ARCHER-DANIELS-MIDLAND CO (ADM.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:ADM - US0394831020 - Common Stock
56.77 EUR
-0.68 (-1.18%)
Taking everything into account, ADM scores 5 out of 10 in our fundamental rating. ADM was compared to 62 industry peers in the Food Products industry. ADM has an excellent financial health rating, but there are some minor concerns on its profitability. ADM is valued correctly, but it does not seem to be growing.
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.
- Each year in the past 5 years ADM has 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 of 2.29%. This is comparable to the rest of the industry: ADM outperforms 44.62% of its industry peers.
- ADM has a Return On Equity (5.29%) which is comparable to the rest of the industry.
- ADM's Return On Invested Capital of 3.69% is in line compared to the rest of the industry. ADM outperforms 41.54% of its industry peers.
- The Average Return On Invested Capital over the past 3 years 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
- Looking at the Profit Margin, with a value of 1.43%, ADM is doing worse than 61.54% of the companies in the same industry.
- In the last couple of years the Profit Margin of ADM has remained more or less at the same level.
- The Operating Margin of ADM (1.83%) is worse than 75.38% of its industry peers.
- In the last couple of years the Operating Margin of ADM has remained more or less at the same level.
- With a Gross Margin value of 6.22%, ADM is not doing good in the industry: 92.31% of the companies in the same industry are doing better.
- 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
- Compared to 5 years ago, ADM has less shares outstanding
- The debt/assets ratio for ADM is higher compared to a year ago.
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 73.85% 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.
- ADM's Debt to FCF ratio of 1.67 is amongst the best of the industry. ADM outperforms 92.31% of its industry peers.
- 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 78.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 1.67 | ||
| Altman-Z | 3.11 |
ROIC/WACC0.45
WACC8.18%
2.3 Liquidity
- ADM has a Current Ratio of 1.37. This is a normal value and indicates that ADM is financially healthy and should not expect problems in meeting its short term obligations.
- ADM's Current ratio of 1.37 is fine compared to the rest of the industry. ADM outperforms 64.62% of its industry peers.
- A Quick Ratio of 0.92 indicates that ADM may have some problems paying its short term obligations.
- ADM's Quick ratio of 0.92 is fine compared to the rest of the industry. ADM outperforms 63.08% 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.
- ADM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.76% yearly.
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
- Based on estimates for the next years, ADM will show a small growth in Earnings Per Share. The EPS will grow by 0.26% on average per year.
- The Revenue is expected to decrease by -0.26% on average over the next years.
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
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 18.08, the valuation of ADM can be described as rather expensive.
- ADM's Price/Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, ADM is valued a bit cheaper.
- The Price/Forward Earnings ratio is 15.58, which indicates a correct valuation of ADM.
- ADM's Price/Forward Earnings is on the same level as the industry average.
- ADM's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.08 | ||
| Fwd PE | 15.58 |
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 64.62% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, ADM is valued cheaper than 92.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.81 | ||
| EV/EBITDA | 14.33 |
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%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 2.38, ADM pays a bit more dividend than its industry peers.
- ADM's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| 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
- ADM pays out 82.76% of its income as dividend. 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%.