ARCHER-DANIELS-MIDLAND CO (ADM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ADM - US0394831020 - Common Stock
62.2 USD
+0.26 (+0.42%)
62.4 USD
+0.2 (+0.32%)
ADM gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 87 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.
In the past year ADM had a positive cash flow from operations.
In the past 5 years ADM has always been profitable.
ADM had a positive operating cash flow in 4 of the past 5 years.
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.
ADM has a Return On Equity of 5.29%. This is comparable to the rest of the industry: ADM outperforms 52.87% of its industry peers.
ADM's Return On Invested Capital of 3.69% is in line compared to the rest of the industry. ADM outperforms 55.17% of its industry peers.
ADM had an Average Return On Invested Capital over the past 3 years of 7.66%. This is significantly below the industry average of 27.80%.
| 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 has a Profit Margin (1.43%) 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.
ADM's Operating Margin of 1.83% is in line compared 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
Compared to 5 years ago, ADM has less shares outstanding
Compared to 1 year ago, ADM has a worse debt to assets ratio.
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.
The Altman-Z score of ADM (3.06) is better than 65.52% of its industry peers.
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.
With an excellent Debt to FCF ratio value of 1.67, ADM belongs to the best of the industry, outperforming 85.06% of the companies in the same industry.
ADM has a Debt/Equity ratio of 0.30. This is a healthy value indicating a solid balance between debt and equity.
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 | 3.06 |
ROIC/WACC0.45
WACC8.18%
2.3 Liquidity
A Current Ratio of 1.37 indicates that ADM should not have too much problems paying its short term obligations.
ADM has a Current ratio (1.37) which is comparable to the rest of the industry.
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.
With a Quick ratio value of 0.92, ADM perfoms like the industry average, outperforming 55.17% of the companies in the same industry.
| 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.
Looking at the last year, ADM shows a decrease in Revenue. The Revenue has decreased by -4.37% in the last year.
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.
The Revenue is expected to decrease by -0.26% on average over the next years.
EPS Next Y-27.37%
EPS Next 2Y-4.5%
EPS Next 3Y0.04%
EPS Next 5Y0.26%
Revenue Next Year-3.85%
Revenue Next 2Y0.21%
Revenue Next 3Y1.51%
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
ADM is valuated correctly with a Price/Earnings ratio of 16.86.
The rest of the industry has a similar Price/Earnings ratio as ADM.
When comparing the Price/Earnings ratio of ADM to the average of the S&P500 Index (27.25), we can say ADM is valued slightly cheaper.
ADM is valuated correctly with a Price/Forward Earnings ratio of 14.45.
Based on the Price/Forward Earnings ratio, ADM is valued a bit cheaper than 70.11% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.98, ADM is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.86 | ||
| Fwd PE | 14.45 |
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.
Based on the Price/Free Cash Flow ratio, ADM is valued cheaply inside the industry as 91.95% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.36 | ||
| EV/EBITDA | 13.53 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.37
EPS Next 2Y-4.5%
EPS Next 3Y0.04%
5. Dividend
5.1 Amount
ADM has a Yearly Dividend Yield of 3.33%.
ADM's Dividend Yield is a higher than the industry average which is at 2.47.
ADM's Dividend Yield is rather good when compared to the S&P500 average which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.33% |
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 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.
The dividend of ADM is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP82.76%
EPS Next 2Y-4.5%
EPS Next 3Y0.04%
62.2
+0.26 (+0.42%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners86.87%
Inst Owner Change0.1%
Ins Owners0.59%
Ins Owner Change-0.79%
Market Cap29.89B
Revenue(TTM)83.21B
Net Income(TTM)1.19B
Analysts52.63
Price Target58.26 (-6.33%)
Short Float %2.96%
Short Ratio4.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.33% |
Yearly Dividend1.99
Dividend Growth(5Y)7.05%
DP82.76%
Div Incr Years34
Div Non Decr Years34
Ex-DateN/A
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)-1.21%
PT rev (3m)-1.23%
EPS NQ rev (1m)-0.99%
EPS NQ rev (3m)-46.65%
EPS NY rev (1m)-0.31%
EPS NY rev (3m)-15.08%
Revenue NQ rev (1m)-0.21%
Revenue NQ rev (3m)-7.07%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-1.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.86 | ||
| Fwd PE | 14.45 | ||
| P/S | 0.36 | ||
| P/FCF | 6.36 | ||
| P/OCF | 4.91 | ||
| P/B | 1.33 | ||
| P/tB | 1.91 | ||
| EV/EBITDA | 13.53 |
EPS(TTM)3.69
EY5.93%
EPS(NY)4.31
Fwd EY6.92%
FCF(TTM)9.79
FCFY15.73%
OCF(TTM)12.67
OCFY20.36%
SpS173.15
BVpS46.81
TBVpS32.64
PEG (NY)N/A
PEG (5Y)1.37
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 | 3.06 |
F-Score4
WACC8.18%
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-27.37%
EPS Next 2Y-4.5%
EPS Next 3Y0.04%
EPS Next 5Y0.26%
Revenue 1Y (TTM)-4.37%
Revenue growth 3Y0.11%
Revenue growth 5Y5.76%
Sales Q2Q%2.18%
Revenue Next Year-3.85%
Revenue Next 2Y0.21%
Revenue Next 3Y1.51%
Revenue Next 5Y-0.26%
EBIT growth 1Y-38.7%
EBIT growth 3Y-11.91%
EBIT growth 5Y4.61%
EBIT Next Year58.93%
EBIT Next 3Y24.92%
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 for ADM stock?
ChartMill assigns a valuation rating of 5 / 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 -27.37% 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%.