ARCHER-DANIELS-MIDLAND CO (ADM.DE) Stock Fundamental Analysis
FRA:ADM - Deutsche Boerse Ag - US0394831020 - Common Stock - Currency: EUR
Taking everything into account, ADM scores 4 out of 10 in our fundamental rating. ADM was compared to 58 industry peers in the Food Products industry. ADM has only an average score on both its financial health and profitability. ADM is valued correctly, but it does not seem to be growing. ADM also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year ADM was profitable.
ADM had a positive operating cash flow in the past year.
In the past 5 years ADM has always been profitable.
ADM had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
ADM has a Return On Assets (3.38%) which is in line with its industry peers.
ADM's Return On Equity of 8.12% is in line compared to the rest of the industry. ADM outperforms 50.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.69%, ADM is doing worse than 62.07% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ADM is in line with the industry average of 7.10%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.38% | ||
| ROE | 8.12% | ||
| ROIC | 4.69% |
ROA(3y)5.67%
ROA(5y)5.08%
ROE(3y)13.47%
ROE(5y)12.27%
ROIC(3y)7.66%
ROIC(5y)6.81%
1.3 Margins
ADM has a Profit Margin of 2.10%. This is comparable to the rest of the industry: ADM outperforms 41.38% of its industry peers.
ADM's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 2.42%, ADM is doing worse than 70.69% of the companies in the same industry.
In the last couple of years the Operating Margin of ADM has remained more or less at the same level.
ADM's Gross Margin of 6.76% is on the low side compared to the rest of the industry. ADM is outperformed by 89.66% of its industry peers.
ADM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.42% | ||
| PM (TTM) | 2.1% | ||
| GM | 6.76% |
OM growth 3Y-12%
OM growth 5Y-1.08%
PM growth 3Y-12.83%
PM growth 5Y-0.27%
GM growth 3Y-1.29%
GM growth 5Y1.04%
2. Health
2.1 Basic Checks
ADM has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for ADM has been reduced compared to 1 year ago.
ADM has less shares outstanding than it did 5 years ago.
The debt/assets ratio for ADM is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.95 indicates that ADM is not a great score, but indicates only limited risk for bankruptcy at the moment.
ADM has a Altman-Z score of 2.95. This is in the better half of the industry: ADM outperforms 74.14% of its industry peers.
The Debt to FCF ratio of ADM is 8.28, which is on the high side as it means it would take ADM, 8.28 years of fcf income to pay off all of its debts.
ADM has a Debt to FCF ratio of 8.28. This is in the lower half of the industry: ADM underperforms 60.34% of its industry peers.
A Debt/Equity ratio of 0.43 indicates that ADM is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.43, ADM is in the better half of the industry, outperforming 65.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 8.28 | ||
| Altman-Z | 2.95 |
ROIC/WACC0.62
WACC7.57%
2.3 Liquidity
A Current Ratio of 1.39 indicates that ADM should not have too much problems paying its short term obligations.
ADM has a Current ratio (1.39) which is comparable to the rest of the industry.
ADM has a Quick Ratio of 1.39. This is a bad value and indicates that ADM is not financially healthy enough and could expect problems in meeting its short term obligations.
ADM has a Quick ratio (0.81) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.39 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
The earnings per share for ADM have decreased strongly by -32.28% in the last year.
Measured over the past years, ADM shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.32% on average per year.
ADM shows a decrease in Revenue. In the last year, the revenue decreased by -8.95%.
ADM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.76% yearly.
EPS 1Y (TTM)-32.28%
EPS 3Y-3.11%
EPS 5Y12.32%
EPS Q2Q%-16.18%
Revenue 1Y (TTM)-8.95%
Revenue growth 3Y0.11%
Revenue growth 5Y5.76%
Sales Q2Q%-6.44%
3.2 Future
ADM is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.72% yearly.
The Revenue is expected to decrease by -0.40% on average over the next years.
EPS Next Y-9.55%
EPS Next 2Y0.12%
EPS Next 3Y0.68%
EPS Next 5Y-0.72%
Revenue Next Year0.98%
Revenue Next 2Y1.21%
Revenue Next 3Y0.38%
Revenue Next 5Y-0.4%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 10.54 indicates a reasonable valuation of ADM.
72.41% of the companies in the same industry are more expensive than ADM, based on the Price/Earnings ratio.
ADM's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.35.
With a Price/Forward Earnings ratio of 11.66, the valuation of ADM can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ADM is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, ADM is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.54 | ||
| Fwd PE | 11.66 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ADM.
The rest of the industry has a similar Price/Free Cash Flow ratio as ADM.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.46 | ||
| EV/EBITDA | 9.66 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.86
EPS Next 2Y0.12%
EPS Next 3Y0.68%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.24%, ADM is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.37, ADM pays a better dividend. On top of this ADM pays more dividend than 81.03% 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 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.24% |
5.2 History
The dividend of ADM is nicely growing with an annual growth rate of 7.05%!
Dividend Growth(5Y)7.05%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
54.72% of the earnings are spent on dividend by ADM. This is a bit on the high side, but may be sustainable.
