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Andersons

Nasdaq:ANDE
Snowflake Description

Average dividend payer with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ANDE
Nasdaq
$595M
Market Cap
  1. Home
  2. US
  3. Consumer Retailing
Company description

The Andersons, Inc., an agriculture company, operates in the grain, ethanol, plant nutrient, and rail sectors in the United States and internationally. The last earnings update was 33 days ago. More info.


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  • Andersons has significant price volatility in the past 3 months.
ANDE Share Price and Events
7 Day Returns
-0.9%
NasdaqGS:ANDE
-1.1%
US Consumer Retailing
12.5%
US Market
1 Year Returns
-43.5%
NasdaqGS:ANDE
4%
US Consumer Retailing
-12.7%
US Market
ANDE Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Andersons (ANDE) -0.9% -1.3% -28.3% -43.5% -52.2% -56%
US Consumer Retailing -1.1% -1.7% -11.8% 4% 26.1% 18.1%
US Market 12.5% -14.7% -21.5% -12.7% 5.4% 17.5%
1 Year Return vs Industry and Market
  • ANDE underperformed the Consumer Retailing industry which returned 4% over the past year.
  • ANDE underperformed the Market in United States of America which returned -12.7% over the past year.
Price Volatility
ANDE
Industry
5yr Volatility vs Market

Value

 Is Andersons undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Andersons to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Andersons.

NasdaqGS:ANDE Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Dividend Discount Model
Dividend Per Share Company Filings (2019-12-31) in USD $ 0.68
Payout Ratio Company Filings (2019-12-31) 4493.1%
Discount Rate (Cost of Equity) See below 6.1%
Perpetual Growth Rate 10-Year US Government Bond Rate 1.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:ANDE
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 1.7%
Equity Risk Premium S&P Global 5.4%
Consumer Retailing Unlevered Beta Simply Wall St/ S&P Global 0.49
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.487 (1 + (1- 21%) (221.21%))
0.601
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.74% + (0.8 * 5.44%)
6.09%

Discounted Cash Flow Calculation for NasdaqGS:ANDE using Dividend Discount Model Model

The calculations below outline how an intrinsic value for Andersons is arrived at by discounting future dividends to their present value. This approach is used for finance firms where free cash flow is difficult to estimate (e.g. Banks/ Insurance firms).

If the firm does not pay the majority of its earnings out as a dividend this method will often arrive at a value significantly lower than the share price.

See our documentation to learn about this calculation.

NasdaqGS:ANDE Gordon Growth Model
Calculation Result
Value per share = Expected dividends per share / (Discount Rate - Perpetual growth rate)
= $0.68 / (6.09% - 1.74%)
$15.63
NasdaqGS:ANDE Discount to Share Price
Calculation Result
Value per share (USD) From above. $15.63
Current discount Discount to share price of $18.13
= -1 x ($18.13 - $15.63) / $15.63
-16%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Andersons is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Andersons's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Andersons's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:ANDE PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in USD $0.56
NasdaqGS:ANDE Share Price ** NasdaqGS (2020-03-30) in USD $18.13
United States of America Consumer Retailing Industry PE Ratio Median Figure of 22 Publicly-Listed Consumer Retailing Companies 15.4x
United States of America Market PE Ratio Median Figure of 2,942 Publicly-Listed Companies 12.96x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Andersons.

NasdaqGS:ANDE PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:ANDE Share Price ÷ EPS (both in USD)

= 18.13 ÷ 0.56

32.26x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Andersons is overvalued based on earnings compared to the US Consumer Retailing industry average.
  • Andersons is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Andersons's expected growth come at a high price?
Raw Data
NasdaqGS:ANDE PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 32.26x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts
52%per year
United States of America Consumer Retailing Industry PEG Ratio Median Figure of 13 Publicly-Listed Consumer Retailing Companies 2.37x
United States of America Market PEG Ratio Median Figure of 2,006 Publicly-Listed Companies 0.99x

*Line of best fit is calculated by linear regression .

