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Relative to Consumer Staples Sector Median (N=180)
Metric
ANDE
Benchmark
P/E Ratio
20.9x
-37%
EV/EBITDA
13.3x
+92%
Price / Book
1.9x
Implied Value Audit
FAIR VALUE
Implied Fair Value (vs Sector)
-7.8%
$68.74Spot: $74.52
Spot
Implied
-50% Delta+50% Delta
Relative valuation derived from Consumer Staples sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 10GRADE F
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
9.2%
Sector: 7.7%
Dividend Analysis audit
No Dividend
This company does not currently pay a dividend.
Analyst Projections
Analyst Consensus
Unlock Valuation Tools
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Based on our 6-factor quantitative model, Andersons, Inc. (ANDE) receives a "Hold" rating with a composite score of 39.5/100, ranked #962 out of 4446 stocks. Key factor scores: Quality 10/100, Value 45/100, Momentum 68/100. This is quantitative analysis only — not investment advice.
Andersons, Inc. (ANDE) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does Andersons, Inc. Do?
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. Andersons, Inc. (ANDE) is classified as a mid-cap stock in the Consumer Staples sector, specifically within the Wholesale industry. The company is led by CEO Patrick E. Bowe and employs approximately 2,280 people, headquartered in Maumee, Ohio. With a market capitalization of $2.5B, ANDE is one of the notable companies in the Consumer Staples sector.
Andersons, Inc. (ANDE) Stock Rating — Hold (April 2026)
As of April 2026, Andersons, Inc. receives a Hold rating with a composite score of 39.5/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.ANDE ranks #962 out of 4,446 stocks in our coverage universe. Within the Consumer Staples sector, Andersons, Inc. ranks #32 of 180 stocks, placing it in the top quartile of its Consumer Staples peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
ANDE Stock Price and 52-Week Range
Andersons, Inc. (ANDE) currently trades at $74.52. The stock gained $0.30 (0.4%) in the most recent trading session. The 52-week high for ANDE is $71.54, which means the stock is currently trading 4.2% from its annual peak. The 52-week low is $31.03, putting the stock 140.2% above its annual trough. Recent trading volume was 267K shares, suggesting relatively thin trading activity.
Is ANDE Overvalued or Undervalued? — Valuation Analysis
Andersons, Inc. (ANDE) carries a value factor score of 45/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 20.85x, compared to the Consumer Staples sector average of 33.11x — a discount of 37%. The price-to-book ratio stands at 1.85x, versus the sector average of 1.74x. The price-to-sales ratio is 0.23x, compared to 0.35x for the average Consumer Staples stock. On an enterprise value basis, ANDE trades at 13.31x EV/EBITDA, versus 6.93x for the sector.
Overall, ANDE's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
Andersons, Inc. Profitability — ROE, Margins, and Quality Score
Andersons, Inc. (ANDE) earns a quality factor score of 10/100, signaling below-average profitability metrics relative to the broader market. The return on equity (ROE) is 9.2%, compared to the Consumer Staples sector average of 7.7%, which is below typical expectations for high-quality companies. Return on assets (ROA) comes in at 3.1% versus the sector average of 3.1%.
On a margin basis, Andersons, Inc. reports gross margins of 6.6%, compared to 26.2% for the sector. The operating margin is 1.3% (sector: 2.9%). Net profit margin stands at 1.1%, versus 1.6% for the average Consumer Staples stock. Revenue growth is running at -3.2% on a trailing basis, compared to 3.1% for the sector. Profitability is below benchmark levels, which may reflect industry headwinds, elevated reinvestment, or structural challenges.
ANDE Debt, Balance Sheet, and Financial Health
Andersons, Inc. has a debt-to-equity ratio of 45.0%, compared to the Consumer Staples sector average of 72.0%. The low leverage indicates a conservative balance sheet with significant financial flexibility. The current ratio is 1.41x, suggesting adequate working capital coverage. Total debt on the balance sheet is $560M. Cash and equivalents stand at $98M.
