The Materials Sector on Wall Street witnessed a challenging 2024 and emerged as one of the worst-performing sectors in the S&P 500, declining 1.5%. Global economic concerns, including a slowdown in China, the world's largest industrial economy, and interest rates not coming down sufficiently, influenced the sector’s performance. Dampening demand for materials such as steel, copper and chemicals, adversely impacted companies across the sector.However, monetary policy shifts in global central banks, including ...

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-an ...

MAUMEE, Ohio, April 15, 2025 /PRNewswire/ -- The Andersons, Inc. (Nasdaq: ANDE) will release its financial results for the first quarter 2025 after 4 p.m. Eastern on Tuesday, May 6, 2025. The company will host a webcast on Wednesday, May 7, 2025, at 8:30 a.m. Eastern to discuss the results and provide a company update.To listen over the phone, please dial 888-317-6003 (U.S. toll-free) or 412-317-6061 (international toll) and use elite entry number: 2480571. To watch the webcast, go to https://app.webinar.ne ...

Company Overview - The Andersons (ANDE) is a diversified agribusiness company involved in grain storage, trading, risk management, and is the fifth-largest producer of ethanol in the United States [1] Investment Focus - The analysis emphasizes a focus on underfollowed American and European businesses with market capitalizations up to $15 billion, prioritizing innovation and scalability [1] Industry Insights - The core focus of the analysis is on renewable energy and cutting-edge industrial innovation, highlighting industries where disruption is expected to drive the next wave of growth [1]

Core Viewpoint - The Andersons (ANDE) is identified as a strong value stock with a Zacks Rank of 1 (Strong Buy) and an A grade for Value, indicating it is likely undervalued at present [3][6]. Value Metrics - The P/S ratio of ANDE is 0.13, significantly lower than the industry average of 0.27, suggesting it is undervalued based on sales performance [4]. - ANDE's P/CF ratio stands at 6.17, which is attractive compared to the industry's average P/CF of 6.64. This ratio indicates a favorable cash flow outlook for the company [5]. - Over the past 52 weeks, ANDE's P/CF has fluctuated between a high of 8.71 and a low of 5.59, with a median of 6.94, further supporting its valuation as attractive [5]. Earnings Outlook - The strength of ANDE's earnings outlook, combined with its favorable valuation metrics, positions it as an impressive value stock currently [6].