NasdaqGS:ANDE PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 32.26x ÷ 52%

0.62x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Andersons is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Andersons's assets?
Raw Data
NasdaqGS:ANDE PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in USD $29.83
NasdaqGS:ANDE Share Price * NasdaqGS (2020-03-30) in USD $18.13
United States of America Consumer Retailing Industry PB Ratio Median Figure of 29 Publicly-Listed Consumer Retailing Companies 1.12x
United States of America Market PB Ratio Median Figure of 5,143 Publicly-Listed Companies 1.26x
NasdaqGS:ANDE PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:ANDE Share Price ÷ Book Value per Share (both in USD)

= 18.13 ÷ 29.83

0.61x

* Primary Listing of Andersons.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Andersons is good value based on assets compared to the US Consumer Retailing industry average.
X
Value checks
We assess Andersons's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Consumer Retailing industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Consumer Retailing industry average (and greater than 0)? (1 check)
  5. Andersons has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
52%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Andersons expected to grow at an attractive rate?
  • Andersons's earnings growth is expected to exceed the low risk savings rate of 1.7%.
Growth vs Market Checks
  • Andersons's earnings growth is expected to exceed the United States of America market average.
  • Andersons's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:ANDE Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:ANDE Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts 52%
NasdaqGS:ANDE Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 1 Analysts 2.3%
United States of America Consumer Retailing Industry Earnings Growth Rate Market Cap Weighted Average 5%
United States of America Consumer Retailing Industry Revenue Growth Rate Market Cap Weighted Average 3.8%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 12.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:ANDE Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:ANDE Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 8,561 212 61 1
2020-12-31 8,344 213 54 1
2020-03-31
NasdaqGS:ANDE Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 8,170 349 18
2019-09-30 7,097 255 35
2019-06-30 5,800 -76 38
2019-03-31 4,386 221 29
2018-12-31 3,045 -36 41
2018-09-30 3,237 43 87
2018-06-30 3,388 77 92
2018-03-31 3,470 -74 44
2017-12-31 3,686 75 43
2017-09-30 3,795 59 -17
2017-06-30 3,818 189 -18
2017-03-31 3,889 78 23

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Andersons's earnings are expected to grow significantly at over 20% yearly.
  • Andersons's revenue is expected to grow by 2.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:ANDE Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below

All data from Andersons Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:ANDE Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 1.89 1.89 1.89 1.00
2020-12-31 1.66 1.66 1.66 1.00
2020-03-31
NasdaqGS:ANDE Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 0.56
2019-09-30 1.12
2019-06-30 1.24
2019-03-31 1.00
2018-12-31 1.47
2018-09-30 3.12
2018-06-30 3.28
2018-03-31 1.56
2017-12-31 1.51
2017-09-30 -0.60
2017-06-30 -0.63
2017-03-31 0.82

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Andersons will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Andersons's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Andersons has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Andersons performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Andersons's growth in the last year to its industry (Consumer Retailing).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Andersons's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Andersons's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Andersons's 1-year earnings growth is negative, it can't be compared to the US Consumer Retailing industry average.
Earnings and Revenue History
Andersons's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Andersons Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:ANDE Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 8,170.19 18.31 427.92
2019-09-30 7,097.25 35.41 380.72
2019-06-30 5,800.07 37.55 346.33
2019-03-31 4,386.44 29.19 291.86
2018-12-31 3,045.38 41.48 251.37
2018-09-30 3,236.79 87.45 257.85
2018-06-30 3,387.81 92.08 259.81
2018-03-31 3,470.07 43.90 266.01
2017-12-31 3,686.35 42.51 286.99
2017-09-30 3,795.33 -17.07 292.08
2017-06-30 3,818.35 -17.88 302.90
2017-03-31 3,888.93 23.20 312.26
2016-12-31 3,924.79 11.59 316.09
2016-09-30 3,995.21 -45.55 317.92
2016-06-30 4,044.69 -48.50 325.87
2016-03-31 4,168.15 -31.88 334.21
2015-12-31 4,198.50 -13.10 337.83
2015-09-30 4,286.79 59.67 337.34
2015-06-30 4,330.62 77.62 327.37
2015-03-31 4,455.00 90.64 319.90
2014-12-31 4,540.07 109.16 315.79
2014-09-30 4,852.57 113.91 305.87
2014-06-30 5,081.02 114.28 298.32
2014-03-31 5,335.90 99.66 283.51
2013-12-31 5,604.57 89.58 274.53
2013-09-30 5,700.95 73.98 261.16
2013-06-30 5,657.98 73.63 249.99

