The Andersons (ANDE) AI Stock Analysis

• Market Cap: $1.31B
• Dividend Yield: 2.03%
• Average Volume (3M): 297.61K
• Price to Earnings (P/E): 12.1
• Beta (1Y): 0.54
• Revenue Growth: -17.58%
• EPS Growth: -11.24%
• Country: US
• Employees: 2,224
• Sector: Industrials
• Sector Strength: 91
• Industry: Food Distribution
• EPS (TTM): 0.01
• Shares Outstanding: 34,187,805
• 10 Day Avg. Volume: 275,900
• 30 Day Avg. Volume: 297,609
• PEG Ratio: -2.64
• Price to Book (P/B): 0.95
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 24.78
• Enterprise Value/Market Cap: 1.48
• Enterprise Value/Revenue: 0.04
• Enterprise Value/Gross Profit: 2.69
• Enterprise Value/Ebitda: 1.42
• 1Y Price Target: $50.00
• Price Target Upside: 32.28% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 71 Outperform
• Price Target: $41.00 ▲(8.47%Upside)

The overall stock score of 71 reflects a moderate outlook for The Andersons. The most significant factors are the stable financial performance with manageable debt and the attractive valuation, counterbalanced by challenges in the Agribusiness segment and declining net income. The technical analysis indicates some positive momentum, while earnings call analysis suggests optimism for strategic growth despite current hurdles.

Positive Factors

Earnings Performance

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

Financial Health

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

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

Negative Factors

Market Environment

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 Challenges

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, 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. However, the balance sheet remains stable with manageable debt levels, despite shrinking cash flows. Operational efficiency is reasonable, but the decreasing revenue and free cash flow highlight areas needing strategic focus.

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	11.20B	11.26B	14.75B	17.33B	12.61B	8.21B
Gross Profit	724.65M	693.93M	745.36M	684.16M	592.70M	404.92M
EBITDA	360.64M	359.75M	341.54M	361.35M	378.27M	195.42M
Net Income	108.72M	114.01M	101.19M	131.08M	103.99M	-14.21M
Balance Sheet
Total Assets	3.80B	4.12B	3.86B	4.61B	4.57B	4.27B
Cash, Cash Equivalents and Short-Term Investments	219.22M	561.77M	643.85M	115.27M	216.44M	29.12M
Total Debt	873.45M	876.22M	665.29M	912.39M	1.17B	1.43B
Total Liabilities	2.20B	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	52.15M	182.32M	796.31M	147.38M	-132.85M	-179.32M
Operating Cash Flow	221.11M	331.51M	946.75M	287.12M	-51.05M	-74.43M
Investing Cash Flow	-184.85M	-163.07M	-153.88M	-52.90M	487.25M	-86.76M
Financing Cash Flow	-101.63M	-250.36M	-263.99M	-334.73M	-248.77M	136.30M

The Andersons Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 37.80
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• 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 Neutral. The current price of 37.8 is above the 20-day moving average (MA) of 37.24, above the 50-day MA of 35.94, and below the 200-day MA of 41.48, indicating a neutral trend. The MACD of 0.64 indicates Negative momentum. The RSI at 56.12 is Neutral, neither overbought nor oversold. The STOCH value of 69.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ANDE.

The Andersons Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ANDE	71 Outperform	$1.31B	12.12	8.25%	2.03%	-17.58%	-11.24%
SPTN	71 Outperform	$899.37M	2,245.98	-1.38%	3.31%	0.26%	-119.66%
AVO	69 Neutral	$857.31M	23.42	6.89%	―	29.50%	108.33%
Sector *	65 Neutral	$10.85B	15.55	5.22%	1.89%	3.09%	-26.84%
CVGW	60 Neutral	$475.90M	46.64	6.90%	3.00%	-14.58%	―
UNFI	58 Neutral	$1.44B	―	-4.11%	―	6.62%	53.12%
HFFG	49 Neutral	$173.36M	―	-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.