ARCHER-DANIELS-MIDLAND CO (ADM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ADM - US0394831020 - Common Stock
65.18 USD
-1.39 (-2.09%)
65.1 USD
-0.08 (-0.12%)
We assign a fundamental rating of 4 out of 10 to ADM. ADM was compared to 87 industry peers in the Food Products industry. ADM has only an average score on both its financial health and profitability. 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
- 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 (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 52.87% of its industry peers.
- With a Return On Invested Capital value of 3.69%, ADM perfoms like the industry average, outperforming 55.17% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for ADM is significantly below the industry average of 27.80%.
| 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 (1.43%) which is in line with 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 comparable to the rest of the industry: ADM outperforms 44.83% of its industry peers.
- In the last couple of years the Operating Margin of ADM has remained more or less at the same level.
- Looking at the Gross Margin, with a value of 6.22%, ADM is doing worse than 78.16% of the companies in the same industry.
- 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.
- The number of shares outstanding for ADM has been reduced compared to 1 year ago.
- 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 3.09 indicates that ADM is not in any danger for bankruptcy at the moment.
- ADM's Altman-Z score of 3.09 is fine compared to the rest of the industry. ADM outperforms 65.52% 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 85.06% 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 (0.30) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 1.67 | ||
| Altman-Z | 3.09 |
ROIC/WACC0.45
WACC8.25%
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.
- With a Current ratio value of 1.37, ADM perfoms like the industry average, outperforming 41.38% of the companies in the same industry.
- 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 (0.92) which is in line with 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.
- 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.
- The Revenue is expected to decrease by -0.26% on average over the next years.
EPS Next Y-27.37%
EPS Next 2Y-4.5%
EPS Next 3Y0.04%
EPS Next 5Y0.26%
Revenue Next Year-3.86%
Revenue Next 2Y0.21%
Revenue Next 3Y1.51%
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 17.66.
- Compared to the rest of the industry, the Price/Earnings ratio of ADM is on the same level as its industry peers.
- The average S&P500 Price/Earnings ratio is at 27.38. ADM is valued slightly cheaper when compared to this.
- A Price/Forward Earnings ratio of 15.14 indicates a correct valuation of ADM.
- 70.11% of the companies in the same industry are more expensive than ADM, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of ADM to the average of the S&P500 Index (24.29), we can say ADM is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.66 | ||
| Fwd PE | 15.14 |
4.2 Price Multiples
- ADM's Enterprise Value to EBITDA is on the same level as the industry average.
- Based on the Price/Free Cash Flow ratio, ADM is valued cheaply inside the industry as 91.95% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.66 | ||
| EV/EBITDA | 14.07 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.43
EPS Next 2Y-4.5%
EPS Next 3Y0.04%
5. Dividend
5.1 Amount
- ADM has a Yearly Dividend Yield of 3.06%.
- Compared to an average industry Dividend Yield of 2.28, ADM pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.85, ADM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.06% |
5.2 History
- On average, the dividend of ADM grows each year by 7.05%, which is quite nice.
- ADM has paid a dividend for at least 10 years, which is a reliable track record.
- ADM has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)7.05%
Div Incr Years34
Div Non Decr Years34
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%
65.18
-1.39 (-2.09%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)11-04 2025-11-04/bmo
Earnings (Next)02-03 2026-02-03/amc
Inst Owners86.87%
Inst Owner Change0.08%
Ins Owners0.59%
Ins Owner Change-0.79%
Market Cap31.32B
Revenue(TTM)83.21B
Net Income(TTM)1.19B
Analysts52.63
Price Target58.71 (-9.93%)
Short Float %2.96%
Short Ratio4.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.06% |
Yearly Dividend1.99
Dividend Growth(5Y)7.05%
DP82.76%
Div Incr Years34
Div Non Decr Years34
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)-0.44%
PT rev (3m)-0.46%
EPS NQ rev (1m)-1.38%
EPS NQ rev (3m)-45.09%
EPS NY rev (1m)-0.31%
EPS NY rev (3m)-15.08%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)-7.27%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-1.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.66 | ||
| Fwd PE | 15.14 | ||
| P/S | 0.38 | ||
| P/FCF | 6.66 | ||
| P/OCF | 5.15 | ||
| P/B | 1.39 | ||
| P/tB | 2 | ||
| EV/EBITDA | 14.07 |
EPS(TTM)3.69
EY5.66%
EPS(NY)4.31
Fwd EY6.6%
FCF(TTM)9.79
FCFY15.01%
OCF(TTM)12.67
OCFY19.43%
SpS173.15
BVpS46.81
TBVpS32.64
PEG (NY)N/A
PEG (5Y)1.43
Graham Number62.34
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 | 3.09 |
F-Score4
WACC8.25%
ROIC/WACC0.45
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-3.86%
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 FAQ
What is the fundamental rating for ADM stock?
ChartMill assigns a fundamental rating of 4 / 10 to ADM.
What is the valuation status for ADM stock?
ChartMill assigns a valuation rating of 4 / 10 to ARCHER-DANIELS-MIDLAND CO (ADM). This can be considered as Fairly Valued.
Can you provide the profitability details for ARCHER-DANIELS-MIDLAND CO?
ARCHER-DANIELS-MIDLAND CO (ADM) 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) is expected to decline by -27.37% in the next year.
Can you provide the dividend sustainability for ADM stock?
The dividend rating of ARCHER-DANIELS-MIDLAND CO (ADM) is 6 / 10 and the dividend payout ratio is 82.76%.