ARCHER-DANIELS-MIDLAND CO (ADM) Stock Fundamental Analysis
USA - NYSE:ADM - US0394831020 - Common Stock
56.8 USD
+0.08 (+0.14%)
Taking everything into account, ADM scores 5 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 is valued correctly, 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.
ADM had positive earnings in each of the past 5 years.
Of the past 5 years ADM 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.11%, ADM is in line with its industry, outperforming 47.13% of the companies in the same industry.
ADM has a Return On Equity (4.90%) which is in line with its industry peers.
ADM has a Return On Invested Capital (3.67%) which is in line with its industry peers.
ADM had an Average Return On Invested Capital over the past 3 years of 7.66%. This is significantly below the industry average of 28.25%.
| 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's Profit Margin of 1.33% is in line compared to the rest of the industry. ADM outperforms 43.68% of its industry peers.
In the last couple of years the Profit Margin of ADM has remained more or less at the same level.
ADM has a Operating Margin of 1.91%. 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 6.37% is on the low side compared to the rest of the industry. ADM is outperformed by 79.31% of its industry peers.
ADM's Gross Margin has been stable in the last couple of years.
| 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
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.
Compared to 5 years ago, ADM has less shares outstanding
ADM has a worse 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.
ADM has a Altman-Z score of 3.02. This is in the better half of the industry: ADM outperforms 65.52% 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 82.76% of its industry peers.
A Debt/Equity ratio of 0.38 indicates that ADM is not too dependend on debt financing.
ADM has a Debt to Equity ratio of 0.38. This is comparable to the rest of the industry: ADM outperforms 54.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 2.25 | ||
| Altman-Z | 3.02 |
ROIC/WACC0.45
WACC8.13%
2.3 Liquidity
ADM has a Current Ratio of 1.42. 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 (1.42) which is comparable to the rest of the industry.
A Quick Ratio of 0.90 indicates that ADM may have some problems paying its short term obligations.
With a Quick ratio value of 0.90, ADM perfoms like the industry average, outperforming 52.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.42 | ||
| Quick Ratio | 0.9 |
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%.
The Earnings Per Share has been growing by 12.32% on average over the past years. This is quite good.
Looking at the last year, ADM shows a decrease in Revenue. The Revenue has decreased by -8.95% in the last 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)-8.95%
Revenue growth 3Y0.11%
Revenue growth 5Y5.76%
Sales Q2Q%2.18%
3.2 Future
The Earnings Per Share is expected to grow by 0.03% on average over the next years.
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
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 15.39, ADM is valued correctly.
Based on the Price/Earnings ratio, ADM is valued a bit cheaper than the industry average as 65.52% of the companies are valued more expensively.
ADM is valuated rather cheaply when we compare the Price/Earnings ratio to 25.67, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 12.19, which indicates a correct valuation of ADM.
Based on the Price/Forward Earnings ratio, ADM is valued a bit cheaper than 77.01% of the companies in the same industry.
ADM's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 31.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.39 | ||
| Fwd PE | 12.19 |
4.2 Price Multiples
ADM's Enterprise Value to EBITDA is on the same level as 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 89.66% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.64 | ||
| EV/EBITDA | 12.63 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.25
EPS Next 2Y-0.63%
EPS Next 3Y2.16%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.60%, ADM has a reasonable but not impressive dividend return.
ADM's Dividend Yield is a higher than the industry average which is at 5.27.
ADM's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.6% |
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 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 2Y-0.63%
EPS Next 3Y2.16%
NYSE:ADM (11/7/2025, 3:03:33 PM)
56.8
+0.08 (+0.14%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners84.35%
Inst Owner Change0.96%
Ins Owners0.59%
Ins Owner Change-0.79%
Market Cap27.29B
Revenue(TTM)85.53B
Net Income(TTM)1.10B
Analysts66.25
Price Target59.55 (4.84%)
Short Float %2.61%
Short Ratio3.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.6% |
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)0.96%
PT rev (3m)14.12%
EPS NQ rev (1m)0.73%
EPS NQ rev (3m)-25.44%
EPS NY rev (1m)-3.96%
EPS NY rev (3m)-3.94%
Revenue NQ rev (1m)-0.15%
Revenue NQ rev (3m)-1.78%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-0.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.39 | ||
| Fwd PE | 12.19 | ||
| P/S | 0.33 | ||
| P/FCF | 6.64 | ||
| P/OCF | 4.89 | ||
| P/B | 1.22 | ||
| P/tB | 1.77 | ||
| EV/EBITDA | 12.63 |
EPS(TTM)3.69
EY6.5%
EPS(NY)4.66
Fwd EY8.21%
FCF(TTM)8.55
FCFY15.06%
OCF(TTM)11.61
OCFY20.44%
SpS172.28
BVpS46.68
TBVpS32.04
PEG (NY)N/A
PEG (5Y)1.25
Graham Number62.26
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%
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 Turnover1.59
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 | 3.02 |
F-Score4
WACC8.13%
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-17.85%
EPS Next 2Y-0.63%
EPS Next 3Y2.16%
EPS Next 5Y0.03%
Revenue 1Y (TTM)-8.95%
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-47.49%
EBIT growth 3Y-11.91%
EBIT growth 5Y4.61%
EBIT Next Year81.69%
EBIT Next 3Y26.8%
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
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 15.39 and the Price/Book (PB) ratio is 1.22.
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.