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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on ANDE

The Andersons, Inc.'s recent performance was positively driven by its Q3 2025 earnings release, which reported net income attributable of $20 million and adjusted net income attributable of $29 million. The company's Renewables segment reported pretax income of $43 million, driven by strong operating performance and 45Z tax credits. Additionally, the acquisition of ethanol plants, completed at the end of July, contributed to the company's results. Institutional investors, such as Connor Clark & Lunn Investment Management Ltd., have shown confidence in the company, investing $1.72 million in The Andersons, Inc. shares.

1.c. Company Highlights

2. The Andersons' Q3 2025 Earnings: A Mixed Bag

The Andersons reported net income attributable to the company of $20 million or $0.59 per diluted share and adjusted net income of $29 million or $0.84 per diluted share for the third quarter of 2025. Revenues increased slightly, while gross profit declined due to challenging ag fundamentals and higher input costs in renewables. The actual EPS of $0.84 came in below estimates of $1.51, indicating a challenging quarter for the company. The company's cash flow from operations before changes in working capital was $68 million, and it ended the quarter with a cash balance of $82 million.

Publication Date: Nov -21

📋 Highlights
  • Net Income Growth:: Reported $20M ($0.59/share) net income and $29M ($0.84/share) adjusted net income for Q3 2025, driven by strong Renewables segment performance.
  • Rewnewables Segment Success:: Generated $46M adjusted pre-tax income, including $20M in 45Z tax credits YTD, with potential $0.10/gallon credit in Q4 2025.
  • Capital Expenditures:: $67M in Q3, with full-year CapEx expected at $200M, excluding $425M acquisition of ethanol plant ownership.
  • 2026 EPS Target:: Aims for $4.30/share, supported by improved agribusiness, ethanol ownership, and $10–$15M EBITDA from 45Z tax credits in Q4 2025.

Segment Performance

The Renewables segment had a solid quarter with adjusted pretax income attributable of $46 million, driven by strong production and yields, and included $20 million of 45Z tax credits year-to-date. In contrast, the Agribusiness segment reported adjusted pretax income attributable to the company of $2 million, impacted by oversupplied grain markets and global trade uncertainty. The fertilizer business saw improved volumes and margins in Q3, indicating a positive outlook for the next planting season.

Outlook and Guidance

The company expects a $10 million to $15 million EBITDA benefit from 45Z tax credits in Q4 2025 and anticipates reaching a 2026 EPS target of $4.30, driven by improved agribusiness results, increased ethanol plant ownership, and the impact of tax credits. The company will provide more guidance on 2026 at its Investor Day on December 9. Analysts estimate next year's revenue growth at 3.5%, indicating a relatively stable outlook for the company.

Valuation and Capital Allocation

The Andersons' long-term debt-to-EBITDA is approximately 2x, and the company continues to evaluate growth opportunities, including M&A, with a disciplined approach to capital spending. The company's P/E Ratio is 22.54, indicating a relatively high valuation. However, the EV/EBITDA ratio is 7.58, suggesting that the company's enterprise value is relatively in line with its earnings. The company's ROE is 5.57%, and ROIC is 1.39%, indicating room for improvement in terms of profitability. With a Free Cash Flow Yield of 14.11%, the company appears to be generating significant cash flows.

M&A and Growth Opportunities

The company plans to be active in M&A, driven by improved financial position and expected cash flow from 45Z tax credits. The company has been disciplined with capital allocation and will focus on core strengths, considering larger opportunities due to expected cash flows. The expected full-year CapEx is $200 million, with $30-50 million remaining for two large construction projects. The company's ability to generate cash flows will allow it to consider larger M&A projects, while still evaluating smaller bolt-on opportunities.

