ARCHER-DANIELS-MIDLAND CO (ADM.DE) Stock Fundamental Analysis
FRA:ADM - Deutsche Boerse Ag - US0394831020 - Common Stock - Currency: EUR
Taking everything into account, ADM scores 3 out of 10 in our fundamental rating. ADM was compared to 59 industry peers in the Food Products industry. ADM has a medium profitability rating, but doesn't score so well on its financial health evaluation. ADM has a valuation in line with the averages, but on the other hand it scores bad on growth. Finally ADM also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year ADM was profitable.
In the past year ADM had a positive cash flow from operations.
In the past 5 years ADM has always been profitable.
ADM had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a Return On Assets value of 2.56%, ADM perfoms like the industry average, outperforming 49.15% of the companies in the same industry.
With a Return On Equity value of 6.18%, ADM perfoms like the industry average, outperforming 50.85% of the companies in the same industry.
With a Return On Invested Capital value of 3.57%, ADM is not doing good in the industry: 62.71% of the companies in the same industry are doing better.
ADM had an Average Return On Invested Capital over the past 3 years of 7.66%. This is in line with the industry average of 6.44%.
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
ADM has a Profit Margin (1.63%) which is in line with 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 worse Operating Margin (1.92%) than 67.80% 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 has a worse Gross Margin (6.32%) than 93.22% 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
ADM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, ADM has less shares outstanding
Compared to 5 years ago, ADM has less shares outstanding
Compared to 1 year ago, ADM has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.86 indicates that ADM is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of ADM (2.86) is better than 74.58% of its industry peers.
The Debt to FCF ratio of ADM is 49.84, which is on the high side as it means it would take ADM, 49.84 years of fcf income to pay off 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 66.10% of its industry peers.
A Debt/Equity ratio of 0.47 indicates that ADM is not too dependend on debt financing.
ADM's Debt to Equity ratio of 0.47 is in line compared to the rest of the industry. ADM outperforms 59.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 49.84 | ||
| Altman-Z | 2.86 |
ROIC/WACC0.44
WACC8.21%
2.3 Liquidity
A Current Ratio of 1.38 indicates that ADM should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.38, ADM is in line with its industry, outperforming 49.15% of the companies in the same industry.
A Quick Ratio of 0.81 indicates that ADM may have some problems paying its short term obligations.
With a Quick ratio value of 0.81, ADM is not doing good in the industry: 61.02% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.38 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
ADM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -37.54%.
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 -8.56%.
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)-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 -0.83% on average per year.
The Revenue is expected to decrease by -0.59% on average over the next years.
EPS Next Y-14.64%
EPS Next 2Y-1.76%
EPS Next 3Y0.58%
EPS Next 5Y-0.83%
Revenue Next Year-2.21%
Revenue Next 2Y0.23%
Revenue Next 3Y1.15%
Revenue Next 5Y-0.59%
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
The Price/Earnings ratio is 12.06, which indicates a correct valuation of ADM.
71.19% of the companies in the same industry are more expensive than ADM, based on the Price/Earnings ratio.
ADM's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.25.
ADM is valuated reasonably with a Price/Forward Earnings ratio of 10.48.
67.80% of the companies in the same industry are more expensive than ADM, based on the Price/Forward Earnings ratio.
ADM is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.15, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.06 | ||
| Fwd PE | 10.48 |
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 slightly more expensive valuation: ADM is more expensive than 66.10% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 103.36 | ||
| EV/EBITDA | 11.01 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.98
EPS Next 2Y-1.76%
EPS Next 3Y0.58%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.22%, ADM is a good candidate for dividend investing.
ADM's Dividend Yield is rather good when compared to the industry average which is at 3.21. ADM pays more dividend than 81.36% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, ADM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.22% |
5.2 History
On average, the dividend of ADM grows each year by 7.05%, which is quite nice.
Dividend Growth(5Y)7.05%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
71.38% of the earnings are spent on dividend by ADM. 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-1.76%
EPS Next 3Y0.58%
FRA:ADM (5/30/2025, 7:00:00 PM)
42.335
+0.02 (+0.04%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners81.96%
Inst Owner ChangeN/A
Ins Owners0.55%
Ins Owner ChangeN/A
Market Cap20.34B
Analysts51.58
Price Target44.66 (5.49%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.22% |
Yearly Dividend1.76
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)-8.16%
PT rev (3m)-15.97%
EPS NQ rev (1m)-15.08%
EPS NQ rev (3m)-15.98%
EPS NY rev (1m)-3.92%
EPS NY rev (3m)-5.63%
Revenue NQ rev (1m)-6.31%
Revenue NQ rev (3m)-6.32%
Revenue NY rev (1m)-3.95%
Revenue NY rev (3m)-4.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.06 | ||
| Fwd PE | 10.48 | ||
| P/S | 0.27 | ||
| P/FCF | 103.36 | ||
| P/OCF | 13.13 | ||
| P/B | 1.04 | ||
| P/tB | 1.51 | ||
| EV/EBITDA | 11.01 |
EPS(TTM)3.51
EY8.29%
EPS(NY)4.04
Fwd EY9.54%
FCF(TTM)0.41
FCFY0.97%
OCF(TTM)3.23
OCFY7.62%
SpS154.72
BVpS40.81
TBVpS28.13
PEG (NY)N/A
PEG (5Y)0.98
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 | 2.86 |
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-14.64%
EPS Next 2Y-1.76%
EPS Next 3Y0.58%
EPS Next 5Y-0.83%
Revenue 1Y (TTM)-8.56%
Revenue growth 3Y0.11%
Revenue growth 5Y5.76%
Sales Q2Q%-7.65%
Revenue Next Year-2.21%
Revenue Next 2Y0.23%
Revenue Next 3Y1.15%
Revenue Next 5Y-0.59%
EBIT growth 1Y-54.8%
EBIT growth 3Y-11.91%
EBIT growth 5Y4.61%
EBIT Next Year83.39%
EBIT Next 3Y27.02%
EBIT Next 5Y16.03%
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