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South Dakota Soybean Processors, LLC ( we, us, our or the Company ) is the owner and operator of three processing facilities and two oil refineries in the state of South Dakota. Our principal place of business is in Volga, South Dakota, where we operate a soybean processing plant and refinery and maintain administrative offices.
Operating margin is thin at 3.46%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.
Revenue declined 9.1% YoY. The question is whether this is cyclical or a structural shift.
ROIC dropped from 4.86% to 2.48%, capital efficiency is deteriorating. Negative free cash flow of -$241M. The business is consuming cash, not generating it.
Profitability & Returns
Revenue (TTM)
$611M
▼ -9.1% YoY
Net Income (TTM)
$9M
▼ -12.7% YoY
Op. Margin
0.89%
▼ -0.7pp YoY
ROIC
0.67%
▼ -2.4pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
-$238M
▼ -105.5% YoY
Op. Cash Flow (TTM)
-$82M
▼ -166.6% YoY
Net Debt
$400M
Cash & Equiv.
$6M
5Y CAGR: +4.0%
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