CHS Inc. (CHSCM) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

CHS Inc. (CHSCM) Consumer Business Overview

CHS Inc. is a diversified global agribusiness cooperative, delivering essential agricultural commodities, food products, and energy solutions across six continents. Leveraging its extensive network and integrated operations, the company provides critical inputs, refines fuels, and processes food, maintaining a stable market position in the consumer defensive sector through its cooperative model and broad product portfolio.

What Is the Investment Thesis for CHSCM?

CHS Inc. presents a stable investment profile, underpinned by its diversified global agribusiness operations and cooperative structure. With a market capitalization of $312M and a notable dividend yield of 7.24%, the company offers income potential within the consumer defensive sector. Its low beta of 0.28 suggests reduced volatility compared to the broader market, appealing to risk-averse investors. Key value drivers include its extensive global reach across six continents and its integrated business model spanning energy, agribusiness, nitrogen production, and foods, which mitigates reliance on any single commodity or market segment. Growth catalysts are anticipated from sustained global demand for essential agricultural commodities, food products, and energy solutions, particularly in emerging markets. The company's agricultural inputs segment, supplying fertilizers and crop protection, positions it to benefit from efforts to enhance global food security and agricultural productivity. However, the company's profitability, indicated by a 1.5% profit margin and 3.0% gross margin, reflects the competitive and commodity-driven nature of its industry. Risks include ongoing exposure to commodity price fluctuations, which can introduce earnings volatility, and potential supply chain disruptions. Investors should monitor global agricultural demand, energy market trends, and currency exchange rates for their impact on CHS's diverse operations.

Based on FMP financials and quantitative analysis

CHSCM Key Highlights

• Market Capitalization: $0.31 billion, reflecting its size as a significant player in the diversified agribusiness sector.
• Dividend Yield: 7.24%, indicating a substantial return to shareholders, characteristic of mature, stable companies in the consumer defensive sector.
• Beta: 0.28, suggesting significantly lower volatility compared to the overall market, providing a degree of stability for investors.
• Profit Margin: 1.5%, demonstrating the company's net profitability after all expenses, typical for high-volume, low-margin commodity businesses.
• Gross Margin: 3.0%, representing the percentage of revenue left after subtracting the cost of goods sold, highlighting the tight margins inherent in agribusiness and energy distribution.

Who Are CHSCM's Competitors?

CHSCM is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are CHSCM's Key Strengths?

• Diversified global operations across energy, agribusiness, nitrogen production, and foods segments.
• Strong cooperative structure fostering deep relationships with a vast member network.
• Extensive global reach, operating across North America, South America, Europe, the Middle East, Africa, and Asia Pacific.
• Integrated supply chain from agricultural inputs to refined fuels and consumer food products.

What Are CHSCM's Weaknesses?

• Exposure to commodity price fluctuations, which can introduce volatility in earnings.
• Relatively low profit margin (1.5%) and gross margin (3.0%), indicative of a high-volume, low-margin industry.
• Dependence on agricultural cycles and weather patterns for core agribusiness segments.
• Significant capital requirements for maintaining and expanding refining and distribution infrastructure.

What Could Drive CHSCM Stock Higher?

• **Ongoing:** Sustained global demand for agricultural commodities and food products, driven by population growth and rising living standards, supporting CHS's core agribusiness and foods segments.
• **Ongoing:** Continued integration and optimization of its diversified global supply chain, potentially leading to enhanced operational efficiencies and cost savings across its energy, agribusiness, and food divisions.
• **Upcoming:** Strategic investments in its nitrogen production capabilities to meet increasing demand for crop nutrients, potentially boosting profitability in this essential agricultural input segment.
• **Ongoing:** Expansion of its Cenex brand network and refined fuels distribution, capitalizing on stable energy demand within its established cooperative and independent retailer base.

What Are the Key Risks for CHSCM?

• **Ongoing:** Exposure to significant volatility in global commodity prices, including crude oil, grains, and oilseeds, which can directly impact revenue and profit margins across all operating segments.
• **Potential:** Adverse weather events and climate change impacts, such as droughts or floods, which could severely affect agricultural yields and the supply of raw materials for CHS's agribusiness and food processing operations.
• **Ongoing:** Intense competitive pressures from larger multinational agribusiness corporations and energy companies, potentially leading to pricing pressures and market share erosion.
• **Potential:** Regulatory changes in environmental policies, agricultural subsidies, or international trade agreements that could impose additional costs or restrict market access for CHS's diverse product portfolio.

What Are the Growth Opportunities for CHSCM?

