Our stock screening tool has identified ARCHER-DANIELS-MIDLAND CO (NYSE:ADM) as a strong dividend contender with robust fundamentals. NYSE:ADM exhibits commendable financial health and profitability, all while offering a sustainable dividend. Let's delve into each aspect below.
Dividend Examination for NYSE:ADM
ChartMill provides a Dividend Rating for every stock, ranging from 0 to 10. This rating assesses various dividend aspects, including yield, growth, and sustainability. NYSE:ADM earns a 7 out of 10:
Compared to an average industry Dividend Yield of 3.71, ADM pays a better dividend. On top of this ADM pays more dividend than 86.67% of the companies listed in the same industry.
ADM's Dividend Yield is rather good when compared to the S&P500 average which is at 2.20.
The dividend of ADM is nicely growing with an annual growth rate of 6.30%!
ADM has paid a dividend for at least 10 years, which is a reliable track record.
ADM has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Evaluating Health: NYSE:ADM
ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NYSE:ADM, the assigned 6 reflects its health status:
An Altman-Z score of 3.07 indicates that ADM is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.07, ADM is doing good in the industry, outperforming 66.67% of the companies in the same industry.
The Debt to FCF ratio of ADM is 2.85, which is a good value as it means it would take ADM, 2.85 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 2.85, ADM is doing good in the industry, outperforming 72.22% of the companies in the same industry.
ADM has a Debt/Equity ratio of 0.42. This is a healthy value indicating a solid balance between debt and equity.
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 5:
Looking at the Return On Assets, with a value of 3.44%, ADM is in the better half of the industry, outperforming 61.11% of the companies in the same industry.
ADM has a better Return On Equity (8.18%) than 61.11% of its industry peers.
In the last couple of years the Profit Margin of ADM has grown nicely.
ADM's Operating Margin has improved in the last couple of years.
ADM's Gross Margin has improved in the last couple of years.
This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.