ARCHER-DANIELS-MIDLAND CO (ADM) Stock Fundamental Analysis
USA - NYSE:ADM - US0394831020 - Common Stock
60.83 USD
-0.26 (-0.43%)
60.83 USD
0 (0%)
Taking everything into account, ADM scores 5 out of 10 in our fundamental rating. ADM was compared to 89 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 it does not seem to be growing.
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
ADM has a Return On Assets (2.11%) which is in line with its industry peers.
The Return On Equity of ADM (4.90%) is comparable to the rest of the industry.
The Return On Invested Capital of ADM (3.67%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for ADM is significantly below the industry average of 28.31%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.11% | ||
| ROE | 4.9% | ||
| ROIC | 3.67% |
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 (1.33%) which is in line with its industry peers.
ADM's Profit Margin has been stable in the last couple of years.
ADM has a Operating Margin of 1.91%. This is comparable to the rest of the industry: ADM outperforms 42.70% 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 (6.37%) is worse than 79.78% 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 | 1.91% | ||
| PM (TTM) | 1.33% | ||
| GM | 6.37% |
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
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 reduced compared to 1 year ago.
The number of shares outstanding for ADM has been reduced compared to 5 years ago.
ADM has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.06 indicates that ADM is not in any danger for bankruptcy at the moment.
The Altman-Z score of ADM (3.06) is better than 65.17% of its industry peers.
ADM has a debt to FCF ratio of 2.25. This is a good value and a sign of high solvency as ADM would need 2.25 years to pay back of all of its debts.
The Debt to FCF ratio of ADM (2.25) is better than 83.15% of its industry peers.
ADM has a Debt/Equity ratio of 0.38. This is a healthy value indicating a solid balance between debt and equity.
ADM has a Debt to Equity ratio of 0.38. This is comparable to the rest of the industry: ADM outperforms 56.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 2.25 | ||
| Altman-Z | 3.06 |
ROIC/WACC0.45
WACC8.08%
2.3 Liquidity
A Current Ratio of 1.42 indicates that ADM should not have too much problems paying its short term obligations.
The Current ratio of ADM (1.42) is comparable to the rest of the industry.
ADM has a Quick Ratio of 1.42. This is a bad value and indicates that ADM is not financially healthy enough and could expect problems in meeting its short term obligations.
ADM has a Quick ratio of 0.90. This is comparable to the rest of the industry: ADM outperforms 53.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.42 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
The earnings per share for ADM have decreased strongly by -29.56% in the last year.
The Earnings Per Share has been growing by 12.32% on average over the past years. This is quite good.
ADM shows a decrease in Revenue. In the last year, the revenue decreased by -6.75%.
The Revenue has been growing slightly by 5.76% on average over the past years.
EPS 1Y (TTM)-29.56%
EPS 3Y-3.11%
EPS 5Y12.32%
EPS Q2Q%-9.71%
Revenue 1Y (TTM)-6.75%
Revenue growth 3Y0.11%
Revenue growth 5Y5.76%
Sales Q2Q%-4.86%
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 0.03% on average per year.
The Revenue is expected to grow by 0.09% on average over the next years.
EPS Next Y-14.47%
EPS Next 2Y0.07%
EPS Next 3Y2.38%
EPS Next 5Y0.03%
Revenue Next Year-2.42%
Revenue Next 2Y0.34%
Revenue Next 3Y1.55%
Revenue Next 5Y0.09%
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
With a Price/Earnings ratio of 15.76, ADM is valued correctly.
Based on the Price/Earnings ratio, ADM is valued a bit cheaper than 67.42% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.41. ADM is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 12.87, which indicates a correct valuation of ADM.
Based on the Price/Forward Earnings ratio, ADM is valued a bit cheaper than 75.28% of the companies in the same industry.
ADM's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.76 | ||
| Fwd PE | 12.87 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ADM.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ADM indicates a rather cheap valuation: ADM is cheaper than 89.89% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.11 | ||
| EV/EBITDA | 13.4 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.28
EPS Next 2Y0.07%
EPS Next 3Y2.38%
5. Dividend
5.1 Amount
ADM has a Yearly Dividend Yield of 3.32%.
ADM's Dividend Yield is a higher than the industry average which is at 5.03.
ADM's Dividend Yield is a higher than the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.32% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)7.05%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
88.90% 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.
