CHS Inc Preferred Class B Series 2 Reset Rate (CHSCN)

FairStock Score: 31/100 — RISKY

Key Financials

AI Analysis

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

At the 2026-10-13 close of $23.96, CHS Inc Preferred Class B Series 2 Reset Rate yields 7.41% and sits near its 52-week low of $23.93. That is Mr. Market offering a high current payment, but Graham would ask whether the business behind it is sound. CHS is a diversified agribusiness cooperative. In fiscal year 2023, the year ended 2023-08-31, it reported revenue of $45.6B and net income of $1.9B. In fiscal year 2024, the year ended 2024-08-31, revenue was $39.3B and net income $1.1B. In fiscal year 2025, the year ended 2025-08-31, revenue was $35.5B and net income $597.9M. That is a clear downward trend in both sales and profits. Fiscal 2026 is mixed: in fiscal Q1 2026, the quarter ended 2025-11-30, revenue was $8.9B and net income $260.5M; in fiscal Q2 2026, the quarter ended 2026-02-28, revenue was $3.3B and net income was a loss of $147.1M; and in fiscal Q3 2026, the quarter ended 2026-05-31, revenue was $6.1B and net income was $267.4M. The loss reminds me that farm products and energy margins can swing violently. FairStock calculations show ROE of 5.25%, ROCE of just 0.12%, and debt-to-equity of 0.33. Those are not fortress returns. The FairStock score is 31/100, and the Lynch category is CYCLICAL—Farm Products, because earnings follow the economic cycle. For the preferred, the 7.41% yield may compensate for cyclicality, but only if earnings cover it through the cycle. I see a modestly leveraged cooperative with falling revenue and a yield that is high because the price is low. Not a wonderful business at a clearly safe price.

In plain English: CHS Inc is a farmer-owned agribusiness that sells fuel, seed, crop nutrients, and grain services. Its sales and profits have moved down from recent highs, and it had a losing quarter in fiscal 2026, so the business looks cyclical and under pressure rather than steady. The preferred shares trade near their 52-week low and pay a high income yield compared with the price, which may look cheap for income, but the weak profit returns make that income less certain.

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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