12 Best Ethanol Stocks to Buy According to Hedge Funds

8. Cosan S.A. (NYSE:CSAN)

Number of Hedge Fund Investors: 14

Cosan S.A. (NYSE:CSAN) provides a variety of services in the energy and logistics sectors. Its reportable categories are Raizen, Compass, Moove, Rumo, and Radar. Most of its revenue comes from Raízen, which is involved in the production, commercialization, and trading of ethanol and bioenergy; the resale and trading of electricity from renewable sources; and the marketing and trading of sugar, fuels, and lubricants. The company is known for its E2G technology, which converts sugarcane waste into high-quality ethanol, making it on our list of the best ethanol stocks.

Cosan S.A. (NYSE:CSAN) reported mixed performance in Q4 2024. The company recorded an EBITDA of around BRL 30 billion ($5.1 billion). Despite the positive EBITDA, the firm reported negative earnings of BRL 900 million in 2024. The firm attributed the mixed financial performance predominantly to the devaluation of its shares and the depreciation of the Brazilian Real. The selling of Vale shares lowered the company’s debt by 40%. Its goal with this action was to improve its capital structure.

Dividends and interest on capital received grew to R$4.3 billion in 2024, owing primarily to Compass’s successful resolution of a tax lawsuit issue, a significant rise over 2023 levels. In the fourth quarter, Rumo also set records for both transported volumes and tariffs. This year, Cosan S.A. (NYSE:CSAN) management has committed to strengthening the company’s capital structure. The business intends to pursue similar transactions all year long in addition to the Vale divestment.