NasdaqGS:ANDE

Stock Analysis Report

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Market Cap

US$957.7m

Last Updated

2021/06/19 15:49 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Average dividend payer with acceptable track record.


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: ANDE is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: ANDE's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-9.6%

ANDE

-1.5%

US Consumer Retailing

-0.2%

US Market


1 Year Return

105.5%

ANDE

22.7%

US Consumer Retailing

39.4%

US Market

Return vs Industry: ANDE exceeded the US Consumer Retailing industry which returned 22.7% over the past year.

Return vs Market: ANDE exceeded the US Market which returned 39.4% over the past year.


Shareholder returns

ANDEIndustryMarket
7 Day-9.6%-1.5%-0.2%
30 Day-2.2%-2.2%3.1%
90 Day1.9%6.0%5.6%
1 Year112.9%105.5%25.4%22.7%41.7%39.4%
3 Year-8.7%-16.2%57.4%48.2%59.7%49.9%
5 Year-2.8%-14.0%82.5%63.7%122.6%97.6%

Long-Term 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

Valuation

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

16.01x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ANDE ($29.32) is trading above our estimate of fair value ($25.48)

Significantly Below Fair Value: ANDE is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ANDE is poor value based on its PE Ratio (16x) compared to the US Consumer Retailing industry average (15.4x).

PE vs Market: ANDE is good value based on its PE Ratio (16x) compared to the US market (19.4x).


Price to Earnings Growth Ratio

PEG Ratio: ANDE is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: ANDE is good value based on its PB Ratio (1x) compared to the US Consumer Retailing industry average (2.7x).


Future Growth

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

7.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ANDE's forecast earnings growth (7.2% per year) is above the savings rate (2%).

Earnings vs Market: ANDE's earnings (7.2% per year) are forecast to grow slower than the US market (15.7% per year).

High Growth Earnings: ANDE's earnings are forecast to grow, but not significantly.

Revenue vs Market: ANDE's revenue (3.6% per year) is forecast to grow slower than the US market (9.4% per year).

High Growth Revenue: ANDE's revenue (3.6% 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 ANDE's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Andersons performed over the past 5 years?

27.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ANDE has high quality earnings.

Growing Profit Margin: ANDE became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: ANDE has become profitable over the past 5 years, growing earnings by 27.7% per year.

Accelerating Growth: ANDE has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: ANDE has become profitable in the last year, making it difficult to compare its past year earnings growth to the Consumer Retailing industry (47.1%).


Return on Equity

High ROE: ANDE's Return on Equity (4.2%) is considered low.


Financial Health

How is Andersons's financial position?


Financial Position Analysis

Short Term Liabilities: ANDE's short term assets ($2.4B) exceed its short term liabilities ($1.9B).

Long Term Liabilities: ANDE's short term assets ($2.4B) exceed its long term liabilities ($1.2B).


Debt to Equity History and Analysis

Debt Level: ANDE's debt to equity ratio (158%) is considered high.

Reducing Debt: ANDE's debt to equity ratio has increased from 95.6% to 158% over the past 5 years.

Debt Coverage: ANDE's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: ANDE's interest payments on its debt are not well covered by EBIT (1.6x coverage).


Balance Sheet


Dividend

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

2.39%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ANDE's dividend (2.39%) is higher than the bottom 25% of dividend payers in the US market (1.29%).

High Dividend: ANDE's dividend (2.39%) is low compared to the top 25% of dividend payers in the US market (3.43%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (38.2%), ANDE's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

2.6yrs

Average management tenure


CEO

Pat Bowe (61 yo)

5.58yrs

Tenure

US$3,752,735

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 ($USD3.75M) is above average for companies of similar size in the US market ($USD2.38M).

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


Leadership Team

Experienced Management: ANDE's management team is considered experienced (2.6 years average tenure).


Board Members

Experienced Board: ANDE's board of directors are considered experienced (8.6 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: The Andersons, Inc.
  • Ticker: ANDE
  • Exchange: NasdaqGS
  • Founded: 1947
  • Industry: Food Distributors
  • Sector: Consumer Retailing
  • Market Cap: US$957.733m
  • Shares outstanding: 32.66m
  • Website: https://www.andersonsinc.com

Number of Employees


Location

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

Listings


Biography

The Andersons, Inc., an agriculture company, operates in trade, ethanol, plant nutrient, and rail sectors in the United States and internationally. The company’s Trade segment operates grain elevators; sto...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/19 15:49
End of Day Share Price2021/06/18 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.