ARCHER-DANIELS-MIDLAND CO (ADM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ADM - US0394831020 - Common Stock
59.05 USD
+1.56 (+2.71%)
59.5833 USD
+0.53 (+0.9%)
Taking everything into account, ADM scores 4 out of 10 in our fundamental rating. ADM was compared to 87 industry peers in the Food Products industry. ADM has an average financial health and profitability rating. 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.
Each year in the past 5 years ADM has 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 51.72% of the companies in the same industry.
ADM has a Return On Equity (5.29%) which is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 3.69%, ADM is in line with its industry, outperforming 56.32% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ADM is significantly below the industry average of 28.02%.
| 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
Looking at the Profit Margin, with a value of 1.43%, ADM is in line with its industry, outperforming 47.13% of the companies in the same industry.
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 45.98% of its industry peers.
In the last couple of years the Operating Margin of ADM has remained more or less at the same level.
The Gross Margin of ADM (6.22%) is worse than 78.16% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ADM is destroying value.
ADM has less shares outstanding than it did 1 year ago.
The number of shares outstanding for ADM has been reduced compared to 5 years ago.
Compared to 1 year ago, ADM has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.03 indicates that ADM is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.03, ADM is in the better half of the industry, outperforming 66.67% 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 has a better Debt to FCF ratio (1.67) than 85.06% of its industry peers.
ADM has a Debt/Equity ratio of 0.30. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.30, ADM is in the better half of the industry, outperforming 60.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 1.67 | ||
| Altman-Z | 3.03 |
ROIC/WACC0.45
WACC8.16%
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 in line compared to the rest of the industry. ADM outperforms 40.23% 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 (0.92) which is in line with 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%.
ADM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.32% yearly.
The Revenue has decreased by -4.37% in the past year.
Measured over the past years, ADM shows a small growth in Revenue. The Revenue has been growing by 5.76% on average per year.
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.
Based on estimates for the next years, ADM will show a decrease in Revenue. The Revenue will decrease by -0.26% on average per year.
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
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 16.00.
63.22% of the companies in the same industry are more expensive than ADM, based on the Price/Earnings ratio.
ADM's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.60.
ADM is valuated correctly with a Price/Forward Earnings ratio of 13.72.
Based on the Price/Forward Earnings ratio, ADM is valued a bit cheaper than the industry average as 72.41% of the companies are valued more expensively.
ADM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.23, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16 | ||
| Fwd PE | 13.72 |
4.2 Price Multiples
ADM's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ADM indicates a rather cheap valuation: ADM is cheaper than 93.10% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.03 | ||
| EV/EBITDA | 12.97 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.3
EPS Next 2Y-4.5%
EPS Next 3Y0.04%
5. Dividend
5.1 Amount
ADM has a Yearly Dividend Yield of 3.55%. Purely for dividend investing, there may be better candidates out there.
ADM's Dividend Yield is a higher than the industry average which is at 2.41.
ADM's Dividend Yield is rather good when compared to the S&P500 average which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.55% |
5.2 History
The dividend of ADM is nicely growing with an annual growth rate of 7.05%!
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)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-4.5%
EPS Next 3Y0.04%
59.05
+1.56 (+2.71%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners86.87%
Inst Owner Change0%
Ins Owners0.59%
Ins Owner Change-0.79%
Market Cap28.38B
Revenue(TTM)83.21B
Net Income(TTM)1.19B
Analysts53.68
Price Target58.26 (-1.34%)
Short Float %2.96%
Short Ratio4.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.55% |
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 | ||
| Fwd PE | 13.72 | ||
| P/S | 0.34 | ||
| P/FCF | 6.03 | ||
| P/OCF | 4.66 | ||
| P/B | 1.26 | ||
| P/tB | 1.81 | ||
| EV/EBITDA | 12.97 |
EPS(TTM)3.69
EY6.25%
EPS(NY)4.31
Fwd EY7.29%
FCF(TTM)9.79
FCFY16.57%
OCF(TTM)12.67
OCFY21.45%
SpS173.15
BVpS46.81
TBVpS32.64
PEG (NY)N/A
PEG (5Y)1.3
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 | 3.03 |
F-Score4
WACC8.16%
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%.