Cardinal Ethanol, LLC (CRDE)
For informational purposes only. Not financial advice. Analysis by Sedat Aydin, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
Cardinal Ethanol, LLC (CRDE) with AI Score 37/100 (Weak). Cardinal Ethanol, LLC produces and sells fuel-grade ethanol, distiller grains, corn oil, and raw carbon dioxide. Market cap: 0, Sector: Basic materials.
Last analyzed: Mar 16, 2026Cardinal Ethanol, LLC (CRDE) Materials & Commodity Exposure
Cardinal Ethanol, LLC, established in 2005, is a US-based producer of fuel-grade ethanol and related products like distiller grains, corn oil, and carbon dioxide. It serves as an octane enhancer, oxygenated fuel additive, and gasoline substitute, marketing its products directly and through third-party brokers, with a focus on domestic and export markets.
Investment Thesis
Cardinal Ethanol, LLC presents an investment opportunity within the renewable fuels sector, driven by a P/E ratio of 3.97 and a profit margin of 13.9%. Growth catalysts include increasing demand for ethanol as a gasoline additive and biofuel. The company's diversified product portfolio, including distiller grains and corn oil, provides revenue streams beyond ethanol. However, investors may want to evaluate risks such as fluctuating corn prices, regulatory changes impacting ethanol mandates, and competition from larger ethanol producers. The company's beta of -0.49 suggests lower volatility compared to the overall market.
Based on FMP financials and quantitative analysis
Key Highlights
- Cardinal Ethanol, LLC has a market capitalization of $0.28 billion, reflecting its position in the ethanol production market.
- The company's P/E ratio of 3.97 indicates a potentially undervalued stock compared to its earnings.
- A profit margin of 13.9% demonstrates the company's ability to generate profits from its operations.
- Cardinal Ethanol's gross margin of 15.1% reflects its efficiency in converting revenue into profit after accounting for the cost of goods sold.
- The company's beta of -0.49 suggests that the stock is less volatile than the overall market.
Competitors & Peers
Strengths
- Established ethanol production facilities.
- Diversified product portfolio (ethanol, distiller grains, corn oil).
- Strategic location in a corn-producing region.
- Existing relationships with fuel blenders and distributors.
Weaknesses
- Dependence on corn prices.
- Vulnerability to regulatory changes in the biofuel industry.
- Limited geographic diversification.
- Smaller scale compared to major ethanol producers.
Catalysts
- Ongoing: Government support for renewable fuels through mandates and incentives.
- Ongoing: Increasing demand for ethanol as a gasoline additive.
- Upcoming: Potential expansion of ethanol production capacity.
- Upcoming: Diversification into advanced biofuels production.
- Ongoing: Growth in the animal feed market driving demand for distiller grains.
Risks
- Ongoing: Fluctuations in corn prices impacting profitability.
- Potential: Changes in government regulations and biofuel mandates.
- Ongoing: Competition from larger ethanol producers.
- Potential: Technological advancements in alternative fuels.
- Ongoing: Limited liquidity due to OTC market trading.
Growth Opportunities
- Expansion of Ethanol Production Capacity: Cardinal Ethanol can increase its ethanol production capacity to meet growing demand for biofuels. The global biofuels market is projected to reach $214.24 billion by 2031, growing at a CAGR of 5.7% from 2022 to 2031. By expanding its production capacity, Cardinal Ethanol can capture a larger share of this growing market. This expansion can be achieved through strategic investments in new facilities or upgrades to existing infrastructure, with a potential timeline of 3-5 years for significant capacity increases.
- Diversification into Advanced Biofuels: Cardinal Ethanol can diversify its product portfolio by investing in the production of advanced biofuels, such as cellulosic ethanol. The advanced biofuels market is expected to grow significantly due to its lower carbon footprint and use of non-food feedstocks. This diversification can provide Cardinal Ethanol with a competitive advantage and access to new markets, with a potential timeline of 5-7 years for commercial-scale production.
- Increased Production and Sales of Distiller Grains: Cardinal Ethanol can increase its production and sales of distiller grains, a valuable animal feed supplement. The global animal feed market is projected to reach $432.7 billion by 2028, growing at a CAGR of 3.5% from 2021 to 2028. By expanding its distiller grains production and marketing efforts, Cardinal Ethanol can tap into this growing market and diversify its revenue streams. This expansion can be achieved through optimizing production processes and expanding distribution networks, with a potential timeline of 2-3 years for significant sales increases.
