Definitive Analysis
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Definitive Analysis

Financial Statements

Mode

Ticker

Industry

Sector

The Andersons, Inc. (ANDE)

Company Dividend Discount ModelIndustry: Food DistributionSector: Consumer Defensive

Valuation Snapshot

Stable Growth$73.32 - $386.65$132.35
Multi-Stage$44.31 - $48.43$46.33
Blended Fair Value$89.34
Current Price$39.81
Upside124.42%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS3.50%7.72%0.800.770.750.720.700.670.570.550.530.49
YoY Growth--3.55%3.10%3.63%3.23%4.01%18.67%2.68%4.55%9.05%27.52%
Dividend Yield--1.87%1.37%1.82%1.44%2.56%3.60%1.75%1.67%1.40%1.55%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)73.37
(-) Cash Dividends Paid (M)26.70
(=) Cash Retained (M)46.67
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)14.679.175.50
Cash Retained (M)46.6746.6746.67
(-) Cash Required (M)-14.67-9.17-5.50
(=) Excess Retained (M)31.9937.5041.17
(/) Shares Outstanding (M)32.7932.7932.79
(=) Excess Retained per Share0.981.141.26
LTM Dividend per Share0.810.810.81
(+) Excess Retained per Share0.981.141.26
(=) Adjusted Dividend1.791.962.07
WACC / Discount Rate8.08%8.08%8.08%
Growth Rate5.50%6.50%7.50%
Fair Value$73.32$132.35$386.65
Upside / Downside84.19%232.45%871.24%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)73.3778.1483.2288.6394.39100.52103.54
Payout Ratio36.39%47.11%57.84%68.56%79.28%90.00%92.50%
Projected Dividends (M)26.7036.8148.1360.7674.8390.4795.77

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate8.08%8.08%8.08%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)33.7434.0634.38
Year 2 PV (M)40.4441.2141.98
Year 3 PV (M)46.7948.1349.50
Year 4 PV (M)52.8254.8556.94
Year 5 PV (M)58.5361.3664.29
PV of Terminal Value (M)1,220.811,279.771,340.99
Equity Value (M)1,453.121,519.381,588.09
Shares Outstanding (M)32.7932.7932.79
Fair Value$44.31$46.33$48.43
Upside / Downside11.31%16.39%21.65%

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