| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 5082.52 | 18065 |
| Intrinsic value (DCF) | 11.18 | -60 |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
CHS Inc. (NASDAQ: CHSCP) 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 plays a pivotal role in the agricultural supply chain. The company refines and distributes petroleum products under the Cenex brand, serving cooperatives and independent retailers through a vast network of 1,500 sites. Additionally, CHS markets grains, oilseeds, crop nutrients, animal feed, and food products, including vegetable oil-based items like margarine and mayonnaise. With a strong cooperative structure dating back to 1936, CHS supports farmers with loans, risk management services, and consulting. Headquartered in Inver Grove Heights, Minnesota, CHS is a critical player in the consumer defensive sector, ensuring food and energy security while maintaining a diversified revenue stream.
CHS Inc. presents a stable investment opportunity within the agricultural and energy sectors, benefiting from its diversified operations and cooperative business model. The company's strong revenue base ($39.26B in FY 2024) and net income ($1.1B) reflect its resilience in volatile commodity markets. However, investors should note the lack of diluted EPS data and high total debt ($2.47B), which could impact financial flexibility. The dividend yield (implied by a $2 dividend per share) may appeal to income-focused investors, but the absence of shares outstanding data limits valuation clarity. CHS's low beta (0.25) suggests lower volatility compared to the broader market, making it a defensive play. Risks include exposure to fluctuating agricultural and energy prices, regulatory pressures, and dependence on cooperative members.
CHS Inc. holds a competitive advantage through its vertically integrated operations, spanning energy refining, agricultural inputs, and food production. Its cooperative structure fosters strong relationships with farmers and retailers, ensuring steady demand for its products. The Cenex brand provides a recognizable presence in the energy segment, while its extensive distribution network enhances market penetration. However, CHS faces stiff competition from larger agribusinesses with greater global reach and financial resources. Its nitrogen production segment competes with chemical giants, and the energy division contends with major oil refiners. CHS's regional focus in North America may limit growth compared to multinational peers, but its diversified portfolio mitigates sector-specific risks. The company's ability to offer financing and risk management services further differentiates it from pure-play commodity firms.