ANDE has a beta of 0.70, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for Andersons, Inc. is 69/100, reflecting average volatility within the normal range for its sector.
Andersons, Inc. Revenue and Earnings History — Quarterly Trend
In TTM 2026, Andersons, Inc. reported revenue of $11.01B and earnings per share (EPS) of $1.96. Net income for the quarter was $119M. Gross margin was 6.6%. Operating income came in at $54M.
In Q4 2025, Andersons, Inc. reported revenue of $2.54B. Net income for the quarter was $71M. Gross margin was 9.1%.
In FY 2025, Andersons, Inc. reported revenue of $11.01B. Net income for the quarter was $119M. Gross margin was 6.5%. Operating income came in at $141M.
In Q3 2025, Andersons, Inc. reported revenue of $2.68B and earnings per share (EPS) of $0.59. Net income for the quarter was $26M. Gross margin was 6.4%. Operating income came in at $26M.
Over the past 8 quarters, Andersons, Inc. has demonstrated a growth trajectory, with revenue expanding from $5.79B to $11.01B. Investors analyzing ANDE stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
ANDE Dividend Yield and Income Analysis
Andersons, Inc. (ANDE) does not currently pay a dividend. This is common among smaller companies in the Wholesale industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Consumer Staples dividend stocks may want to explore other Consumer Staples stocks or use the stock screener to filter by dividend yield.
ANDE Momentum and Technical Analysis Profile
Andersons, Inc. (ANDE) has a momentum factor score of 68/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 35/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 24/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
ANDE vs Competitors — Consumer Staples Sector Ranking and Peer Comparison
Comparing ANDE against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full ANDE vs S&P 500 (SPY) comparison to assess how Andersons, Inc. stacks up against the broader market across all factor dimensions.
ANDE Next Earnings Date
No upcoming earnings date has been announced for Andersons, Inc. (ANDE) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy ANDE? — Investment Thesis Summary
Andersons, Inc. presents a balanced picture with arguments on both sides. The quality score of 10/100 flags below-average profitability. Price momentum is positive at 68/100, suggesting the trend favors buyers. Low volatility (stability score 69/100) reduces downside risk.
In summary, Andersons, Inc. (ANDE) earns a Hold rating with a composite score of 39.5/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on ANDE stock.
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Institutional Research Dossier
Andersons, Inc. (ANDE) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
We maintain a Hold rating on Andersons, Inc. (ANDE). While the company exhibits attractive valuation metrics compared to its consumer staples peers, particularly in P/E and EV/EBITDA, its weak profitability and negative free cash flow generation raise concerns about its long-term sustainability and ability to generate shareholder value. The company's exposure to cyclical agricultural markets and its dependence on commodity prices further contribute to our cautious stance.
The primary takeaway is that while ANDE may appear undervalued based on certain metrics, investors should carefully consider its low quality score, negative free cash flow, and the inherent volatility of the agricultural sector before initiating or increasing their positions. A significant improvement in profitability and cash flow generation is needed to justify a more bullish outlook.
Business Strategy & Overview
Andersons, Inc. operates as a diversified agriculture company with three primary segments: Trade, Renewables, and Plant Nutrient. The Trade segment focuses on grain merchandising, risk management, and providing logistics for physical commodities. This segment's profitability is heavily influenced by grain price volatility and the ability to efficiently manage storage and transportation costs. The Renewables segment is involved in the production, purchase, and sale of ethanol and its co-products. This segment's performance is tied to ethanol prices, corn prices (as a primary input), and government regulations related to renewable fuels.
The Plant Nutrient segment manufactures, distributes, and retails agricultural and related plant nutrients, along with providing agronomic services to farmers. This segment's success depends on its ability to offer competitive pricing, effective crop solutions, and strong relationships with its customer base. The company's strategic positioning involves leveraging its integrated operations across these segments to capture synergies and provide a comprehensive suite of services to its agricultural customers. However, this diversification does not fully insulate the company from the inherent cyclicality of the agricultural industry.