Financial Performance - The company reported total sales and merchandising revenues of $11,257.5 million for the year ended December 31, 2024, down from $14,750.1 million in 2023 [126]. - Sales and merchandising revenues decreased to $11,257,548 in 2024 from $14,750,112 in 2023, representing a decline of approximately 23.8% [190]. - Gross profit for 2024 was $693,926, a slight decrease from $745,363 in 2023, indicating a gross margin of 6.2% [190]. - Net income from continuing operations increased to $170,700 in 2024, up from $132,529 in 2023, reflecting a growth of approximately 28.8% [190]. - Earnings per share attributable to The Andersons, Inc. common shareholders increased to $3.35 in 2024 from $3.00 in 2023, marking an increase of 11.7% [190]. - The company reported a comprehensive income of $160,420 in 2024, compared to $134,910 in 2023, reflecting an increase of about 19% [193]. - Net income for the year ended December 31, 2024, was $170.7 million, an increase from $132.5 million in 2023, representing a growth of approximately 28.8% [201]. Segment Performance - The Trade segment's sales and merchandising revenues decreased by $2,804 million, while cost of sales decreased by $2,797.7 million, resulting in a slight gross profit decrease of $6.3 million [128]. - The Renewables segment shipped 793,554 thousand gallons of ethanol in 2024, an increase from 774,550 thousand gallons in 2023, and E-85 shipments rose to 47,073 thousand gallons from 42,270 thousand gallons [117]. - The Nutrient & Industrial segment's total tons sold decreased to 1,865 thousand tons in 2024 from 1,938 thousand tons in 2023, with Ag Supply Chain sales down to 1,288 thousand tons from 1,376 thousand tons [121]. - Renewables segment operating results increased by $48.3 million from the prior year, but gross profit decreased by $33.2 million due to a $578.3 million drop in sales and merchandising revenues attributed to a 22% decline in ethanol prices [131][134]. - Nutrient & Industrial segment results decreased by $7.1 million, with sales and merchandising revenues down $110.3 million and gross profit down $11.9 million, primarily due to a 5% decrease in volumes sold and margin compression [134]. - The Nutrient & Industrial segment reported total sales and merchandising revenues of $833,141 thousand for 2024, a decrease of 11.7% from $943,397 thousand in 2023 [281]. Cash Flow and Assets - Net cash provided by operating activities was $331.5 million in 2024, a significant decrease from $946.8 million in 2023, largely due to favorable changes in operating assets and liabilities in the prior year [145]. - Total current assets increased by $43.3 million to $2,850.3 million, while current liabilities rose by $94.8 million to $1,731.2 million, resulting in a working capital decrease of $51.5 million [142][143]. - The Company retained $561.8 million in cash on hand as of December 31, 2024, reflecting strong cash generation from core businesses despite a decrease in operating cash flow [145]. - Total assets rose to $4,121,314 in 2024, compared to $3,855,007 in 2023, representing an increase of approximately 6.9% [196]. - Cash and cash equivalents decreased to $561,771 in 2024 from $643,854 in 2023, a decline of about 12.7% [196]. - The company sold $201.7 million of accounts receivable in 2024, compared to $311.6 million in 2023, indicating a decrease of about 35.4% [213]. Debt and Liabilities - The Company had total outstanding long-term debt of $646.8 million as of December 31, 2024, with future interest payments totaling $162.2 million [155][156]. - Total liabilities increased to $2,521,478 in 2024 from $2,338,620 in 2023, an increase of approximately 7.8% [196]. - The fair value of the Company's long-term debt, including current maturities, was estimated at $635,387 thousand as of December 31, 2024, compared to $585,137 thousand in 2023 [174]. - The Company had a total short-term borrowing capacity of $2,161.7 million as of December 31, 2024, with $1,991.3 million available for borrowing [255]. - The Company’s long-term debt maturities include $36.1 million due in 2025 and $194.9 million due in 2029 [261]. Expenses and Costs - Operating, administrative, and general expenses increased by $7.9 million compared to the prior year, primarily due to $12.8 million in additional costs related to the Skyland acquisition [129]. - Interest expense decreased by $10.6 million due to reduced short-term borrowings resulting from lower commodity prices [130]. - Total interest paid decreased to $31.1 million in 2024 from $47.0 million in 2023, marking a decline of approximately 33.5% [256]. - The effective tax rate for 2024 was 15.0%, down from 21.8% in 2023 [289]. - The company reported net income taxes paid of $31.5 million in 2024, compared to $45.7 million in 2023 [289]. Inventory and Capital Expenditures - Agricultural inventories on hand increased to 174.2 million bushels as of December 31, 2024, compared to 127.6 million bushels in the previous year, with total storage capacity rising to approximately 291 million bushels [114]. - Capital expenditures for 2024 totaled $149.2 million, with expectations to invest approximately $175 million to $200 million in property, plant, and equipment in 2025 [148]. - As of December 31, 2024, total inventories increased to $1,286.8 million from $1,166.7 million in 2023, representing a growth of approximately 10.3% [250]. Shareholder Returns - The Company declared a cash dividend of $0.195 per common share for January 2025, compared to $0.185 per share in January 2023 [151]. - The company declared dividends of $0.765 per common share in 2024, totaling $26.1 million, compared to $25.2 million in 2023 [201]. Risk Management - The Company uses forward purchase and sale contracts and derivatives to manage commodity inventories, with fair value adjustments recorded as part of cost of sales [164]. - The Company enters into currency exchange contracts to mitigate risks from foreign currency fluctuations, primarily involving the Euro, British pound, and other currencies [173]. - The Company has established "unhedged" position limits to mitigate price risk associated with commodity contracts and inventories [214]. Other Comprehensive Income - The total Accumulated Other Comprehensive Income (AOCI) ending balance decreased to $12.585 million in 2024 from $22.865 million in 2023, reflecting a significant loss in currency translation adjustments [302]. - The company reported a net loss of $10.888 million in other comprehensive income before reclassifications for currency translation adjustments in 2024, compared to a gain of $5.622 million in 2023 [302].

February 19, 2025 SAFE HARBOR AND NON-GAAP FINANCIAL MEASURES FOURTH QUARTER EARNINGS CALL Certain information discussed today constitutes forward-looking statements. Actual results could differ materially from those presented in the forward-looking statements as a result of many factors including general economic, weather, and regulatory conditions, competition, geopolitical risk, and additional factors that are described in the company's publicly-filed documents, including its '34 Act filings and the pros ...

