ARCHER-DANIELS-MIDLAND CO (ADM) Stock Fundamental Analysis
NYSE:ADM - New York Stock Exchange, Inc. - US0394831020 - Common Stock - Currency: USD
Taking everything into account, ADM scores 4 out of 10 in our fundamental rating. ADM was compared to 91 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. ADM also has an excellent dividend rating.
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 (5.01%) is better than 64.71% of its industry peers.
Looking at the Return On Equity, with a value of 8.12%, ADM is in line with its industry, outperforming 58.82% of the companies in the same industry.
With a Return On Invested Capital value of 4.55%, ADM perfoms like the industry average, outperforming 42.35% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ADM is in line with the industry average of 9.02%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.01% | ||
| ROE | 8.12% | ||
| ROIC | 4.55% |
ROA(3y)6.22%
ROA(5y)5.41%
ROE(3y)13.47%
ROE(5y)12.27%
ROIC(3y)7.62%
ROIC(5y)6.79%
1.3 Margins
With a Profit Margin value of 2.10%, ADM perfoms like the industry average, outperforming 42.35% of the companies in the same industry.
ADM's Profit Margin has been stable in the last couple of years.
With a Operating Margin value of 2.40%, ADM is not doing good in the industry: 64.71% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of ADM has remained more or less at the same level.
ADM has a Gross Margin of 6.73%. This is in the lower half of the industry: ADM underperforms 78.82% of its industry peers.
ADM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.4% | ||
| PM (TTM) | 2.1% | ||
| GM | 6.73% |
OM growth 3Y-12.27%
OM growth 5Y-1.27%
PM growth 3Y-12.83%
PM growth 5Y-0.27%
GM growth 3Y-1.43%
GM growth 5Y0.95%
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.
The debt/assets ratio for ADM is higher compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of ADM is 8.35, which is on the high side as it means it would take ADM, 8.35 years of fcf income to pay off all of its debts.
ADM has a Debt to FCF ratio (8.35) which is comparable to the rest of the industry.
ADM has a Debt/Equity ratio of 0.46. This is a healthy value indicating a solid balance between debt and equity.
ADM has a Debt to Equity ratio of 0.46. This is comparable to the rest of the industry: ADM outperforms 50.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 8.35 | ||
| Altman-Z | N/A |
ROIC/WACC0.59
WACC7.66%
2.3 Liquidity
A Current Ratio of 5.44 indicates that ADM has no problem at all paying its short term obligations.
With an excellent Current ratio value of 5.44, ADM belongs to the best of the industry, outperforming 95.29% of the companies in the same industry.
ADM has a Quick Ratio of 5.44. This indicates that ADM is financially healthy and has no problem in meeting its short term obligations.
ADM's Quick ratio of 5.44 is amongst the best of the industry. ADM outperforms 96.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.44 | ||
| Quick Ratio | 5.44 |
3. Growth
3.1 Past
The earnings per share for ADM have decreased strongly by -32.28% in the last year.
ADM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.32% yearly.
ADM shows a decrease in Revenue. In the last year, the revenue decreased by -8.95%.
The Revenue has been growing slightly by 5.76% on average over the past years.
EPS 1Y (TTM)-32.28%
EPS 3Y-3.11%
EPS 5Y12.32%
EPS Q2Q%-16.18%
Revenue 1Y (TTM)-8.95%
Revenue growth 3Y0.11%
Revenue growth 5Y5.76%
Sales Q2Q%-6.44%
3.2 Future
ADM is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.72% yearly.
Based on estimates for the next years, ADM will show a decrease in Revenue. The Revenue will decrease by -0.40% on average per year.
EPS Next Y-9.55%
EPS Next 2Y0.12%
EPS Next 3Y0.68%
EPS Next 5Y-0.72%
Revenue Next Year2.42%
Revenue Next 2Y2%
Revenue Next 3Y-0.17%
Revenue Next 5Y-0.4%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 10.21, the valuation of ADM can be described as reasonable.
ADM's Price/Earnings ratio is rather cheap when compared to the industry. ADM is cheaper than 84.71% of the companies in the same industry.
When comparing the Price/Earnings ratio of ADM to the average of the S&P500 Index (29.63), we can say ADM is valued rather cheaply.
The Price/Forward Earnings ratio is 11.29, which indicates a very decent valuation of ADM.
ADM's Price/Forward Earnings ratio is rather cheap when compared to the industry. ADM is cheaper than 85.88% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, ADM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.21 | ||
| Fwd PE | 11.29 |
4.2 Price Multiples
ADM's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ADM is cheaper than 64.71% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ADM indicates a somewhat cheap valuation: ADM is cheaper than 61.18% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.95 | ||
| EV/EBITDA | 9.22 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.83
EPS Next 2Y0.12%
EPS Next 3Y0.68%
5. Dividend
5.1 Amount
ADM has a Yearly Dividend Yield of 4.46%, which is a nice return.
ADM's Dividend Yield is rather good when compared to the industry average which is at 3.94. ADM pays more dividend than 87.06% of the companies in the same industry.
ADM's Dividend Yield is rather good when compared to the S&P500 average which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.46% |
5.2 History
On average, the dividend of ADM grows each year by 7.04%, which is quite nice.
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)7.04%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
ADM pays out 54.72% of its income as dividend. This is a bit on the high side, but may be sustainable.
