ARCHER-DANIELS-MIDLAND CO (ADM.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:ADM - US0394831020 - Common Stock
49.63 EUR
+0.34 (+0.69%)
Overall ADM gets a fundamental rating of 5 out of 10. We evaluated ADM against 58 industry peers in the Food Products industry. ADM is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. 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.
ADM had positive earnings in each of the past 5 years.
Of the past 5 years ADM 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.29%, ADM is in line with its industry, outperforming 46.55% of the companies in the same industry.
ADM has a Return On Equity (5.29%) which is comparable to the rest of the industry.
The Return On Invested Capital of ADM (3.69%) 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 6.30%.
| 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 has a Profit Margin of 1.43%. This is in the lower half of the industry: ADM underperforms 60.34% of its industry peers.
In the last couple of years the Profit Margin of ADM has remained more or less at the same level.
ADM has a Operating Margin of 1.83%. This is in the lower half of the industry: ADM underperforms 68.97% 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 has a Gross Margin of 6.22%. This is amonst the worse of the industry: ADM underperforms 89.66% of its industry peers.
In the last couple of years the Gross Margin of ADM has remained more or less at the same level.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ADM is destroying 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.
ADM has a worse debt/assets ratio than last year.
2.2 Solvency
ADM has an Altman-Z score of 3.02. This indicates that ADM is financially healthy and has little risk of bankruptcy at the moment.
ADM's Altman-Z score of 3.02 is fine compared to the rest of the industry. ADM outperforms 77.59% of its industry peers.
The Debt to FCF ratio of ADM is 1.67, which is an excellent value as it means it would take ADM, only 1.67 years of fcf income to pay off all of its debts.
ADM's Debt to FCF ratio of 1.67 is amongst the best of the industry. ADM outperforms 94.83% of its industry peers.
A Debt/Equity ratio of 0.30 indicates that ADM is not too dependend on debt financing.
The Debt to Equity ratio of ADM (0.30) is better than 79.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 1.67 | ||
| Altman-Z | 3.02 |
ROIC/WACC0.46
WACC8.02%
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 has a better Current ratio (1.37) than 63.79% 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.
ADM has a Quick ratio of 0.92. This is in the better half of the industry: ADM outperforms 60.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 0.92 |
3. Growth
3.1 Past
ADM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -25.30%.
The Earnings Per Share has been growing by 12.32% on average over the past years. This is quite good.
The Revenue has decreased by -4.37% in the past 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.
ADM is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.26% yearly.
EPS Next Y-27.37%
EPS Next 2Y-4.5%
EPS Next 3Y0.04%
EPS Next 5Y0.26%
Revenue Next Year-3.85%
Revenue Next 2Y0.21%
Revenue Next 3Y1.51%
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.
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 correctly with a Price/Earnings ratio of 15.81.
60.34% of the companies in the same industry are more expensive than ADM, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.77, ADM is valued a bit cheaper.
A Price/Forward Earnings ratio of 13.55 indicates a correct valuation of ADM.
The rest of the industry has a similar Price/Forward Earnings ratio as ADM.
ADM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.35, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.81 | ||
| Fwd PE | 13.55 |
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.
91.38% of the companies in the same industry are more expensive than ADM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.96 | ||
| EV/EBITDA | 12.84 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.28
EPS Next 2Y-4.5%
EPS Next 3Y0.04%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.53%, ADM has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.31, ADM pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.00, ADM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.53% |
5.2 History
On average, the dividend of ADM grows each year by 7.05%, which is quite nice.