• **Expanding Global Agricultural Input Demand:** The global population is projected to reach nearly 10 billion by 2050, necessitating a significant increase in food production. This drives demand for agricultural inputs like seeds, crop nutrients, and crop protection products, a core offering of CHS. As agricultural practices become more sophisticated and yield-focused, the market for these inputs is expected to grow steadily. CHS, with its established supply chain and extensive network, is well-positioned to capitalize on this trend, particularly in emerging markets in South America, Africa, and Asia Pacific where agricultural modernization is accelerating. This opportunity is ongoing, with market growth estimated to be in the low single digits annually.
• **Increased Demand for Biofuels and Renewable Energy Solutions:** With global efforts to reduce carbon emissions and transition to more sustainable energy sources, the demand for biofuels and other renewable energy solutions derived from agricultural products is on an upward trajectory. CHS's involvement in both agricultural commodities (grains, oilseeds) and energy distribution positions it to play a significant role in this evolving market. By leveraging its existing infrastructure for processing and distribution, CHS can expand its offerings in bio-based fuels and related products. This represents a long-term growth opportunity, with significant market expansion anticipated over the next decade as policy support and technological advancements mature.
• **Growth in Packaged Food and Value-Added Products:** As global incomes rise and consumer preferences shift towards convenience and processed foods, the market for packaged vegetable oil-based consumer goods, such as margarine, mayonnaise, and dressings, is expanding. CHS's Foods segment, which manufactures and distributes these products, is directly poised to benefit. By investing in product innovation, brand building, and expanding distribution channels, particularly in urban centers and international markets, CHS can capture a larger share of this growing market. This opportunity is ongoing, with consumer demand for value-added food products showing consistent growth, especially in developing economies.
• **Strategic Expansion of Financial Services for Agriculture:** CHS provides specialized loans and commodity risk management services to cooperatives and individual producers. As the agricultural sector faces increasing financial complexities and market volatility, the demand for tailored financial solutions is growing. By expanding its financial services arm, CHS can deepen its relationships with its member base, attract new clients, and create an additional revenue stream that is less directly tied to commodity price fluctuations. This growth driver focuses on enhancing the value proposition to its core customers and is an ongoing opportunity, particularly as agricultural businesses seek stability and expert guidance in managing financial risks.
• **Leveraging Global Supply Chain and Distribution Network:** CHS operates across six continents, providing a robust platform for sourcing, processing, and distributing agricultural and energy products. This extensive global supply chain and distribution network represent a significant competitive advantage. By optimizing logistics, enhancing efficiency, and strategically expanding into underserved regions or new product categories within its existing geographical footprint, CHS can increase market penetration and operational leverage. This ongoing opportunity involves continuous improvement in supply chain management and strategic partnerships to maximize the reach and effectiveness of its current global infrastructure, driving incremental revenue and market share gains.

What Opportunities Does CHSCM Have?

• Growing global demand for food, feed, fiber, and fuel driven by population growth and economic development.
• Expansion into new international markets, particularly in regions with increasing agricultural development.
• Development and adoption of advanced agricultural technologies and sustainable farming practices.
• Increased demand for value-added food products and specialized agricultural inputs.

What Threats Does CHSCM Face?

• Volatility in global commodity prices (crude oil, grains, oilseeds, nitrogen products).
• Adverse weather conditions and climate change impacts on agricultural yields.
• Geopolitical instability and trade policy changes affecting global supply chains and market access.
• Intense competition from large multinational agribusinesses and energy companies.

What Are CHSCM's Competitive Advantages?

• **Cooperative Network and Member Loyalty:** Its cooperative structure fosters deeply embedded relationships with a vast network of member-owners, creating strong loyalty and a stable demand base that is difficult for competitors to replicate.
• **Integrated Global Supply Chain:** Operates a comprehensive, diversified global supply chain spanning six continents, from raw material sourcing to processing, refining, and distribution, offering efficiency and control over the value chain.
• **Brand Recognition and Distribution (Cenex):** The Cenex brand for refined fuels is well-established with approximately 1,500 member cooperatives and independent retailers, providing significant market penetration and customer trust in its energy segment.
• **Diversified Product Portfolio:** Its broad offerings across energy, agribusiness, nitrogen production, and foods reduce reliance on any single market segment, providing resilience against specific commodity price fluctuations or industry downturns.

What Does CHSCM Do?

CHS Inc., established in 1936 and headquartered in Inver Grove Heights, Minnesota, operates as a diversified global agribusiness enterprise. The company's foundational mission revolves around delivering essential agricultural commodities, food products, and energy solutions to a vast network of businesses and consumers spanning North America, South America, Europe, the Middle East, Africa, and the Asia Pacific region. Its operational structure is segmented into four primary divisions: Energy, Agribusiness, Nitrogen Production, and Foods, reflecting its comprehensive approach to the agricultural value chain. Within its Energy division, CHS manages a robust infrastructure comprising petroleum refineries and extensive pipeline networks. The company is critically involved in the sourcing, marketing, and distribution of a wide array of refined fuels, including gasoline, diesel, propane, and other natural gas liquids. Furthermore, it engages in the blending and sale of various lubricants and refines crude oil into petroleum products. These refined products are then distributed under the well-recognized Cenex brand to an expansive network of approximately 1,500 member cooperatives and independent retailers, supported by comprehensive transportation services. The Agribusiness and Foods segments form another cornerstone of CHS's operations. Here, the company actively participates in the global marketing of grains and oilseeds, while also supplying vital agricultural inputs such as seeds, crop nutrients, crop protection products, animal feed, and animal health solutions to farmers. Beyond raw material handling, CHS transforms agricultural inputs into diverse food items, including refined oils, meal, soy flour, and processed sunflower products. It also manufactures, packages, and distributes a variety of vegetable oil-based consumer goods, such as packaged oils, margarine, mayonnaise, flavored dressings, and sauces, directly addressing consumer demand. The Nitrogen Production segment is dedicated to the manufacturing and sale of nitrogen-based products, specifically methanol, UAN (urea ammonium nitrate), and urea, which are crucial for agricultural productivity. Complementing its core product and service offerings, CHS extends financial assistance to the agricultural community, providing specialized loans to both cooperatives and individual producers. This is further enhanced by valuable consulting and commodity risk management services, solidifying CHS's role as an integrated partner in the agricultural ecosystem.