ADM's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP54.72%
EPS Next 2Y0.12%
EPS Next 3Y0.68%
48.19
+1.64 (+3.52%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners81.17%
Inst Owner Change2.97%
Ins Owners0.48%
Ins Owner Change6.88%
Market Cap23.06B
Analysts50.53
Price Target56.41 (17.06%)
Short Float %1.97%
Short Ratio2.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.46% |
Yearly Dividend1.99
Dividend Growth(5Y)7.04%
DP54.72%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-7.51%
Min EPS beat(2)-13.33%
Max EPS beat(2)-1.69%
EPS beat(4)1
Avg EPS beat(4)-6.29%
Min EPS beat(4)-16.17%
Max EPS beat(4)6.01%
EPS beat(8)4
Avg EPS beat(8)1.08%
EPS beat(12)8
Avg EPS beat(12)9.19%
EPS beat(16)12
Avg EPS beat(16)11.69%
Revenue beat(2)0
Avg Revenue beat(2)-6.8%
Min Revenue beat(2)-7.52%
Max Revenue beat(2)-6.07%
Revenue beat(4)0
Avg Revenue beat(4)-5.35%
Min Revenue beat(4)-7.52%
Max Revenue beat(4)-2.85%
Revenue beat(8)0
Avg Revenue beat(8)-4.89%
Revenue beat(12)4
Avg Revenue beat(12)-0.71%
Revenue beat(16)8
Avg Revenue beat(16)3.14%
PT rev (1m)-3.18%
PT rev (3m)-10.36%
EPS NQ rev (1m)-39.58%
EPS NQ rev (3m)-50.44%
EPS NY rev (1m)-8.75%
EPS NY rev (3m)-16.69%
Revenue NQ rev (1m)-5.76%
Revenue NQ rev (3m)-8.12%
Revenue NY rev (1m)0.36%
Revenue NY rev (3m)-1.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.21 | ||
| Fwd PE | 11.29 | ||
| P/S | 0.27 | ||
| P/FCF | 18.95 | ||
| P/OCF | 8.3 | ||
| P/B | 1.04 | ||
| P/tB | 1.5 | ||
| EV/EBITDA | 9.22 |
EPS(TTM)4.72
EY9.79%
EPS(NY)4.27
Fwd EY8.86%
FCF(TTM)2.54
FCFY5.28%
OCF(TTM)5.81
OCFY12.06%
SpS178.73
BVpS46.35
TBVpS32.2
PEG (NY)N/A
PEG (5Y)0.83
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.01% | ||
| ROE | 8.12% | ||
| ROCE | 6.03% | ||
| ROIC | 4.55% | ||
| ROICexc | 4.66% | ||
| ROICexgc | 5.78% | ||
| OM | 2.4% | ||
| PM (TTM) | 2.1% | ||
| GM | 6.73% | ||
| FCFM | 1.42% |
ROA(3y)6.22%
ROA(5y)5.41%
ROE(3y)13.47%
ROE(5y)12.27%
ROIC(3y)7.62%
ROIC(5y)6.79%
ROICexc(3y)7.86%
ROICexc(5y)6.99%
ROICexgc(3y)9.67%
ROICexgc(5y)8.59%
ROCE(3y)9.72%
ROCE(5y)8.72%
ROICexcg growth 3Y-13.04%
ROICexcg growth 5Y1.98%
ROICexc growth 3Y-12.89%
ROICexc growth 5Y1.63%
OM growth 3Y-12.27%
OM growth 5Y-1.27%
PM growth 3Y-12.83%
PM growth 5Y-0.27%
GM growth 3Y-1.43%
GM growth 5Y0.95%
F-Score6
Asset Turnover2.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 8.35 | ||
| Debt/EBITDA | 3.18 | ||
| Cap/Depr | 136.99% | ||
| Cap/Sales | 1.83% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 87.15% | ||
| Profit Quality | 67.61% | ||
| Current Ratio | 5.44 | ||
| Quick Ratio | 5.44 | ||
| Altman-Z | N/A |
F-Score6
WACC7.66%
ROIC/WACC0.59
Cap/Depr(3y)135.46%
Cap/Depr(5y)121.61%
Cap/Sales(3y)1.57%
Cap/Sales(5y)1.47%
Profit Quality(3y)67.5%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-32.28%
EPS 3Y-3.11%
EPS 5Y12.32%
EPS Q2Q%-16.18%
EPS Next Y-9.55%
EPS Next 2Y0.12%
EPS Next 3Y0.68%
EPS Next 5Y-0.72%
Revenue 1Y (TTM)-8.95%
Revenue growth 3Y0.11%
Revenue growth 5Y5.76%
Sales Q2Q%-6.44%
Revenue Next Year2.42%
Revenue Next 2Y2%
Revenue Next 3Y-0.17%
Revenue Next 5Y-0.4%
EBIT growth 1Y-49.49%
EBIT growth 3Y-12.18%
EBIT growth 5Y4.42%
EBIT Next Year99.78%
EBIT Next 3Y29.71%
EBIT Next 5Y15.42%
FCF growth 1Y-58.97%
FCF growth 3Y-39.24%
FCF growth 5YN/A
OCF growth 1Y-37.67%
OCF growth 3Y-25.02%
OCF growth 5YN/A