ADM's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP54.72%
EPS Next 2Y0.12%
EPS Next 3Y0.68%
FRA:ADM (3/7/2025, 7:00:00 PM)
45.84
+2.65 (+6.14%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners81.96%
Inst Owner ChangeN/A
Ins Owners0.55%
Ins Owner ChangeN/A
Market Cap21.99B
Analysts50.53
Price Target51.47 (12.28%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.24% |
Yearly Dividend1.83
Dividend Growth(5Y)7.05%
DP54.72%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-7.51%
Min EPS beat(2)-13.33%
Max EPS beat(2)-1.69%
EPS beat(4)1
Avg EPS beat(4)-6.29%
Min EPS beat(4)-16.17%
Max EPS beat(4)6.01%
EPS beat(8)4
Avg EPS beat(8)1.08%
EPS beat(12)8
Avg EPS beat(12)9.19%
EPS beat(16)12
Avg EPS beat(16)11.69%
Revenue beat(2)0
Avg Revenue beat(2)-6.8%
Min Revenue beat(2)-7.52%
Max Revenue beat(2)-6.07%
Revenue beat(4)0
Avg Revenue beat(4)-5.35%
Min Revenue beat(4)-7.52%
Max Revenue beat(4)-2.85%
Revenue beat(8)0
Avg Revenue beat(8)-4.89%
Revenue beat(12)4
Avg Revenue beat(12)-0.71%
Revenue beat(16)8
Avg Revenue beat(16)3.14%
PT rev (1m)-3.15%
PT rev (3m)-10.7%
EPS NQ rev (1m)-42.18%
EPS NQ rev (3m)-38.81%
EPS NY rev (1m)-9.52%
EPS NY rev (3m)-15.17%
Revenue NQ rev (1m)-3.97%
Revenue NQ rev (3m)-6.88%
Revenue NY rev (1m)-1.41%
Revenue NY rev (3m)-2.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.54 | ||
| Fwd PE | 11.66 | ||
| P/S | 0.28 | ||
| P/FCF | 19.46 | ||
| P/OCF | 8.56 | ||
| P/B | 1.08 | ||
| P/tB | 1.55 | ||
| EV/EBITDA | 9.66 |
EPS(TTM)4.35
EY9.49%
EPS(NY)3.93
Fwd EY8.58%
FCF(TTM)2.36
FCFY5.14%
OCF(TTM)5.36
OCFY11.69%
SpS164.22
BVpS42.56
TBVpS29.57
PEG (NY)N/A
PEG (5Y)0.86
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.38% | ||
| ROE | 8.12% | ||
| ROCE | 6.22% | ||
| ROIC | 4.69% | ||
| ROICexc | 4.81% | ||
| ROICexgc | 5.99% | ||
| OM | 2.42% | ||
| PM (TTM) | 2.1% | ||
| GM | 6.76% | ||
| FCFM | 1.43% |
ROA(3y)5.67%
ROA(5y)5.08%
ROE(3y)13.47%
ROE(5y)12.27%
ROIC(3y)7.66%
ROIC(5y)6.81%
ROICexc(3y)7.91%
ROICexc(5y)7.02%
ROICexgc(3y)9.73%
ROICexgc(5y)8.63%
ROCE(3y)9.78%
ROCE(5y)8.76%
ROICexcg growth 3Y-12.07%
ROICexcg growth 5Y2.66%
ROICexc growth 3Y-12.06%
ROICexc growth 5Y2.21%
OM growth 3Y-12%
OM growth 5Y-1.08%
PM growth 3Y-12.83%
PM growth 5Y-0.27%
GM growth 3Y-1.29%
GM growth 5Y1.04%
F-Score5
Asset Turnover1.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 8.28 | ||
| Debt/EBITDA | 2.95 | ||
| Cap/Depr | 136.99% | ||
| Cap/Sales | 1.83% | ||
| Interest Coverage | 2.92 | ||
| Cash Conversion | 86.83% | ||
| Profit Quality | 68.17% | ||
| Current Ratio | 1.39 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z | 2.95 |
F-Score5
WACC7.57%
ROIC/WACC0.62
Cap/Depr(3y)135.46%
Cap/Depr(5y)121.61%
Cap/Sales(3y)1.57%
Cap/Sales(5y)1.47%
Profit Quality(3y)67.69%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-32.28%
EPS 3Y-3.11%
EPS 5Y12.32%
EPS Q2Q%-16.18%
EPS Next Y-9.55%
EPS Next 2Y0.12%
EPS Next 3Y0.68%
EPS Next 5Y-0.72%
Revenue 1Y (TTM)-8.95%
Revenue growth 3Y0.11%
Revenue growth 5Y5.76%
Sales Q2Q%-6.44%
Revenue Next Year0.98%
Revenue Next 2Y1.21%
Revenue Next 3Y0.38%
Revenue Next 5Y-0.4%
EBIT growth 1Y-48.93%
EBIT growth 3Y-11.91%
EBIT growth 5Y4.61%
EBIT Next Year99.78%
EBIT Next 3Y29.71%
EBIT Next 5Y15.42%
FCF growth 1Y-58.63%
FCF growth 3Y-39.08%
FCF growth 5YN/A
OCF growth 1Y-37.44%
OCF growth 3Y-24.93%
OCF growth 5YN/A