CHS Inc. 8% Cumulative Redeemable Preferred Stock (CHSCP)

FairStock Score: 31/100 — RISKY

Key Financials

AI Analysis

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

Mr. Market is offering this cumulative preferred at $25.82 as of 2026-10-13, near the bottom of its $25.38-$29.44 range, for a 7.75% dividend yield. The parent, CHS Inc., is a diversified agribusiness cooperative, but its results are cyclical. Revenue was $45.6B in fiscal 2023 (year ended 2023-08-31), $39.3B in fiscal 2024 (year ended 2024-08-31), and $35.5B in fiscal 2025 (year ended 2025-08-31). Net income fell from $1.9B to $1.1B to $597.9M over those same years. In fiscal Q1 2026, the quarter ended 2025-11-30, net income was $260.5M; in fiscal Q2 2026, the quarter ended 2026-02-28, it lost $147.1M; in fiscal Q3 2026, the quarter ended 2026-05-31, net income was $267.4M. That volatility is the essence of a farm-products cyclical. FairStock calculations show ROE 5.25%, ROCE 0.12%, D/E 0.33, and a FairStock Score of 31/100. The low ROCE suggests the enterprise does not earn high returns on capital, and the preferred claim sits ahead of common but behind debt. The cumulative feature is valuable, but I cannot see preferred dividend coverage from the figures provided. The yield is attractive, but a high yield can be a warning when earnings are falling. At $25.82, much of the cyclical weakness may be reflected. Still, this is a credit-like instrument tied to a cyclical cooperative; safety depends on earnings recovering and the dividend remaining covered. I would watch net income, revenue, and whether the fiscal Q2 loss was an aberration.

In plain English: CHS Inc. 8% Cumulative Redeemable Preferred Stock is a preferred share in a large farm cooperative that sells fuel, crop supplies, and grain. The cooperative's profits have fallen from $1.9 billion in fiscal 2023 to $597.9 million in fiscal 2025, and it lost $147.1 million in the fiscal 2026 second quarter, so the business looks cyclical and currently weak. At $25.82, near the low end of its 52-week range, the price looks fair to cheap compared with the high payout, but only if profits and the dividend hold up.

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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