ARCHER-DANIELS-MIDLAND CO (ADM) Stock Fundamental Analysis
NYSE:ADM - New York Stock Exchange, Inc. - US0394831020 - Common Stock
Taking everything into account, ADM scores 5 out of 10 in our fundamental rating. ADM was compared to 91 industry peers in the Food Products industry. ADM has an average financial health and profitability rating. ADM has a valuation in line with the averages, but it does not seem to be growing. ADM also has an excellent dividend rating. These ratings could make ADM a good candidate for dividend investing.
1. Profitability
1.1 Basic Checks
In the past year ADM was profitable.
ADM had a positive operating cash flow in the past year.
In the past 5 years ADM has always been profitable.
In multiple years ADM reported negative operating cash flow during the last 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.44%, ADM is in line with its industry, outperforming 58.14% of the companies in the same industry.
ADM has a better Return On Equity (8.18%) than 60.47% of its industry peers.
ADM has a Return On Invested Capital of 5.82%. This is comparable to the rest of the industry: ADM outperforms 54.65% of its industry peers.
ADM had an Average Return On Invested Capital over the past 3 years of 8.63%. This is in line with the industry average of 9.02%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.44% | ||
| ROE | 8.18% | ||
| ROIC | 5.82% |
ROA(3y)6.15%
ROA(5y)5.03%
ROE(3y)14.79%
ROE(5y)12.08%
ROIC(3y)8.63%
ROIC(5y)6.9%
1.3 Margins
Looking at the Profit Margin, with a value of 2.07%, ADM is in line with its industry, outperforming 43.02% of the companies in the same industry.
In the last couple of years the Profit Margin of ADM has grown nicely.
ADM has a Operating Margin (2.85%) which is comparable to the rest of the industry.
ADM's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 7.08%, ADM is not doing good in the industry: 80.23% of the companies in the same industry are doing better.
ADM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.85% | ||
| PM (TTM) | 2.07% | ||
| GM | 7.08% |
OM growth 3Y16.32%
OM growth 5Y6.63%
PM growth 3Y10.43%
PM growth 5Y5.68%
GM growth 3Y4.95%
GM growth 5Y4.24%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ADM is still creating some 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 an improved debt to assets ratio.
2.2 Solvency
ADM has an Altman-Z score of 3.06. This indicates that ADM is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of ADM (3.06) is better than 69.77% of its industry peers.
The Debt to FCF ratio of ADM is 2.85, which is a good value as it means it would take ADM, 2.85 years of fcf income to pay off all of its debts.
ADM's Debt to FCF ratio of 2.85 is fine compared to the rest of the industry. ADM outperforms 69.77% of its industry peers.
ADM has a Debt/Equity ratio of 0.42. This is a healthy value indicating a solid balance between debt and equity.
ADM's Debt to Equity ratio of 0.42 is in line compared to the rest of the industry. ADM outperforms 51.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 2.85 | ||
| Altman-Z | 3.06 |
ROIC/WACC0.68
WACC8.56%
2.3 Liquidity
A Current Ratio of 1.40 indicates that ADM should not have too much problems paying its short term obligations.
ADM has a Current ratio (1.40) which is in line with its industry peers.
ADM has a Quick Ratio of 1.40. This is a bad value and indicates that ADM is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of ADM (0.84) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.4 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
The earnings per share for ADM have decreased strongly by -34.48% in the last year.
The Earnings Per Share has been growing by 14.77% on average over the past years. This is quite good.
ADM shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -10.20%.
The Revenue has been growing slightly by 7.86% on average over the past years.
EPS 1Y (TTM)-34.48%
EPS 3Y24.75%
EPS 5Y14.77%
EPS Q2Q%-33.13%
Revenue 1Y (TTM)-10.2%
Revenue growth 3Y13.44%
Revenue growth 5Y7.86%
Sales Q2Q%-8.1%
3.2 Future
ADM is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -8.03% yearly.
ADM is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -2.17% yearly.
EPS Next Y-31.6%
EPS Next 2Y-18.07%
EPS Next 3Y-10.58%
EPS Next 5Y-8.03%
Revenue Next Year-8.98%
Revenue Next 2Y-3.59%
Revenue Next 3Y-1.89%
Revenue Next 5Y-2.17%
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
Based on the Price/Earnings ratio of 10.37, the valuation of ADM can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of ADM indicates a rather cheap valuation: ADM is cheaper than 82.56% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of ADM to the average of the S&P500 Index (28.29), we can say ADM is valued rather cheaply.
The Price/Forward Earnings ratio is 10.95, which indicates a very decent valuation of ADM.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ADM indicates a rather cheap valuation: ADM is cheaper than 86.05% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 24.44. ADM is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.37 | ||
| Fwd PE | 10.95 |
4.2 Price Multiples
ADM's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ADM is cheaper than 68.60% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ADM is valued cheaply inside the industry as 87.21% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.95 | ||
| EV/EBITDA | 8.87 |
4.3 Compensation for Growth
ADM's earnings are expected to decrease with -10.58% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.7
EPS Next 2Y-18.07%
EPS Next 3Y-10.58%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.92%, ADM has a reasonable but not impressive dividend return.
ADM's Dividend Yield is rather good when compared to the industry average which is at 3.86. ADM pays more dividend than 82.56% of the companies in the same industry.
