ARCHER-DANIELS-MIDLAND CO (ADM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ADM - US0394831020 - Common Stock
58.56 USD
+0.58 (+1%)
58.57 USD
+0.01 (+0.02%)
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 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.
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
With a Return On Assets value of 2.29%, ADM perfoms like the industry average, outperforming 49.43% of the companies in the same industry.
With a Return On Equity value of 5.29%, ADM perfoms like the industry average, outperforming 50.57% of the companies in the same industry.
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.
Measured over the past 3 years, the Average Return On Invested Capital for ADM is significantly below the industry average of 28.25%.
| 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 in line with its industry, outperforming 45.98% of the companies in the same industry.
ADM's Profit Margin has been stable in the last couple of years.
ADM has a Operating Margin (1.83%) which is comparable to the rest of the industry.
ADM's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 6.22%, ADM is doing worse than 80.46% 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
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.
The debt/assets ratio for ADM is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.02 indicates that ADM is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.02, ADM is in the better half of the industry, outperforming 64.37% of the companies in the same industry.
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 has a better Debt to FCF ratio (1.67) than 86.21% 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 | 3.02 |
ROIC/WACC0.45
WACC8.13%
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 Current ratio of 1.37. This is in the lower half of the industry: ADM underperforms 60.92% of its industry peers.
A Quick Ratio of 0.92 indicates that ADM may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.92, ADM is in line with its industry, outperforming 56.32% of the companies in the same industry.
| 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%.
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 -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
ADM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.26% yearly.
The Revenue is expected to decrease by -0.26% on average over the next years.
EPS Next Y-27.14%
EPS Next 2Y-4.26%
EPS Next 3Y-0.45%
EPS Next 5Y0.26%
Revenue Next Year-3.8%
Revenue Next 2Y-0.53%
Revenue Next 3Y0.28%
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.
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 15.87, the valuation of ADM can be described as correct.
Based on the Price/Earnings ratio, ADM is valued a bit cheaper than the industry average as 65.52% of the companies are valued more expensively.
ADM's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.22.
ADM is valuated correctly with a Price/Forward Earnings ratio of 13.54.
ADM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ADM is cheaper than 74.71% of the companies in the same industry.
ADM's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.58.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.87 | ||
| Fwd PE | 13.54 |
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 cheaper than 94.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.98 | ||
| EV/EBITDA | 12.78 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.29
EPS Next 2Y-4.26%
EPS Next 3Y-0.45%
5. Dividend
5.1 Amount
ADM has a Yearly Dividend Yield of 3.40%. Purely for dividend investing, there may be better candidates out there.
ADM's Dividend Yield is a higher than the industry average which is at 2.41.
Compared to an average S&P500 Dividend Yield of 1.87, ADM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.4% |
5.2 History
The dividend of ADM is nicely growing with an annual growth rate of 7.05%!
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-4.26%
EPS Next 3Y-0.45%
58.56
+0.58 (+1%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners86.81%
Inst Owner Change2.92%
Ins Owners0.59%
Ins Owner Change-0.79%
Market Cap28.14B
Revenue(TTM)83.21B
Net Income(TTM)1.19B
Analysts53.68
Price Target58.97 (0.7%)
Short Float %2.88%
Short Ratio4.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.4% |
Yearly Dividend1.99
Dividend Growth(5Y)7.05%
DP82.76%
Div Incr Years34
Div Non Decr Years34
Ex-Date
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)-0.97%
PT rev (3m)-0.02%
EPS NQ rev (1m)-13.48%
EPS NQ rev (3m)-46.11%
EPS NY rev (1m)-11.31%
EPS NY rev (3m)-14.82%
Revenue NQ rev (1m)-2.59%
Revenue NQ rev (3m)-6.88%
Revenue NY rev (1m)-1.37%
Revenue NY rev (3m)-1.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.87 | ||
| Fwd PE | 13.54 | ||
| P/S | 0.34 | ||
| P/FCF | 5.98 | ||
| P/OCF | 4.62 | ||
| P/B | 1.25 | ||
| P/tB | 1.79 | ||
| EV/EBITDA | 12.78 |
EPS(TTM)3.69
EY6.3%
EPS(NY)4.33
Fwd EY7.39%
FCF(TTM)9.79
FCFY16.71%
OCF(TTM)12.67
OCFY21.63%
SpS173.15
BVpS46.81
TBVpS32.64
PEG (NY)N/A
PEG (5Y)1.29
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 | 3.02 |
F-Score4
WACC8.13%
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-27.14%
EPS Next 2Y-4.26%
EPS Next 3Y-0.45%
EPS Next 5Y0.26%
Revenue 1Y (TTM)-4.37%
Revenue growth 3Y0.11%
Revenue growth 5Y5.76%
Sales Q2Q%2.18%
Revenue Next Year-3.8%
Revenue Next 2Y-0.53%
Revenue Next 3Y0.28%
Revenue Next 5Y-0.26%
EBIT growth 1Y-38.7%
EBIT growth 3Y-11.91%
EBIT growth 5Y4.61%
EBIT Next Year59.02%
EBIT Next 3Y24.67%
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 of ARCHER-DANIELS-MIDLAND CO (ADM) stock?
ChartMill assigns a valuation rating of 5 / 10 to ARCHER-DANIELS-MIDLAND CO (ADM). This can be considered as Fairly Valued.
What is the profitability of ADM stock?
ARCHER-DANIELS-MIDLAND CO (ADM) 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) is 15.87 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) is expected to decline by -27.14% in the next year.