The Andersons (ANDE) AI Stock Analysis

• Market Cap: $1.32B
• Dividend Yield: 2.03%
• Average Volume (3M): 305.31K
• Price to Earnings (P/E): 16.4
• Beta (1Y): 0.63
• Revenue Growth: -6.66%
• EPS Growth: -21.70%
• Country: US
• Employees: 2,224
• Sector: Consumer Defensive
• Sector Strength: 57
• Industry: Food Distribution
• EPS (TTM): 0.23
• Shares Outstanding: 34,210,457
• 10 Day Avg. Volume: 417,302
• 30 Day Avg. Volume: 305,314
• 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: 1.45
• Enterprise Value/Revenue: 0.16
• Enterprise Value/Gross Profit: 2.71
• Enterprise Value/Ebitda: 6.91
• 1Y Price Target: $47.00
• Price Target Upside: 23.29% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 69 Neutral
• Price Target: $41.00 ▲(7.56% Upside)

The Andersons' stock score reflects a moderate outlook, driven by stable financial performance amidst declining revenue and profitability challenges. Technical indicators suggest a neutral to slightly bearish trend, while valuation metrics indicate a fair market price. Strategic moves in the ethanol sector provide potential growth opportunities, but caution is advised due to recent declines in net income and increased expenses.

Positive Factors

Earnings Growth

Trade segment delivered a surprising 21% YoY EBITDA growth, versus estimates of a similar magnitude YoY decline.

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.

Investment and Expansion

Investments such as Skyland Grain and the Port of Houston are expected to significantly contribute to EBITDA growth over the next two to three years.

Negative Factors

Earnings Outlook

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

Market Conditions

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

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. (ANDE) is a diversified company primarily engaged in the agriculture sector, providing a range of products and services across various segments including grain, plant nutrient, and retail. The company operates through several divisions, including grain handling and marketing, plant nutrient sales, and retail operations that cater to farmers and agricultural producers. The Andersons also have a growing presence in the renewable energy sector, focusing on biofuels and other sustainable energy solutions.

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	8.21B
Gross Profit	701.52M	693.93M	745.36M	684.16M	592.70M	404.92M
EBITDA	275.46M	359.75M	341.54M	361.35M	378.27M	195.42M
Net Income	94.59M	114.01M	101.19M	131.08M	103.99M	-14.21M
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	665.29M	912.39M	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	1.43B	1.07B	1.16B
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	-148.77M	-163.07M	-153.88M	-52.90M	487.25M	-86.76M
Financing Cash Flow	-79.99M	-250.36M	-263.99M	-334.73M	-248.77M	136.30M

The Andersons Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 38.12
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 38.12 is above the 20-day moving average (MA) of 36.91, above the 50-day MA of 36.78, and below the 200-day MA of 40.14, indicating a neutral trend. The MACD of 0.58 indicates Negative momentum. The RSI at 54.98 is Neutral, neither overbought nor oversold. The STOCH value of 80.54 is Negative, 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
SPTN	71 Outperform	$898.26M	2,245.98	-2.08%	3.30%	0.26%	-119.66%
AVO	69 Neutral	$862.25M	24.16	6.89%	―	29.50%	108.33%
ANDE	69 Neutral	$1.32B	16.38	6.03%	2.03%	-6.66%	-21.70%
UNFI	66 Neutral	$1.60B	―	-4.11%	―	6.62%	53.12%
Sector *	63 Neutral	$20.97B	14.57	-8.07%	3.14%	2.79%	-9.97%
HFFG	56 Neutral	$187.59M	―	-18.35%	―	4.88%	-1359.01%
CVGW	55 Neutral	$488.56M	47.88	6.90%	2.89%	-14.58%	―

The Andersons Corporate Events

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.

The most recent analyst rating on (ANDE) stock is a Buy with a $70.00 price target. To see the full list of analyst forecasts on The Andersons stock, see the ANDE Stock Forecast page.