ARCHER-DANIELS-MIDLAND CO (ADM.DE) Stock Fundamental Analysis
FRA:ADM - Deutsche Boerse Ag - US0394831020 - Common Stock - Currency: EUR
Overall ADM gets a fundamental rating of 3 out of 10. We evaluated ADM against 57 industry peers in the Food Products industry. There are concerns on the financial health of ADM while its profitability can be described as average. ADM is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
ADM had positive earnings in the past year.
In the past year ADM had a positive cash flow from operations.
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 of 2.56%. This is comparable to the rest of the industry: ADM outperforms 45.61% of its industry peers.
ADM has a Return On Equity (6.18%) which is in line with its industry peers.
Looking at the Return On Invested Capital, with a value of 3.57%, ADM is doing worse than 64.91% 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 6.98%.
The 3 year average ROIC (7.66%) for ADM is well above the current ROIC(3.57%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.56% | ||
| ROE | 6.18% | ||
| ROIC | 3.57% |
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
Looking at the Profit Margin, with a value of 1.63%, ADM is doing worse than 61.40% 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 1.92%, ADM is not doing good in the industry: 68.42% 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.
The Gross Margin of ADM (6.32%) is worse than 92.98% of its industry peers.
ADM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.92% | ||
| PM (TTM) | 1.63% | ||
| GM | 6.32% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ADM is destroying value.
ADM has less shares outstanding than it did 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
An Altman-Z score of 2.92 indicates that ADM is not a great score, but indicates only limited risk for bankruptcy at the moment.
ADM has a Altman-Z score of 2.92. This is in the better half of the industry: ADM outperforms 78.95% of its industry peers.
ADM has a debt to FCF ratio of 49.84. This is a negative value and a sign of low solvency as ADM would need 49.84 years to pay back of all of its debts.
ADM's Debt to FCF ratio of 49.84 is on the low side compared to the rest of the industry. ADM is outperformed by 68.42% of its industry peers.
ADM has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
ADM's Debt to Equity ratio of 0.47 is in line compared to the rest of the industry. ADM outperforms 57.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 49.84 | ||
| Altman-Z | 2.92 |
ROIC/WACC0.44
WACC8.21%
2.3 Liquidity
ADM has a Current Ratio of 1.38. This is a normal value and indicates that ADM is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.38, ADM is in line with its industry, outperforming 50.88% of the companies in the same industry.
ADM has a Quick Ratio of 1.38. 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 (0.81) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.38 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
The earnings per share for ADM have decreased strongly by -37.54% in the last year.
Measured over the past years, ADM shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.32% on average per year.
ADM shows a decrease in Revenue. In the last year, the revenue decreased by -8.56%.
The Revenue has been growing slightly by 5.76% on average over the past years.
EPS 1Y (TTM)-37.54%
EPS 3Y-3.11%
EPS 5Y12.32%
EPS Q2Q%-52.05%
Revenue 1Y (TTM)-8.56%
Revenue growth 3Y0.11%
Revenue growth 5Y5.76%
Sales Q2Q%-7.65%
3.2 Future
Based on estimates for the next years, ADM will show a decrease in Earnings Per Share. The EPS will decrease by -0.45% on average per year.
ADM is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.26% yearly.
EPS Next Y-14.49%
EPS Next 2Y-1.99%
EPS Next 3Y0.67%
EPS Next 5Y-0.45%
Revenue Next Year-2.03%
Revenue Next 2Y0.41%
Revenue Next 3Y1.54%
Revenue Next 5Y-0.26%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
ADM is valuated correctly with a Price/Earnings ratio of 13.72.
Compared to the rest of the industry, the Price/Earnings ratio of ADM indicates a somewhat cheap valuation: ADM is cheaper than 64.91% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.41. ADM is valued slightly cheaper when compared to this.
ADM is valuated reasonably with a Price/Forward Earnings ratio of 11.98.
The rest of the industry has a similar Price/Forward Earnings ratio as ADM.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.19, ADM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.72 | ||
| Fwd PE | 11.98 |
4.2 Price Multiples
61.40% of the companies in the same industry are cheaper than ADM, based on the Enterprise Value to EBITDA ratio.
ADM's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. ADM is more expensive than 68.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 117.6 | ||
| EV/EBITDA | 12.13 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.11
EPS Next 2Y-1.99%
EPS Next 3Y0.67%
5. Dividend
5.1 Amount
ADM has a Yearly Dividend Yield of 3.72%.
