DB:AKG

Stock Analysis Report

Executive Summary

The Andersons, Inc., an agriculture company, operates in the grain, ethanol, plant nutrient, and rail sectors in the United States and internationally.


Snowflake Analysis

Good value average dividend payer.


Similar Companies

Share Price & News

How has Andersons's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AKG has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-10.4%

AKG

1.2%

DE Consumer Retailing

-0.2%

DE Market


1 Year Return

-41.8%

AKG

2.8%

DE Consumer Retailing

13.7%

DE Market

Return vs Industry: AKG underperformed the German Consumer Retailing industry which returned 3.3% over the past year.

Return vs Market: AKG underperformed the German Market which returned 14.4% over the past year.


Shareholder returns

AKGIndustryMarket
7 Day-10.4%1.2%-0.2%
30 Day-14.4%2.8%0.3%
90 Day-8.7%2.4%3.7%
1 Year-40.2%-41.8%6.8%2.8%17.2%13.7%
3 Year-45.2%-48.7%7.3%-3.4%15.4%5.3%
5 Year-46.5%-51.5%9.5%-7.3%21.3%4.7%

Price Volatility Vs. Market

How volatile is Andersons's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Andersons undervalued compared to its fair value and its price relative to the market?

41.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AKG (€19) is trading below our estimate of fair value (€32.35)

Significantly Below Fair Value: AKG is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: AKG is poor value based on its PE Ratio (36.2x) compared to the Consumer Retailing industry average (21.1x).

PE vs Market: AKG is poor value based on its PE Ratio (36.2x) compared to the German market (20.7x).


Price to Earnings Growth Ratio

PEG Ratio: AKG is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: AKG is good value based on its PB Ratio (0.6x) compared to the XE Consumer Retailing industry average (1.6x).


Next Steps

Future Growth

How is Andersons forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

49.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AKG's forecast earnings growth (49.8% per year) is above the savings rate (-0.4%).

Earnings vs Market: AKG's earnings (49.8% per year) are forecast to grow faster than the German market (13.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: AKG's revenue (0.8% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: AKG's revenue (0.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if AKG's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Andersons performed over the past 5 years?

-1.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AKG has high quality earnings.

Growing Profit Margin: AKG's current net profit margins (0.2%) are lower than last year (1.4%).


Past Earnings Growth Analysis

Earnings Trend: AKG's earnings have declined by -1.8% per year over the past 5 years.

Accelerating Growth: AKG's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: AKG had negative earnings growth (-55.9%) over the past year, making it difficult to compare to the Consumer Retailing industry average (-0.6%).


Return on Equity

High ROE: AKG's Return on Equity (1.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Andersons's financial position?


Financial Position Analysis

Short Term Liabilities: AKG's short term assets ($2.0B) exceed its short term liabilities ($1.5B).

Long Term Liabilities: AKG's short term assets ($2.0B) exceed its long term liabilities ($1.3B).


Debt to Equity History and Analysis

Debt Level: AKG's debt to equity ratio (98.6%) is considered high.

Reducing Debt: AKG's debt to equity ratio has increased from 46.5% to 98.6% over the past 5 years.

Debt Coverage: AKG's debt is well covered by operating cash flow (21.6%).

Interest Coverage: AKG's interest payments on its debt are not well covered by EBIT (1.4x coverage).


Balance Sheet

Inventory Level: AKG has a high level of physical assets or inventory.

Debt Coverage by Assets: AKG's debt is covered by short term assets (assets are 1.7x debt).


Next Steps

Dividend

What is Andersons's current dividend yield, its reliability and sustainability?

3.45%

Current Dividend Yield


Dividend Yield vs Market

company3.5%marketbottom25%1.3%markettop25%3.7%industryaverage3.7%forecastin3Years3.4%

Current dividend yield vs market & industry

Notable Dividend: AKG's dividend (3.45%) is higher than the bottom 25% of dividend payers in the German market (1.32%).

High Dividend: AKG's dividend (3.45%) is low compared to the top 25% of dividend payers in the German market (3.63%).


Stability and Growth of Payments

Stable Dividend: AKG's dividends per share have been stable in the past 10 years.

