ARCHER-DANIELS-MIDLAND CO (ADM) Stock Fundamental Analysis
NYSE:ADM - New York Stock Exchange, Inc. - US0394831020 - Common Stock - Currency: USD
ADM gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 89 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. Finally ADM also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
ADM had positive earnings in the past year.
In the past year ADM had a positive cash flow from operations.
ADM had positive earnings in each of the past 5 years.
ADM had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.38%, ADM is in line with its industry, outperforming 58.43% of the companies in the same industry.
Looking at the Return On Equity, with a value of 8.12%, ADM is in line with its industry, outperforming 58.43% of the companies in the same industry.
With a Return On Invested Capital value of 4.69%, ADM perfoms like the industry average, outperforming 47.19% 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 in line with the industry average of 8.94%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.38% | ||
| ROE | 8.12% | ||
| ROIC | 4.69% |
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 (2.10%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of ADM has remained more or less at the same level.
With a Operating Margin value of 2.42%, ADM is not doing good in the industry: 60.67% of the companies in the same industry are doing better.
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 6.76%, ADM is doing worse than 78.65% 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 | 2.42% | ||
| PM (TTM) | 2.1% | ||
| GM | 6.76% |
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.
Compared to 1 year ago, ADM has a worse debt to assets ratio.
2.2 Solvency
ADM has an Altman-Z score of 2.93. This is not the best score and indicates that ADM is in the grey zone with still only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.93, ADM is doing good in the industry, outperforming 70.79% of the companies in the same industry.
The Debt to FCF ratio of ADM is 8.28, which is on the high side as it means it would take ADM, 8.28 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 8.28, ADM is in line with its industry, outperforming 58.43% of the companies in the same industry.
ADM has a Debt/Equity ratio of 0.43. This is a healthy value indicating a solid balance between debt and equity.
ADM has a Debt to Equity ratio (0.43) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 8.28 | ||
| Altman-Z | 2.93 |
ROIC/WACC0.58
WACC8.16%
2.3 Liquidity
ADM has a Current Ratio of 1.39. 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 (1.39) which is comparable to the rest of the industry.
A Quick Ratio of 0.81 indicates that ADM may have some problems paying its short term obligations.
The Quick ratio of ADM (0.81) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.39 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
The earnings per share for ADM have decreased strongly by -32.28% 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 -8.95%.
ADM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.76% yearly.
EPS 1Y (TTM)-32.28%
EPS 3Y-3.11%
EPS 5Y12.32%
EPS Q2Q%-16.18%
Revenue 1Y (TTM)-8.95%
Revenue growth 3Y0.11%
Revenue growth 5Y5.76%
Sales Q2Q%-6.44%
3.2 Future
The Earnings Per Share is expected to decrease by -0.83% on average over the next years.
Based on estimates for the next years, ADM will show a decrease in Revenue. The Revenue will decrease by -0.59% on average per year.
EPS Next Y-11.16%
EPS Next 2Y-0.85%
EPS Next 3Y1.45%
EPS Next 5Y-0.83%
Revenue Next Year2.35%
Revenue Next 2Y1.96%
Revenue Next 3Y1.93%
Revenue Next 5Y-0.59%
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
Based on the Price/Earnings ratio of 10.13, 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 83.15% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.29, ADM is valued rather cheaply.
With a Price/Forward Earnings ratio of 11.40, the valuation of ADM can be described as very reasonable.
Based on the Price/Forward Earnings ratio, ADM is valued cheaply inside the industry as 88.76% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.32, ADM is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.13 | ||
| Fwd PE | 11.4 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ADM indicates a somewhat cheap valuation: ADM is cheaper than 64.04% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ADM is valued a bit cheaper than 64.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.71 | ||
| EV/EBITDA | 9.37 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.82
EPS Next 2Y-0.85%
EPS Next 3Y1.45%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.27%, ADM is a good candidate for dividend investing.
ADM's Dividend Yield is rather good when compared to the industry average which is at 4.35. ADM pays more dividend than 85.39% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.51, ADM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.27% |
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 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
54.72% of the earnings are spent on dividend by ADM. This is a bit on the high side, but may be sustainable.
