ARCHER-DANIELS-MIDLAND CO (ADM)
US0394831020 - Common Stock
We assign a fundamental rating of 5 out of 10 to ADM. ADM was compared to 91 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. ADM also has an excellent dividend rating. These ratings would make ADM suitable for dividend investing!
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.
In the past 5 years ADM has always been profitable.
The reported operating cash flow has been mixed in the past 5 years: ADM reported negative operating cash flow in multiple years.
1.2 Ratios
ADM has a Return On Assets of 3.44%. This is in the better half of the industry: ADM outperforms 61.11% of its industry peers.
With a decent Return On Equity value of 8.18%, ADM is doing good in the industry, outperforming 62.22% of the companies in the same industry.
With a Return On Invested Capital value of 5.82%, ADM perfoms like the industry average, outperforming 57.78% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ADM is in line with the industry average of 8.82%.
| 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
With a Profit Margin value of 2.07%, ADM perfoms like the industry average, outperforming 47.78% of the companies in the same industry.
ADM's Profit Margin has improved in the last couple of years.
ADM has a Operating Margin (2.85%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of ADM has grown nicely.
ADM has a Gross Margin of 7.08%. This is in the lower half of the industry: ADM underperforms 78.89% of its industry peers.
In the last couple of years the Gross Margin of ADM has grown nicely.
| 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
ADM has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, ADM has less shares outstanding
Compared to 5 years ago, ADM has less shares outstanding
The debt/assets ratio for ADM has been reduced compared to a year ago.
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.
ADM has a Altman-Z score of 3.06. This is in the better half of the industry: ADM outperforms 67.78% of its industry peers.
ADM has a debt to FCF ratio of 2.85. This is a good value and a sign of high solvency as ADM would need 2.85 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.85, ADM is in the better half of the industry, outperforming 71.11% of the companies in the same industry.
A Debt/Equity ratio of 0.42 indicates that ADM is not too dependend on debt financing.
The Debt to Equity ratio of ADM (0.42) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 2.85 | ||
| Altman-Z | 3.06 |
ROIC/WACC0.68
WACC8.53%
2.3 Liquidity
ADM has a Current Ratio of 1.40. This is a normal value and indicates that ADM is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of ADM (1.40) is comparable to the rest of the industry.
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.
ADM has a Quick ratio (0.84) which 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
ADM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -34.48%.
Measured over the past years, ADM shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.77% on average per year.
The Revenue for ADM has decreased by -10.20% in the past year. This is quite bad
Measured over the past years, ADM shows a small growth in Revenue. The Revenue has been growing by 7.86% on average per year.
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
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
The Price/Earnings ratio is 10.22, which indicates a very decent valuation of ADM.
ADM's Price/Earnings ratio is rather cheap when compared to the industry. ADM is cheaper than 87.78% of the companies in the same industry.
ADM's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.20.
Based on the Price/Forward Earnings ratio of 10.79, the valuation of ADM can be described as reasonable.
Based on the Price/Forward Earnings ratio, ADM is valued cheaper than 90.00% of the companies in the same industry.
ADM is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.22 | ||
| Fwd PE | 10.79 |
4.2 Price Multiples
ADM's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ADM is cheaper than 75.56% of the companies in the same industry.
ADM's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ADM is cheaper than 87.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.85 | ||
| EV/EBITDA | 8.78 |
4.3 Compensation for Growth
A cheap valuation may be justified as ADM's earnings are expected to decrease with -10.58% in the coming years.
PEG (NY)N/A
PEG (5Y)0.69
EPS Next 2Y-18.07%
EPS Next 3Y-10.58%
5. Dividend
5.1 Amount
ADM has a Yearly Dividend Yield of 4.05%, which is a nice return.
ADM's Dividend Yield is rather good when compared to the industry average which is at 3.83. ADM pays more dividend than 87.78% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, ADM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.05% |
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 their dividend for at least 10 years, which is a reliable track record.
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.
ADM's earnings are declining while the Dividend Rate has been growing. 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 (12/20/2024, 8:04:00 PM)
After market: 50.8 +0.31 (+0.61%)50.49
+1.11 (+2.25%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners81.17%
Inst Owner Change-0.73%
Ins Owners0.48%
Ins Owner Change4.66%
Market Cap24.16B
Analysts52.63
Price Target61.23 (21.27%)
Short Float %1.62%
Short Ratio2.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.05% |
Dividend Growth(5Y)6.3%
DP54.67%
Div Incr Years34
Div Non Decr Years34
Ex-Date
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)-2.71%
PT rev (3m)-2.91%
EPS NQ rev (1m)1.35%
EPS NQ rev (3m)-30.09%
EPS NY rev (1m)-6.62%
EPS NY rev (3m)-12.34%
Revenue NQ rev (1m)0.81%
Revenue NQ rev (3m)-1.83%
Revenue NY rev (1m)-1.57%
Revenue NY rev (3m)-1.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.22 | ||
| Fwd PE | 10.79 | ||
| P/S | 0.28 | ||
| P/FCF | 6.85 | ||
| P/OCF | 4.8 | ||
| P/B | 1.1 | ||
| P/tB | 1.61 | ||
| EV/EBITDA | 8.78 |
EPS(TTM)4.94
EY9.78%
EPS(NY)4.68
Fwd EY9.27%
FCF(TTM)7.37
FCFY14.6%
OCF(TTM)10.53
OCFY20.85%
SpS181.83
BVpS45.92
TBVpS31.29
PEG (NY)N/A
PEG (5Y)0.69
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
WACC8.53%
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 Year11.83%
EBIT Next 3Y3.5%
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