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Andersons has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Andersons used its assets less efficiently than the US Consumer Retailing industry average last year based on Return on Assets.
  • Andersons has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Andersons's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Consumer Retailing industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Andersons has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Andersons's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Andersons's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Andersons is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Andersons's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Andersons's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Andersons Company Filings, last reported 3 months ago.

NasdaqGS:ANDE Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 1,195.66 1,200.55 54.90
2019-09-30 1,011.35 1,151.90 21.30
2019-06-30 1,020.64 1,460.89 11.09
2019-03-31 998.29 1,451.47 29.99
2018-12-31 876.76 723.30 22.59
2018-09-30 842.64 584.96 16.82
2018-06-30 846.99 634.41 58.61
2018-03-31 822.76 942.22 31.50
2017-12-31 822.90 495.79 34.92
2017-09-30 749.81 446.22 24.48
2017-06-30 747.79 542.71 18.93
2017-03-31 777.36 679.26 29.65
2016-12-31 790.70 476.14 62.63
2016-09-30 780.17 451.85 78.16
2016-06-30 783.10 637.29 31.38
2016-03-31 768.72 735.02 46.30
2015-12-31 783.74 484.31 63.75
2015-09-30 799.69 523.35 40.66
2015-06-30 821.92 585.72 40.77
2015-03-31 797.92 653.96 54.46
2014-12-31 824.05 379.89 114.70
2014-09-30 801.58 366.66 326.95
2014-06-30 791.28 416.61 47.19
2014-03-31 743.33 623.02 43.69
2013-12-31 724.42 428.55 309.09
2013-09-30 670.29 425.25 134.44
2013-06-30 653.88 504.12 75.92
  • Andersons's level of debt (100.4%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (46.5% vs 100.4% today).
  • Debt is well covered by operating cash flow (29%, greater than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 1.5x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Andersons's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Andersons has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.86%
Current annual income from Andersons dividends. Estimated to be 3.75% next year.
If you bought $2,000 of Andersons shares you are expected to receive $77 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Andersons's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.98%).
  • Andersons's dividend is below the markets top 25% of dividend payers in United States of America (5.49%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:ANDE Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
United States of America Consumer Retailing Industry Average Dividend Yield Market Cap Weighted Average of 13 Stocks 2%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1946 Stocks 3%
United States of America Minimum Threshold Dividend Yield 10th Percentile 1.1%
United States of America Bottom 25% Dividend Yield 25th Percentile 2%
United States of America Top 25% Dividend Yield 75th Percentile 5.5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:ANDE Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.68 1.00
2020-12-31 0.68 1.00
2020-03-31
NasdaqGS:ANDE Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-12-13 0.700 3.288
2019-05-10 0.680 2.834
2019-02-22 0.680 2.038
2018-12-20 0.680 2.033
2018-08-24 0.660 1.873
2018-05-11 0.660 1.885
2018-02-23 0.660 1.963
2017-12-20 0.660 2.007
2017-08-25 0.640 1.934
2017-05-12 0.640 1.877
2017-03-03 0.640 1.723
2016-12-16 0.640 1.615
2016-08-26 0.620 1.660
2016-05-13 0.620 1.766
2016-02-26 0.620 2.039
2016-02-10 0.620 2.376
2015-08-28 0.560 1.716
2015-05-08 0.560 1.430
2015-02-27 0.560 1.336
2014-12-17 0.560 1.163
2014-08-28 0.440 0.744
2014-05-02 0.440 0.809
2014-02-28 0.440 0.743
2013-12-19 0.440 0.785
2013-08-22 0.427 0.859
2013-05-10 0.427 1.138
2013-03-01 0.427 1.228
2012-12-19 0.427 1.391
2012-08-15 0.400 1.515
2012-05-11 0.400 1.466
2012-02-24 0.400 1.262
2011-12-16 0.400 1.386
2011-08-18 0.293 1.172
2011-05-06 0.293 1.070
2011-02-25 0.293 0.925
2010-12-17 0.293 1.095
2010-08-20 0.240 0.972
2010-05-07 0.240 1.063
2010-02-26 0.240 1.059
2009-12-18 0.233 1.253
2009-08-13 0.233 1.149
2009-05-08 0.233 1.272