ADM's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP54.72%
EPS Next 2Y-0.85%
EPS Next 3Y1.45%
47.82
+1.69 (+3.66%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners81.96%
Inst Owner Change0.14%
Ins Owners0.55%
Ins Owner Change7.16%
Market Cap22.96B
Analysts50.53
Price Target52.37 (9.51%)
Short Float %2.45%
Short Ratio3.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.27% |
Yearly Dividend1.99
Dividend Growth(5Y)7.05%
DP54.72%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-7.51%
Min EPS beat(2)-13.33%
Max EPS beat(2)-1.69%
EPS beat(4)1
Avg EPS beat(4)-6.29%
Min EPS beat(4)-16.17%
Max EPS beat(4)6.01%
EPS beat(8)4
Avg EPS beat(8)1.08%
EPS beat(12)8
Avg EPS beat(12)9.19%
EPS beat(16)12
Avg EPS beat(16)11.69%
Revenue beat(2)0
Avg Revenue beat(2)-6.8%
Min Revenue beat(2)-7.52%
Max Revenue beat(2)-6.07%
Revenue beat(4)0
Avg Revenue beat(4)-5.35%
Min Revenue beat(4)-7.52%
Max Revenue beat(4)-2.85%
Revenue beat(8)0
Avg Revenue beat(8)-4.89%
Revenue beat(12)4
Avg Revenue beat(12)-0.71%
Revenue beat(16)8
Avg Revenue beat(16)3.14%
PT rev (1m)-2.47%
PT rev (3m)-10.13%
EPS NQ rev (1m)-1.72%
EPS NQ rev (3m)-39.87%
EPS NY rev (1m)-1.78%
EPS NY rev (3m)-10.38%
Revenue NQ rev (1m)2.01%
Revenue NQ rev (3m)-5%
Revenue NY rev (1m)1.36%
Revenue NY rev (3m)0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.13 | ||
| Fwd PE | 11.4 | ||
| P/S | 0.27 | ||
| P/FCF | 18.71 | ||
| P/OCF | 8.23 | ||
| P/B | 1.04 | ||
| P/tB | 1.49 | ||
| EV/EBITDA | 9.37 |
EPS(TTM)4.72
EY9.87%
EPS(NY)4.19
Fwd EY8.77%
FCF(TTM)2.56
FCFY5.34%
OCF(TTM)5.81
OCFY12.15%
SpS178.13
BVpS46.17
TBVpS32.07
PEG (NY)N/A
PEG (5Y)0.82
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.38% | ||
| ROE | 8.12% | ||
| ROCE | 6.22% | ||
| ROIC | 4.69% | ||
| ROICexc | 4.81% | ||
| ROICexgc | 5.99% | ||
| OM | 2.42% | ||
| PM (TTM) | 2.1% | ||
| GM | 6.76% | ||
| FCFM | 1.43% |
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%
ROICexcg growth 3Y-12.07%
ROICexcg 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-Score5
Asset Turnover1.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 8.28 | ||
| Debt/EBITDA | 2.95 | ||
| Cap/Depr | 136.99% | ||
| Cap/Sales | 1.83% | ||
| Interest Coverage | 2.92 | ||
| Cash Conversion | 86.83% | ||
| Profit Quality | 68.17% | ||
| Current Ratio | 1.39 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z | 2.93 |
F-Score5
WACC8.16%
ROIC/WACC0.58
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)-32.28%
EPS 3Y-3.11%
EPS 5Y12.32%
EPS Q2Q%-16.18%
EPS Next Y-11.16%
EPS Next 2Y-0.85%
EPS Next 3Y1.45%
EPS Next 5Y-0.83%
Revenue 1Y (TTM)-8.95%
Revenue growth 3Y0.11%
Revenue growth 5Y5.76%
Sales Q2Q%-6.44%
Revenue Next Year2.35%
Revenue Next 2Y1.96%
Revenue Next 3Y1.93%
Revenue Next 5Y-0.59%
EBIT growth 1Y-48.93%
EBIT growth 3Y-11.91%
EBIT growth 5Y4.61%
EBIT Next Year90.48%
EBIT Next 3Y28.08%
EBIT Next 5Y16.03%
FCF growth 1Y-58.63%
FCF growth 3Y-39.08%
FCF growth 5YN/A
OCF growth 1Y-37.44%
OCF growth 3Y-24.93%
OCF growth 5YN/A