Nasdaq:CHSCP
CHS INC
CHS Inc. delivers comprehensive agricultural inputs, financial services, and grain marketing solutions to North American farmers.
Key Metrics
Investment Thesis
Bull Case
CHS offers exposure to the resilient agricultural sector with a dominant market position that provides stable cash flows even during downturns. The company's diversified revenue streams across inputs and marketing help mitigate single-commodity risks, while its strong cash generation supports continued investments in technology and sustainability initiatives that appeal to ESG-focused investors.
Bear Case
Recent years show a persistent decline in both revenue and net income, suggesting potential headwinds from lower commodity prices or reduced demand. High levels of debt repayments and negative changes in working capital indicate liquidity pressure, and the shrinking profit margin relative to revenue growth raises concerns about pricing power and operational efficiency.
About CHS INC
CHS Inc. operates as a diversified agricultural services and supply company serving farmers across North America through its Crop Care, Seeds, Grain Marketing, and Farm Finance segments. The company generates revenue by providing essential inputs like seeds, crop protection products, and financing solutions to the farming community while marketing grain for both domestic and international markets. With a substantial portfolio of current assets including significant inventory and receivables, CHS maintains a robust operational footprint critical to the agricultural supply chain.
Analysis
Management Discussion
Despite a notable contraction in revenue from $45.59B in 2023 to $35.46B in 2025, CHS Inc. has maintained positive net income, dropping from $1.90B to $598.0M but avoiding losses. The company generated strong operating cash flow of $635.8M while managing significant capital expenditures of $728.6M and debt repayments of $331.6M, indicating disciplined capital allocation amidst a challenging macroeconomic environment for agriculture.
Industry Overview
The agricultural supply industry is cyclical and heavily influenced by global weather patterns, government subsidies, and input costs such as fuel and fertilizer. Companies in this space must balance high fixed costs with volatile margins, requiring significant scale and financial strength to navigate economic cycles without eroding shareholder value.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | $45.59B | $39.26B | $35.46B |
| Cost of Revenue | $43.21B | $37.51B | $34.33B |
| Gross Profit | $2.38B | $1.75B | $1.14B |
| Operating Expenses | $1.03B | $1.17B | $1.05B |
| Operating Income | $1.34B | $584.4M | $90.8M |
| G&A | $1.03B | $1.17B | $1.05B |
| D&A | $464.6M | $481.7M | $651.4M |
| Depreciation | $457.9M | $474.8M | $546.6M |
| Amortization | $6.7M | $6.9M | $10.1M |
| Other OpEx | $0 | $0 | $0 |
| Non-Operating Income | $664.3M | $513.4M | $524.0M |
| Interest Expense | $137.4M | $104.1M | $146.1M |
| Pre-Tax Income | $2.01B | $1.10B | $614.8M |
| Income Tax | $107.7M | $-4.9M | $16.8M |
| Continuing Ops | $1.90B | $1.10B | $598.0M |
| Discontinued Ops | $0 | $0 | $0 |
| Net Income | $1.90B | $1.10B | $598.0M |
| Minority Interest | $-314.0K | $340.0K | $78.0K |
| Net to Common | $1.90B | $1.10B | $597.9M |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Current Assets | $9.13B | $8.71B | $8.09B |
| Cash & Equivalents | $1.77B | $794.9M | $327.8M |
| Marketable Securities | — | $500.9M | $0 |
| Inventory | $3.22B | $3.07B | $3.27B |
| Other Current Assets | $4.15B | $4.35B | $4.49B |
| Long-Term Assets | $9.83B | $10.01B | $10.78B |
| PP&E (Net) | $4.87B | $5.18B | $5.50B |
| Goodwill | $180.0M | $180.0M | $239.4M |
| Operating Leases | $254.8M | $218.8M | $238.7M |
| Other LT Assets | $4.52B | $4.43B | $4.80B |
| Total Assets | $18.96B | $18.72B | $18.86B |
| Current Liabilities | $5.90B | $5.40B | $5.28B |
| Accounts Payable | $2.93B | $2.70B | $2.72B |
| Deferred Revenue | $240.0M | $248.8M | $179.6M |
| Other Current Liab | $1.96B | $1.67B | $1.69B |
| Long-Term Liabilities | $2.61B | $2.55B | $2.50B |
| Total Liabilities | $8.51B | $7.95B | $7.78B |
| Shareholders' Equity | $10.45B | $10.76B | $11.08B |
| Retained Earnings | $2.54B | $2.81B | $3.02B |
| AOCI | $-265.4M | $-296.5M | $-306.4M |
| Total L&E | $18.96B | $18.72B | $18.86B |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Net Income (CFO) | $1.90B | $1.10B | $598.0M |
| Non-Cash Adjustments | $2.55B | $8.3M | $371.1M |
| Working Capital Changes | $-1.17B | $161.9M | $-333.3M |
| Cash from Operations | $3.28B | $1.27B | $635.8M |
| Capital Expenditures | $564.5M | $808.8M | $728.6M |
| Cash from Investing | $-950.2M | $-1.43B | $-880.6M |
| Debt Repayments | $283.0M | $366.1M | $331.6M |
| Cash from Financing | $-1.40B | $-814.3M | $-230.6M |
| FX Effect | $2.6M | $2.2M | $773.0K |
| Net Change in Cash | $941.1M | $-970.7M | $-474.6M |
| Beginning Cash | $903.5M | $1.84B | $873.9M |
| Ending Cash | $1.84B | $873.9M | $399.3M |
Frequently Asked Questions
How does CHS INC make money?
Crop Care (seeds and crop protection products), Seeds (various seed varieties for different crops), Grain Marketing (buying and selling grain on behalf of farmers), and Farm Finance (providing loans and credit lines to agricultural producers).
What are the main risks for CHSCP?
Volatility in commodity prices affecting grain margins, regulatory changes impacting crop protection product approvals, adverse weather patterns disrupting supply chains or harvest yields, and rising interest rates increasing cost of debt for both the company and its financed customers.
What is CHSCP's competitive advantage?
Extensive distribution network reaching nearly every county in the U.S. and Canada, proprietary seed genetics partnerships with major biotech firms, and deep industry expertise allowing for tailored financial solutions that improve farmer cash flow.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.