| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 5081.52 | 19303 |
| Intrinsic value (DCF) | 10.18 | -61 |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
CHS Inc. (NASDAQ: CHSCO) is a leading integrated agricultural company providing grains, foods, and energy resources across North America, South America, Europe, the Middle East, Africa, and the Asia Pacific. Operating through four key segments—Energy, Ag, Nitrogen Production, and Foods—CHS serves businesses and consumers with a diversified portfolio including refined fuels, propane, crop nutrients, animal feed, and packaged food products. The company’s vertically integrated model allows it to control supply chains from production to distribution, leveraging its Cenex-branded fuel network of approximately 1,500 retail sites. CHS also engages in commodity risk management and agricultural financing, reinforcing its role as a critical player in the global agribusiness sector. Headquartered in Inver Grove Heights, Minnesota, CHS has been a cooperative since 1936, emphasizing sustainable and efficient resource distribution in the consumer defensive space. With a market cap of $338.6 million and revenue exceeding $39.3 billion, CHS remains a resilient player in agricultural and energy markets.
CHS Inc. presents a stable investment opportunity within the agricultural and energy sectors, supported by its diversified revenue streams and cooperative structure. The company’s strong cash position ($794.9 million) and manageable debt levels ($2.47 billion) suggest financial resilience, while its beta of 0.20 indicates lower volatility compared to broader markets. However, diluted EPS of $0 and unspecified capital expenditures raise questions about profitability transparency and reinvestment efficiency. The dividend yield, at $1.97 per share, may appeal to income-focused investors, but reliance on commodity price cycles in agriculture and energy could pose risks. Investors should weigh CHS’s integrated supply chain advantages against potential margin pressures from fluctuating input costs.
CHS Inc. holds a competitive edge through its vertically integrated operations, spanning energy refining, agribusiness, and food production. Its cooperative model fosters loyalty among member farmers and retailers, ensuring steady demand for its Cenex-branded fuels and agricultural inputs. The company’s nitrogen production segment provides additional stability, as fertilizers remain essential for global food production. However, CHS faces stiff competition from larger agribusiness conglomerates with greater international reach, such as Archer-Daniels-Midland (ADM) and Bunge (BG). While CHS’s regional focus in North America ensures deep market penetration, it may lack the scale to compete aggressively in emerging markets. The company’s ability to manage commodity price volatility through risk management services is a strength, but reliance on cyclical industries could limit growth during downturns. Its diversified portfolio mitigates some risks, but investors should monitor energy margin trends and agricultural commodity prices closely.