Financial Data and Key Metrics Changes - The company reported adjusted pretax income of $147 million and adjusted EBITDA of $363 million for 2024, despite facing oversupplied agricultural markets with low prices and limited volatility [9][17] - Net income attributable to the company was $45 million or $1.31 per diluted share, compared to adjusted net income of $55 million or $1.59 per diluted share in Q4 2023 [16] - Full year gross profit decreased by 7% to $694 million from $745 million in 2023, primarily due to lower ethanol margins [17] Business Line Data and Key Metrics Changes - The trade segment reported record fourth quarter adjusted pretax income of $54 million, up from $47 million in Q4 2023, driven by strong harvest execution and stable elevation margins [22] - Renewables generated fourth quarter pretax income of $16 million, down from $33 million in 2023, with EBITDA of $40 million compared to $73 million in the previous year [25][26] - Nutrient and industrial business reported a slight increase in adjusted pretax income to $3 million, while full year EBITDA decreased to $57 million from $62 million in 2023 [27] Market Data and Key Metrics Changes - The company noted that the agricultural businesses were lower due to soft industry fundamentals and limited grower engagement [13] - The effective tax rate for the quarter was 20%, with a full year rate of 15%, influenced by federal tax credits related to cellulosic ethanol production [18] Company Strategy and Development Direction - The company is focusing on integrating operations with Skyland Grain to optimize outcomes and enhance its presence in the North American agricultural supply chain [14][31] - A new segment reporting structure will be implemented in 2025 to streamline operational efficiency and enhance collaboration across trade and nutrient businesses [29] - The company anticipates an increase in US corn planted acres, which is expected to benefit its nutrient and agronomy business [33] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for the agribusiness outlook despite challenges from lower grain prices and reduced farmer engagement [32] - The company plans to continue investing in projects aimed at reducing carbon intensity in ethanol production and expanding renewable diesel feedstock merchandising [37][39] - Management acknowledged uncertainty around the regulatory environment but remains committed to responsible decision-making to optimize shareholder value [39] Other Important Information - The company generated cash flow from operations of $100 million in Q4 2024, down from $122 million in Q4 2023, with a year-end cash position of $562 million [19][20] - Capital spending for the year was $149 million, with a long-term debt to EBITDA ratio of 1.8 times, below the target of less than 2.5 times [21] Q&A Session Summary Question: Can you elaborate on the investment opportunities around lowering carbon intensity? - Management indicated that the return profile of these investments is evolving and will be included in the capital expenditure environment as clarity increases [42][44] Question: What are the expected synergies from the consolidation of the NNI and Trade Group? - Management noted that while there are opportunities for consolidation, the primary goal is to create a unified solution for producers, enhancing operational efficiency [45][47] Question: How did the company manage to deliver solid results despite margin compression in ethanol? - Management attributed the strong performance to effective execution of their business model, focusing on controllable costs and maximizing core operations [49][51] Question: What are the potential impacts of trade tariffs on the business? - Management stated that the company is not significantly affected by major tariff swings due to its domestic focus, although some aspects may be impacted [56][58] Question: Can you provide an update on the integration of Skyland? - Management confirmed that the integration is progressing well, with expectations for a $30 to $40 million EBITDA contribution in 2025 [59][62] Question: How does the nutrient input requirement differ between corn and soybeans? - Management explained that corn requires substantially more nutrient input, leading to higher margins compared to other crops [68] Question: What is the outlook for the merchandising environment for corn in 2025? - Management noted that recent price appreciation has led to increased optimism among farmers, although some may have sold their crops prematurely [81][84]

