Andersons | #03
This Week's Most Undervalued Stock with Momentum is Andersons, Inc.
We’re back for Closingbell Gems #03.
We had just one question before we jump into this week’s newsletter: would you prefer this newsletter hit your inbox weekly or fortnightly?
Hit reply and let us know what you think 🧠
👀 How did we find this week’s stock
Here is the exact search we ran across 6500+ US companies in Closingbell Pro. It produced 6 results. Anderson, Inc was a standout across our Valuation Index, 3 Year CAGR, and Momentum metrics.
Now, onto the data for Anderson, Inc👇
Anderson, Inc has a Closingbell Valuation Index of 19% making it relatively undervalued against its peers.
Anderson, Inc peers are considered the constituents of the Food and Staples Retailing GICS group.
📈 Latest Chart
On the Closingbell App, the 5 analysts offering price forecasts for Anderson, Inc have a median target of $46.70. The median estimate represents a -20% downside ⬇️ from the current price.
📰 Recent Headlines
Founded in 1947 in Maumee, Ohio, The Andersons is a diversified company rooted in agriculture that conducts business in the commodity trading, ethanol, plant nutrient and rail sectors.
Andersons Inc is an agriculture company that conducts business in North America. Its operations are segmented into trade, ethanol, plant nutrient, and rail. The trade group operates grain elevators and generates income through buying and selling grains, fuel, and space leasing.
The trade group contributes over half the company's revenue. The ethanol segment buys and sells corn oil and ethanol, offers facility operations, and invests in ethanol plants. The plant nutrient group manufactures, distributes, and sells fertilizer and plant nutrients. The company's rail segment leases, repairs, and sells railway facilities.
About the CEO:
Patrick E. Bowe, President and CEO since November 2, 2015.
Prior to that, Corporate Vice President of Cargill, Inc. and a leader of Cargill's Food Ingredients and Systems business since 2007.
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.
✅ ANDE beat both: (a) the Food and Retail Staples Industry and (b) NSDQ Co’s across 6 key fundamental metrics.
❌ ANDE had a worse Return on Assets (%) and Return on Equity (%) than both the Industry and Market
❌ ANDE has a worse Price to Cashflow Ratio than both the Industry and the Market.
✅ ANDE beat both: (a) the Food and Retailing Staples Industry and (b) NSDQ Co’s in Trailing Dividend Yield and P/E Ratio.
✅ ANDE has a marginally better Leverage Ratio than the Food and Retailing Staples Industry, but worse than the Market.
❌ ANDE is more volatile than the Market
❌ ANDE has a lower Interest Cover Ratio than both the Transport Industry and Market.
If you’d like to learn more, we’ve included an Appendix with definitions of each of these metrics.
You should weigh-in 🥊
Head over to Closingbell to Discuss ANDE:
Post a comment with your opinion about ANDE 🧠 Is it a buy, sell or hold? Why do you think that?
Want access to rich investing data?
Do you like the content inside this email?
Get rich valuation, sentiment, financial, and social media data on 8000+ companies for only U$15/m.
If you’d like to trial Closingbell Pro you can do so by booking a time so we can show you the platform and set you up with an account.
Lastly, what’s trending right now?
Elon pushed Twitter right to the top of our Trending in Slack and Discord list. Not a surprise.
Other entrants include Crowdstrike, Tesla, S&P500, and Meta Platforms.
Thanks for taking the time to read this! See you next week.
For behind the scenes action, follow along here: twitter.com/lucamonk
Appendix: Metric Definitions
👉 Earnings Yield: A percentage measure of the return the company is making, based on its after-tax earnings and the current share price. Calculated as earnings per share divided by the price per share. Higher earnings yields can be interpreted as representing higher returns for an investment at the current share price.
👉 Trailing Dividend Yield: Your annual income from your investment in the company. Indicated yield represents trailing total annual dividends divided by current stock price.
👉 Price to Book Ratio: This ratio describes the relationship between the share price and the company's contributed accounting equity (plus retained earnings). Calculated as the price per share divided by the book value of equity per share. Other factors being equal, a lower price to book ratio can indicate a more attractive investment, according to some investors.
👉 Price to EBITDA Ratio: This ratio describes the relationship between the share price and the company's contributed accounting equity (plus retained earnings). Calculated as the price per share divided by the book value of equity per share. Other factors being equal, a lower price to book ratio can indicate a more attractive investment, according to some investors.
👉 Return on Assets: A measure of how productive the company's assets are in producing its earnings. Calculated as the earnings divided by the book value of assets of the company. A higher return on assets is often thought by investors to indicate a more efficient and profitable company.
👉 Price to Cashflow: A measure of the current share price as a percentage of the cash flow per share generated by the company. Calculated as cash flow per share divided by the current market price per share. A lower ratio is often thought to represent a more attractive investment by some investors.
👉 Return on Equity: A measure of how productive the company's contributed equity is in producing its profit. Calculated as earnings divided by the book value of equity of the company. A higher return on equity is often thought by investors to indicate a more profitable company.
👉 Price to Revenue: A measure of the price per share of the company as a percentage of its revenue per share. Calculated as share price divided by revenue. A lower ratio is often thought to represent a more attractive investment by some investors.
👉 Enterprise Value to EBIDTA: This ratio expresses the Enterprise Value of a company, which is the market value of equity plus total debt minus cash, divided by the pre-tax earnings before adjustments for interest, depreciation, and amortization. It represents the total value if the business as a multiple of its EBITDA, and a higher ratio is often thought to offer a relatively more attractive investment by some investors.
👉 P/E Ratio: Current stock price divided by trailing annual earnings per share. If a stock sells for $25.50 per share and has earned $2.55 per share this year, then it has a trailing P/E ratio of 10 ($25.50 / $2.55 = 10). This means the stock is currently selling for ten times its earnings. Other factors being equal, investors may regard companies with lower P/Es to be relatively less expensive.
👉 Leverage Ratio: A measure of the amount of debt the company has divided by the market value of its equity plus its debt (less cash), or enterprise value. Other factors being equal, lower leverage in a company's capital structure can mean lower financial risk for investors.
👉 Volatility: Investors may often use this as a measure of an asset's absolute investment risk. Calculated as the annual standard deviation of the percentage daily price changes. The higher the volatility, the more the share price moves up and down, and the more uncertain (riskier) returns may be.
👉 Interest Cover Ratio: A measure of the company's earnings relative to the cost of its debt. Calculated as the cash operating earnings before interest and tax divided by the annual interest expense. A higher number can indicate the company is in a better position to service its debt under different scenarios.
Disclaimer: The information that Closingbell provides is general in nature as it has been prepared without taking account of your objectives, financial situation or needs. It does not constitute a recommendation to buy or sell any stock. This email is not intended as legal, financial or investment advice and should not be construed or relied on as such. Closingbell is not responsible for any damages. Before making any commitment of a legal or financial nature you should seek advice from a qualified and registered legal practitioner or financial or investment adviser. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Closingbell has no position in any stocks mentioned.