Investment Thesis
Andersons demonstrates strong revenue growth (+619% YoY) driven by commodity price cycles in wholesale farm products, but this growth masks concerning profitability deterioration with net income declining 19.8% YoY despite massive top-line expansion. The company's negative free cash flow of -$56.1M, combined with thin margins (0.9% net margin) and capital expenditures exceeding operating cash flow, raises questions about growth quality and cash generation sustainability.
ANDE Strengths
- Exceptional revenue growth of 619% YoY indicating strong market demand in agricultural commodities
- Solid interest coverage ratio of 19.3x and moderate debt-to-equity of 0.45x reflecting manageable financial leverage
- Positive operating cash flow of $177.0M providing baseline liquidity despite negative FCF
ANDE Risks
- Negative free cash flow of -$56.1M with CapEx ($233.1M) significantly exceeding operating cash flow, creating potential liquidity strain
- Declining net income (-19.8% YoY) despite massive revenue growth suggests profit margins are being compressed by input costs or competitive pressure
- Extremely thin net margin of 0.9% and gross margin of 6.5% typical of commodity distribution, leaving minimal cushion for operational challenges or margin compression
Key Metrics to Watch
- Free cash flow trend and CapEx justification relative to earnings growth
- Gross margin expansion or contraction in upcoming quarters as commodity cycles evolve
- Debt levels and cash position given negative FCF and reliance on leverage for operations
ANDE Financial Metrics
ANDE Profitability Ratios
ANDE Balance Sheet & Liquidity
ANDE 5-Year Financial Trend
5-Year Trend Summary: Andersons, Inc.'s revenue has shown modest growth of 7% over the 5-year period. The most recent EPS of $3.81 reflects profitable operations.
ANDE Growth Metrics (YoY)
ANDE Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $231.9M | $20.1M | $0.59 |
| Q2 2025 | $492.5M | $7.9M | $0.23 |
| Q1 2025 | $341.4M | $284.0K | $0.01 |
| Q1 2024 | $648.8M | $5.6M | $0.16 |
| Q3 2023 | $635.4M | $9.7M | $0.28 |
| Q2 2023 | $956.0M | $40.3M | $1.18 |
| Q1 2023 | $677.9M | $5.5M | $0.16 |
| Q3 2022 | $457.6M | $15.7M | $0.46 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
ANDE Capital Allocation
ANDE SEC Filings
Access official SEC EDGAR filings for Andersons, Inc. (CIK: 0000821026)