Andersons, Inc. (ANDE) stock analysis

P/E below its 5-year median

Andersons's P/E of 9.2 is below its own 5-year median of 14.3.

P/E below the industry

Andersons's P/E of 9.2 is below the Wholesale Trade-non-durable Goods median of 22.6.

EV/EBITDA against its history

Needs positive EBITDA and price history.

P/B below the industry

Andersons's price-to-book of 1.37 is below the Wholesale Trade-non-durable Goods median of 1.69.

Trading below fair value

The share price of $54.70 is below our fair value estimate of $108.85.

Margin of safety over 20%

The price is 49.7% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew -14.0% a year over the last three fiscal years, short of the 10% we look for.

EPS growth over 3 years

Needs positive EPS three years ago and today.

Earnings growth accelerating

Net income grew 178% over the last twelve months, against a 5-year average of 65.5% a year.

Growing slower than the industry

Revenue grew -4.3% over the last twelve months; the Wholesale Trade-non-durable Goods median is 3.8%.

Guidance issued

The latest outlook (full-year adjusted effective rate, Nov 3, 2026) was issued for the first time, so it neither adds nor takes away points.

Gross margin improving

Gross margin was 7.2% over the last twelve months, against 6.0% a year earlier.

Return on equity under 15%

Return on equity was 16.1% over the last twelve months and averaged 9.2% over five years; we look for 15% on both.

Return on invested capital

Needs operating income and invested capital.

Return on equity above the industry

Andersons's return on equity of 16.1% is above the Wholesale Trade-non-durable Goods median of -6.0%.

Earnings grew over 5 years

Net income grew 65.5% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 1.8% over the last twelve months, against a 5-year average of 0.8%.

Net margin above the industry

Andersons's net margin of 1.8% is above the Wholesale Trade-non-durable Goods median of -0.1%.

High debt

Debt is 80.2% of shareholders' equity, above the 40% we consider low.

Debt falling against equity

Debt to equity fell from 141% five years ago to 80.2%.

Debt not well covered by cash flow

Operating cash flow over the last twelve months equals -3.3% of total debt; we look for at least 20%.

Interest coverage

Interest expense is not reported separately.

Short-term assets cover short-term debts

Current assets are 1.43 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 4.04; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Andersons paid dividends worth 1.5% of the share price over the last twelve months.

Yield below Treasuries

The 1.5% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Andersons yields 1.5%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 13.4% of net income.

Cash-flow cover

Needs dividends paid and free cash flow.