ARCHER-DANIELS-MIDLAND CO (ADM) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:ADM • US0394831020
67.31 USD
+0.39 (+0.58%)
At close: Jan 30, 2026
67.4 USD
+0.09 (+0.13%)
After Hours: 1/30/2026, 8:04:00 PM
We assign a fundamental rating of 4 out of 10 to ADM. ADM was compared to 87 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.
1. Profitability
1.1 Basic Checks
- ADM had positive earnings in the past year.
- ADM had a positive operating cash flow in the past year.
- 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
- ADM has a Return On Assets (2.29%) which is comparable to the rest of the industry.
- ADM has a Return On Equity (5.29%) which is in line with 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.
- ADM had an Average Return On Invested Capital over the past 3 years of 7.66%. This is significantly below the industry average of 27.79%.
| 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's Profit Margin of 1.43% is in line compared to the rest of the industry. ADM outperforms 45.98% of its industry peers.
- 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.
- ADM's Gross Margin of 6.22% is on the low side compared to the rest of the industry. ADM is outperformed by 78.16% 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
- ADM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- ADM has less shares outstanding than it did 1 year ago.
- ADM has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, ADM has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 3.11 indicates that ADM is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 3.11, ADM is in the better half of the industry, outperforming 67.82% of the companies in the same industry.
- 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 85.06% of its industry peers.
- A Debt/Equity ratio of 0.30 indicates that ADM is not too dependend on debt financing.
- ADM's Debt to Equity ratio of 0.30 is in line compared to the rest of the industry. ADM outperforms 59.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 1.67 | ||
| Altman-Z | 3.11 |
ROIC/WACC0.45
WACC8.28%
2.3 Liquidity
- A Current Ratio of 1.37 indicates that ADM should not have too much problems paying its short term obligations.
- ADM's Current ratio of 1.37 is in line compared to the rest of the industry. ADM outperforms 41.38% 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 54.02% 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.
- ADM shows a decrease in Revenue. In the last year, the revenue decreased by -4.37%.
- 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
- 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.
- Based on estimates for the next years, ADM will show a decrease in Revenue. The Revenue will decrease by -0.26% on average per year.
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
- ADM is valuated rather expensively with a Price/Earnings ratio of 18.24.
- 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 28.32. ADM is valued slightly cheaper when compared to this.
- The Price/Forward Earnings ratio is 15.73, which indicates a correct valuation of ADM.
- Based on the Price/Forward Earnings ratio, ADM is valued a bit cheaper than the industry average as 71.26% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 25.57. ADM is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.24 | ||
| Fwd PE | 15.73 |
4.2 Price Multiples
- ADM's Enterprise Value to EBITDA ratio is in line with the industry average.
- ADM's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ADM is cheaper than 91.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.88 | ||
| EV/EBITDA | 14.45 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.48
EPS Next 2Y-4.79%
EPS Next 3Y0.2%
5. Dividend
5.1 Amount
- ADM has a Yearly Dividend Yield of 3.05%.
- ADM's Dividend Yield is a higher than the industry average which is at 2.30.
- Compared to an average S&P500 Dividend Yield of 1.83, ADM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.05% |
5.2 History
- On average, the dividend of ADM grows each year by 7.05%, which is quite nice.
- ADM has been paying a dividend for at least 10 years, so it has 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-4.79%
EPS Next 3Y0.2%
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 -27.52% 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%.