Andersons' business model relies on generating revenue through volume-based trading and processing of agricultural commodities, as well as the sale of value-added products and services. The company's profitability is sensitive to fluctuations in commodity prices, weather patterns, and government policies. To mitigate these risks, Andersons employs hedging strategies and invests in infrastructure to improve operational efficiency. However, the company's recent financial performance suggests that these efforts have not been entirely successful in offsetting the negative impacts of market volatility and cost pressures.
The company's growth strategy appears to be focused on expanding its market share within its existing segments and selectively pursuing acquisitions to enhance its capabilities and geographic reach. However, given the company's current financial constraints, its ability to execute on this strategy may be limited. Furthermore, the competitive landscape within the agricultural industry is becoming increasingly challenging, with larger players exerting greater pricing pressure and smaller, more specialized firms offering niche solutions.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
-3.2%
Sector: 3.1%
-203% VS SCTR
Economic Moat Analysis
Andersons, Inc. possesses a Narrow economic moat. This assessment is based on a combination of factors, including limited brand recognition, moderate switching costs for customers, and some cost advantages in specific areas of its operations. The company's moat is not wide enough to provide a significant and sustainable competitive advantage over its peers.
In the Trade segment, Andersons benefits from its established network of grain elevators and logistics infrastructure. This provides a degree of cost advantage in terms of storage and transportation. However, the commodity nature of grain trading limits the company's ability to differentiate its offerings and command premium pricing. Customers can easily switch to alternative suppliers if they offer better prices or service.
The Renewables segment faces intense competition from other ethanol producers. While Andersons has invested in improving the efficiency of its ethanol plants, it does not possess any unique technology or intellectual property that would provide a significant cost advantage. Furthermore, the ethanol market is heavily influenced by government mandates and subsidies, which can distort market dynamics and reduce the profitability of all players.
The Plant Nutrient segment benefits from its relationships with farmers and its ability to provide customized solutions. However, this segment also faces competition from larger agricultural input suppliers, such as Nutrien and Corteva, which have greater scale and resources. While Andersons can differentiate itself through its agronomic services and local presence, these advantages are not sufficient to create a wide moat.
Overall, Andersons' economic moat is relatively weak due to the commodity nature of its core businesses and the intense competition within the agricultural industry. While the company has some advantages in specific areas, these are not sustainable enough to generate consistently high returns on invested capital. The company's low quality score of 10/100 further supports this assessment.
Financial Health & Profitability
Andersons' financial health presents a mixed picture. While the company's debt-to-equity ratio of 45.00 is lower than the sector average of 70.50, its negative free cash flow and low profitability are concerning. The company's revenue growth of -3.2% is also significantly below the sector average of 4.3%, indicating potential challenges in maintaining its market share.
The company's gross margin of 6.6% is significantly lower than the sector average of 26.0%, suggesting that it faces cost pressures or pricing challenges. Similarly, its operating margin of 1.3% and net margin of 1.1% are both below the sector averages of 3.1% and 1.7%, respectively. This indicates that the company is struggling to convert revenue into profits.
The quarterly financial history reveals a volatile pattern of revenue and net income. While revenue has remained relatively stable, net income has fluctuated significantly, indicating sensitivity to external factors such as commodity prices and weather conditions. The consistent negative free cash flow generation across multiple quarters is a major red flag, as it suggests that the company is not generating enough cash to cover its operating expenses and capital expenditures.
The company's low quality score of 10/100 reflects its weak profitability and returns. This is further supported by its ROE of 9.2%, which is only slightly above the sector average of 7.8%. Given the company's negative free cash flow and low profitability, it may face challenges in funding its growth initiatives and maintaining its financial stability. The company's total debt of $560.02M against a cash balance of $98.28M warrants close monitoring.
