ARCHER-DANIELS-MIDLAND CO (ADM.DE) Stock Fundamental Analysis
FRA:ADM - Deutsche Boerse Ag - US0394831020 - Common Stock - Currency: EUR
We assign a fundamental rating of 4 out of 10 to ADM. ADM was compared to 58 industry peers in the Food Products industry. Both the profitability and the financial health of ADM get a neutral evaluation. Nothing too spectacular is happening here. ADM has a valuation in line with the averages, but on the other hand it scores bad on growth. Finally ADM also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year ADM was profitable.
In the past year ADM had a positive cash flow from operations.
In the past 5 years ADM has always been profitable.
Of the past 5 years ADM 4 years had a positive operating cash flow.
1.2 Ratios
ADM has a Return On Assets (3.38%) which is comparable to the rest of the industry.
The Return On Equity of ADM (8.12%) is comparable to the rest of the industry.
The Return On Invested Capital of ADM (4.69%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for ADM is in line with the industry average of 7.19%.
| 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's Profit Margin of 2.10% is in line compared 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.
With a Operating Margin value of 2.42%, ADM is not doing good in the industry: 67.24% of the companies in the same industry are doing better.
ADM's Operating Margin has been stable in the last couple of years.
ADM has a Gross Margin of 6.76%. This is amonst the worse of the industry: ADM underperforms 91.38% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ADM is destroying value.
Compared to 1 year ago, ADM has less shares outstanding
Compared to 5 years ago, ADM has less shares outstanding
Compared to 1 year ago, ADM has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.93 indicates that ADM is not a great score, but indicates only limited risk for bankruptcy at the moment.
ADM's Altman-Z score of 2.93 is fine compared to the rest of the industry. ADM outperforms 72.41% 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.
Looking at the Debt to FCF ratio, with a value of 8.28, ADM is doing worse than 60.34% of the companies in the same industry.
A Debt/Equity ratio of 0.43 indicates that ADM is not too dependend on debt financing.
ADM has a Debt to Equity ratio of 0.43. This is in the better half of the industry: ADM outperforms 68.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 8.28 | ||
| Altman-Z | 2.93 |
ROIC/WACC0.58
WACC8.05%
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.
Looking at the Quick ratio, with a value of 0.81, ADM is in line with its industry, outperforming 44.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.39 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
ADM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -32.28%.
ADM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.32% yearly.
Looking at the last year, ADM shows a decrease in Revenue. The Revenue has decreased by -8.95% 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)-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
Based on estimates for the next years, ADM will show a decrease in Earnings Per Share. The EPS will decrease by -0.83% on average per year.
The Revenue is expected to decrease by -0.59% on average over the next years.
EPS Next Y-11.16%
EPS Next 2Y-0.85%
EPS Next 3Y1.45%
EPS Next 5Y-0.83%
Revenue Next Year1.81%
Revenue Next 2Y1.67%
Revenue Next 3Y1.79%
Revenue Next 5Y-0.59%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
With a Price/Earnings ratio of 10.16, the valuation of ADM can be described as very reasonable.
ADM's Price/Earnings ratio is a bit cheaper when compared to the industry. ADM is cheaper than 74.14% of the companies in the same industry.
ADM is valuated cheaply when we compare the Price/Earnings ratio to 27.85, which is the current average of the S&P500 Index.
ADM is valuated reasonably with a Price/Forward Earnings ratio of 11.43.
Based on the Price/Forward Earnings ratio, ADM is valued a bit cheaper than the industry average as 63.79% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 20.77. ADM is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.16 | ||
| Fwd PE | 11.43 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ADM is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ADM is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.76 | ||
| EV/EBITDA | 9.39 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.82
EPS Next 2Y-0.85%
EPS Next 3Y1.45%
5. Dividend
5.1 Amount
ADM has a Yearly Dividend Yield of 4.18%, which is a nice return.
Compared to an average industry Dividend Yield of 3.09, ADM pays a better dividend. On top of this ADM pays more dividend than 81.03% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.45, ADM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.18% |
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.
The Dividend Rate of ADM has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP54.72%
EPS Next 2Y-0.85%
EPS Next 3Y1.45%
FRA:ADM (4/30/2025, 7:00:00 PM)
42.155
+0.27 (+0.63%)
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 Cap20.24B
Analysts50.53
Price Target44.37 (5.25%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.18% |
Yearly Dividend1.75
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)-13.8%
PT rev (3m)-20.63%
EPS NQ rev (1m)-0.6%
EPS NQ rev (3m)-39.87%
EPS NY rev (1m)-0.74%
EPS NY rev (3m)-10.38%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)-5%
Revenue NY rev (1m)0.83%
Revenue NY rev (3m)-0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.16 | ||
| Fwd PE | 11.43 | ||
| P/S | 0.27 | ||
| P/FCF | 18.76 | ||
| P/OCF | 8.25 | ||
| P/B | 1.04 | ||
| P/tB | 1.49 | ||
| EV/EBITDA | 9.39 |
EPS(TTM)4.15
EY9.84%
EPS(NY)3.69
Fwd EY8.75%
FCF(TTM)2.25
FCFY5.33%
OCF(TTM)5.11
OCFY12.12%
SpS156.62
BVpS40.59
TBVpS28.2
PEG (NY)N/A
PEG (5Y)0.82
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 | 2.93 |
F-Score5
WACC8.05%
ROIC/WACC0.58
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-11.16%
EPS Next 2Y-0.85%
EPS Next 3Y1.45%
EPS Next 5Y-0.83%
Revenue 1Y (TTM)-8.95%
Revenue growth 3Y0.11%
Revenue growth 5Y5.76%
Sales Q2Q%-6.44%
Revenue Next Year1.81%
Revenue Next 2Y1.67%
Revenue Next 3Y1.79%
Revenue Next 5Y-0.59%
EBIT growth 1Y-48.93%
EBIT growth 3Y-11.91%
EBIT growth 5Y4.61%
EBIT Next Year90.48%
EBIT Next 3Y28.08%
EBIT Next 5Y16.03%
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