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Andersons's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.8x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.8x coverage).
X
Income/ dividend checks
We assess Andersons's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Andersons afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Andersons has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Pat Bowe
COMPENSATION $4,304,753
AGE 60
TENURE AS CEO 4.3 years
CEO Bio

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, Incorporated until September 2015. Mr. Bowe has more than 35 years of experience in the agricultural sector. He served as the President of Cargill Sweeteners North America. In this position, he was responsible for all aspects of Cargill’s sweeteners business. He has extensive experience in leading large organizations with particular expertise in commodity and futures trading, acquisitions and joint ventures, process improvement, strategic sourcing, capital management and establishing and maintaining strong customer relationships. Mr. Bowe served as a Director of The Schwan Food Company, Inc. since October 2009. Prior to joining Cargill's Corn Milling Division, managed the copper trading desk for Cargill Metals Division and worked as a trader and analyst for Cargill Investor Services at the Chicago Board of Trade. Worked as a cash grain merchant for Louis Dreyfus Corp. in Springfield, Ill., and Phil O'Connel Grain Co., in Stockton, California. He served as a Non-Executive Director of Global Bio-chem Technology Group Company Limited from February 5, 2002 to September 29, 2010. He holds a Master’s degree in Economics from Stanford University, the United States.

CEO Compensation
  • Pat's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Pat's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Andersons management team in years:

3.7
Average Tenure
55
Average Age
  • The tenure for the Andersons management team is about average.
Management Team

Pat Bowe

TITLE
President
COMPENSATION
$4M
AGE
60
TENURE
4.3 yrs

Brian Valentine

TITLE
Senior VP & CFO
COMPENSATION
$1M
AGE
49
TENURE
1.6 yrs

Naran Burchinow

TITLE
Executive Officer
COMPENSATION
$832K
AGE
65

Corey Jorgenson

TITLE
Senior VP of Trade Group
COMPENSATION
$941K
AGE
44
TENURE
4 yrs

Bill Krueger

TITLE
President of Trade Group
COMPENSATION
$6M
AGE
52
TENURE
1.2 yrs

Tony Lombardi

TITLE
Chief Information Officer & VP
AGE
60
TENURE
3.4 yrs

John Kraus

TITLE
Director of Investor Relations

Christine Castellano

TITLE
Executive VP
AGE
53

Katelin Langenderfer

TITLE
Corporate Communications Manager

Val Blanchett

TITLE
Vice President of Human Resources
COMPENSATION
$644K
AGE
57
TENURE
4 yrs
Board of Directors Tenure

Average tenure and age of the Andersons board of directors in years:

10.8
Average Tenure
66
Average Age
  • The average tenure for the Andersons board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Mike Anderson