Growing Dividend: AKG's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (121.4%), AKG's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AKG's dividends in 3 years are forecast to be well covered by earnings (37.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.4yrs

Average management tenure


CEO

Pat Bowe (60yo)

4.3yrs

Tenure

US$3,885,600

Compensation

Mr. Patrick E. Bowe, also known as Pat, has been Chief Executive Officer, President and Director of The Andersons, Inc. since November 2, 2015. Mr. Bowe served as Corporate Vice President of Cargill, Incor ...


CEO Compensation Analysis

Compensation vs Market: Pat's total compensation ($USD3.89M) is above average for companies of similar size in the German market ($USD1.19M).

Compensation vs Earnings: Pat's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Patrick Bowe
President4.3yrsUS$3.89m0.41% $2.5m
Brian Valentine
Senior VP & CFO1.5yrsUS$1.28m0.055% $336.2k
Naran Burchinow
Executive Officer0yrsUS$813.82k0.083% $503.0k
Corbett Jorgenson
President of Assets & Originations - Trade Group Segment4yrsUS$758.69k0.055% $337.2k
Joseph McNeely
President of the Rail Group2.2yrsUS$943.22k0.054% $330.1k
Anthony Lombardi
Chief Information Officer3.4yrsno data0.011% $69.9k
John Kraus
Director of Investor Relations0yrsno datano data
Katelin Langenderfer
Corporate Communications Manager0yrsno datano data
Valerie Blanchett
Vice President of Human Resources4yrsUS$643.81k0.036% $221.4k
William Krueger
President of Trade Group1.1yrsno data2.14% $13.0m

3.4yrs

Average Tenure

55.5yo

Average Age

Experienced Management: AKG's management team is considered experienced (3.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Patrick Bowe
President4.3yrsUS$3.89m0.41% $2.5m
Patrick Mullin
Independent Director6.5yrsUS$174.55k0.048% $292.1k
Gerard Anderson
Independent Director11.2yrsUS$153.55k1.05% $6.4m
Richard Anderson
Chairman Emeritus10.8yrsUS$58.60kno data
Michael Anderson
Chairman10.8yrsUS$242.08k1.74% $10.6m
Ross Manire
Independent Director11.1yrsUS$161.05k0.064% $387.5k
Jacqueline Woods
Independent Director21yrsUS$174.05k0.073% $444.4k
John Stout
Independent Director10.3yrsUS$156.57k0.089% $543.4k
Robert King
Independent Director14.6yrsUS$165.55k0.10% $632.5k
Catherine Kilbane
Lead Director0yrsUS$180.55k0.099% $602.8k

10.8yrs

Average Tenure

66yo

Average Age

Experienced Board: AKG's board of directors are seasoned and experienced ( 10.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 15.7%.


Top Shareholders

Company Information

The Andersons, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The Andersons, Inc.
  • Ticker: AKG
  • Exchange: DB
  • Founded: 1947
  • Industry: Food Distributors
  • Sector: Consumer Retailing
  • Market Cap: US$656.383m
  • Listing Market Cap: US$608.205m
  • Shares outstanding: 32.38m
  • Website: https://www.andersonsinc.com

Number of Employees


Location

  • The Andersons, Inc.
  • 1947 Briarfield Boulevard
  • PO Box 119
  • Maumee
  • Ohio
  • 43537
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ANDENasdaqGS (Nasdaq Global Select)YesCommon SharesUSUSDFeb 1996
AKGDB (Deutsche Boerse AG)YesCommon SharesDEEURFeb 1996

Biography

The Andersons, Inc., an agriculture company, operates in the grain, ethanol, plant nutrient, and rail sectors in the United States and internationally. The company’s Grain segment operates grain elevators; stores grains; and provides grain marketing, risk management, and corn origination services to its customers and affiliated ethanol facilities. Its Ethanol segment purchases and sells ethanol; and offers facility operations, risk management, and corn origination services. Its Ethanol segment purchases and sells ethanol, as well as offers facility operations, risk management, and ethanol and corn oil 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, 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. This segment 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; and fertilizer and control products. Its Rail segment leases, sells, and repairs various types of railcars, locomotives, and barges; provides fleet management services to private railcar owners; and offers metal fabrication services. The Andersons, Inc. was founded in 1947 and is based in Maumee, Ohio. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 20:58
End of Day Share Price2020/02/20 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.