DP88.9%
EPS Next 2Y0.07%
EPS Next 3Y2.38%
60.83
-0.26 (-0.43%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners83.52%
Inst Owner Change-0.25%
Ins Owners0.6%
Ins Owner Change-1.45%
Market Cap29.23B
Analysts66.25
Price Target58.98 (-3.04%)
Short Float %1.78%
Short Ratio2.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.32% |
Yearly Dividend1.99
Dividend Growth(5Y)7.05%
DP88.9%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.22%
Min EPS beat(2)3.39%
Max EPS beat(2)11.04%
EPS beat(4)2
Avg EPS beat(4)-0.15%
Min EPS beat(4)-13.33%
Max EPS beat(4)11.04%
EPS beat(8)4
Avg EPS beat(8)-1.29%
EPS beat(12)8
Avg EPS beat(12)5.57%
EPS beat(16)12
Avg EPS beat(16)8.84%
Revenue beat(2)0
Avg Revenue beat(2)-6.17%
Min Revenue beat(2)-8.97%
Max Revenue beat(2)-3.37%
Revenue beat(4)0
Avg Revenue beat(4)-6.48%
Min Revenue beat(4)-8.97%
Max Revenue beat(4)-3.37%
Revenue beat(8)0
Avg Revenue beat(8)-5.85%
Revenue beat(12)2
Avg Revenue beat(12)-3.4%
Revenue beat(16)6
Avg Revenue beat(16)0.12%
PT rev (1m)10.39%
PT rev (3m)18.01%
EPS NQ rev (1m)1.32%
EPS NQ rev (3m)-25.54%
EPS NY rev (1m)0.02%
EPS NY rev (3m)0.2%
Revenue NQ rev (1m)-1.66%
Revenue NQ rev (3m)-0.92%
Revenue NY rev (1m)-0.71%
Revenue NY rev (3m)-0.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.76 | ||
| Fwd PE | 12.87 | ||
| P/S | 0.35 | ||
| P/FCF | 7.11 | ||
| P/OCF | 5.24 | ||
| P/B | 1.3 | ||
| P/tB | 1.9 | ||
| EV/EBITDA | 13.4 |
EPS(TTM)3.86
EY6.35%
EPS(NY)4.73
Fwd EY7.77%
FCF(TTM)8.55
FCFY14.06%
OCF(TTM)11.61
OCFY19.09%
SpS172.28
BVpS46.68
TBVpS32.04
PEG (NY)N/A
PEG (5Y)1.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.11% | ||
| ROE | 4.9% | ||
| ROCE | 4.72% | ||
| ROIC | 3.67% | ||
| ROICexc | 3.79% | ||
| ROICexgc | 4.8% | ||
| OM | 1.91% | ||
| PM (TTM) | 1.33% | ||
| GM | 6.37% | ||
| FCFM | 4.96% |
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%
ROICexcg growth 3Y-12.07%
ROICexcg 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 Turnover1.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 2.25 | ||
| Debt/EBITDA | 3.09 | ||
| Cap/Depr | 127.41% | ||
| Cap/Sales | 1.77% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 203.95% | ||
| Profit Quality | 373.89% | ||
| Current Ratio | 1.42 | ||
| Quick Ratio | 0.9 | ||
| Altman-Z | 3.06 |
F-Score4
WACC8.08%
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)-29.56%
EPS 3Y-3.11%
EPS 5Y12.32%
EPS Q2Q%-9.71%
EPS Next Y-14.47%
EPS Next 2Y0.07%
EPS Next 3Y2.38%
EPS Next 5Y0.03%
Revenue 1Y (TTM)-6.75%
Revenue growth 3Y0.11%
Revenue growth 5Y5.76%
Sales Q2Q%-4.86%
Revenue Next Year-2.42%
Revenue Next 2Y0.34%
Revenue Next 3Y1.55%
Revenue Next 5Y0.09%
EBIT growth 1Y-47.49%
EBIT growth 3Y-11.91%
EBIT growth 5Y4.61%
EBIT Next Year81.82%
EBIT Next 3Y25.8%
EBIT Next 5Y13.87%
FCF growth 1Y13.54%
FCF growth 3Y-39.08%
FCF growth 5YN/A
OCF growth 1Y10.41%
OCF growth 3Y-24.93%
OCF growth 5YN/A