TITLE
Chairman
COMPENSATION
$169K
AGE
67
TENURE
10.8 yrs

Pat Bowe

TITLE
President
COMPENSATION
$4M
AGE
60
TENURE
4.3 yrs

Jacqueline Woods

TITLE
Independent Director
COMPENSATION
$180K
AGE
71
TENURE
21 yrs

Bob King

TITLE
Independent Director
COMPENSATION
$172K
AGE
63
TENURE
14.7 yrs

Cathy Kilbane

TITLE
Lead Independent Director
COMPENSATION
$185K
AGE
55

Pat Mullin

TITLE
Independent Director
COMPENSATION
$179K
AGE
70
TENURE
6.6 yrs

Ross Manire

TITLE
Independent Director
COMPENSATION
$167K
AGE
67
TENURE
11.2 yrs

Gerry Anderson

TITLE
Independent Director
COMPENSATION
$160K
AGE
60
TENURE
11.3 yrs

John Stout

TITLE
Independent Director
COMPENSATION
$164K
AGE
65
TENURE
10.4 yrs

Stephen Dowdle

TITLE
Independent Director
COMPENSATION
$151K
AGE
68
TENURE
1.4 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Andersons individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
18. Mar 20 Buy William Krueger Individual 16. Mar 20 16. Mar 20 7,303 $15.50 $113,197
16. Mar 20 Buy William Krueger Individual 11. Mar 20 11. Mar 20 6,500 $16.00 $104,000
16. Mar 20 Buy Brian Valentine Individual 10. Mar 20 10. Mar 20 5,000 $15.99 $79,950
12. Nov 19 Buy Joseph McNeely Individual 11. Nov 19 11. Nov 19 2,382 $21.06 $50,124
12. Nov 19 Buy James Pirolli Individual 07. Nov 19 08. Nov 19 6,567 $21.56 $139,131
12. Nov 19 Buy Corbett Jorgenson Individual 07. Nov 19 07. Nov 19 1,000 $21.80 $21,800
12. Nov 19 Buy Jeffrey Blair Individual 07. Nov 19 07. Nov 19 1,150 $21.47 $24,691
12. Nov 19 Buy Patrick Bowe Individual 07. Nov 19 07. Nov 19 10,000 $21.50 $215,000
12. Nov 19 Buy Stephen Dowdle Individual 07. Nov 19 07. Nov 19 4,700 $21.83 $102,223
X
Management checks
We assess Andersons's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Andersons has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Need To Know: The Andersons, Inc. (NASDAQ:ANDE) Insiders Have Been Selling Shares

For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.' See our latest analysis for Andersons The Last 12 Months Of Insider Transactions At Andersons In the last twelve months, the biggest single sale by an insider was when the insider, Michael Irmen, sold US$186k worth of shares at a price of US$33.45 per share. … You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. … Still, the insider transactions at Andersons in the last 12 months are not very heartening.

Simply Wall St -

Does Andersons (NASDAQ:ANDE) Have A Healthy Balance Sheet?

The first step when considering a company's debt levels is to consider its cash and debt together. … When analysing debt levels, the balance sheet is the obvious place to start. … Our View On the face of it, Andersons's conversion of EBIT to free cash flow left us tentative about the stock, and its level of total liabilities was no more enticing than the one empty restaurant on the busiest night of the year.

Simply Wall St -

Imagine Owning Andersons (NASDAQ:ANDE) While The Price Tanked 58%

It is important to consider the total shareholder return, as well as the share price return, for any given stock. … The dividends paid by the company have thusly boosted the total shareholder return. … Investors who like to make money usually check up on insider purchases, such as the price paid, and total amount bought.

Simply Wall St -

Is There Now An Opportunity In The Andersons, Inc. (NASDAQ:ANDE)?

Given that Andersons’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. … Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. … If you believe ANDE should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable.

Simply Wall St -

What Percentage Of The Andersons, Inc. (NASDAQ:ANDE) Shares Do Insiders Own?

As Charlie Munger said 'Show me the incentive and I will show you the outcome.' Andersons has a market capitalization of US$880m, so we would expect some institutional investors to have noticed the stock. … Taking a look at our data on the ownership groups (below), it's seems that institutional investors have bought into the company. … It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time.

Simply Wall St -

Does The The Andersons, Inc. (NASDAQ:ANDE) Share Price Fall With The Market?

Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). … A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market. … What this means for you: Since Andersons has a reasonably high beta, it's worth considering why it is so heavily influenced by broader market sentiment.