Valuation Assessment
Andersons' valuation presents a seemingly attractive picture when compared to its consumer staples peers. The company's P/E ratio of 19.0x is significantly lower than the sector average of 34.2x, suggesting that the stock may be undervalued relative to its earnings. Similarly, its EV/EBITDA ratio of 4.3x is also lower than the sector average of 7.3x, further supporting the notion that the stock is undervalued based on its enterprise value and earnings before interest, taxes, depreciation, and amortization.
However, these valuation metrics should be interpreted with caution, given the company's weak profitability and negative free cash flow. While the company's earnings may appear attractive relative to its price, the sustainability of these earnings is questionable, given the company's low margins and volatile financial performance. Furthermore, the negative free cash flow suggests that the company may need to raise additional capital in the future, which could dilute existing shareholders.
The company's momentum score of 69/100 suggests that the stock has been performing well recently, potentially driven by short-term factors such as favorable weather conditions or commodity price movements. However, this momentum may not be sustainable in the long run, given the company's underlying financial weaknesses.
Overall, while Andersons' valuation may appear attractive based on certain metrics, investors should carefully consider the company's low quality score, negative free cash flow, and the inherent volatility of the agricultural sector. A more conservative valuation approach may be warranted, given the company's risk profile. The stock appears to be fairly valued, considering the risks and opportunities.
Risk & Uncertainty
Andersons faces several specific risks that could negatively impact its business and financial performance. One of the most significant risks is its exposure to commodity price volatility. Fluctuations in grain prices, ethanol prices, and fertilizer prices can significantly impact the company's revenue and profitability. The company attempts to mitigate this risk through hedging strategies, but these strategies may not always be effective.
Another risk is the company's dependence on weather conditions. Adverse weather events, such as droughts, floods, or extreme temperatures, can negatively impact crop yields and reduce demand for the company's products and services. This risk is particularly relevant to the Plant Nutrient segment, which relies on farmers' demand for fertilizers and other crop inputs.
The company also faces regulatory risks related to ethanol production and renewable fuel mandates. Changes in government policies could impact the demand for ethanol and the profitability of the Renewables segment. Furthermore, the company is subject to environmental regulations related to its operations, which could increase its compliance costs.
Competition within the agricultural industry is intense, with larger players exerting greater pricing pressure and smaller, more specialized firms offering niche solutions. Andersons must compete effectively to maintain its market share and profitability. Finally, the company's leverage, while lower than the sector average, still poses a risk, especially given its negative free cash flow. The company's ability to service its debt obligations could be challenged if its financial performance deteriorates.
Bulls Say / Bears Say
The Bull Case
BULL VIEWAndersons' low valuation multiples, particularly P/E and EV/EBITDA, offer a compelling entry point for value investors seeking exposure to the agricultural sector.
BULL VIEWThe company's diversified operations across trade, renewables, and plant nutrients provide a degree of resilience against cyclical downturns in any single segment.
BULL VIEWAndersons' strategic investments in infrastructure and logistics position it to capitalize on long-term growth trends in global agricultural trade.
The Bear Case
BEAR VIEWAndersons' persistent negative free cash flow raises serious concerns about its financial sustainability and ability to fund future growth initiatives.
BEAR VIEWThe company's low profitability and margins, significantly below sector averages, indicate a lack of competitive advantage and pricing power.
BEAR VIEWAndersons' exposure to volatile commodity prices and unpredictable weather patterns creates significant earnings uncertainty and limits its long-term growth potential.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score ANDE and 4,400+ other equities.
Andersons, Inc. exhibits a 7% valuation premium relative to institutional benchmarks. This represents a balanced risk/reward profile based on current multiples.
Return on Assets
Efficiency of asset utilization
3.1%
Sector: 3.1%
Gross Margin
Pricing power and cost efficiency
6.6%
Sector: 26.2%
Operating Margin
Core business profitability
1.3%
Sector: 2.9%
Net Margin
Bottom-line profitability
1.1%
Sector: 1.6%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
