CHS Inc Class B Reset Rate Cumulative Redeemable Preferred Stock Series 3 (CHSCM)

FairStock Score: 31/100 — RISKY

Key Financials

AI Analysis

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

I look at CHS as a cyclical agribusiness cooperative. It moves energy, agronomy, grain, and food ingredients—necessary goods, but commodity-linked and capital-intensive. The filed numbers show the cycle clearly. Revenue fell from $45.6 billion in FY2023 to $39.3 billion in FY2024 to $35.5 billion in FY2025. Net income fell even faster: $1.9 billion, then $1.1 billion, then $597.9 million. That is not a durable growth record; it is a commodity downdraft. Recent quarters are mixed. In fiscal Q1 2026, revenue was $8.9 billion and net income $260.5 million. In fiscal Q2 2026, revenue was $3.3 billion and net income was negative $147.1 million. In fiscal Q3 2026, revenue was $6.1 billion and net income $267.4 million, better than fiscal Q3 2025’s $232.2 million on $4.7 billion of revenue. So there are signs of stabilization, but not yet a trend. FairStock’s calculations show ROE of 5.25% and ROCE of 0.12%, which are thin for the risk. Debt-to-equity of 0.33 is not alarming. As a preferred, CHSCM is about the 7.36% yield and cumulative claim, not common-equity upside. At $22.94, near the 52-week low of $22.92 and far below the high of $25.40, the market is pricing some doubt. FairStock score 31/100 and Lynch cyclical farm-products classification fit. I would demand a margin of safety: the yield is attractive, but the business must cover it through the cycle. Without knowing reset terms, I treat the preferred as a credit-sensitive income instrument, not a bargain common stock.

In plain English: CHS is a farmer-owned cooperative that sells fuel, crop supplies, and grain services. Its sales and profits have fallen since 2023, and the returns it earns on its assets look low, though the most recent quarter was better than a year earlier. The preferred shares yield 7.36% and trade near the bottom of their 52-week range, so the price looks cheap against its own recent range, but the business numbers are not strong.

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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