ANDERSONS INC/THE (ANDE) Stock Fundamental Analysis
NASDAQ:ANDE - Nasdaq - US0341641035 - Common Stock - Currency: USD
Taking everything into account, ANDE scores 4 out of 10 in our fundamental rating. ANDE was compared to 41 industry peers in the Consumer Staples Distribution & Retail industry. There are concerns on the financial health of ANDE while its profitability can be described as average. ANDE has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year ANDE was profitable.
In the past year ANDE had a positive cash flow from operations.
In the past 5 years ANDE has always been profitable.
The reported operating cash flow has been mixed in the past 5 years: ANDE reported negative operating cash flow in multiple years.
1.2 Ratios
ANDE's Return On Assets of 2.86% is in line compared to the rest of the industry. ANDE outperforms 51.22% of its industry peers.
ANDE has a Return On Equity (8.02%) which is in line with its industry peers.
ANDE has a Return On Invested Capital of 5.95%. This is comparable to the rest of the industry: ANDE outperforms 53.66% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ANDE is in line with the industry average of 8.02%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.86% | ||
| ROE | 8.02% | ||
| ROIC | 5.95% |
ROA(3y)2.74%
ROA(5y)2.14%
ROE(3y)9.05%
ROE(5y)7.54%
ROIC(3y)7.58%
ROIC(5y)N/A
1.3 Margins
ANDE has a Profit Margin (0.97%) which is in line with its industry peers.
In the last couple of years the Profit Margin of ANDE has grown nicely.
The Operating Margin of ANDE (1.68%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of ANDE has grown nicely.
ANDE's Gross Margin of 6.42% is on the low side compared to the rest of the industry. ANDE is outperformed by 92.68% of its industry peers.
ANDE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.68% | ||
| PM (TTM) | 0.97% | ||
| GM | 6.42% |
OM growth 3Y8.05%
OM growth 5Y21.55%
PM growth 3Y7.09%
PM growth 5Y35.11%
GM growth 3Y9.45%
GM growth 5Y1.36%
2. Health
2.1 Basic Checks
ANDE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for ANDE has been increased compared to 1 year ago.
Compared to 5 years ago, ANDE has more shares outstanding
Compared to 1 year ago, ANDE has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.10 indicates that ANDE is not in any danger for bankruptcy at the moment.
With a Altman-Z score value of 4.10, ANDE perfoms like the industry average, outperforming 53.66% of the companies in the same industry.
The Debt to FCF ratio of ANDE is 16.75, which is on the high side as it means it would take ANDE, 16.75 years of fcf income to pay off all of its debts.
ANDE has a Debt to FCF ratio of 16.75. This is in the lower half of the industry: ANDE underperforms 65.85% of its industry peers.
A Debt/Equity ratio of 0.60 indicates that ANDE is somewhat dependend on debt financing.
ANDE's Debt to Equity ratio of 0.60 is in line compared to the rest of the industry. ANDE outperforms 48.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 16.75 | ||
| Altman-Z | 4.1 |
ROIC/WACC0.52
WACC11.34%
2.3 Liquidity
ANDE has a Current Ratio of 1.76. This is a normal value and indicates that ANDE is financially healthy and should not expect problems in meeting its short term obligations.
ANDE's Current ratio of 1.76 is amongst the best of the industry. ANDE outperforms 82.93% of its industry peers.
ANDE has a Quick Ratio of 1.76. This is a bad value and indicates that ANDE is not financially healthy enough and could expect problems in meeting its short term obligations.
ANDE's Quick ratio of 0.89 is fine compared to the rest of the industry. ANDE outperforms 73.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.76 | ||
| Quick Ratio | 0.89 |
3. Growth
3.1 Past
ANDE shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.06%.
ANDE shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.99% yearly.
ANDE shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -17.58%.
ANDE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.06% yearly.
EPS 1Y (TTM)-2.06%
EPS 3Y3.27%
EPS 5Y20.99%
EPS Q2Q%-25%
Revenue 1Y (TTM)-17.58%
Revenue growth 3Y-3.72%
Revenue growth 5Y7.06%
Sales Q2Q%-2.17%
3.2 Future
The Earnings Per Share is expected to decrease by -6.15% on average over the next years.
Based on estimates for the next years, ANDE will show a small growth in Revenue. The Revenue will grow by 5.12% on average per year.
EPS Next Y-33.72%
EPS Next 2Y-6.15%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.23%
Revenue Next 2Y5.12%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 10.25, the valuation of ANDE can be described as reasonable.
Based on the Price/Earnings ratio, ANDE is valued cheaply inside the industry as 87.80% of the companies are valued more expensively.
ANDE's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.91.
ANDE is valuated reasonably with a Price/Forward Earnings ratio of 11.50.
ANDE's Price/Forward Earnings ratio is rather cheap when compared to the industry. ANDE is cheaper than 85.37% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.85, ANDE is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.25 | ||
| Fwd PE | 11.5 |
4.2 Price Multiples
ANDE's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ANDE is cheaper than 90.24% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as ANDE.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.37 | ||
| EV/EBITDA | 5.03 |
4.3 Compensation for Growth
ANDE's earnings are expected to decrease with -6.15% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.49
EPS Next 2Y-6.15%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.20%, ANDE has a reasonable but not impressive dividend return.
The stock price of ANDE dropped by -25.04% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
ANDE's Dividend Yield is rather good when compared to the industry average which is at 2.29. ANDE pays more dividend than 82.93% of the companies in the same industry.
