As part of our ongoing series here at The Acquirer’s Multiple, each week we focus on one of the stocks from our Stock Screeners, and why it’s a ‘buy’ based on key fundamentals.
One of the cheapest stocks in our Stock Screeners is:
Andersons Inc (ANDE)
Andersons Inc is diversified company with its main focus in agriculture sector. Its operations are segmented into Trade, Renewables, and Nutrient & Industrial. The Trade segment which generates the majority of the revenue is engaged in movement of physical commodities such as; whole grains, grain products, feed ingredients and domestic fuel products among other agricultural commodities. Geographically, the company generates majority of its revenue from United States and rest from Canada, Mexico, Egypt, Switzerland and other markets.
A quick look at the share price history (below) over the past twelve months shows that the price is up 10.33%. Here’s why the company is undervalued.
Source: Google Finance
Key Stats
Market Cap: $1.69 Billion
Enterprise Value: $2.29 Billion
Operating Earnings
Operating Earnings: $254 Million
Acquirer’s Multiple
Acquirer’s Multiple: 8.80
Free Cash Flow (TTM)
Free Cash Flow: $888 Million
FCF/MC Yield %:
FCF/MC Yield: 52%
Shareholder Yield %:
Shareholder Yield: 1.50
Other Indicators
Piotroski F Score: 5.00
Dividend Yield %: 1.5
ROA (5 Year Avge%): 8
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