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. ADM has an average financial health and profitability rating. 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.
- ADM had positive earnings in each of the past 5 years.
- Of the past 5 years ADM 4 years had a positive operating cash flow.
1.2 Ratios
- With a Return On Assets value of 2.29%, ADM perfoms like the industry average, outperforming 50.57% of the companies in the same industry.
- With a Return On Equity value of 5.29%, ADM perfoms like the industry average, outperforming 52.87% of the companies in the same industry.
- ADM has a Return On Invested Capital (3.69%) which is comparable to the rest of the 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.
- In the last couple of years the Profit Margin of ADM has remained more or less at the same level.
- ADM has a Operating Margin of 1.83%. This is comparable to the rest of the industry: ADM outperforms 44.83% of its industry peers.
- ADM's Operating Margin has been stable in the last couple of years.
- ADM has a Gross Margin of 6.22%. This is in the lower half of the industry: ADM underperforms 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ADM is destroying value.
- Compared to 1 year ago, ADM has less shares outstanding
- The number of shares outstanding for ADM has been reduced compared to 5 years ago.
- The debt/assets ratio for ADM is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 3.11 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.
- 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 85.06% of its industry peers.
- A Debt/Equity ratio of 0.30 indicates that ADM is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.30, ADM is in line with its industry, outperforming 59.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 1.67 | ||
| Altman-Z | 3.11 |
ROIC/WACC0.45
WACC8.28%
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 comparable to the rest of the industry: ADM outperforms 41.38% of its industry peers.
- ADM has a Quick Ratio of 1.37. 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 (0.92) 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.
- 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.
- ADM is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.26% yearly.
EPS Next Y-27.52%
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
- 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
- ADM is valuated rather expensively with a Price/Earnings ratio of 18.24.
- The rest of the industry has a similar Price/Earnings ratio as ADM.
- Compared to an average S&P500 Price/Earnings ratio of 28.30, ADM is valued a bit cheaper.
- 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.
- When comparing the Price/Forward Earnings ratio of ADM to the average of the S&P500 Index (25.57), we can say ADM is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.24 | ||
| Fwd PE | 15.73 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ADM is on the same level as its industry peers.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of ADM indicates a rather cheap valuation: ADM is cheaper than 91.95% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.88 | ||
| EV/EBITDA | 14.38 |
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 2.26.
- ADM's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.05% |
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 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%.