ARCHER-DANIELS-MIDLAND CO (ADM) Fundamental Analysis & Valuation
NYSE:ADM • US0394831020
Current stock price
67.99 USD
+1.82 (+2.75%)
At close:
67.99 USD
0 (0%)
After Hours:
This ADM fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. ADM Profitability Analysis
1.1 Basic Checks
- ADM had positive earnings in the past year.
- ADM had a positive operating cash flow in the past year.
- Each year in the past 5 years ADM has been profitable.
- In the past 5 years ADM always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of ADM (2.06%) is comparable to the rest of the industry.
- Looking at the Return On Equity, with a value of 4.74%, ADM is in line with its industry, outperforming 51.72% of the companies in the same industry.
- ADM has a Return On Invested Capital (3.48%) which is comparable to the rest of the industry.
- ADM had an Average Return On Invested Capital over the past 3 years of 5.85%. This is in line with the industry average of 7.17%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.06% | ||
| ROE | 4.74% | ||
| ROIC | 3.48% |
ROA(3y)3.94%
ROA(5y)4.78%
ROE(3y)9.1%
ROE(5y)11.44%
ROIC(3y)5.85%
ROIC(5y)6.85%
1.3 Margins
- ADM has a Profit Margin (1.34%) which is comparable to the rest of the industry.
- In the last couple of years the Profit Margin of ADM has declined.
- ADM has a Operating Margin (1.77%) which is comparable to the rest of the industry.
- ADM's Operating Margin has declined in the last couple of years.
- ADM's Gross Margin of 6.27% is on the low side compared to the rest of the industry. ADM is outperformed by 75.86% of its industry peers.
- ADM's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.77% | ||
| PM (TTM) | 1.34% | ||
| GM | 6.27% |
OM growth 3Y-24.65%
OM growth 5Y-8.35%
PM growth 3Y-32.01%
PM growth 5Y-13.38%
GM growth 3Y-5.6%
GM growth 5Y-1.95%
2. ADM Health Analysis
2.1 Basic Checks
- ADM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- The number of shares outstanding for ADM has been increased compared to 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 3.02 indicates that ADM is not in any danger for bankruptcy at the moment.
- The Altman-Z score of ADM (3.02) is better than 70.11% of its industry peers.
- The Debt to FCF ratio of ADM is 2.00, which is a good value as it means it would take ADM, 2.00 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 2.00, ADM belongs to the top of the industry, outperforming 83.91% of the companies in the same industry.
- A Debt/Equity ratio of 0.33 indicates that ADM is not too dependend on debt financing.
- With a Debt to Equity ratio value of 0.33, ADM perfoms like the industry average, outperforming 58.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 2 | ||
| Altman-Z | 3.02 |
ROIC/WACC0.42
WACC8.27%
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 has a Current ratio (1.37) which is in line with its industry peers.
- A Quick Ratio of 0.83 indicates that ADM may have some problems paying its short term obligations.
- ADM has a Quick ratio (0.83) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 0.83 |
3. ADM Growth Analysis
3.1 Past
- The earnings per share for ADM have decreased strongly by -27.54% in the last year.
- ADM shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.97% yearly.
- Looking at the last year, ADM shows a decrease in Revenue. The Revenue has decreased by -6.15% in the last year.
- The Revenue has been growing slightly by 4.52% on average over the past years.
EPS 1Y (TTM)-27.54%
EPS 3Y-24.16%
EPS 5Y-0.97%
EPS Q2Q%-23.68%
Revenue 1Y (TTM)-6.15%
Revenue growth 3Y-7.54%
Revenue growth 5Y4.52%
Sales Q2Q%-13.68%
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 3.23% on average per year.
- ADM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.79% yearly.
EPS Next Y16.28%
EPS Next 2Y16.41%
EPS Next 3Y8.87%
EPS Next 5Y3.23%
Revenue Next Year0.09%
Revenue Next 2Y1.2%
Revenue Next 3Y0.32%
Revenue Next 5Y0.79%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. ADM Valuation Analysis
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 19.88, ADM is valued on the expensive side.
- ADM's Price/Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 25.54, ADM is valued a bit cheaper.
- A Price/Forward Earnings ratio of 17.10 indicates a rather expensive valuation of ADM.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of ADM indicates a somewhat cheap valuation: ADM is cheaper than 63.22% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of ADM to the average of the S&P500 Index (22.70), we can say ADM is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.88 | ||
| Fwd PE | 17.1 |
4.2 Price Multiples
- ADM's Enterprise Value to EBITDA is on the same level as the industry average.
- Based on the Price/Free Cash Flow ratio, ADM is valued cheaper than 89.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.78 | ||
| EV/EBITDA | 14.73 |
4.3 Compensation for Growth
- ADM's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.22
PEG (5Y)N/A
EPS Next 2Y16.41%
EPS Next 3Y8.87%
5. ADM Dividend Analysis
5.1 Amount
- With a Yearly Dividend Yield of 3.03%, ADM has a reasonable but not impressive dividend return.
- ADM's Dividend Yield is a higher than the industry average which is at 2.48.
- Compared to an average S&P500 Dividend Yield of 1.89, ADM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.03% |
5.2 History
- On average, the dividend of ADM grows each year by 7.23%, which is quite nice.
- ADM has paid a dividend for at least 10 years, which is 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)7.23%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
- ADM pays out 91.56% 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.