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-4.5%
EPS Next 3Y0.04%
FRA:ADM (12/30/2025, 7:00:00 PM)
49.63
+0.34 (+0.69%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners86.81%
Inst Owner ChangeN/A
Ins Owners0.59%
Ins Owner ChangeN/A
Market Cap23.85B
Revenue(TTM)83.21B
Net Income(TTM)1.19B
Analysts53.68
Price Target50.83 (2.42%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.53% |
Yearly Dividend1.69
Dividend Growth(5Y)7.05%
DP82.76%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.92%
Min EPS beat(2)6.8%
Max EPS beat(2)11.04%
EPS beat(4)3
Avg EPS beat(4)4.89%
Min EPS beat(4)-1.69%
Max EPS beat(4)11.04%
EPS beat(8)4
Avg EPS beat(8)-1.24%
EPS beat(12)8
Avg EPS beat(12)3.81%
EPS beat(16)12
Avg EPS beat(16)8.75%
Revenue beat(2)0
Avg Revenue beat(2)-2.84%
Min Revenue beat(2)-3.37%
Max Revenue beat(2)-2.32%
Revenue beat(4)0
Avg Revenue beat(4)-5.18%
Min Revenue beat(4)-8.97%
Max Revenue beat(4)-2.32%
Revenue beat(8)0
Avg Revenue beat(8)-4.98%
Revenue beat(12)1
Avg Revenue beat(12)-4.4%
Revenue beat(16)5
Avg Revenue beat(16)-0.7%
PT rev (1m)0.95%
PT rev (3m)0.87%
EPS NQ rev (1m)-0.99%
EPS NQ rev (3m)-46.65%
EPS NY rev (1m)-11.58%
EPS NY rev (3m)-15.08%
Revenue NQ rev (1m)-0.21%
Revenue NQ rev (3m)-7.07%
Revenue NY rev (1m)-1.42%
Revenue NY rev (3m)-1.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.81 | ||
| Fwd PE | 13.55 | ||
| P/S | 0.34 | ||
| P/FCF | 5.96 | ||
| P/OCF | 4.61 | ||
| P/B | 1.25 | ||
| P/tB | 1.79 | ||
| EV/EBITDA | 12.84 |
EPS(TTM)3.14
EY6.33%
EPS(NY)3.66
Fwd EY7.38%
FCF(TTM)8.32
FCFY16.77%
OCF(TTM)10.77
OCFY21.71%
SpS147.27
BVpS39.81
TBVpS27.76
PEG (NY)N/A
PEG (5Y)1.28
Graham Number53.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.29% | ||
| ROE | 5.29% | ||
| ROCE | 4.65% | ||
| ROIC | 3.69% | ||
| ROICexc | 3.83% | ||
| ROICexgc | 4.88% | ||
| OM | 1.83% | ||
| PM (TTM) | 1.43% | ||
| GM | 6.22% | ||
| FCFM | 5.65% |
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%
ROICexgc growth 3Y-12.07%
ROICexgc 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-Score4
Asset Turnover1.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 1.67 | ||
| Debt/EBITDA | 2.56 | ||
| Cap/Depr | 119.21% | ||
| Cap/Sales | 1.66% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 227.13% | ||
| Profit Quality | 395.54% | ||
| Current Ratio | 1.37 | ||
| Quick Ratio | 0.92 | ||
| Altman-Z | 3.02 |
F-Score4
WACC8.02%
ROIC/WACC0.46
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)-25.3%
EPS 3Y-3.11%
EPS 5Y12.32%
EPS Q2Q%-15.6%
EPS Next Y-27.37%
EPS Next 2Y-4.5%
EPS Next 3Y0.04%
EPS Next 5Y0.26%
Revenue 1Y (TTM)-4.37%
Revenue growth 3Y0.11%
Revenue growth 5Y5.76%
Sales Q2Q%2.18%
Revenue Next Year-3.85%
Revenue Next 2Y0.21%
Revenue Next 3Y1.51%
Revenue Next 5Y-0.26%
EBIT growth 1Y-38.7%
EBIT growth 3Y-11.91%
EBIT growth 5Y4.61%
EBIT Next Year58.93%
EBIT Next 3Y24.92%
EBIT Next 5Y14.33%
FCF growth 1Y863.73%
FCF growth 3Y-39.08%
FCF growth 5YN/A
OCF growth 1Y201.19%
OCF growth 3Y-24.93%
OCF growth 5YN/A
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 of ARCHER-DANIELS-MIDLAND CO (ADM.DE) stock?
ChartMill assigns a valuation rating of 4 / 10 to ARCHER-DANIELS-MIDLAND CO (ADM.DE). This can be considered as Fairly Valued.
What is the profitability of ADM stock?
ARCHER-DANIELS-MIDLAND CO (ADM.DE) has a profitability rating of 4 / 10.
What is the valuation of ARCHER-DANIELS-MIDLAND CO based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ARCHER-DANIELS-MIDLAND CO (ADM.DE) is 15.81 and the Price/Book (PB) ratio is 1.25.
Can you provide the expected EPS growth for ADM stock?
The Earnings per Share (EPS) of ARCHER-DANIELS-MIDLAND CO (ADM.DE) is expected to decline by -27.37% in the next year.