GPRE

Green Plains Inc

Industrial/Transportation, Energy


Presented:06/14/2021
Price:$33.58
Cap:$1.50B
Current Price:$11.70
Cap:$0.76B

Presented

Date06/14/2021
Price$33.58
Market Cap$1.50B
Ent Value$1.34B
P/E RatioN/A
Book Value$17.64
Div Yield0%
Shares O/S44.63M
Ave Daily Vol1,063,483
Short IntN/A

Current

Price$11.70
Market Cap$0.76B
Green Plains, Inc. engages in the production of fuel-grade ethanol and corn oil; provision of grain handling; and storage commodity marketing and distribution services. It operates through the following segments: Ethanol Production; Agribusiness and Energy Services; Food and Ingredients; and Partnership. The Ethanol Production segment produces ethanol, distillers grain, and corn oil at ethanol plants in Indiana, Iowa, Minnesota, Nebraska, Tennessee, and Texas. The Agribusiness and Energy Services segment includes grain procurement and its commodity marketing business, which markets, sells, and distributes ethanol, distillers grains, and corn oil produced at ethanol plants. The Food and Ingredients segment is involved in cattle food-grade corn oil operations. The Partnership segment provides fuel storage and transportation services by owning, operating, developing, and acquiring ethanol and fuel storage tanks, terminals, transportation assets, and other related assets and businesses. The company was founded in June 2004 and is headquartered in Omaha, NE.

Publicly traded companies mentioned herein: Archer-Daniels-Midland Co (ADM), Green Plains Inc (GPRE)

Highlights

The presenter is long shares of Green Plains Inc (GPRE), which is the fourth largest ethanol producer in the US with just over 1B gallons of capacity. Ethanol production has been a terrible business over the last two decades, but the presenter sees a chance for structural transformations to the business based on an improved earnings profile and potential carbon sequestration uplift over time. Over the next 4 – 6 years, he sees a path to anywhere from $200MM – $500MM EBITDA, which would imply meaningful upside to the stock given GPRE’s $37MM EBITDA in 2020. 

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Idea Discussion

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