Compared to an average industry Dividend Yield of 3.34, ADM pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.35, ADM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.72% |
5.2 History
The dividend of ADM is nicely growing with an annual growth rate of 7.05%!
Dividend Growth(5Y)7.05%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
ADM pays out 71.38% of its income as dividend. This is not a sustainable payout ratio.
ADM's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP71.38%
EPS Next 2Y-1.99%
EPS Next 3Y0.67%
FRA:ADM (7/11/2025, 7:00:00 PM)
46.51
-0.71 (-1.5%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners84.05%
Inst Owner ChangeN/A
Ins Owners0.6%
Ins Owner ChangeN/A
Market Cap22.35B
Analysts52.22
Price Target43.93 (-5.55%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.72% |
Yearly Dividend1.7
Dividend Growth(5Y)7.05%
DP71.38%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.85%
Min EPS beat(2)-1.69%
Max EPS beat(2)3.39%
EPS beat(4)1
Avg EPS beat(4)-6.95%
Min EPS beat(4)-16.17%
Max EPS beat(4)3.39%
EPS beat(8)4
Avg EPS beat(8)-0.52%
EPS beat(12)8
Avg EPS beat(12)6.66%
EPS beat(16)12
Avg EPS beat(16)9.91%
Revenue beat(2)0
Avg Revenue beat(2)-7.52%
Min Revenue beat(2)-8.97%
Max Revenue beat(2)-6.07%
Revenue beat(4)0
Avg Revenue beat(4)-6.88%
Min Revenue beat(4)-8.97%
Max Revenue beat(4)-4.96%
Revenue beat(8)0
Avg Revenue beat(8)-5.89%
Revenue beat(12)3
Avg Revenue beat(12)-2.51%
Revenue beat(16)7
Avg Revenue beat(16)1.7%
PT rev (1m)0.21%
PT rev (3m)-9.66%
EPS NQ rev (1m)-3.21%
EPS NQ rev (3m)-17.8%
EPS NY rev (1m)0.18%
EPS NY rev (3m)-4.45%
Revenue NQ rev (1m)-0.71%
Revenue NQ rev (3m)-6.98%
Revenue NY rev (1m)0.18%
Revenue NY rev (3m)-4.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.72 | ||
| Fwd PE | 11.98 | ||
| P/S | 0.31 | ||
| P/FCF | 117.6 | ||
| P/OCF | 14.94 | ||
| P/B | 1.18 | ||
| P/tB | 1.71 | ||
| EV/EBITDA | 12.13 |
EPS(TTM)3.39
EY7.29%
EPS(NY)3.88
Fwd EY8.34%
FCF(TTM)0.4
FCFY0.85%
OCF(TTM)3.11
OCFY6.7%
SpS149.4
BVpS39.41
TBVpS27.16
PEG (NY)N/A
PEG (5Y)1.11
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.56% | ||
| ROE | 6.18% | ||
| ROCE | 4.85% | ||
| ROIC | 3.57% | ||
| ROICexc | 3.67% | ||
| ROICexgc | 4.56% | ||
| OM | 1.92% | ||
| PM (TTM) | 1.63% | ||
| GM | 6.32% | ||
| FCFM | 0.26% |
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-Score5
Asset Turnover1.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 49.84 | ||
| Debt/EBITDA | 3.75 | ||
| Cap/Depr | 132.93% | ||
| Cap/Sales | 1.82% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 63.33% | ||
| Profit Quality | 16.25% | ||
| Current Ratio | 1.38 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z | 2.92 |
F-Score5
WACC8.21%
ROIC/WACC0.44
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)-37.54%
EPS 3Y-3.11%
EPS 5Y12.32%
EPS Q2Q%-52.05%
EPS Next Y-14.49%
EPS Next 2Y-1.99%
EPS Next 3Y0.67%
EPS Next 5Y-0.45%
Revenue 1Y (TTM)-8.56%
Revenue growth 3Y0.11%
Revenue growth 5Y5.76%
Sales Q2Q%-7.65%
Revenue Next Year-2.03%
Revenue Next 2Y0.41%
Revenue Next 3Y1.54%
Revenue Next 5Y-0.26%
EBIT growth 1Y-54.8%
EBIT growth 3Y-11.91%
EBIT growth 5Y4.61%
EBIT Next Year83.39%
EBIT Next 3Y27.02%
EBIT Next 5Y12.75%
FCF growth 1Y-86.5%
FCF growth 3Y-39.08%
FCF growth 5YN/A
OCF growth 1Y-43.14%
OCF growth 3Y-24.93%
OCF growth 5YN/A