- Development of Carbon Capture and Storage (CCS) Technology: Cardinal Ethanol can invest in the development and implementation of CCS technology to capture and store carbon dioxide emissions from its ethanol production process. This can reduce the company's carbon footprint and potentially generate revenue through carbon credits. The global CCS market is expected to grow significantly due to increasing focus on climate change mitigation, with a potential timeline of 3-5 years for implementing CCS technology at its facilities.
- Expansion into Export Markets: Cardinal Ethanol can expand its presence in export markets to capitalize on growing demand for ethanol and related products in countries with supportive biofuel policies. The global ethanol market is influenced by various government mandates and incentives, creating opportunities for ethanol exports. By establishing strategic partnerships and distribution networks in key export markets, Cardinal Ethanol can diversify its customer base and increase its revenue, with a potential timeline of 2-4 years for establishing a significant presence in new export markets.
Opportunities
- Expansion of ethanol production capacity.
- Diversification into advanced biofuels.
- Increased production and sales of distiller grains.
- Development of carbon capture and storage technology.
Threats
- Fluctuations in corn prices.
- Changes in government regulations and biofuel mandates.
- Competition from larger ethanol producers.
- Technological advancements in alternative fuels.
Competitive Advantages
- Established production facilities with capacity to meet market demand.
- Access to corn supply through proximity to agricultural regions.
- Relationships with fuel blenders and distributors.
- Diversified product portfolio including ethanol, distiller grains, and corn oil.
About CRDE
Cardinal Ethanol, LLC, originally incorporated as Indiana Ethanol, LLC in 2005 before rebranding later that year, operates as a producer and supplier of ethanol and related products. Headquartered in Union City, Indiana, the company focuses on the production of fuel-grade ethanol, which is used as an octane enhancer in fuels, an oxygenated fuel additive to reduce emissions, and as a non-petroleum-based gasoline substitute. In addition to ethanol, Cardinal Ethanol produces distiller grains, a valuable animal feed supplement for the dairy, beef, poultry, and swine industries. The company also produces corn oil, which is used as a feed ingredient, a feedstock for biodiesel production, and for other industrial applications. Furthermore, Cardinal Ethanol captures and sells raw carbon dioxide gas. The company markets and distributes its products directly, as well as through third-party brokers, and also exports its products, serving a diverse range of customers in the continental United States and beyond.
What They Do
- Produces fuel-grade ethanol for use as an octane enhancer.
- Manufactures ethanol as an oxygenated fuel additive to reduce emissions.
- Offers ethanol as a non-petroleum-based gasoline substitute.
- Produces distiller grains for animal feed supplement.
- Manufactures corn oil for feed ingredient and biodiesel feedstock.
- Captures and sells raw carbon dioxide gas.
Business Model
- Produces and sells fuel-grade ethanol to fuel blenders and distributors.
- Generates revenue from the sale of distiller grains to animal feed producers.
- Sells corn oil to biodiesel producers and industrial users.
- Markets and distributes carbon dioxide gas to various industries.
Industry Context
Cardinal Ethanol, LLC operates within the chemicals industry, specifically focusing on ethanol production. The industry is influenced by government mandates, such as the Renewable Fuel Standard (RFS), which drives demand for ethanol as a biofuel. The competitive landscape includes larger ethanol producers and agricultural commodity companies. Market trends include increasing demand for sustainable fuels and the development of advanced biofuels. The ethanol market is subject to fluctuations in corn prices and regulatory changes, impacting profitability and market dynamics.
Key Customers
- Fuel blenders and distributors who use ethanol as a gasoline additive.
- Animal feed producers who use distiller grains as a feed supplement.
- Biodiesel producers who use corn oil as a feedstock.
- Industrial users who purchase carbon dioxide gas.
Financials
Chart & Info
Cardinal Ethanol, LLC (CRDE) stock price: Price data unavailable
Latest News
No recent news available for CRDE.
Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for CRDE.
Price Targets
Wall Street price target analysis for CRDE.
MoonshotScore
What does this score mean?
The MoonshotScore rates CRDE's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Leadership: Jeffrey L. Painter
Unknown
Jeffrey L. Painter is the managing leader of Cardinal Ethanol, LLC, overseeing a team of 72 employees. Specific details regarding his career history, educational background, and previous roles are not available. However, his current position indicates experience in managing operations and personnel within the ethanol production industry.
Track Record: Details regarding Jeffrey L. Painter's specific achievements, strategic decisions, and company milestones under his leadership are not available. However, as the managing leader, he is responsible for the overall performance and strategic direction of Cardinal Ethanol, LLC.
