So your shopping list includes ethanol, a filtration system, fertilizer, wine, plumbing supplies and a locomotive. Know any outfits that have it all? There's one in Maumee, Ohio.
Andersons Inc. (NASDAQ: ANDE) is a widely diversified firm, with interests in the U.S. agriculture, transportation and retail markets. It Grain & Ethanol Group purchases and merchandises grain; operates grain elevator facilities; manages ethanol production facilities; and engages in grain and ethanol trading. The Rail Group buys, sells, leases, rebuilds, and repairs various types of used railcars and rail equipment. The Retail Group offers hardware, plumbing, electrical, and building supplies, as well as specialty foods and wines. The Plant Nutrient and Turf & Specialty Groups formulate fertilizers. The company has operations in seven midwestern states, plus rail leasing interests in Canada and Mexico.
The firm pleased investors last month, when it reported Q4 earnings of 76 cents per share and revenues of $463.4 million.
Analysts had been expecting 64 cents and $395 million. The news kept ANDE shares cycling through a positive six-month trading channel. The price is currently consolidating near the base of that channel, where oversold Stochastic, CCI and MACD technical parameters suggest the potential for a rise back toward the top.
Brokers recommend the shares with three "strong buys," two "buys" and two "holds." Recent price targets are in the upper $40s and low $50s. Analysts see a 24% average annual growth rate, through the next five years. The ANDE P/E ratio (18.45), PEG ratio (0.77), Price to Sales ratio (0.49), Price to Book ratio (2.62), Price to Cash Flow ratio (11.64), and Revenue per Employee ($1.14M) compare favorably with industry, sector and S&P 500 averages.
Institutions hold about 60% of the outstanding shares. Over the past 52 weeks, the stock has traded between $31.05 and $62.70. A stop-loss of $35.40 looks good here.
Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com.










