Why NYSE:ADM provides a good dividend, while having solid fundamentals.

Last update: Feb 15, 2024

Take a closer look at ARCHER-DANIELS-MIDLAND CO (NYSE:ADM), a stock of interest to dividend investors uncovered by our stock screener. NYSE:ADM excels in fundamentals and provides a decent dividend, all while maintaining a reasonable valuation. Let's break it down further.

Unpacking NYSE:ADM's Dividend Rating

ChartMill assigns a proprietary Dividend Rating to each stock. The score is computed by evaluating various valuation aspects, like the yield, the history, the dividend growth and sustainability. NYSE:ADM was assigned a score of 7 for dividend:

ADM's Dividend Yield is rather good when compared to the industry average which is at 3.55. ADM pays more dividend than 85.71% of the companies in the same industry.
ADM's Dividend Yield is rather good when compared to the S&P500 average which is at 2.49.
ADM has paid a dividend for at least 10 years, which is a reliable track record.
ADM has not decreased their dividend for at least 10 years, which is a reliable track record.
ADM pays out 24.38% of its income as dividend. This is a sustainable payout ratio.

Evaluating Health: NYSE:ADM

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:ADM has earned a 6 out of 10:

An Altman-Z score of 3.47 indicates that ADM is not in any danger for bankruptcy at the moment.
ADM has a Altman-Z score of 3.47. This is in the better half of the industry: ADM outperforms 78.02% of its industry peers.
ADM has a Debt/Equity ratio of 0.33. This is a healthy value indicating a solid balance between debt and equity.
ADM has a Quick ratio of 1.07. This is in the better half of the industry: ADM outperforms 63.74% of its industry peers.

What does the Profitability looks like for NYSE:ADM

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:ADM has achieved a 7:

With a decent Return On Assets value of 7.15%, ADM is doing good in the industry, outperforming 76.92% of the companies in the same industry.
The Return On Equity of ADM (15.61%) is better than 75.82% of its industry peers.
With an excellent Return On Invested Capital value of 9.17%, ADM belongs to the best of the industry, outperforming 83.52% of the companies in the same industry.
The last Return On Invested Capital (9.17%) for ADM is above the 3 year average (7.06%), which is a sign of increasing profitability.
ADM's Profit Margin of 4.06% is fine compared to the rest of the industry. ADM outperforms 60.44% of its industry peers.
ADM's Profit Margin has improved in the last couple of years.
ADM's Operating Margin has improved in the last couple of years.
ADM's Gross Margin has improved in the last couple of years.

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For an up to date full fundamental analysis you can check the fundamental report of ADM

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.