TICKER GPRE
ISIN US3932221043
Market cap. USD
723,895,652
Shs outstanding 66,109,192
Green Plains Inc. produces, markets, and distributes ethanol in the United States and internationally. It operates through three segments: Ethanol Production, Agribusiness and Energy Services, and Partnership. The Ethanol Production segment produces and sells ethanol, including industrial-grade alcohol, distiller grains, and ultra-high protein and corn oil. The Agribusiness and Energy Services segment engages in the grain procurement, handling, and storage activities; and commodity marketing business, which purchases, markets, sells, and distributes ethanol, distiller grains, and ultra-high protein and corn oil, as well as grain, natural gas, and other commodities in various markets. This segment also provides grain drying and storage services to grain producers. The Partnership segment offers fuel storage and transportation services. As of December 31, 2021, it operated through 29 ethanol storage facilities; 4 fuel terminal facilities; and a fleet of approximately 2,300 leased railcars. The company was formerly known as Green Plains Renewable Energy, Inc. and changed its name to Green Plains Inc. in May 2014. Green Plains Inc. was founded in 2004 and is headquartered in Omaha, Nebraska.
Return at exit: 8.6%
Profitability concerns amid market volatility
• Rotated out as model identified alternatives with stronger profitability and stability profiles • Persistent profitability challenges evident through negative operating income (-$100M), operating margin (-4.46%), and EPS (-$2.85) • Revenue declined ~13% year-over-year with quarterly contraction accelerating to nearly 23% • Market performance shows mixed signals: modest 1-year return (3.38%) despite recent 6-month surge (57.43%) • Significant stock volatility with large earnings surprises and analyst disagreement (Roth downgrade vs. Craig-Hallum price target increase) • Positive developments partially offset concerns: recent earnings beat, carbon capture facilities coming online, and substantial debt reduction ($220M since 2024) • This change reflects portfolio rotation, not a sell signal