ARCHER-DANIELS-MIDLAND CO (ADM)
US0394831020 - Common Stock
Taking everything into account, ADM scores 5 out of 10 in our fundamental rating. ADM was compared to 90 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 bad growth rate and is valued cheaply. Finally ADM also has an excellent dividend rating. This makes ADM very considerable for value and dividend investing!
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.
In multiple years ADM reported negative operating cash flow during the last 5 years.
1.2 Ratios
The Return On Assets of ADM (4.94%) is better than 66.29% of its industry peers.
Looking at the Return On Equity, with a value of 11.74%, ADM is in the better half of the industry, outperforming 68.54% of the companies in the same industry.
With a decent Return On Invested Capital value of 6.81%, ADM is doing good in the industry, outperforming 67.42% 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 8.93%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.94% | ||
| ROE | 11.74% | ||
| ROIC | 6.81% |
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
The Profit Margin of ADM (2.93%) is comparable to the rest of the industry.
ADM's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 3.39%, ADM is in line with its industry, outperforming 51.69% of the companies in the same industry.
In the last couple of years the Operating Margin of ADM has grown nicely.
The Gross Margin of ADM (7.44%) is worse than 76.40% of its industry peers.
In the last couple of years the Gross Margin of ADM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.39% | ||
| PM (TTM) | 2.93% | ||
| GM | 7.44% |
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.
ADM has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, ADM has less shares outstanding
ADM has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.14 indicates that ADM is not in any danger for bankruptcy at the moment.
ADM has a better Altman-Z score (3.14) than 71.91% of its industry peers.
The Debt to FCF ratio of ADM is 3.34, which is a good value as it means it would take ADM, 3.34 years of fcf income to pay off all of its debts.
ADM has a Debt to FCF ratio of 3.34. This is in the better half of the industry: ADM outperforms 73.03% of its industry peers.
ADM has a Debt/Equity ratio of 0.48. This is a healthy value indicating a solid balance between debt and equity.
ADM has a Debt to Equity ratio (0.48) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 3.34 | ||
| Altman-Z | 3.14 |
ROIC/WACC0.81
WACC8.43%
2.3 Liquidity
A Current Ratio of 1.44 indicates that ADM should not have too much problems paying its short term obligations.
ADM has a Current ratio (1.44) which is comparable to the rest of the industry.
ADM has a Quick Ratio of 1.44. 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 0.88, ADM perfoms like the industry average, outperforming 43.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.44 | ||
| Quick Ratio | 0.88 |
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%.
The Earnings Per Share has been growing by 14.77% on average over the past years. This is quite good.
The Revenue has decreased by -7.50% in the past year.
The Revenue has been growing slightly by 7.86% on average over the past years.
EPS 1Y (TTM)-34.48%
EPS 3Y24.75%
EPS 5Y14.77%
EPS Q2Q%-33.13%
Revenue 1Y (TTM)-7.5%
Revenue growth 3Y13.44%
Revenue growth 5Y7.86%
Sales Q2Q%N/A
3.2 Future
ADM is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -6.77% yearly.
ADM is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.22% yearly.
EPS Next Y-26.75%
EPS Next 2Y-14.25%
EPS Next 3Y-9.29%
EPS Next 5Y-6.77%
Revenue Next Year-7.52%
Revenue Next 2Y-2.92%
Revenue Next 3Y-1.33%
Revenue Next 5Y-1.22%
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.
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
A Price/Earnings ratio of 10.77 indicates a reasonable valuation of ADM.
ADM's Price/Earnings ratio is rather cheap when compared to the industry. ADM is cheaper than 86.52% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.96. ADM is valued rather cheaply when compared to this.
ADM is valuated reasonably with a Price/Forward Earnings ratio of 10.38.
Based on the Price/Forward Earnings ratio, ADM is valued cheaply inside the industry as 88.76% of the companies are valued more expensively.
ADM's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.77 | ||
| Fwd PE | 10.38 |
4.2 Price Multiples
ADM's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ADM is cheaper than 78.65% of the companies in the same industry.
87.64% of the companies in the same industry are more expensive than ADM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.05 | ||
| EV/EBITDA | 8.03 |
4.3 Compensation for Growth
ADM has a very decent profitability rating, which may justify a higher PE ratio.
ADM's earnings are expected to decrease with -9.29% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.73
EPS Next 2Y-14.25%
EPS Next 3Y-9.29%
5. Dividend
5.1 Amount
ADM has a Yearly Dividend Yield of 3.81%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.80, ADM pays a better dividend. On top of this ADM pays more dividend than 85.39% of the companies listed in the same industry.
ADM's Dividend Yield is rather good when compared to the S&P500 average which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.81% |
5.2 History
The dividend of ADM is nicely growing with an annual growth rate of 6.30%!
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)6.3%
Div Incr Years33
Div Non Decr Years33
5.3 Sustainability
37.91% of the earnings are spent on dividend by ADM. This is a low number and sustainable payout ratio.
DP37.91%
EPS Next 2Y-14.25%
EPS Next 3Y-9.29%
ARCHER-DANIELS-MIDLAND CO
NYSE:ADM (11/21/2024, 8:10:48 PM)
After market: 53.19 0 (0%)53.19
-0.33 (-0.62%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap25.43B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.81% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.77 | ||
| Fwd PE | 10.38 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.73
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.94% | ||
| ROE | 11.74% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 3.39% | ||
| PM (TTM) | 2.93% | ||
| GM | 7.44% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.44 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-34.48%
EPS 3Y24.75%
EPS 5Y
EPS Q2Q%
EPS Next Y-26.75%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-7.5%
Revenue growth 3Y13.44%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y