Simply Wall St -

Why We Think The Andersons, Inc. (NASDAQ:ANDE) Could Be Worth Looking At

For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on Andersons here. … High growth potential average dividend payer NasdaqGS:ANDE Past and Future Earnings, June 20th 2019 For those seeking income streams from their portfolio, ANDE is a robust dividend payer as well. … NasdaqGS:ANDE Historical Dividend Yield, June 20th 2019 Next Steps: For Andersons, I've put together three important aspects you should look at: Historical Performance: What has ANDE's returns been like over the past?

Simply Wall St -

Is The Andersons, Inc. (NASDAQ:ANDE) A Financially Sound Company?

ANDE’s Debt (And Cash Flows) ANDE's debt levels surged from US$968m to US$1.6b over the last 12 months , which includes long-term debt. … Moreover, ANDE has generated cash from operations of US$221m in the last twelve months, resulting in an operating cash to total debt ratio of 14%, signalling that ANDE’s debt is not covered by operating cash. … Next Steps: Although ANDE’s debt level is towards the higher end of the spectrum, its cash flow coverage seems adequate to meet obligations which means its debt is being efficiently utilised.

Simply Wall St -

Why We’re Not Keen On The Andersons, Inc.’s (NASDAQ:ANDE) 2.2% Return On Capital

The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Andersons: 0.022 = US$48m ÷ (US$3.7b - US$1.4b) (Based on the trailing twelve months to March 2019.) Therefore, Andersons has an ROCE of 2.2%. … Andersons's Current Liabilities And Their Impact On Its ROCE Current liabilities include invoices, such as supplier payments, short-term debt, or a tax bill, that need to be paid within 12 months. … With a medium level of current liabilities boosting the ROCE a little, Andersons's low ROCE is unappealing.

Simply Wall St -

Should You Buy The Andersons, Inc. (NASDAQ:ANDE) For Its 2.3% Dividend?

(NASDAQ:ANDE) from a dividend investor's perspective. Owning a strong business and reinvesting the dividends is widely seen as an attractive way of growing your wealth. On the other hand, investors have been known to buy a stock because of its yield, and then lose money if the company's dividend doesn't live up to expectations. While Andersons's 2.3% dividend yield is not the highest, we think its lengthy payment history is quite interesting. Before you buy any stock for its dividend however, you should always remember Warren Buffett's two rules: 1) Don't lose money, and 2) Remember rule #1. … A quick way to check a company's financial situation uses these two ratios: net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and net interest cover. Net debt to EBITDA is a measure of a company's total debt. Net interest cover measures the ability to meet interest payments on debt. Essentially we check that a) a company does not have too much debt, and b) that it can afford to pay the interest. … Conclusion To summarise, shareholders should always check that Andersons's dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend.

Simply Wall St -

Company Info

Description

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; stores grains; and provides grain marketing, risk management, and corn origination services to its customers and affiliated ethanol facilities. Its Ethanol segment purchases and sells ethanol; and offers facility operations, risk management, and corn origination services. Its Ethanol segment purchases and sells ethanol, as well as offers facility operations, risk management, and ethanol and corn oil 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, 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. This segment 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; and fertilizer and control products. Its Rail segment leases, sells, and repairs various types of railcars, locomotives, and barges; provides fleet management services to private railcar owners; and offers metal fabrication services. The Andersons, Inc. was founded in 1947 and is based in Maumee, Ohio.

Details
Name: The Andersons, Inc.
ANDE
Exchange: NasdaqGS
Founded: 1947
$595,127,674
32,825,575
Website: http://www.andersonsinc.com
Address: The Andersons, Inc.
1947 Briarfield Boulevard,
PO Box 119,
Maumee,
Ohio, 43537,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS ANDE Common Shares Nasdaq Global Select US USD 20. Feb 1996
DB AKG Common Shares Deutsche Boerse AG DE EUR 20. Feb 1996
BRSE AKG Common Shares Berne Stock Exchange CH CHF 20. Feb 1996
Number of employees
Current staff
Staff numbers
2,284
Andersons employees.
Industry
Food Distributors
Consumer Retailing
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/03/31 00:22
End of day share price update: 2020/03/30 00:00
Last estimates confirmation: 2020/03/03
Last earnings filing: 2020/02/27
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.