CRDE OTC Market Information
The OTC Other tier represents the lowest tier of the OTC market, indicating that Cardinal Ethanol, LLC may not meet the minimum financial standards required for higher tiers like OTCQX or OTCQB. Companies in this tier often have limited financial disclosure and may be subject to greater risks due to less stringent regulatory oversight. Investing in OTC Other stocks carries higher risks compared to stocks listed on major exchanges like the NYSE or NASDAQ, as these companies may not be required to adhere to the same reporting standards.
- OTC Tier: OTC Other
- Disclosure Status: Unknown
- Limited financial disclosure increases information asymmetry.
- Lower liquidity can lead to price volatility and difficulty in executing trades.
- Less stringent regulatory oversight increases the risk of fraud or mismanagement.
- Higher potential for delisting or trading suspensions.
- Increased risk of pump-and-dump schemes due to lower trading volumes.
- Verify the company's registration and legal status.
- Review available financial statements and disclosures.
- Assess the company's business model and competitive landscape.
- Evaluate the management team's experience and track record.
- Monitor trading volume and price volatility.
- Consult with a financial advisor before investing.
- Understand the risks associated with OTC investments.
- Established ethanol production facilities.
- Operating history since 2005.
- Production and sale of ethanol and related products.
- Presence in the animal feed and biodiesel markets.
- Direct and third-party distribution channels.
CRDE Basic Materials Stock FAQ
What does Cardinal Ethanol, LLC do?
Cardinal Ethanol, LLC is involved in the production and sale of fuel-grade ethanol, distiller grains, corn oil, and raw carbon dioxide. The company's ethanol is used as an octane enhancer in fuels, an oxygenated fuel additive, and a non-petroleum-based gasoline substitute. Distiller grains serve as animal feed, while corn oil is used in feed, biodiesel, and industrial applications. The company markets its products directly and through third-party brokers, serving domestic and export markets.
What do analysts say about CRDE stock?
AI analysis is currently pending for Cardinal Ethanol, LLC (CRDE). Therefore, a consensus analyst rating, price target, or detailed valuation analysis is not currently available. Investors should conduct their own due diligence and consult with a financial advisor before making any investment decisions. Key metrics to consider include the company's P/E ratio, profit margin, and growth opportunities within the renewable fuels sector.
What are the main risks for CRDE?
Cardinal Ethanol, LLC faces several risks, including fluctuations in corn prices, which can impact its profitability. Changes in government regulations and biofuel mandates could also affect demand for ethanol. The company also faces competition from larger ethanol producers and potential technological advancements in alternative fuels. As an OTC-traded stock, CRDE is subject to limited liquidity, which can result in price volatility and difficulty in executing trades.
What are the key factors to evaluate for CRDE?
Cardinal Ethanol, LLC (CRDE) currently holds an AI score of 37/100, indicating low score. Key strength: Established ethanol production facilities.. Primary risk to monitor: Ongoing: Fluctuations in corn prices impacting profitability.. This is not financial advice.
How frequently does CRDE data refresh on this page?
CRDE prices update in real time during U.S. market hours (9:30 AM-4:00 PM ET, weekdays). Fundamentals refresh after quarterly or annual filings. Analyst ratings and AI insights update daily. News is aggregated continuously from financial sources.
What has driven CRDE's recent stock price performance?
Recent price movement in Cardinal Ethanol, LLC (CRDE) can be influenced by earnings results, analyst revisions, sector rotation, and broader market sentiment. Notable catalyst: Established ethanol production facilities.. Check the News and Technical Analysis tabs for the latest drivers. Past performance does not predict future results.
Should investors consider CRDE overvalued or undervalued right now?
Determining whether Cardinal Ethanol, LLC (CRDE) is overvalued or undervalued requires examining multiple metrics. Compare valuation ratios (P/E, P/S, EV/EBITDA) against sector peers for a comprehensive view.
What research should beginners do before buying CRDE?
Before investing in Cardinal Ethanol, LLC (CRDE), research these four areas: (1) the company's revenue model and competitive position (see Company Overview), (2) financial health through revenue growth, margins, and cash flow (see MoonshotScore), (3) what Wall Street analysts recommend and their price targets (see Analyst tab), and (4) specific risk factors that could impact the stock (see Risk Factors section).
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- Information is based on available data and may be subject to change.
- AI analysis is pending for CRDE.