ARCHER-DANIELS-MIDLAND CO (ADM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ADM - US0394831020 - Common Stock
58.24 USD
-0.06 (-0.1%)
58.24 USD
0 (0%)
Overall ADM gets a fundamental rating of 4 out of 10. We evaluated ADM against 87 industry peers in the Food Products industry. ADM has only an average score on both its financial health and profitability. ADM is valued correctly, but it does not seem to be growing.
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.
Of the past 5 years ADM 4 years had a positive operating cash flow.
1.2 Ratios
ADM has a Return On Assets of 2.29%. This is comparable to the rest of the industry: ADM outperforms 50.00% of its industry peers.
ADM has a Return On Equity of 5.29%. This is comparable to the rest of the industry: ADM outperforms 51.14% of its industry peers.
The Return On Invested Capital of ADM (3.69%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for ADM is significantly below the industry average of 28.52%.
| 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
With a Profit Margin value of 1.43%, ADM perfoms like the industry average, outperforming 46.59% 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.
Looking at the Operating Margin, with a value of 1.83%, ADM is in line with its industry, outperforming 46.59% of the companies in the same industry.
ADM's Operating Margin has been stable in the last couple of years.
ADM's Gross Margin of 6.22% is on the low side compared to the rest of the industry. ADM is outperformed by 79.55% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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
ADM has an Altman-Z score of 3.02. This indicates that ADM is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.02, ADM is in the better half of the industry, outperforming 64.77% of the companies in the same industry.
The Debt to FCF ratio of ADM is 1.67, which is an excellent value as it means it would take ADM, only 1.67 years of fcf income to pay off all of its debts.
ADM's Debt to FCF ratio of 1.67 is amongst the best of the industry. ADM outperforms 86.36% of its industry peers.
A Debt/Equity ratio of 0.30 indicates that ADM is not too dependend on debt financing.
ADM has a Debt to Equity ratio (0.30) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 1.67 | ||
| Altman-Z | 3.02 |
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 on the low side compared to the rest of the industry. ADM is outperformed by 60.23% of its industry peers.
A Quick Ratio of 0.92 indicates that ADM may have some problems paying its short term obligations.
ADM has a Quick ratio of 0.92. This is comparable to the rest of the industry: ADM outperforms 56.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 0.92 |
3. Growth
3.1 Past
ADM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -25.30%.
The Earnings Per Share has been growing by 12.32% on average over the past years. This is quite good.
ADM shows a decrease in Revenue. In the last year, the revenue decreased by -4.37%.
The Revenue has been growing slightly by 5.76% on average over the past years.
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
Based on estimates for the next years, ADM will show a small growth in Earnings Per Share. The EPS will grow by 0.26% on average per year.
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.
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 15.78, the valuation of ADM can be described as correct.
Based on the Price/Earnings ratio, ADM is valued a bit cheaper than the industry average as 64.77% of the companies are valued more expensively.
ADM is valuated rather cheaply when we compare the Price/Earnings ratio to 26.39, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 13.46, the valuation of ADM can be described as correct.
ADM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ADM is cheaper than 72.73% of the companies in the same industry.
ADM's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.84.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.78 | ||
| Fwd PE | 13.46 |
4.2 Price Multiples
ADM's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, ADM is valued cheaply inside the industry as 94.32% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.95 | ||
| EV/EBITDA | 12.82 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.28
EPS Next 2Y-4.26%
EPS Next 3Y-0.45%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.50%, ADM has a reasonable but not impressive dividend return.
ADM's Dividend Yield is a higher than the industry average which is at 2.34.
Compared to an average S&P500 Dividend Yield of 1.87, ADM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.5% |
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
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%
58.24
-0.06 (-0.1%)
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 Cap27.99B
Revenue(TTM)83.21B
Net Income(TTM)1.19B
Analysts53.68
Price Target58.97 (1.25%)
Short Float %2.88%
Short Ratio4.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.5% |
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)-0.53%
EPS NQ rev (3m)-46.4%
EPS NY rev (1m)-11.31%
EPS NY rev (3m)-14.82%
Revenue NQ rev (1m)-0.21%
Revenue NQ rev (3m)-7.07%
Revenue NY rev (1m)-1.37%
Revenue NY rev (3m)-1.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.78 | ||
| Fwd PE | 13.46 | ||
| P/S | 0.34 | ||
| P/FCF | 5.95 | ||
| P/OCF | 4.6 | ||
| P/B | 1.24 | ||
| P/tB | 1.78 | ||
| EV/EBITDA | 12.82 |
EPS(TTM)3.69
EY6.34%
EPS(NY)4.33
Fwd EY7.43%
FCF(TTM)9.79
FCFY16.8%
OCF(TTM)12.67
OCFY21.75%
SpS173.15
BVpS46.81
TBVpS32.64
PEG (NY)N/A
PEG (5Y)1.28
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 | 3.02 |
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 15.78 and the Price/Book (PB) ratio is 1.24.
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.