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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 record fourth-quarter results, with net income attributable to the company reaching $67 million, or $1.97 per diluted share. The Renewables segment reported pretax income of $54 million, driven by record production and solid merchandising. Additionally, institutional investors such as Ophir Asset Management and Resolute Capital have shown confidence in the company, with Ophir buying 728,724 shares and Resolute Capital adding 240,000 shares. The company also maintains a "Moderate Buy" rating from brokerages, with a consensus price target of $58.33.

1.c. Company Highlights

2. Record Q4 Earnings Driven by Strong Agribusiness and Renewables Performance

The Andersons reported a record fourth-quarter EPS, driven by a strong performance in both Agribusiness and Renewables segments. The company's net income attributable to The Andersons was $67 million or $1.97 per diluted share, and adjusted net income was $70 million or $2.04 per diluted share, significantly beating estimates of $0.52. The Agribusiness segment reported pretax income of $46 million and adjusted pretax income of $45 million, while the Renewables segment generated pretax income attributable to the company of $54 million, a significant increase from $17 million in 2024. The company's adjusted EBITDA was $80 million in Agribusiness and the Renewables segment contributed substantially to the overall profitability.

Publication Date: Feb -22

📋 Highlights
  • Record EPS Growth:: Adjusted EPS surged to $2.04 in Q4, up from $1.36 in 2024, with full-year cash flow from operations at $278 million.
  • Renewables Segment Surge:: Pretax income jumped to $54 million (vs. $17 million in 2024), driven by full ownership of ethanol plants.
  • Agribusiness Margin Pressure:: Adjusted EBITDA dipped to $80 million (from $88 million in 2024), despite $45 million in adjusted pretax income.
  • Future EPS Targets:: Guidance for >$4.30 run-rate EPS in 2026 and $7 EPS by 2028, supported by ethanol plant ownership and 45Z tax benefits ($90–$100 million annual impact).
  • Strategic Investments:: $30M incremental ethanol production capacity at Clymers (2027) and new renewable blending facility in Ulysses, Kansas, to boost long-term growth.

Segmental Performance

The Agribusiness segment's adjusted EBITDA was $80 million, down from $88 million in 2024, while the Renewables segment's pretax income was $54 million, up from $17 million in 2024, driven by the full ownership of the four ethanol plants. The company generated $110 million in cash flow from operations before changes in working capital in the fourth quarter, and $278 million for the full year. The year-end cash balance was down, and short-term debt reflected a modest increase due to the acquisition of the partner share of the ethanol plants.

Outlook and Guidance

The company expects 2026 to bring better financial results in Agribusiness with more certainty in global grain markets, while demand for ethanol and related products is expected to remain strong. The company expects to exit 2026 with a run-rate EPS of more than $4.30 and targets $7 EPS by the end of 2028. The company is focused on continuous improvement in safety culture and enterprise business support organization. Analysts estimate next year's revenue growth at 3.6%, indicating a stable outlook.

Valuation and Metrics

With a P/E Ratio of 23.33 and EV/EBITDA of 10.32, the stock appears to be reasonably valued. The ROE of 7.44% and ROIC of 3.32% indicate a decent return on equity and invested capital. The Net Debt / EBITDA ratio of 3.06 suggests a moderate level of debt. The current valuation metrics suggest that the market has priced in a certain level of growth, but the company's strong performance and guidance provide a positive outlook.

3. NewsRoom

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Agriculture Stock Up 53% Draws $12 Million Bet. Here's What Long-Term Investors Should Know

Mar -20

Source: fool.com

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This Fund Bet $39 Million on The Andersons as Stock Surges Over 50% This Past Year

Mar -05

Source: fool.com

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The Andersons, Inc. (ANDE) Q4 2025 Earnings Call Transcript

Feb -18

Source: seekingalpha.com

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Fiserv Inc: A Significant Move in Jeff Auxier's Portfolio

Feb -17

Source: gurufocus.com

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The Andersons, Inc. Reports Fourth Quarter and Full Year Results

Feb -17

Source: prnewswire.com

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The Andersons, Inc. Declares Cash Dividend for Second Quarter 2026

Feb -12

Source: prnewswire.com

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The Andersons, Inc. (NASDAQ:ANDE) Receives $58.33 Consensus Price Target from Brokerages

Feb -07

Source: defenseworld.net

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58,890 Shares in The Andersons, Inc. $ANDE Purchased by AlphaQuest LLC

Jan -31

Source: defenseworld.net

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: 6.7/10

Value: 6.3

Growth: 5.2

Quality: 3.6

Yield: 10.0

Momentum: 5.0

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
SpartanNash

A-Score: 5.9/10

Value: 7.5

Growth: 3.3

Quality: 2.1

Yield: 7.0

Momentum: 9.5

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
Andersons

A-Score: 5.5/10

Value: 6.9

Growth: 5.9

Quality: 3.6

Yield: 4.0

Momentum: 7.0

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
Chefs Warehouse

A-Score: 5.3/10

Value: 3.4

Growth: 8.7

Quality: 5.1

Yield: 0.0

Momentum: 8.5

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
AMCON

A-Score: 4.6/10

Value: 7.0

Growth: 6.1

Quality: 2.2

Yield: 4.0

Momentum: 3.0

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
Mission Produce

A-Score: 4.3/10

Value: 4.5

Growth: 5.9

Quality: 5.0

Yield: 0.0

Momentum: 3.5

Volatility: 7.0

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

73.41$

Current Price

73.41$

Potential

-0.00%

Expected Cash-Flows