins as the nutrient and agronomy teams had a solid start to the planting season.
Negative Updates
Weak Agribusiness Performance
The Agribusiness segment reported a pretax loss of $5 million and breakeven adjusted pretax income compared to $5 million in 2024. Declining grain basis and market conditions negatively impacted results.
Global Trade Uncertainty
Global trade uncertainty, including threatened tariffs and port fees, disrupted typical grain flows and negatively impacted commodity values.
Lower Net Income
Net income attributable to the Andersons was $300,000 or $0.01 per diluted share, down from $6 million or $0.16 per diluted share in the first quarter of 2024.
Reduced Dried Distiller Grains Contributions
Contributions from dried distiller grains were lower year-over-year due to an oversupply of alternative protein sources.
Company Guidance
In the first quarter of 2025, Andersons experienced mixed results, with Renewables performing strongly while Agribusiness faced challenges. The company reported net income attributable to Andersons of $300,000 or $0.01 per diluted share, with adjusted net income of $4 million or $0.12 per diluted share, compared to $6 million or $0.16 per diluted share in the first quarter of 2024. Revenues declined slightly due to lower commodity prices, although gross profit improved. Adjusted EBITDA for the quarter was $57 million compared to $51 million in 2024. The Agribusiness segment reported a pretax loss of $5 million, while the Renewables segment generated a pretax income of $15 million. The company's effective tax rate is expected to be between 18% and 22% for the full year. Capital spending increased to $47 million, largely due to long-term growth projects and maintenance, with expectations to reach $200 million for the year. The company remains optimistic about its outlook despite near-term challenges and continues to focus on strategic growth investments.The Andersons Corporate Events
Executive/Board Changes
The Andersons Announces Retirement of Key Executive
Neutral
Mar 26, 2025
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.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.