NasdaqGS:ANDE

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

Average dividend payer with mediocre balance sheet.

Rewards

Revenue is forecast to grow by 26.95% next year

Revenue grew by 119.3% over the past year

Pays a reliable dividend of 2.93%

Risk Analysis

Earnings have declined by -8.97% per year over past 5 years

Interest payments are not well covered by earnings

High level of non-cash earnings

Current net profit margin (0.5%) is lower than last year (2.7%)

+ 1 more risk


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

18.6%

ANDE

0.3%

US Consumer Retailing

0.5%

US Market


1 Year Return

-29.7%

ANDE

11.2%

US Consumer Retailing

12.8%

US Market

Return vs Industry: ANDE underperformed the US Consumer Retailing industry which returned 11.2% over the past year.

Return vs Market: ANDE underperformed the US Market which returned 12.8% over the past year.


Shareholder returns

ANDEIndustryMarket
7 Day18.6%0.3%0.5%
30 Day24.4%1.6%4.3%
90 Day-3.3%12.8%8.0%
1 Year-27.9%-29.7%13.3%11.2%15.3%12.8%
3 Year-33.9%-37.8%52.4%42.8%48.3%38.7%
5 Year-53.2%-57.4%58.4%41.3%62.6%44.5%

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?

20.62x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ANDE ($23.19) is trading above our estimate of fair value ($12.56)

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 (20.6x) compared to the Consumer Retailing industry average (21.1x).

PE vs Market: ANDE is poor value based on its PE Ratio (20.6x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ANDE's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ANDE is good value based on its PB Ratio (0.8x) compared to the US Consumer Retailing industry average (2.4x).


Next Steps

Future Growth

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

10.0%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if ANDE's forecast earnings growth is above the savings rate (2.7%).

Earnings vs Market: Insufficient data to determine if ANDE's earnings are forecast to grow faster than the US market

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

Revenue vs Market: ANDE's revenue (10% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: ANDE's revenue (10% 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


Next Steps

Past Performance

How has Andersons performed over the past 5 years?

-9.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ANDE has a high level of non-cash earnings.

Growing Profit Margin: ANDE's current net profit margins (0.5%) are lower than last year (2.7%).


Past Earnings Growth Analysis

Earnings Trend: ANDE's earnings have declined by -9% per year over the past 5 years.

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

Earnings vs Industry: ANDE had negative earnings growth (-59.5%) over the past year, making it difficult to compare to the Consumer Retailing industry average (-16.9%).


Return on Equity

High ROE: ANDE's Return on Equity (3.3%) 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: ANDE's short term assets ($1.5B) exceeds its short term liabilities ($1.1B)

Long Term Liabilities: ANDE's short term assets (1.5B) exceeds its long term liabilities (1.2B)


Debt to Equity History and Analysis

Debt Level: ANDE's debt to equity ratio (113.9%) is considered high

Reducing Debt: ANDE's debt to equity ratio has increased from 45.7% to 113.9% over the past 5 years.

Debt Coverage: ANDE's debt is well covered by operating cash flow (22.2%).

Interest Coverage: ANDE's interest payments on its debt are not well covered by EBIT (1.7x coverage).


Balance Sheet

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

Debt Coverage by Assets: ANDE's debt is covered by short term assets (assets are 1.3x debt).


Next Steps

Dividend

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

2.93%

Current Dividend Yield


Dividend Yield vs Market

company2.9%marketbottom25%1.4%markettop25%3.7%industryaverage1.7%forecastin3Years3.0%

Current dividend yield vs market & industry

Notable Dividend: ANDE's dividend (2.93%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: ANDE's dividend (2.93%) is low compared to the top 25% of dividend payers in the US market (3.67%).


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 reasonable payout ratio (60%), ANDE's dividend payments are 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

What is the CEO of Andersons's salary, the management and board of directors tenure and is there insider trading?

3.5yrs

Average management tenure


CEO

Pat Bowe (60yo)

4yrs

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 ($USD3.89M) is above average for companies of similar size in the US market ($USD2.62M).

