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THE COMPANY CHS Inc. (referred to herein as "CHS," "company," "we," "us" or "our") is the nation's leading integrated agricultural cooperative, providing grain, food, agronomy and energy resources to businesses and consumers on a global basis. As a cooperative, we are owned by farmers and ranchers and member cooperatives (referred to herein as "members") across the United States.
Operating margin is thin at 0.26%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.
Revenue declined 9.7% YoY. The question is whether this is cyclical or a structural shift.
Free cash flow declined 120% versus the prior year, cash generation momentum has weakened. ROIC dropped from 3.63% to 0.57%, capital efficiency is deteriorating.
Profitability & Returns
Revenue (TTM)
$35.59B
▼ -9.7% YoY
Net Income (TTM)
$542M
▼ -45.8% YoY
Op. Margin
0.01%
▼ -1.2pp YoY
ROIC
0.03%
▼ -3.1pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$469M
▼ -120.0% YoY
Op. Cash Flow (TTM)
$1.06B
▼ -50.1% YoY
Net Debt
$1.94B
Cash & Equiv.
$248M
5Y CAGR: +4.5%
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