NasdaqGS:ANDE

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

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


Snowflake Analysis

Fair value with moderate growth potential.


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 +/- 10% a week.

Volatility Over Time: ANDE's weekly volatility (10%) has been stable over the past year.


Market Performance


7 Day Return

9.1%

ANDE

1.4%

US Consumer Retailing

2.8%

US Market


1 Year Return

0.9%

ANDE

20.3%

US Consumer Retailing

20.7%

US Market

Return vs Industry: ANDE underperformed the US Consumer Retailing industry which returned 20.4% over the past year.

Return vs Market: ANDE underperformed the US Market which returned 19.8% over the past year.


Shareholder returns

ANDEIndustryMarket
7 Day9.1%1.4%2.8%
30 Day5.5%8.1%12.3%
90 Day29.7%7.7%6.4%
1 Year4.9%0.9%22.4%20.3%23.4%20.7%
3 Year-19.5%-25.9%55.9%47.2%47.2%37.4%
5 Year-23.2%-31.8%101.2%81.4%94.1%72.7%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ANDE ($23.3) is trading below our estimate of fair value ($137.2)

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


Price To Earnings Ratio

PE vs Industry: ANDE is unprofitable, so we can't compare its PE Ratio to the US Consumer Retailing industry average.

PE vs Market: ANDE is unprofitable, so we can't compare its PE Ratio to the US market.


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 (2.1x).


Next Steps

Future Growth

How is Andersons forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

206.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ANDE is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: ANDE is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: ANDE's is expected to become profitable in the next 3 years.

Revenue vs Market: ANDE's revenue (1.5% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: ANDE's revenue (1.5% 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?

18.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ANDE is currently unprofitable.

Growing Profit Margin: ANDE is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ANDE is unprofitable, but has reduced losses over the past 5 years at a rate of 18.7% per year.

Accelerating Growth: Unable to compare ANDE's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: ANDE is unprofitable, making it difficult to compare its past year earnings growth to the Consumer Retailing industry (47.9%).


Return on Equity

High ROE: ANDE has a negative Return on Equity (-2.04%), as it is currently unprofitable.


Next Steps

Financial Health

How is Andersons's financial position?


Financial Position Analysis

Short Term Liabilities: ANDE's short term assets ($1.5B) exceed its short term liabilities ($1.1B).

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


Debt to Equity History and Analysis

Debt Level: ANDE's debt to equity ratio (94.4%) is considered high.

Reducing Debt: ANDE's debt to equity ratio has increased from 65.4% to 94.4% over the past 5 years.

Debt Coverage: ANDE's debt is well covered by operating cash flow (20.9%).

Interest Coverage: ANDE is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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

3.00%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ANDE's dividend (3%) is higher than the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: ANDE's dividend (3%) is low compared to the top 25% of dividend payers in the US market (4.05%).


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: ANDE is paying a dividend but the company is unprofitable.


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?

3.5yrs

Average management tenure


CEO

Pat Bowe (61 yo)

5yrs

Tenure

US$4,304,753

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 ($USD4.30M) is above average for companies of similar size in the US market ($USD2.56M).

Compensation vs Earnings: Pat's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Patrick Bowe
President5yrsUS$4.30m0.53%
$ 4.0m
Brian Valentine
Executive VP & CFO2.25yrsUS$1.36m0.11%
$ 831.4k
Corbett Jorgenson
Senior VP of Trade Group4.75yrsUS$941.08k0.056%
$ 416.2k
William Krueger
President of Trade Group1.83yrsUS$6.36m2.25%
$ 16.8m
Michael Hoelter
Corporate Controller & Chief Accounting Officer0.83yrno data0.017%
$ 124.3k
Anthony Lombardi
Chief Information Officer & VP4.17yrsno data0.015%
$ 113.8k
John Kraus
Director of Investor Relationsno datano datano data
Christine Castellano
Executive VP0.75yrno data0.046%
$ 345.6k
Katelin Langenderfer
Corporate Communications Managerno datano datano data
Valerie Blanchett
Vice President of Human Resources4.75yrsUS$643.81k0.036%
$ 266.1k
Joseph McNeely
President of the Rail Group2.92yrsUS$943.22k0.10%
$ 768.3k
Daniel Anderson
President of Retail Group24.83yrsUS$276.64kno data

3.5yrs

Average Tenure

54.5yo

Average Age

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


Board Members

NamePositionTenureCompensationOwnership
Patrick Bowe
President5yrsUS$4.30m0.53%
$ 4.0m
Patrick Mullin
Independent Director7.25yrsUS$179.05k0.12%
$ 911.0k
Gerard Anderson
Independent Director11.92yrsUS$159.55k1.07%
$ 8.0m
Michael Anderson
Chairman11.5yrsUS$168.75k1.75%
$ 13.1m
Ross Manire
Independent Director11.83yrsUS$167.05k0.083%
$ 622.8k
John Stout
Independent Director11.08yrsUS$164.06k0.12%
$ 880.4k
Robert King
Independent Director15.33yrsUS$171.55k0.12%
$ 925.2k
Catherine Kilbane
Lead Independent Directorno dataUS$185.05k0.12%
$ 888.5k
Stephen Dowdle
Independent Director2.17yrsUS$151.21k0.092%
$ 687.1k
Pamela Hershberger
Independent Director0.92yrUS$45.60k0.025%
$ 186.0k

11.1yrs

Average Tenure

65yo

Average Age

Experienced Board: ANDE's board of directors are seasoned and experienced ( 11.1 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: ANDE insiders have only sold shares 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$748.053m
  • Shares outstanding: 32.27m
  • 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 trade, ethanol, plant nutrient, and rail sectors in the United States and internationally. The company’s Trade 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 Analysis2020/11/27 23:12
End of Day Share Price2020/11/27 00:00
Earnings2020/09/30
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.