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Why NYSE:ADM provides a good dividend, while having solid fundamentals.

By Mill Chart

Last update: Mar 28, 2024

ARCHER-DANIELS-MIDLAND CO (NYSE:ADM) was identified as a stock worth exploring by dividend investors by our stock screener. NYSE:ADM scores well on profitability, solvency and liquidity. At the same time it seems to pay a decent dividend. We'll explore this a bit deeper below.

Deciphering NYSE:ADM's Dividend Rating

ChartMill employs its own Dividend Rating system for all stocks. This score, on a scale of 0 to 10, is determined by evaluating different dividend factors, such as yield, historical performance, dividend growth, and sustainability. NYSE:ADM has been assigned a 7 for dividend:

  • Compared to an average industry Dividend Yield of 3.36, ADM pays a better dividend. On top of this ADM pays more dividend than 80.22% of the companies listed in the same industry.
  • ADM's Dividend Yield is a higher than the S&P500 average which is at 2.34.
  • The dividend of ADM is nicely growing with an annual growth rate of 6.30%!
  • 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.
  • ADM pays out 28.05% of its income as dividend. This is a sustainable payout ratio.

Health Insights: NYSE:ADM

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NYSE:ADM, the assigned 6 reflects its health status:

  • An Altman-Z score of 3.44 indicates that ADM is not in any danger for bankruptcy at the moment.
  • ADM has a Altman-Z score of 3.44. This is in the better half of the industry: ADM outperforms 76.92% of its industry peers.
  • The Debt to FCF ratio of ADM is 2.82, which is a good value as it means it would take ADM, 2.82 years of fcf income to pay off all of its debts.
  • The Debt to FCF ratio of ADM (2.82) is better than 81.32% of its industry peers.
  • A Debt/Equity ratio of 0.35 indicates that ADM is not too dependend on debt financing.

How do we evaluate the Profitability for NYSE:ADM?

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:ADM scores a 7 out of 10:

  • The Return On Assets of ADM (6.38%) is better than 74.73% of its industry peers.
  • Looking at the Return On Equity, with a value of 14.43%, ADM is in the better half of the industry, outperforming 75.82% of the companies in the same industry.
  • The Return On Invested Capital of ADM (9.23%) is better than 84.62% of its industry peers.
  • The last Return On Invested Capital (9.23%) for ADM is above the 3 year average (8.63%), which is a sign of increasing profitability.
  • In the last couple of years the Profit Margin of ADM has grown nicely.
  • ADM has a better Operating Margin (4.32%) than 60.44% of its industry peers.
  • ADM's Operating Margin has improved in the last couple of years.
  • ADM's Gross Margin has improved in the last couple of years.

Every day, new Best Dividend stocks can be found on ChartMill in our Best Dividend screener.

Our latest full fundamental report of ADM contains the most current fundamental analsysis.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.

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ARCHER-DANIELS-MIDLAND CO

NYSE:ADM (5/24/2024, 7:12:30 PM)

After market: 60.49 0 (0%)

60.49

-0.23 (-0.38%)

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