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


Management Age and Tenure

3.5yrs

Average Tenure

55.5yo

Average Age

Experienced Management: ANDE's management team is considered experienced (3.5 years average tenure).


Board Age and Tenure

10.5yrs

Average Tenure

66yo

Average Age

Experienced Board: ANDE's board of directors are seasoned and experienced ( 10.5 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$52,85418 Mar 19
Valerie Blanchett
EntityIndividual
Role
Head of Human Resources
Vice President of Human Resources
Shares1,500
Max PriceUS$35.27
SellUS$62,27218 Mar 19
Michael Anderson
EntityIndividual
Role
Chairman of the Board
Chairman
Shares1,761
Max PriceUS$35.40
SellUS$18,66805 Mar 19
Corbett Jorgenson
EntityIndividual
Role
Senior Key Executive
President of Assets & Originations - Trade Group Segment
Shares500
Max PriceUS$37.34
SellUS$77,04605 Mar 19
Michael Anderson
EntityIndividual
Role
Chairman of the Board
Chairman
Shares2,100
Max PriceUS$37.20
SellUS$28,00327 Feb 19
Corbett Jorgenson
EntityIndividual
Role
Senior Key Executive
President of Assets & Originations - Trade Group Segment
Shares750
Max PriceUS$37.35
SellUS$186,11629 Nov 18
Michael Irmen
EntityIndividual
Shares5,564
Max PriceUS$33.45

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 12.1%.


Management Team

  • Bill Krueger (52yo)

    President of Commodities & Merchandising - Trade Group

    • Tenure: 0.8yrs
  • Pat Bowe (60yo)

    President

    • Tenure: 4yrs
    • Compensation: US$3.89m
  • Naran Burchinow (65yo)

    Senior VP

    • Tenure: 14.8yrs
    • Compensation: US$813.82k
  • Brian Valentine (49yo)

    Senior VP & CFO

    • Tenure: 1.3yrs
    • Compensation: US$1.28m
  • Joseph McNeely (54yo)

    President of the Rail Group

    • Tenure: 1.9yrs
    • Compensation: US$943.22k
  • Tony Lombardi (60yo)

    Chief Information Officer

    • Tenure: 3.2yrs
  • Corey Jorgenson (44yo)

    President of Assets & Originations - Trade Group Segment

    • Tenure: 3.8yrs
    • Compensation: US$758.69k
  • Val Blanchett (57yo)

    Vice President of Human Resources

    • Tenure: 3.8yrs
    • Compensation: US$643.81k
  • John Kraus

    Director of Investor Relations

    • Tenure: 0yrs
  • Katelin Langenderfer

    Corporate Communications Manager

    • Tenure: 0yrs

Board Members

  • Pat Mullin (70yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: US$174.55k
  • Gerry Anderson (60yo)

    Independent Director

    • Tenure: 10.9yrs
    • Compensation: US$153.55k
  • Dick Anderson (89yo)

    Chairman Emeritus

    • Tenure: 10.5yrs
    • Compensation: US$58.60k
  • Mike Anderson (67yo)

    Chairman

    • Tenure: 10.5yrs
    • Compensation: US$242.08k
  • Ross Manire (67yo)

    Independent Director

    • Tenure: 10.8yrs
    • Compensation: US$161.05k
  • Jacqueline Woods (71yo)

    Independent Director

    • Tenure: 20.8yrs
    • Compensation: US$174.05k
  • John Stout (65yo)

    Independent Director

    • Tenure: 10.1yrs
    • Compensation: US$156.57k
  • Bob King (63yo)

    Independent Director

    • Tenure: 14.3yrs
    • Compensation: US$165.55k
  • Cathy Kilbane (55yo)

    Lead Director

    • Tenure: 0yrs
    • Compensation: US$180.55k
  • Pat Bowe (60yo)

    President

    • Tenure: 4yrs
    • Compensation: US$3.89m

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$750.939m
  • 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; ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/12 23:31
End of Day Share Price2019/11/12 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.