| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 5081.02 | 19865 |
| Intrinsic value (DCF) | 9.68 | -62 |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
CHS Inc. (NASDAQ: CHSCN) 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 agricultural inputs like seeds and crop nutrients, producing nitrogen-based fertilizers, and manufacturing food products such as vegetable oils and dressings. With a strong cooperative structure, CHS serves member cooperatives, independent retailers, and commercial agriculture clients, offering not only products but also financial services, risk management, and transportation solutions. As a major player in the consumer defensive sector, CHS benefits from stable demand for agricultural and energy essentials, reinforcing its resilience in volatile markets. Its vertically integrated operations and global supply chain position it as a critical link in food and energy security.
CHS Inc. presents a stable investment opportunity due to its diversified operations across agriculture, energy, and food production—sectors with inelastic demand. The company’s cooperative model fosters long-term customer loyalty, while its vertically integrated supply chain enhances efficiency. However, investors should note risks tied to commodity price volatility, particularly in energy and agricultural markets, which can impact margins. The company’s low beta (0.20) suggests lower volatility relative to the market, appealing to conservative investors. With solid revenue ($39.3B in FY 2024) and net income ($1.1B), CHS demonstrates profitability, though its lack of diluted EPS data and high total debt ($2.5B) warrant caution. The $1.78 dividend per share adds income appeal, but capital expenditure transparency is limited.
CHS Inc. holds a competitive edge through its cooperative structure, which ensures a steady customer base among member-owned agricultural businesses. Its integrated operations—spanning energy refining, agribusiness inputs, and food production—provide cost synergies and reduce reliance on third-party suppliers. The Cenex brand strengthens its energy segment, while its global distribution network enhances market reach. However, CHS faces stiff competition from larger agribusiness conglomerates with greater scale (e.g., Archer-Daniels-Midland) and energy-focused peers with more refining capacity. Its nitrogen production segment competes with chemical giants like CF Industries, though CHS’s focus on agricultural applications aligns with farmer needs. The company’s weakness lies in its limited international brand recognition compared to global rivals and exposure to cyclical commodity downturns. Strategic investments in renewable energy and sustainable agriculture could further differentiate CHS in the long term.