DP91.56%
EPS Next 2Y16.41%
EPS Next 3Y8.87%
ADM Fundamentals: All Metrics, Ratios and Statistics
67.99
+1.82 (+2.75%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)02-03 2026-02-03/bmo
Earnings (Next)05-04 2026-05-04/bmo
Inst Owners88%
Inst Owner Change2.54%
Ins Owners0.67%
Ins Owner Change4.9%
Market Cap32.72B
Revenue(TTM)80.27B
Net Income(TTM)1.08B
Analysts53
Price Target62.08 (-8.69%)
Short Float %2.7%
Short Ratio3.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.03% |
Yearly Dividend2.06
Dividend Growth(5Y)7.23%
DP91.56%
Div Incr Years34
Div Non Decr Years34
Ex-Date02-17 2026-02-17 (0.52)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.52%
Min EPS beat(2)6.8%
Max EPS beat(2)8.23%
EPS beat(4)4
Avg EPS beat(4)7.37%
Min EPS beat(4)3.39%
Max EPS beat(4)11.04%
EPS beat(8)5
Avg EPS beat(8)0.54%
EPS beat(12)8
Avg EPS beat(12)3.18%
EPS beat(16)12
Avg EPS beat(16)8.73%
Revenue beat(2)0
Avg Revenue beat(2)-7.66%
Min Revenue beat(2)-13.01%
Max Revenue beat(2)-2.32%
Revenue beat(4)0
Avg Revenue beat(4)-6.92%
Min Revenue beat(4)-13.01%
Max Revenue beat(4)-2.32%
Revenue beat(8)0
Avg Revenue beat(8)-6.13%
Revenue beat(12)0
Avg Revenue beat(12)-5.57%
Revenue beat(16)4
Avg Revenue beat(16)-2.26%
PT rev (1m)5.1%
PT rev (3m)5.28%
EPS NQ rev (1m)-1.03%
EPS NQ rev (3m)-20.2%
EPS NY rev (1m)-7.2%
EPS NY rev (3m)-8.09%
Revenue NQ rev (1m)4.79%
Revenue NQ rev (3m)-3.08%
Revenue NY rev (1m)-0.15%
Revenue NY rev (3m)-2.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.88 | ||
| Fwd PE | 17.1 | ||
| P/S | 0.41 | ||
| P/FCF | 7.78 | ||
| P/OCF | 6 | ||
| P/B | 1.44 | ||
| P/tB | 2.05 | ||
| EV/EBITDA | 14.73 |
EPS(TTM)3.42
EY5.03%
EPS(NY)3.98
Fwd EY5.85%
FCF(TTM)8.74
FCFY12.85%
OCF(TTM)11.33
OCFY16.66%
SpS166.81
BVpS47.24
TBVpS33.23
PEG (NY)1.22
PEG (5Y)N/A
Graham Number60.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.06% | ||
| ROE | 4.74% | ||
| ROCE | 4.33% | ||
| ROIC | 3.48% | ||
| ROICexc | 3.59% | ||
| ROICexgc | 4.53% | ||
| OM | 1.77% | ||
| PM (TTM) | 1.34% | ||
| GM | 6.27% | ||
| FCFM | 5.24% |
ROA(3y)3.94%
ROA(5y)4.78%
ROE(3y)9.1%
ROE(5y)11.44%
ROIC(3y)5.85%
ROIC(5y)6.85%
ROICexc(3y)6.05%
ROICexc(5y)7.06%
ROICexgc(3y)7.48%
ROICexgc(5y)8.73%
ROCE(3y)7.28%
ROCE(5y)8.51%
ROICexgc growth 3Y-28.04%
ROICexgc growth 5Y-3.03%
ROICexc growth 3Y-28.64%
ROICexc growth 5Y-4.03%
OM growth 3Y-24.65%
OM growth 5Y-8.35%
PM growth 3Y-32.01%
PM growth 5Y-13.38%
GM growth 3Y-5.6%
GM growth 5Y-1.95%
F-Score4
Asset Turnover1.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 2 | ||
| Debt/EBITDA | 2.84 | ||
| Cap/Depr | 105.67% | ||
| Cap/Sales | 1.55% | ||
| Interest Coverage | 2.26 | ||
| Cash Conversion | 209.29% | ||
| Profit Quality | 389.98% | ||
| Current Ratio | 1.37 | ||
| Quick Ratio | 0.83 | ||
| Altman-Z | 3.02 |
F-Score4
WACC8.27%
ROIC/WACC0.42
Cap/Depr(3y)127.91%
Cap/Depr(5y)125.88%
Cap/Sales(3y)1.66%
Cap/Sales(5y)1.53%
Profit Quality(3y)181.1%
Profit Quality(5y)158.67%
High Growth Momentum
Growth
EPS 1Y (TTM)-27.54%
EPS 3Y-24.16%
EPS 5Y-0.97%
EPS Q2Q%-23.68%
EPS Next Y16.28%
EPS Next 2Y16.41%
EPS Next 3Y8.87%
EPS Next 5Y3.23%
Revenue 1Y (TTM)-6.15%
Revenue growth 3Y-7.54%
Revenue growth 5Y4.52%
Sales Q2Q%-13.68%
Revenue Next Year0.09%
Revenue Next 2Y1.2%
Revenue Next 3Y0.32%
Revenue Next 5Y0.79%
EBIT growth 1Y-31.27%
EBIT growth 3Y-30.34%
EBIT growth 5Y-4.21%
EBIT Next Year183.98%
EBIT Next 3Y43.29%
EBIT Next 5Y25.55%
FCF growth 1Y242.62%
FCF growth 3Y24.87%
FCF growth 5YN/A
OCF growth 1Y95.41%
OCF growth 3Y16.17%
OCF growth 5YN/A
ARCHER-DANIELS-MIDLAND CO / ADM Fundamental Analysis FAQ
What is the fundamental rating for ADM stock?
ChartMill assigns a fundamental rating of 5 / 10 to ADM.
What is the valuation status for ADM stock?
ChartMill assigns a valuation rating of 4 / 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 grow by 16.28% 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 91.56%.