| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 5080.93 | 20159 |
| Intrinsic value (DCF) | 9.59 | -62 |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
CHS Inc. (NASDAQ: CHSCM) is a leading integrated agricultural company providing grains, foods, and energy resources across North America and globally. Headquartered in Inver Grove Heights, Minnesota, CHS operates through four key segments: Energy, Ag, Nitrogen Production, and Foods. The company’s diversified business model includes refining and distributing petroleum products under the Cenex brand, marketing grains and oilseeds, producing nitrogen-based fertilizers, and manufacturing food products like vegetable oils and dressings. With a strong cooperative structure, CHS serves agricultural producers, retailers, and consumers, ensuring supply chain efficiency and market stability. As a major player in the agricultural and energy sectors, CHS benefits from vertical integration, offering everything from crop inputs to refined fuels. Its global footprint spans North America, South America, Europe, the Middle East, Africa, and Asia Pacific, reinforcing its role in food security and energy distribution. With a market cap of approximately $340 million and a beta of 0.29, CHS is positioned as a stable, defensive investment in the Consumer Defensive sector.
CHS Inc. presents a stable investment opportunity due to its diversified operations in agriculture, energy, and food production. The company’s cooperative model ensures steady demand from member networks, while its vertical integration mitigates supply chain risks. With $39.3 billion in revenue and $1.1 billion in net income, CHS demonstrates strong financial performance. However, investors should note the company’s exposure to commodity price volatility, particularly in grains and energy markets. The low beta (0.29) suggests lower market risk, making it attractive for conservative portfolios. The dividend yield, supported by a $1.69 per share payout, adds income appeal. Key risks include fluctuating agricultural input costs and regulatory pressures in energy refining.
CHS Inc. holds a competitive edge through its vertically integrated supply chain, cooperative ownership structure, and diversified revenue streams. Unlike pure-play agribusinesses, CHS combines grain marketing, energy refining, and food production, reducing reliance on any single market. Its Cenex-branded fuel network (~1,500 sites) provides a stable downstream revenue source, while its nitrogen production segment benefits from agricultural demand for fertilizers. The cooperative model fosters loyalty among farmers, ensuring consistent grain supply and input sales. However, CHS faces competition from larger agribusinesses with greater global scale (e.g., Archer-Daniels-Midland) and energy refiners with more advanced infrastructure. Its regional focus in the Midwest could limit growth compared to multinational peers. The company’s ability to manage commodity price swings and maintain margins in refining and agribusiness will be critical to sustaining its competitive position.