ARCHER-DANIELS-MIDLAND CO (ADM.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:ADM - US0394831020 - Common Stock
56.56 EUR
-0.21 (-0.37%)
Overall ADM gets a fundamental rating of 5 out of 10. We evaluated ADM against 62 industry peers in the Food Products industry. While ADM has a great health rating, its profitability is only average at the moment. ADM has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
- ADM had positive earnings in the past year.
- In the past year ADM had a positive cash flow from operations.
- 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 (2.29%) which is comparable to the rest of the industry.
- ADM has a Return On Equity of 5.29%. This is comparable to the rest of the industry: ADM outperforms 43.55% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 3.69%, ADM is in line with its industry, outperforming 43.55% 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 7.38%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.29% | ||
| ROE | 5.29% | ||
| ROIC | 3.69% |
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's Profit Margin of 1.43% is in line compared to the rest of the industry. ADM outperforms 40.32% of its industry peers.
- ADM's Profit Margin has been stable in the last couple of years.
- ADM's Operating Margin of 1.83% is on the low side compared to the rest of the industry. ADM is outperformed by 74.19% of its industry peers.
- 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 6.22% is on the low side compared to the rest of the industry. ADM is outperformed by 90.32% of its industry peers.
- ADM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.83% | ||
| PM (TTM) | 1.43% | ||
| GM | 6.22% |
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 below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, ADM has less shares outstanding
- The number of shares outstanding for ADM has been reduced compared to 5 years ago.
- ADM has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 3.11 indicates that ADM is not in any danger for bankruptcy at the moment.
- ADM has a better Altman-Z score (3.11) than 74.19% of its industry peers.
- ADM has a debt to FCF ratio of 1.67. This is a very positive value and a sign of high solvency as it would only need 1.67 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 1.67, ADM belongs to the top of the industry, outperforming 91.94% of the companies in the same industry.
- A Debt/Equity ratio of 0.30 indicates that ADM is not too dependend on debt financing.
- ADM has a Debt to Equity ratio of 0.30. This is in the better half of the industry: ADM outperforms 77.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 1.67 | ||
| Altman-Z | 3.11 |
ROIC/WACC0.45
WACC8.16%
2.3 Liquidity
- A Current Ratio of 1.37 indicates that ADM should not have too much problems paying its short term obligations.
- ADM has a better Current ratio (1.37) than 64.52% of its industry peers.
- ADM has a Quick Ratio of 1.37. This is a bad value and indicates that ADM is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Quick ratio of ADM (0.92) is better than 61.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 0.92 |
3. Growth
3.1 Past
- The earnings per share for ADM have decreased strongly by -25.30% 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.
- Looking at the last year, ADM shows a decrease in Revenue. The Revenue has decreased by -4.37% in the last year.
- Measured over the past years, ADM shows a small growth in Revenue. The Revenue has been growing by 5.76% on average per year.
EPS 1Y (TTM)-25.3%
EPS 3Y-3.11%
EPS 5Y12.32%
EPS Q2Q%-15.6%
Revenue 1Y (TTM)-4.37%
Revenue growth 3Y0.11%
Revenue growth 5Y5.76%
Sales Q2Q%2.18%
3.2 Future
- The Earnings Per Share is expected to grow by 0.26% on average over the next years.
- Based on estimates for the next years, ADM will show a decrease in Revenue. The Revenue will decrease by -0.26% on average per year.
EPS Next Y-27.52%
EPS Next 2Y-4.79%
EPS Next 3Y0.2%
EPS Next 5Y0.26%
Revenue Next Year-3.83%
Revenue Next 2Y0.21%
Revenue Next 3Y1.64%
Revenue Next 5Y-0.26%
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
- ADM is valuated rather expensively with a Price/Earnings ratio of 18.13.
- The rest of the industry has a similar Price/Earnings ratio as ADM.
- When comparing the Price/Earnings ratio of ADM to the average of the S&P500 Index (28.87), we can say ADM is valued slightly cheaper.
- With a Price/Forward Earnings ratio of 15.65, ADM is valued correctly.
- ADM's Price/Forward Earnings is on the same level as the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 25.96. ADM is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.13 | ||
| Fwd PE | 15.65 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ADM indicates a slightly more expensive valuation: ADM is more expensive than 62.90% of the companies listed in the same industry.
- ADM's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ADM is cheaper than 91.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.84 | ||
| EV/EBITDA | 14.38 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.47
EPS Next 2Y-4.79%
EPS Next 3Y0.2%
5. Dividend
5.1 Amount
- ADM has a Yearly Dividend Yield of 3.04%.
- Compared to an average industry Dividend Yield of 2.38, ADM pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, ADM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.04% |
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
- 82.76% of the earnings are spent on dividend by ADM. This is not a sustainable payout ratio.
- ADM's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP82.76%
EPS Next 2Y-4.79%
EPS Next 3Y0.2%
ARCHER-DANIELS-MIDLAND CO / ADM.DE FAQ
What is the fundamental rating for ADM stock?
ChartMill assigns a fundamental rating of 5 / 10 to ADM.DE.
What is the valuation status for ADM stock?
ChartMill assigns a valuation rating of 4 / 10 to ARCHER-DANIELS-MIDLAND CO (ADM.DE). This can be considered as Fairly Valued.
Can you provide the profitability details for ARCHER-DANIELS-MIDLAND CO?
ARCHER-DANIELS-MIDLAND CO (ADM.DE) has a profitability rating of 4 / 10.
What is the earnings growth outlook for ARCHER-DANIELS-MIDLAND CO?
The Earnings per Share (EPS) of ARCHER-DANIELS-MIDLAND CO (ADM.DE) is expected to decline by -27.52% in the next year.
Can you provide the dividend sustainability for ADM stock?
The dividend rating of ARCHER-DANIELS-MIDLAND CO (ADM.DE) is 5 / 10 and the dividend payout ratio is 82.76%.