NEW YORK ( TheStreet) -- Andersons (Nasdaq: ANDE) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, attractive valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:
  • ANDE's very impressive revenue growth greatly exceeded the industry average of 1.7%. Since the same quarter one year prior, revenues leaped by 65.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • ANDERSONS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, ANDERSONS INC increased its bottom line by earning $3.49 versus $2.09 in the prior year. This year, the market expects an improvement in earnings ($4.53 versus $3.49).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Food & Staples Retailing industry. The net income increased by 79.7% when compared to the same quarter one year prior, rising from $25.17 million to $45.22 million.
  • Net operating cash flow has significantly increased by 68.92% to $284.99 million when compared to the same quarter last year. In addition, ANDERSONS INC has also vastly surpassed the industry average cash flow growth rate of -20.17%.

The Andersons, Inc. engages in the grain, ethanol, plant nutrient, railcar leasing and repair, turf products production, and general merchandise retailing businesses. It operates in six segments: Grain, Ethanol, Rail, Plant Nutrient, Turf & Specialty, and Retail. The company has a P/E ratio of 7.8, equal to the average food & beverage industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Andersons has a market cap of $698.6 million and is part of the consumer goods sector and food & beverage industry. Shares are up 1.6% year to date as of the close of trading on Tuesday.

You can view the full Andersons Ratings Report or get investment ideas from our investment research center.
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