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ARCHER-DANIELS-MIDLAND CO (ADM) Stock Fundamental Analysis

NYSE:ADM - New York Stock Exchange, Inc. - US0394831020 - Common Stock - Currency: USD

53.61  -0.38 (-0.7%)

After market: 54.1644 +0.55 (+1.03%)

Fundamental Rating

4

Taking everything into account, ADM scores 4 out of 10 in our fundamental rating. ADM was compared to 89 industry peers in the Food Products industry. Both the profitability and the financial health of ADM get a neutral evaluation. Nothing too spectacular is happening here. ADM is valued correctly, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

5

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.
Of the past 5 years ADM 4 years had a positive operating cash flow.
ADM Yearly Net Income VS EBIT VS OCF VS FCFADM Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B -2B 4B -4B 6B -6B

1.2 Ratios

ADM has a Return On Assets (2.56%) which is in line with its industry peers.
ADM's Return On Equity of 6.18% is in line compared to the rest of the industry. ADM outperforms 57.30% of its industry peers.
ADM has a Return On Invested Capital of 3.57%. This is comparable to the rest of the industry: ADM outperforms 51.69% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ADM is in line with the industry average of 7.61%.
The last Return On Invested Capital (3.57%) for ADM is well below the 3 year average (7.66%), which needs to be investigated, but indicates that ADM had better years and this may not be a problem.
Industry RankSector 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%
ADM Yearly ROA, ROE, ROICADM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15

1.3 Margins

With a Profit Margin value of 1.63%, ADM perfoms like the industry average, outperforming 50.56% of the companies in the same industry.
In the last couple of years the Profit Margin of ADM has remained more or less at the same level.
The Operating Margin of ADM (1.92%) is comparable to the rest of the industry.
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 6.32% is on the low side compared to the rest of the industry. ADM is outperformed by 82.02% of its industry peers.
In the last couple of years the Gross Margin of ADM has remained more or less at the same level.
Industry RankSector 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%
ADM Yearly Profit, Operating, Gross MarginsADM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2 4 6

4

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.
ADM has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, ADM has less shares outstanding
ADM has a worse debt/assets ratio than last year.
ADM Yearly Shares OutstandingADM Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M 500M
ADM Yearly Total Debt VS Total AssetsADM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B 40B 50B

2.2 Solvency

ADM has an Altman-Z score of 2.91. This is not the best score and indicates that ADM is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.91, ADM is in the better half of the industry, outperforming 68.54% of the companies in the same industry.
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.
The Debt to FCF ratio of ADM (49.84) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.47 indicates that ADM is not too dependend on debt financing.
The Debt to Equity ratio of ADM (0.47) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.47
Debt/FCF 49.84
Altman-Z 2.91
ROIC/WACC0.35
WACC10.23%
ADM Yearly LT Debt VS Equity VS FCFADM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10B 20B

2.3 Liquidity

A Current Ratio of 1.38 indicates that ADM should not have too much problems paying its short term obligations.
ADM has a Current ratio of 1.38. This is comparable to the rest of the industry: ADM outperforms 44.94% of its industry peers.
A Quick Ratio of 0.81 indicates that ADM may have some problems paying its short term obligations.
The Quick ratio of ADM (0.81) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 1.38
Quick Ratio 0.81
ADM Yearly Current Assets VS Current LiabilitesADM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B

1

3. Growth

3.1 Past

The earnings per share for ADM have decreased strongly by -37.54% in the last year.
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%.
ADM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.76% yearly.
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.
The Revenue is expected to decrease by -0.26% on average over the next years.
EPS Next Y-14.64%
EPS Next 2Y-1.73%
EPS Next 3Y0.72%
EPS Next 5Y-0.45%
Revenue Next Year-2.21%
Revenue Next 2Y0.23%
Revenue Next 3Y1.15%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
ADM Yearly Revenue VS EstimatesADM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 20B 40B 60B 80B 100B
ADM Yearly EPS VS EstimatesADM Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2 4 6

4

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 13.54, which indicates a correct valuation of ADM.
Compared to the rest of the industry, the Price/Earnings ratio of ADM indicates a somewhat cheap valuation: ADM is cheaper than 69.66% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.35, ADM is valued a bit cheaper.
The Price/Forward Earnings ratio is 11.76, which indicates a very decent valuation of ADM.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ADM indicates a somewhat cheap valuation: ADM is cheaper than 79.78% of the companies listed in the same industry.
ADM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.19, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 13.54
Fwd PE 11.76
ADM Price Earnings VS Forward Price EarningsADM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

ADM's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ADM is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 116.02
EV/EBITDA 12
ADM Per share dataADM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 50 100 150

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)1.1
EPS Next 2Y-1.73%
EPS Next 3Y0.72%

6

5. Dividend

5.1 Amount

ADM has a Yearly Dividend Yield of 3.78%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.63, ADM pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.42, ADM pays a better dividend.
Industry RankSector Rank
Dividend Yield 3.78%

5.2 History

On average, the dividend of ADM grows each year by 7.05%, 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)7.05%
Div Incr Years34
Div Non Decr Years34
ADM Yearly Dividends per shareADM Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5

5.3 Sustainability

ADM pays out 71.38% of its income as dividend. This is not a sustainable payout ratio.
The Dividend Rate of ADM has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP71.38%
EPS Next 2Y-1.73%
EPS Next 3Y0.72%
ADM Yearly Income VS Free CF VS DividendADM Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B -2B 4B -4B -6B
ADM Dividend Payout.ADM Dividend Payout, showing the Payout Ratio.ADM Dividend Payout.PayoutRetained Earnings

ARCHER-DANIELS-MIDLAND CO

NYSE:ADM (6/20/2025, 8:13:43 PM)

After market: 54.1644 +0.55 (+1.03%)

53.61

-0.38 (-0.7%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)05-06 2025-05-06/bmo
Earnings (Next)07-28 2025-07-28/amc
Inst Owners84.05%
Inst Owner Change2.52%
Ins Owners0.6%
Ins Owner Change7.16%
Market Cap25.76B
Analysts52.63
Price Target49.98 (-6.77%)
Short Float %2.35%
Short Ratio3.2
Dividend
Industry RankSector Rank
Dividend Yield 3.78%
Yearly Dividend1.99
Dividend Growth(5Y)7.05%
DP71.38%
Div Incr Years34
Div Non Decr Years34
Ex-Date05-21 2025-05-21 (0.51)
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)-1.12%
PT rev (3m)-6.91%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-15.32%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.63%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.22%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.15%
Valuation
Industry RankSector Rank
PE 13.54
Fwd PE 11.76
P/S 0.31
P/FCF 116.02
P/OCF 14.74
P/B 1.16
P/tB 1.69
EV/EBITDA 12
EPS(TTM)3.96
EY7.39%
EPS(NY)4.56
Fwd EY8.5%
FCF(TTM)0.46
FCFY0.86%
OCF(TTM)3.64
OCFY6.79%
SpS174.54
BVpS46.04
TBVpS31.73
PEG (NY)N/A
PEG (5Y)1.1
Profitability
Industry RankSector 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 RankSector 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 2.91
F-Score5
WACC10.23%
ROIC/WACC0.35
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-1.73%
EPS Next 3Y0.72%
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-2.21%
Revenue Next 2Y0.23%
Revenue Next 3Y1.15%
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