| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 69.53 | 1021 |
| Intrinsic value (DCF) | 24.96 | 303 |
| Graham-Dodd Method | 13.44 | 117 |
| Graham Formula | 10.16 | 64 |
Tonkens Agrar AG is a German agricultural company specializing in the cultivation, storage, processing, and marketing of fruits, cereals, potatoes, corn, and onions, primarily serving the food industry and wholesalers in Germany. With a cultivation area of approximately 3,500 hectares, the company also engages in milk production and renewable energy generation through photovoltaic (PV) systems (2MW capacity) and biogas plants. Founded in 2010 and headquartered in Sülzetal, Germany, Tonkens Agrar AG operates as a subsidiary of Tonkens Holding GmbH. The company plays a vital role in the Consumer Defensive sector, providing essential agricultural products while diversifying into sustainable energy solutions. Its integrated business model ensures resilience in volatile agricultural markets, making it a key player in Germany's agribusiness landscape.
Tonkens Agrar AG presents a niche investment opportunity in the agricultural sector, combining traditional farming with renewable energy production. The company's diversified revenue streams—spanning crop cultivation, dairy, and energy—provide stability, though its small market cap (~€12M) and negative beta (-0.105) suggest limited liquidity and low correlation with broader markets. Financials show modest profitability (€1.78M net income, €20.4M revenue) and positive operating cash flow (€4M), but high debt (€15.8M) relative to cash reserves (€1.16M) raises leverage concerns. The lack of dividends may deter income-focused investors. While its renewable energy segment offers growth potential, the company's exposure to agricultural commodity price volatility and regulatory risks in energy markets warrants caution.
Tonkens Agrar AG competes in a fragmented agricultural market, differentiating itself through vertical integration (cultivation to processing) and renewable energy diversification. Its 3,500-ha cultivation area provides scale advantages, though it remains smaller than industrial farming giants. The energy segment (2MW PV + biogas) aligns with Germany's green transition but is marginal compared to specialized renewable players. The company's focus on regional supply chains mitigates logistics costs but limits geographic diversification. Competitors with larger land holdings or global distribution networks may outperform in efficiency, while Tonkens' localized model offers supply chain reliability. Debt levels could constrain agility versus less leveraged peers. Its dual agri-energy model is unique but requires balancing capital allocation between low-margin farming and capital-intensive energy projects.