CHS Inc Class B Cumulative Redeemable Preferred Stock Series 4 (CHSCL)

FairStock Score: 31/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a preferred shareholder, I am not buying a share of the common earnings stream; I am buying a senior, cumulative claim on distributions. CHS is a large diversified agribusiness cooperative, but its filed results show a cyclical, thin-margin business. Revenue was $35.5B in FY2025, yet net income fell to $597.9M from $1.1B in FY2024 and $1.9B in FY2023. In fiscal 2026, the first quarter earned $260.5M, the second quarter lost $147.1M, and the third quarter earned $267.4M. That swing is not the steady coupon-clipping profile I prize. FairStock’s calculations show ROE of 5.25%, ROCE of just 0.12%, and D/E of 0.33; the balance sheet is not stretched, but returns on capital are poor. The 7.53% yield at $24.91 on 2026-10-13, near the 52-week low of $24.91, looks generous, but a high yield can be compensation for risk. FairStock Score 31/100 reinforces caution. The preferred’s cumulative feature is a real strength, but dividend safety depends on earnings coverage through the farm and energy cycle. I would want a clear discount to liquidation or strong coverage; here I see fair value at best, not a fat bargain.

In plain English: CHS is a large farm cooperative involved in energy, crop inputs, grain and food. Its profits have been uneven: annual net income fell from fiscal 2024 to fiscal 2025, and one recent quarter had a loss. The preferred shares pay a high 7.53% dividend, but at $24.91 the price looks fair at best given the choppy profit record.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-05-31) · fiscal Q2 2026 10-Q (period ended 2026-02-28) · fiscal Q1 2026 10-Q (period ended 2025-11-30) · fiscal Q3 2025 10-Q (period ended 2025-05-31) · FY2025 10-K (period ended 2025-08-31) · FY2024 10-K (period ended 2024-08-31) · FY2023 10-K (period ended 2023-08-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer