ARCHER-DANIELS-MIDLAND CO (ADM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ADM - US0394831020 - Common Stock
60.01 USD
+0.09 (+0.15%)
60.01 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to ADM. ADM was compared to 86 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.
Each year in the past 5 years ADM has been profitable.
ADM had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of ADM (2.29%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 5.29%, ADM is in line with its industry, outperforming 50.00% of the companies in the same industry.
With a Return On Invested Capital value of 3.69%, ADM perfoms like the industry average, outperforming 54.65% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ADM is significantly below the industry average of 28.69%.
| 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
Looking at the Profit Margin, with a value of 1.43%, ADM is in line with its industry, outperforming 46.51% of the companies in the same industry.
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 46.51% of its industry peers.
In the last couple of years the Operating Margin of ADM has remained more or less at the same level.
ADM has a worse Gross Margin (6.22%) than 80.23% of its industry peers.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ADM is destroying value.
The number of shares outstanding for ADM has been reduced compared to 1 year ago.
Compared to 5 years ago, ADM has less shares outstanding
The debt/assets ratio for ADM is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.04 indicates that ADM is not in any danger for bankruptcy at the moment.
ADM has a better Altman-Z score (3.04) than 67.44% 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.
ADM's Debt to FCF ratio of 1.67 is amongst the best of the industry. ADM outperforms 86.05% of its industry peers.
ADM has a Debt/Equity ratio of 0.30. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of ADM (0.30) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 1.67 | ||
| Altman-Z | 3.04 |
ROIC/WACC0.45
WACC8.13%
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's Current ratio of 1.37 is in line compared to the rest of the industry. ADM outperforms 40.70% 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.
ADM has a Quick ratio (0.92) which is in line with its industry peers.
| 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.
Measured over the past years, ADM shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.32% on average per year.
The Revenue has decreased by -4.37% in the past 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
The Earnings Per Share is expected to grow by 0.26% on average over the next years.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
With a Price/Earnings ratio of 16.26, ADM is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of ADM indicates a somewhat cheap valuation: ADM is cheaper than 65.12% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.54. ADM is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 13.87, the valuation of ADM can be described as correct.
73.26% of the companies in the same industry are more expensive than ADM, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.78. ADM is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.26 | ||
| Fwd PE | 13.87 |
4.2 Price Multiples
ADM's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ADM indicates a rather cheap valuation: ADM is cheaper than 94.19% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.13 | ||
| EV/EBITDA | 13.12 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.32
EPS Next 2Y-4.26%
EPS Next 3Y-0.45%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.44%, ADM has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.99, ADM pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.27, ADM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.44% |
5.2 History
The dividend of ADM is nicely growing with an annual growth rate of 7.05%!
ADM has paid a dividend for at least 10 years, which is 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%
60.01
+0.09 (+0.15%)
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 Cap28.84B
Revenue(TTM)83.21B
Net Income(TTM)1.19B
Analysts53.68
Price Target58.97 (-1.73%)
Short Float %2.74%
Short Ratio3.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.44% |
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)-13.48%
EPS NQ rev (3m)-46.11%
EPS NY rev (1m)-11.31%
EPS NY rev (3m)-14.82%
Revenue NQ rev (1m)-2.59%
Revenue NQ rev (3m)-6.88%
Revenue NY rev (1m)-1.37%
Revenue NY rev (3m)-1.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.26 | ||
| Fwd PE | 13.87 | ||
| P/S | 0.35 | ||
| P/FCF | 6.13 | ||
| P/OCF | 4.74 | ||
| P/B | 1.28 | ||
| P/tB | 1.84 | ||
| EV/EBITDA | 13.12 |
EPS(TTM)3.69
EY6.15%
EPS(NY)4.33
Fwd EY7.21%
FCF(TTM)9.79
FCFY16.31%
OCF(TTM)12.67
OCFY21.11%
SpS173.15
BVpS46.81
TBVpS32.64
PEG (NY)N/A
PEG (5Y)1.32
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 | 3.04 |
F-Score4
WACC8.13%
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 16.26 and the Price/Book (PB) ratio is 1.28.
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.