ANDE's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.2% |
5.2 History
The dividend of ANDE has a limited annual growth rate of 1.62%.
ANDE has been paying a dividend for at least 10 years, so it has a reliable track record.
ANDE has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)1.62%
Div Incr Years27
Div Non Decr Years27
5.3 Sustainability
24.33% of the earnings are spent on dividend by ANDE. This is a low number and sustainable payout ratio.
DP24.33%
EPS Next 2Y-6.15%
EPS Next 3YN/A
34.13
-0.28 (-0.81%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners90.48%
Inst Owner Change1.82%
Ins Owners4.21%
Ins Owner Change11.08%
Market Cap1.17B
Analysts85
Price Target51 (49.43%)
Short Float %2.57%
Short Ratio2.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.2% |
Yearly Dividend0.77
Dividend Growth(5Y)1.62%
DP24.33%
Div Incr Years27
Div Non Decr Years27
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)131.29%
Min EPS beat(2)44.93%
Max EPS beat(2)217.65%
EPS beat(4)3
Avg EPS beat(4)84.85%
Min EPS beat(4)-5.56%
Max EPS beat(4)217.65%
EPS beat(8)6
Avg EPS beat(8)64.81%
EPS beat(12)10
Avg EPS beat(12)67.14%
EPS beat(16)13
Avg EPS beat(16)71.49%
Revenue beat(2)1
Avg Revenue beat(2)2.42%
Min Revenue beat(2)-7.83%
Max Revenue beat(2)12.67%
Revenue beat(4)1
Avg Revenue beat(4)-5.23%
Min Revenue beat(4)-14.36%
Max Revenue beat(4)12.67%
Revenue beat(8)1
Avg Revenue beat(8)-10.4%
Revenue beat(12)4
Avg Revenue beat(12)-2.93%
Revenue beat(16)8
Avg Revenue beat(16)4.68%
PT rev (1m)-9.09%
PT rev (3m)-20%
EPS NQ rev (1m)-59%
EPS NQ rev (3m)-62.74%
EPS NY rev (1m)-30.91%
EPS NY rev (3m)-39.25%
Revenue NQ rev (1m)-1.35%
Revenue NQ rev (3m)-2.31%
Revenue NY rev (1m)-2.37%
Revenue NY rev (3m)-1.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.25 | ||
| Fwd PE | 11.5 | ||
| P/S | 0.1 | ||
| P/FCF | 22.37 | ||
| P/OCF | 5.28 | ||
| P/B | 0.86 | ||
| P/tB | 0.86 | ||
| EV/EBITDA | 5.03 |
EPS(TTM)3.33
EY9.76%
EPS(NY)2.97
Fwd EY8.7%
FCF(TTM)1.53
FCFY4.47%
OCF(TTM)6.47
OCFY18.95%
SpS327.54
BVpS39.65
TBVpS39.65
PEG (NY)N/A
PEG (5Y)0.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.86% | ||
| ROE | 8.02% | ||
| ROCE | 7.97% | ||
| ROIC | 5.95% | ||
| ROICexc | 6.5% | ||
| ROICexgc | 6.5% | ||
| OM | 1.68% | ||
| PM (TTM) | 0.97% | ||
| GM | 6.42% | ||
| FCFM | 0.47% |
ROA(3y)2.74%
ROA(5y)2.14%
ROE(3y)9.05%
ROE(5y)7.54%
ROIC(3y)7.58%
ROIC(5y)N/A
ROICexc(3y)9.49%
ROICexc(5y)N/A
ROICexgc(3y)10.72%
ROICexgc(5y)N/A
ROCE(3y)9.94%
ROCE(5y)N/A
ROICexcg growth 3Y10.33%
ROICexcg growth 5Y36.01%
ROICexc growth 3Y10.51%
ROICexc growth 5Y36.71%
OM growth 3Y8.05%
OM growth 5Y21.55%
PM growth 3Y7.09%
PM growth 5Y35.11%
GM growth 3Y9.45%
GM growth 5Y1.36%
F-Score5
Asset Turnover2.95
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 16.75 | ||
| Debt/EBITDA | 2.54 | ||
| Cap/Depr | 128.79% | ||
| Cap/Sales | 1.51% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 69.17% | ||
| Profit Quality | 47.97% | ||
| Current Ratio | 1.76 | ||
| Quick Ratio | 0.89 | ||
| Altman-Z | 4.1 |
F-Score5
WACC11.34%
ROIC/WACC0.52
Cap/Depr(3y)113.57%
Cap/Depr(5y)88.41%
Cap/Sales(3y)1.05%
Cap/Sales(5y)1.02%
Profit Quality(3y)353.13%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-2.06%
EPS 3Y3.27%
EPS 5Y20.99%
EPS Q2Q%-25%
EPS Next Y-33.72%
EPS Next 2Y-6.15%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-17.58%
Revenue growth 3Y-3.72%
Revenue growth 5Y7.06%
Sales Q2Q%-2.17%
Revenue Next Year5.23%
Revenue Next 2Y5.12%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-18.51%
EBIT growth 3Y4.04%
EBIT growth 5Y30.13%
EBIT Next Year116.82%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-94.12%
FCF growth 3YN/A
FCF growth 5Y18.48%
OCF growth 1Y-78.5%
OCF growth 3YN/A
OCF growth 5Y-1%