ARCHER-DANIELS-MIDLAND CO (ADM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ADM - US0394831020 - Common Stock
57.78 USD
+0.31 (+0.54%)
57.78 USD
0 (0%)
ADM gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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 it does not seem to be growing.
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.
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
The Return On Assets of ADM (2.29%) is comparable to the rest of the industry.
With a Return On Equity value of 5.29%, ADM perfoms like the industry average, outperforming 51.72% of the companies in the same industry.
ADM's Return On Invested Capital of 3.69% is in line compared to the rest of the industry. ADM outperforms 56.32% of its industry peers.
ADM had an Average Return On Invested Capital over the past 3 years of 7.66%. This is significantly below the industry average of 28.50%.
| 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.
The Operating Margin of ADM (1.83%) is comparable to the rest of the industry.
ADM's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 6.22%, ADM is not doing good in the industry: 79.31% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ADM is destroying value.
Compared to 1 year ago, ADM has less shares outstanding
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 3.02 indicates that ADM is not in any danger for bankruptcy at the moment.
ADM has a better Altman-Z score (3.02) than 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.
Looking at the Debt to FCF ratio, with a value of 1.67, ADM belongs to the top of the industry, outperforming 86.21% of the companies in the same industry.
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 comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 1.67 | ||
| Altman-Z | 3.02 |
ROIC/WACC0.45
WACC8.14%
2.3 Liquidity
A Current Ratio of 1.37 indicates that ADM should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.37, ADM is doing worse than 60.92% of the companies in the same industry.
A Quick Ratio of 0.92 indicates that ADM may have some problems paying its short term obligations.
The Quick ratio of ADM (0.92) is comparable to the rest of the industry.
| 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.
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%.
The Revenue has been growing slightly by 5.76% on average over the past years.
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.
ADM is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.26% yearly.
EPS Next Y-27.14%
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
The Price/Earnings ratio is 15.66, which indicates a correct valuation of ADM.
Compared to the rest of the industry, the Price/Earnings ratio of ADM indicates a somewhat cheap valuation: ADM is cheaper than 63.22% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.59, ADM is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 13.35, the valuation of ADM can be described as correct.
Based on the Price/Forward Earnings ratio, ADM is valued a bit cheaper than 74.71% of the companies in the same industry.
ADM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.03, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.66 | ||
| Fwd PE | 13.35 |
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 | 5.9 | ||
| EV/EBITDA | 12.68 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.27
EPS Next 2Y-4.26%
EPS Next 3Y-0.45%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.50%, ADM has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.36, ADM pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 1.87, ADM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.5% |
5.2 History
The dividend of ADM is nicely growing with an annual growth rate of 7.05%!
ADM has been paying a dividend for at least 10 years, so it has a reliable track record.
ADM has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)7.05%
Div Incr Years34
Div Non Decr Years34
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-4.26%
EPS Next 3Y-0.45%
57.78
+0.31 (+0.54%)
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 Cap27.77B
Revenue(TTM)83.21B
Net Income(TTM)1.19B
Analysts53.68
Price Target58.97 (2.06%)
Short Float %2.88%
Short Ratio4.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.5% |
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)-0.53%
EPS NQ rev (3m)-46.4%
EPS NY rev (1m)-11.31%
EPS NY rev (3m)-14.82%
Revenue NQ rev (1m)-0.21%
Revenue NQ rev (3m)-7.07%
Revenue NY rev (1m)-1.37%
Revenue NY rev (3m)-1.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.66 | ||
| Fwd PE | 13.35 | ||
| P/S | 0.33 | ||
| P/FCF | 5.9 | ||
| P/OCF | 4.56 | ||
| P/B | 1.23 | ||
| P/tB | 1.77 | ||
| EV/EBITDA | 12.68 |
EPS(TTM)3.69
EY6.39%
EPS(NY)4.33
Fwd EY7.49%
FCF(TTM)9.79
FCFY16.94%
OCF(TTM)12.67
OCFY21.92%
SpS173.15
BVpS46.81
TBVpS32.64
PEG (NY)N/A
PEG (5Y)1.27
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
WACC8.14%
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 15.66 and the Price/Book (PB) ratio is 1.23.
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.