ARCHER-DANIELS-MIDLAND CO (ADM) Stock Fundamental Analysis
USA - NYSE:ADM - US0394831020 - Common Stock
58.63 USD
+0.76 (+1.31%)
58.63 USD
0 (0%)
ADM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 87 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 on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year ADM was profitable.
ADM had a positive operating cash flow in the past year.
Each year in the past 5 years ADM has been profitable.
Of the past 5 years ADM 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of ADM (2.29%) is comparable to the rest of the industry.
ADM has a Return On Equity (5.29%) which is in line with its industry peers.
ADM has a Return On Invested Capital (3.69%) which 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 28.38%.
| 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 of 1.43%. This is comparable to the rest of the industry: ADM outperforms 51.72% of its industry peers.
ADM's Profit Margin has been stable in the last couple of years.
ADM has a Operating Margin of 1.83%. This is comparable to the rest of the industry: ADM outperforms 44.83% 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's Gross Margin of 6.22% is on the low side compared to the rest of the industry. ADM is outperformed by 80.46% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ADM is destroying value.
The number of shares outstanding for ADM has been reduced compared to 1 year ago.
ADM has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, ADM has a worse debt to assets ratio.
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.
With a decent Altman-Z score value of 3.02, ADM is doing good in the industry, outperforming 67.82% 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.
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.
A Debt/Equity ratio of 0.30 indicates that ADM is not too dependend on debt financing.
ADM has a Debt to Equity ratio of 0.30. This is in the better half of the industry: ADM outperforms 64.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 1.67 | ||
| Altman-Z | 3.02 |
ROIC/WACC0.46
WACC8.09%
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.
Looking at the Current ratio, with a value of 1.37, ADM is in line with its industry, outperforming 40.23% of the companies in the same industry.
A Quick Ratio of 0.92 indicates that ADM may have some problems paying its short term obligations.
ADM has a Quick ratio (0.92) which is comparable to the rest of the industry.
| 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.
Looking at the last year, ADM shows a decrease in Revenue. The Revenue has decreased by -4.37% in the last year.
ADM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.76% yearly.
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
ADM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.03% yearly.
The Revenue is expected to grow by 0.09% on average over the next years.
EPS Next Y-17.85%
EPS Next 2Y-0.63%
EPS Next 3Y2.16%
EPS Next 5Y0.03%
Revenue Next Year-2.47%
Revenue Next 2Y0.43%
Revenue Next 3Y1.84%
Revenue Next 5Y0.09%
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
ADM is valuated correctly with a Price/Earnings ratio of 15.89.
Compared to the rest of the industry, the Price/Earnings ratio of ADM indicates a somewhat cheap valuation: ADM is cheaper than 63.22% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 25.07. ADM is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 12.58, ADM is valued correctly.
ADM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ADM is cheaper than 75.86% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ADM to the average of the S&P500 Index (34.08), we can say ADM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.89 | ||
| Fwd PE | 12.58 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ADM.
ADM's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ADM is cheaper than 89.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.99 | ||
| EV/EBITDA | 12.75 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.29
EPS Next 2Y-0.63%
EPS Next 3Y2.16%
5. Dividend
5.1 Amount
ADM has a Yearly Dividend Yield of 3.47%.
ADM's Dividend Yield is a higher than the industry average which is at 5.15.
ADM's Dividend Yield is a higher than the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.47% |
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
82.76% of the earnings are spent on dividend by ADM. 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-0.63%
EPS Next 3Y2.16%
58.63
+0.76 (+1.31%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners84.35%
Inst Owner Change2.58%
Ins Owners0.59%
Ins Owner Change-1.12%
Market Cap28.17B
Revenue(TTM)83.21B
Net Income(TTM)1.19B
Analysts66.25
Price Target59.55 (1.57%)
Short Float %2.7%
Short Ratio3.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.47% |
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)0.96%
PT rev (3m)11.45%
EPS NQ rev (1m)-35.31%
EPS NQ rev (3m)-38.14%
EPS NY rev (1m)-3.96%
EPS NY rev (3m)-3.94%
Revenue NQ rev (1m)-4.56%
Revenue NQ rev (3m)-5.46%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-0.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.89 | ||
| Fwd PE | 12.58 | ||
| P/S | 0.34 | ||
| P/FCF | 5.99 | ||
| P/OCF | 4.63 | ||
| P/B | 1.25 | ||
| P/tB | 1.8 | ||
| EV/EBITDA | 12.75 |
EPS(TTM)3.69
EY6.29%
EPS(NY)4.66
Fwd EY7.95%
FCF(TTM)9.79
FCFY16.7%
OCF(TTM)12.67
OCFY21.61%
SpS173.19
BVpS46.82
TBVpS32.65
PEG (NY)N/A
PEG (5Y)1.29
Graham Number62.35
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
WACC8.09%
ROIC/WACC0.46
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-17.85%
EPS Next 2Y-0.63%
EPS Next 3Y2.16%
EPS Next 5Y0.03%
Revenue 1Y (TTM)-4.37%
Revenue growth 3Y0.11%
Revenue growth 5Y5.76%
Sales Q2Q%2.18%
Revenue Next Year-2.47%
Revenue Next 2Y0.43%
Revenue Next 3Y1.84%
Revenue Next 5Y0.09%
EBIT growth 1Y-38.7%
EBIT growth 3Y-11.91%
EBIT growth 5Y4.61%
EBIT Next Year81.69%
EBIT Next 3Y26.8%
EBIT Next 5Y13.87%
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 5 / 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 15.89 and the Price/Book (PB) ratio is 1.25.
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 -17.85% in the next year.