3. NewsRoom

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The Andersons, Inc. $ANDE Shares Sold by Bank of New York Mellon Corp

Nov -19

Source: defenseworld.net

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The Andersons to Present at Stephens Annual Investment Conference

Nov -17

Source: prnewswire.com

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Connor Clark & Lunn Investment Management Ltd. Invests $1.72 Million in The Andersons, Inc. $ANDE

Nov -17

Source: defenseworld.net

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The Andersons, Inc. (ANDE) Q3 2025 Earnings Call Transcript

Nov -05

Source: seekingalpha.com

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Andersons Third-Quarter Profit Falls on Trade Uncertainty

Nov -04

Source: wsj.com

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The Andersons, Inc. Reports Third Quarter Results

Nov -04

Source: prnewswire.com

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Allspring Global Investments Holdings LLC Sells 932 Shares of The Andersons, Inc. $ANDE

Oct -24

Source: defenseworld.net

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The Andersons, Inc. to Release Third Quarter Results on November 4

Oct -14

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.83%)

6. Segments

Trade

Expected Growth: 4.6%

The Andersons, Inc.'s 4.6% growth is driven by strong demand for its grain and plant nutrient products, supported by favorable weather conditions and increasing crop prices. Additionally, the company's strategic acquisitions and investments in digital agriculture have expanded its market share and improved operational efficiency.

Renewables

Expected Growth: 9.9%

The Andersons, Inc.'s 9.9% growth in Renewables is driven by increasing demand for sustainable energy, government incentives, and declining production costs. Expanding ethanol production capacity, strategic partnerships, and growing sales of renewable diesel and biodiesel also contribute to this growth.

Nutrient and Industrial

Expected Growth: 4.83%

The 4.83% growth in Nutrient and Industrial segment of The Andersons, Inc. is driven by increasing demand for agricultural nutrients, expansion of industrial product offerings, and strategic acquisitions. Additionally, favorable weather conditions, rising crop prices, and growing need for sustainable farming practices contribute to the segment's growth.

7. Detailed Products

Grain

The Andersons, Inc. is a leading grain company that originates, stores, and merchandises grains such as corn, soybeans, and wheat.

Plant Nutrients

The Andersons, Inc. offers a range of plant nutrients, including fertilizers, crop protection products, and other agricultural inputs.

Rail

The Andersons, Inc. provides railcar leasing and management services to companies in the agricultural, energy, and industrial sectors.

Ethanol

The Andersons, Inc. produces and markets ethanol, a biofuel used to power vehicles and generate electricity.

Retail Fertilizer

The Andersons, Inc. operates a network of retail fertilizer locations, offering a range of agricultural inputs and services to farmers and agricultural businesses.

8. The Andersons, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for The Andersons, Inc. is medium due to the availability of alternative products and services in the agricultural industry.

Bargaining Power Of Customers

The bargaining power of customers for The Andersons, Inc. is low due to the company's strong brand reputation and customer loyalty.

Bargaining Power Of Suppliers

The bargaining power of suppliers for The Andersons, Inc. is medium due to the company's dependence on a few key suppliers for raw materials.

Threat Of New Entrants

The threat of new entrants for The Andersons, Inc. is high due to the relatively low barriers to entry in the agricultural industry.

Intensity Of Rivalry

The intensity of rivalry for The Andersons, Inc. is high due to the competitive nature of the agricultural industry and the presence of several established players.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 29.47%
Debt Cost 7.44%
Equity Weight 70.53%
Equity Cost 7.44%
WACC 7.44%
Leverage 41.79%

11. Quality Control: The Andersons, Inc. passed 8 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
CHS

A-Score: 6.2/10

Value: 6.2

Growth: 3.7

Quality: 3.6

Yield: 10.0

Momentum: 3.5

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
SpartanNash

A-Score: 5.3/10

Value: 7.3

Growth: 3.3

Quality: 2.1

Yield: 7.0

Momentum: 8.5

Volatility: 3.3

1-Year Total Return ->

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Chefs Warehouse

A-Score: 5.2/10

Value: 3.9

Growth: 8.7

Quality: 5.2

Yield: 0.0

Momentum: 8.0

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
Andersons

A-Score: 4.7/10

Value: 6.4

Growth: 5.9

Quality: 4.1

Yield: 4.0

Momentum: 2.0

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
AMCON

A-Score: 4.6/10

Value: 7.5

Growth: 6.7

Quality: 3.6

Yield: 4.0

Momentum: 2.0

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
Mission Produce

A-Score: 4.2/10

Value: 5.1

Growth: 4.7

Quality: 4.3

Yield: 0.0

Momentum: 5.0

Volatility: 6.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

50.69$

Current Price

50.69$

Potential

-0.00%

Expected Cash-Flows