What Products and Services Does CHSCM Offer?

• Refines crude oil and distributes refined fuels like gasoline, diesel, and propane under the Cenex brand.
• Markets and trades a wide range of agricultural commodities, including grains and oilseeds, globally.
• Manufactures and supplies essential agricultural inputs such as seeds, crop nutrients, and crop protection products.
• Produces and sells nitrogen-based products, including methanol, UAN, and urea, for agricultural and industrial use.
• Processes raw agricultural materials into food ingredients like refined oils, soy flour, and processed sunflower products.
• Manufactures, packages, and distributes consumer food products such as packaged oils, margarine, mayonnaise, and dressings.
• Provides financial services, including specialized loans and commodity risk management, to the agricultural community.
• Operates extensive pipeline networks and transportation services to support its energy and agribusiness divisions.

How Does CHSCM Make Money?

• **Integrated Value Chain:** Generates revenue by participating across multiple stages of the agricultural and energy value chains, from sourcing raw materials to processing, refining, and distributing finished products.
• **Cooperative Structure:** Operates as a cooperative, fostering strong member relationships and providing essential goods and services to its agricultural member-owners, creating a stable demand base.
• **Diversified Revenue Streams:** Earns income from the sale of refined fuels, agricultural commodities, crop inputs, nitrogen products, and various food products, diversifying its exposure to market fluctuations.
• **Service-Oriented Offerings:** Supplements product sales with financial services, consulting, and risk management solutions, adding value and creating additional revenue streams for its agricultural clients.

What Industry Does CHSCM Operate In?

CHS Inc. operates within the critical Agricultural Farm Products industry, a segment of the broader Consumer Defensive sector. This industry is characterized by its essential role in global food and energy supply chains, making it relatively resilient to economic downturns. The market is influenced by global population growth, shifting dietary preferences, and increasing demand for biofuels, driving sustained need for agricultural commodities and inputs. CHS's diversified model, encompassing energy, agribusiness, nitrogen production, and foods, positions it uniquely within this landscape. Its cooperative structure fosters strong relationships with its member base, providing a stable demand channel for its products and services. The competitive environment includes large multinational agribusiness corporations, regional cooperatives, and specialized energy and food processing companies. CHS differentiates itself through its integrated supply chain, from farm inputs to refined fuels and consumer food products, and its extensive global distribution network, allowing it to capture value across multiple stages of the agricultural and energy value chains.

Who Are CHSCM's Key Customers?

• Member cooperatives and independent retailers (for Cenex brand fuels and other products).
• Individual agricultural producers and farmers (for crop inputs, animal feed, and financial services).
• Food manufacturers and processors (for refined oils, meal, and other food ingredients).
• Consumers (for packaged food products like margarine, mayonnaise, and dressings).
• Industrial clients (for nitrogen-based products like methanol and urea).

Company Profile

CHS Inc. operates in the Agricultural Farm Products industry within the Consumer Defensive sector. It is headquartered in Inver Grove Heights, US. The company is led by CEO Jay Debertin. CHSCM has traded publicly since 2014.

CHS Inc. Financial Trajectory

CHS Inc. (CHSCM) reported $11.58B in revenue for Q2 2026, reflecting 38.6% growth compared to the prior quarter. Quarter-over-quarter revenue has been mixed, typical for a small-cap company operating in Consumer Defensive.

How CHS Inc. Is Valued

CHS Inc. carries a market capitalization of $312M, placing it in the small-cap category. Relative to its peer group, CHSCM's quantitative score of 69/100 is roughly in line with the peer average of 66/100.

ROE 5%Key Financial Metrics

Return on equity for CHS Inc. stands at 4.9%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 2.6%, showing how much profit it generates from its asset base. A current ratio of 1.45 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 0.0%, the inverse of the P/E and a quick read on earnings relative to price.

F-Score 6/9Financial Health

CHS Inc.'s Piotroski F-Score is 6/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 2.08 places it in the grey zone, a middle ground that warrants monitoring.

Net buyingInsider Activity

The most recent 8 insider filings for CHS Inc. break down as 1 sales and 7 purchases. On net that is roughly 7K shares acquired (about $162K) — insiders putting money in tends to read as conviction.

CHSCM Financials

CHSCM Latest News

No recent news available for CHSCM.

CHSCM Analyst Consensus

CHSCM MoonshotScore

CHSCM Consumer Defensive Stock FAQ

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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