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The Andersons, Inc. (ANDE - Free Report) finished out 2021 with a record quarter as its seeing the best agriculture conditions since 2014. This Zacks Rank #1 (Strong Buy) is expected to grow revenue another 6.3% in 2022 as agriculture remains a hot industry.
Founded in 1947, The Andersons is a agriculture company headquartered in Ohio that conducts business in the commodity merchandising, renewables and plant nutrient sectors.
It operates 77 grain facilities and trades 36M tonnes. In its renewables, it's a partner with Marathon Petroleum, the largest ethanol blender.
The Andersons supplies nutrient products to farmers from 37 facilities. It also manufactures granular products for lawn and other diverse markets, as well as manufactures and distributes specialty liquid ag and other industrial products.
It's a critical link in the North American agriculture supply chain network.
Another Big Beat in Q4 2021
On Feb 15, 2022, The Andersons reported its fourth quarter results and beat the Zacks Consensus by $0.56. Earnings were $1.14 versus the Zacks Consensus of just $0.58.
It was the fourth consecutive big beat by The Andersons.
Image Source: Zacks Investment Research
All segments were strong with Plant Nutrients reported a record quarter. It receives, stores and markets nitrogen, phosphate and potash fertilizers.
"Plant Nutrient followed up a very strong first half with a great second half, leading to a record year. Fertilizer prices and farm income both remain high; we continue to receive good support from our suppliers in this time of tight stocks and expect continued strong performance as we move into 2022," said President and CEO Pat Bowe.
In the renewables segment, ethanol crush margins were strong in the fourth quarter but are expected to soften to start 2022.
In a March 2022 Investor presentation, The Andersons said it expected lower seasonal ethanol crush margins in the first quarter but for there to be improvements later in the year as driving demand returned.
Estimates Raised for 2022
The Andersons is little covered on the Street. It's a small cap agriculture company with a market cap of just $1.49 billion.
But 2 estimates have been raised for 2022 in the last 30 days, pushing the Zacks Consensus up to $2.64 from $2.29. However this is an earnings decline of 10.2% as the company made $2.94 in last year's record year.
A Dividend All-Star
In February, The Andersons announced its latest dividend. It's rare for most small-cap companies, who are not banks, to pay dividends.
But it has an all-star dividend payout track record. It has paid 102 consecutive quarterly cash dividends since listing on the NASDAQ in Feb 1996. That's impressive.
It currently yields 1.6%.
Shares Soar But Are Still a Value
The Andersons has been a big pandemic winner. Shares are up 171% over the last 2 years to new 5-year highs while the S&P 500 has gained only 53% and the NASDAQ 66% in that same time period.
Even in 2022, shares have bucked the bearish sentiment, gaining 13.4% year-to-date while the NASDAQ has fallen 16%.
Image Source: Zacks Investment Research
But shares are still attractively valued, with a forward P/E of 16.6.
If you are an investor looking for an alternative in the agriculture space to the fertilizer manufacturers, then The Andersons should make your short list.
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Bull of the Day: The Andersons (ANDE)
The Andersons, Inc. (ANDE - Free Report) finished out 2021 with a record quarter as its seeing the best agriculture conditions since 2014. This Zacks Rank #1 (Strong Buy) is expected to grow revenue another 6.3% in 2022 as agriculture remains a hot industry.
Founded in 1947, The Andersons is a agriculture company headquartered in Ohio that conducts business in the commodity merchandising, renewables and plant nutrient sectors.
It operates 77 grain facilities and trades 36M tonnes. In its renewables, it's a partner with Marathon Petroleum, the largest ethanol blender.
The Andersons supplies nutrient products to farmers from 37 facilities. It also manufactures granular products for lawn and other diverse markets, as well as manufactures and distributes specialty liquid ag and other industrial products.
It's a critical link in the North American agriculture supply chain network.
Another Big Beat in Q4 2021
On Feb 15, 2022, The Andersons reported its fourth quarter results and beat the Zacks Consensus by $0.56. Earnings were $1.14 versus the Zacks Consensus of just $0.58.
It was the fourth consecutive big beat by The Andersons.
Image Source: Zacks Investment Research
All segments were strong with Plant Nutrients reported a record quarter. It receives, stores and markets nitrogen, phosphate and potash fertilizers.
"Plant Nutrient followed up a very strong first half with a great second half, leading to a record year. Fertilizer prices and farm income both remain high; we continue to receive good support from our suppliers in this time of tight stocks and expect continued strong performance as we move into 2022," said President and CEO Pat Bowe.
In the renewables segment, ethanol crush margins were strong in the fourth quarter but are expected to soften to start 2022.
In a March 2022 Investor presentation, The Andersons said it expected lower seasonal ethanol crush margins in the first quarter but for there to be improvements later in the year as driving demand returned.
Estimates Raised for 2022
The Andersons is little covered on the Street. It's a small cap agriculture company with a market cap of just $1.49 billion.
But 2 estimates have been raised for 2022 in the last 30 days, pushing the Zacks Consensus up to $2.64 from $2.29. However this is an earnings decline of 10.2% as the company made $2.94 in last year's record year.
A Dividend All-Star
In February, The Andersons announced its latest dividend. It's rare for most small-cap companies, who are not banks, to pay dividends.
But it has an all-star dividend payout track record. It has paid 102 consecutive quarterly cash dividends since listing on the NASDAQ in Feb 1996. That's impressive.
It currently yields 1.6%.
Shares Soar But Are Still a Value
The Andersons has been a big pandemic winner. Shares are up 171% over the last 2 years to new 5-year highs while the S&P 500 has gained only 53% and the NASDAQ 66% in that same time period.
Even in 2022, shares have bucked the bearish sentiment, gaining 13.4% year-to-date while the NASDAQ has fallen 16%.
Image Source: Zacks Investment Research
But shares are still attractively valued, with a forward P/E of 16.6.
If you are an investor looking for an alternative in the agriculture space to the fertilizer manufacturers, then The Andersons should make your short list.