ADM's Dividend Yield is rather good when compared to the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.92% |
5.2 History
The dividend of ADM is nicely growing with an annual growth rate of 6.30%!
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)6.3%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
ADM pays out 54.67% of its income as dividend. This is a bit on the high side, but may be sustainable.
The Dividend Rate of ADM has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP54.67%
EPS Next 2Y-18.07%
EPS Next 3Y-10.58%
ARCHER-DANIELS-MIDLAND CO
NYSE:ADM (1/21/2025, 8:04:00 PM)
Premarket: 51.25 +0.03 (+0.06%)51.22
-0.07 (-0.14%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners81.17%
Inst Owner Change-0.06%
Ins Owners0.48%
Ins Owner Change4.66%
Market Cap24.51B
Analysts53
Price Target58.27 (13.76%)
Short Float %2.37%
Short Ratio3.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.92% |
Yearly Dividend1.84
Dividend Growth(5Y)6.3%
DP54.67%
Div Incr Years34
Div Non Decr Years34
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-14.75%
Min EPS beat(2)-16.17%
Max EPS beat(2)-13.33%
EPS beat(4)1
Avg EPS beat(4)-7.36%
Min EPS beat(4)-16.17%
Max EPS beat(4)6.01%
EPS beat(8)5
Avg EPS beat(8)3.27%
EPS beat(12)9
Avg EPS beat(12)10.04%
EPS beat(16)13
Avg EPS beat(16)12.35%
Revenue beat(2)0
Avg Revenue beat(2)-6.24%
Min Revenue beat(2)-7.52%
Max Revenue beat(2)-4.96%
Revenue beat(4)0
Avg Revenue beat(4)-4.77%
Min Revenue beat(4)-7.52%
Max Revenue beat(4)-2.85%
Revenue beat(8)1
Avg Revenue beat(8)-4%
Revenue beat(12)5
Avg Revenue beat(12)0.79%
Revenue beat(16)9
Avg Revenue beat(16)4.02%
PT rev (1m)-4.84%
PT rev (3m)-8.2%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-30.09%
EPS NY rev (1m)0%
EPS NY rev (3m)-12.34%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.83%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.37 | ||
| Fwd PE | 10.95 | ||
| P/S | 0.28 | ||
| P/FCF | 6.95 | ||
| P/OCF | 4.87 | ||
| P/B | 1.12 | ||
| P/tB | 1.64 | ||
| EV/EBITDA | 8.87 |
EPS(TTM)4.94
EY9.64%
EPS(NY)4.68
Fwd EY9.13%
FCF(TTM)7.37
FCFY14.39%
OCF(TTM)10.53
OCFY20.55%
SpS181.83
BVpS45.92
TBVpS31.29
PEG (NY)N/A
PEG (5Y)0.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.44% | ||
| ROE | 8.18% | ||
| ROCE | 7.46% | ||
| ROIC | 5.82% | ||
| ROICexc | 5.96% | ||
| ROICexgc | 7.49% | ||
| OM | 2.85% | ||
| PM (TTM) | 2.07% | ||
| GM | 7.08% | ||
| FCFM | 4.05% |
ROA(3y)6.15%
ROA(5y)5.03%
ROE(3y)14.79%
ROE(5y)12.08%
ROIC(3y)8.63%
ROIC(5y)6.9%
ROICexc(3y)8.91%
ROICexc(5y)7.11%
ROICexgc(3y)10.97%
ROICexgc(5y)8.72%
ROCE(3y)10.66%
ROCE(5y)8.61%
ROICexcg growth 3Y30.59%
ROICexcg growth 5Y10.4%
ROICexc growth 3Y29.64%
ROICexc growth 5Y9.51%
OM growth 3Y16.32%
OM growth 5Y6.63%
PM growth 3Y10.43%
PM growth 5Y5.68%
GM growth 3Y4.95%
GM growth 5Y4.24%
F-Score5
Asset Turnover1.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 2.85 | ||
| Debt/EBITDA | 2.58 | ||
| Cap/Depr | 133.51% | ||
| Cap/Sales | 1.74% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 139.57% | ||
| Profit Quality | 196.16% | ||
| Current Ratio | 1.4 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z | 3.06 |
F-Score5
WACC8.56%
ROIC/WACC0.68
Cap/Depr(3y)128.92%
Cap/Depr(5y)110.89%
Cap/Sales(3y)1.42%
Cap/Sales(5y)1.36%
Profit Quality(3y)111.73%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-34.48%
EPS 3Y24.75%
EPS 5Y14.77%
EPS Q2Q%-33.13%
EPS Next Y-31.6%
EPS Next 2Y-18.07%
EPS Next 3Y-10.58%
EPS Next 5Y-8.03%
Revenue 1Y (TTM)-10.2%
Revenue growth 3Y13.44%
Revenue growth 5Y7.86%
Sales Q2Q%-8.1%
Revenue Next Year-8.98%
Revenue Next 2Y-3.59%
Revenue Next 3Y-1.89%
Revenue Next 5Y-2.17%
EBIT growth 1Y-39.58%
EBIT growth 3Y31.95%
EBIT growth 5Y15.01%
EBIT Next Year8.31%
EBIT Next 3Y2.17%
EBIT Next 5Y-1.48%
FCF growth 1Y26.23%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y23.15%
OCF growth 3YN/A
OCF growth 5YN/A