Financial Performance - Full year net income attributable to The Andersons was $114 million, or $3.32 per diluted share, with an adjusted basis of $117 million, or $3.40 per diluted share[5]. - Fourth quarter net income attributable to The Andersons was $45 million, or $1.31 per diluted share, and $47 million, or $1.36 per diluted share, on an adjusted basis[5]. - Adjusted EBITDA for the full year was $363 million, with $117 million for the fourth quarter[5]. - Net income for the three months ended December 31, 2024, was $54,104 thousand, a decrease of 30.9% compared to $78,437 thousand in the same period of 2023[28]. - Adjusted net income attributable to The Andersons, Inc. for the twelve months ended December 31, 2024, was $116,664 thousand, slightly down from $118,267 thousand in 2023, reflecting a decrease of 1.4%[30]. - The net income for the three months ended December 31, 2024, was $54,104, compared to $78,437 in the same period of 2023, a decrease of 30.9%[33]. - The net income for the twelve months ended December 31, 2024, was $170,700,000, compared to $132,529,000 in 2023, reflecting an increase of approximately 28.8%[34]. Revenue and Sales - For the three months ended December 31, 2024, total sales and merchandising revenues reached $3,123,138, a slight decrease from $3,213,000 in the same period of 2023, representing a 2.8% decline[31]. - For the twelve months ended December 31, 2024, total sales and merchandising revenues were $11,257,548, down from $14,750,112 in 2023, a decrease of 23.8%[32]. Expenses and Liabilities - Operating, administrative, and general expenses for the three months ended December 31, 2024, totaled $147,154, up from $132,712 in the same period of 2023, an increase of 10.9%[31]. - Total current liabilities increased to $1,731,172 thousand as of December 31, 2024, compared to $1,636,331 thousand in 2023, marking an increase of 5.8%[27]. - Total liabilities increased to $2,521,478 thousand as of December 31, 2024, from $2,338,620 thousand in 2023, reflecting an increase of 7.8%[27]. Cash Flow and Position - The company generated $269 million in cash from operating activities for Q4 2024, compared to $251 million in Q4 2023[7]. - Cash position at year-end was over $560 million, with a long-term debt to adjusted EBITDA ratio of 1.8 times[7]. - Cash and cash equivalents decreased to $561,771 thousand at the end of December 2024, down from $643,854 thousand at the end of December 2023, a decline of 12.7%[28]. - Net cash provided by operating activities for the twelve months ended December 31, 2024, was $331,506 thousand, down from $946,750 thousand in 2023, a decrease of 65.0%[28]. - Cash provided by operating activities for the twelve months ended December 31, 2024, was $946,750,000, a decrease from $1,000,000,000 in 2023[35]. - The cash provided by operating activities for Q4 2024 was $268,811,000, an increase from $250,663,000 in Q4 2023, representing a growth of approximately 7.4%[35]. Inventory and Assets - The company reported a significant increase in inventories, which rose to $1,286,811 thousand in December 2024, compared to $1,166,700 thousand in December 2023, an increase of 10.3%[27]. - Total assets increased to $4,121,314 thousand as of December 31, 2024, up from $3,855,007 thousand in 2023, representing a growth of 6.9%[27]. Segment Performance - Trade segment reported record fourth quarter pretax income of $54 million, up from $44 million in the prior year[9]. - Renewables segment reported pretax income of $25 million in Q4 2024, down from $60 million in Q4 2023[13]. - Nutrient & Industrial recorded pretax income of $3 million in Q4 2024, an improvement from the prior year[17]. - The company reported a net loss in the "Other" segment of $78,216,000 for the twelve months ended December 31, 2024, compared to a loss of $79,929,000 in 2023, showing a slight improvement[34]. Future Outlook - The company anticipates a significant increase in planted corn acres and strong ethanol exports in 2025[4]. - The company is actively pursuing growth in the Renewables space, including evaluating expansion and acquisition opportunities[4].

Financial Performance Overview - The Andersons, Inc. reported a pretax income of $67.3 million for Q4 2024, down from $91.8 million in Q4 2023, but showed an increase in year-to-date pretax income to $200.8 million from $169.6 million [4] - Net income attributable to the company for Q4 2024 was $45.1 million, or $1.31 per diluted share, compared to $51.2 million, or $1.49 per diluted share in Q4 2023 [4][9] - Adjusted net income for Q4 2024 was $46.9 million, or $1.36 per diluted share, down from $54.6 million, or $1.59 per diluted share in Q4 2023 [4][28] Segment Performance - The Trade segment achieved a record pretax income of $54 million in Q4 2024, up from $44 million in Q4 2023, driven by solid operations and improved merchandising [7][10] - The Renewables segment reported a pretax income of $25 million in Q4 2024, down from $60 million in Q4 2023, primarily due to lower ethanol prices despite record production [11][12] - Nutrient & Industrial segment showed improvement with a pretax income of $3 million in Q4 2024, compared to $2.1 million in Q4 2023, attributed to better performance in manufactured products [15][16] Cash Flow and Debt Management - The company ended 2024 with a cash position exceeding $560 million, with operating cash flows of $269 million in Q4 2024, compared to $251 million in Q4 2023 [5][6] - The long-term debt to adjusted EBITDA ratio stood at 1.8 times, below the target of 2.5 times, indicating a strong balance sheet [5] Market Outlook - The company anticipates a significant increase in planted corn acres and strong ethanol exports, positioning itself well against market shifts [3] - There are ongoing efforts to enhance the carbon intensity of ethanol plants and explore expansion and acquisition opportunities in the Renewables sector [3]