ARCHER-DANIELS-MIDLAND CO (ADM) Stock Fundamental Analysis
NYSE:ADM - US0394831020 - Common Stock
62.92 USD
+1.8 (+2.95%)
62.97 USD
+0.05 (+0.08%)
ADM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 90 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
ADM had positive earnings in the past year.
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.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.11%, ADM is in line with its industry, outperforming 48.89% of the companies in the same industry.
The Return On Equity of ADM (4.90%) is comparable to the rest of the industry.
ADM has a Return On Invested Capital of 3.67%. This is comparable to the rest of the industry: ADM outperforms 50.00% of 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 27.79%.
| 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
With a Profit Margin value of 1.33%, ADM perfoms like the industry average, outperforming 44.44% 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 1.91%, ADM perfoms like the industry average, outperforming 43.33% of the companies in the same industry.
In the last couple of years the Operating Margin of ADM has remained more or less at the same level.
With a Gross Margin value of 6.37%, ADM is not doing good in the industry: 82.22% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of ADM has remained more or less at the same level.
| 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
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.
ADM has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.08 indicates that ADM is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.08, ADM is in the better half of the industry, outperforming 65.56% of the companies in the same industry.
The Debt to FCF ratio of ADM is 2.25, which is a good value as it means it would take ADM, 2.25 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 2.25, ADM belongs to the best of the industry, outperforming 84.44% of the companies in the same industry.
ADM has a Debt/Equity ratio of 0.38. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of ADM (0.38) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 2.25 | ||
| Altman-Z | 3.08 |
ROIC/WACC0.45
WACC8.25%
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.
With a Current ratio value of 1.42, ADM perfoms like the industry average, outperforming 47.78% of the companies in the same industry.
ADM has a Quick Ratio of 1.42. 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's Quick ratio of 0.90 is in line compared to the rest of the industry. ADM outperforms 54.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.42 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
The earnings per share for ADM have decreased strongly by -29.56% 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.
Looking at the last year, ADM shows a decrease in Revenue. The Revenue has decreased by -6.75% 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)-29.56%
EPS 3Y-3.11%
EPS 5Y12.32%
EPS Q2Q%-9.71%
Revenue 1Y (TTM)-6.75%
Revenue growth 3Y0.11%
Revenue growth 5Y5.76%
Sales Q2Q%-4.86%
3.2 Future
ADM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.03% yearly.
ADM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.09% yearly.
EPS Next Y-14.47%
EPS Next 2Y0.07%
EPS Next 3Y2.38%
EPS Next 5Y0.03%
Revenue Next Year-2.42%
Revenue Next 2Y0.34%
Revenue Next 3Y1.55%
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.
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
With a Price/Earnings ratio of 16.30, ADM is valued correctly.
67.78% of the companies in the same industry are more expensive than ADM, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of ADM to the average of the S&P500 Index (27.24), we can say ADM is valued slightly cheaper.
A Price/Forward Earnings ratio of 13.31 indicates a correct 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 76.67% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.81, ADM is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.3 | ||
| Fwd PE | 13.31 |
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 rather cheap valuation: ADM is cheaper than 90.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.36 | ||
| EV/EBITDA | 13.72 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.32
EPS Next 2Y0.07%
EPS Next 3Y2.38%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.34%, ADM has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.61, ADM pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, ADM pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.34% |
5.2 History
The dividend of ADM is nicely growing with an annual growth rate of 7.05%!
ADM has been paying a dividend for at least 10 years, so it has 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
ADM pays out 88.90% of its income as dividend. 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 2Y0.07%
EPS Next 3Y2.38%
62.92
+1.8 (+2.95%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners83.52%
Inst Owner Change-0.25%
Ins Owners0.6%
Ins Owner Change-0.51%
Market Cap30.23B
Analysts52.63
Price Target58.98 (-6.26%)
Short Float %1.83%
Short Ratio2.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.34% |
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)13.03%
PT rev (3m)16.69%
EPS NQ rev (1m)-27.58%
EPS NQ rev (3m)-31.04%
EPS NY rev (1m)0.02%
EPS NY rev (3m)0.2%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)0.51%
Revenue NY rev (1m)-0.39%
Revenue NY rev (3m)-0.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.3 | ||
| Fwd PE | 13.31 | ||
| P/S | 0.37 | ||
| P/FCF | 7.36 | ||
| P/OCF | 5.42 | ||
| P/B | 1.35 | ||
| P/tB | 1.96 | ||
| EV/EBITDA | 13.72 |
EPS(TTM)3.86
EY6.13%
EPS(NY)4.73
Fwd EY7.51%
FCF(TTM)8.55
FCFY13.59%
OCF(TTM)11.61
OCFY18.45%
SpS172.28
BVpS46.68
TBVpS32.04
PEG (NY)N/A
PEG (5Y)1.32
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%
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-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 | 3.08 |
F-Score4
WACC8.25%
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)-29.56%
EPS 3Y-3.11%
EPS 5Y12.32%
EPS Q2Q%-9.71%
EPS Next Y-14.47%
EPS Next 2Y0.07%
EPS Next 3Y2.38%
EPS Next 5Y0.03%
Revenue 1Y (TTM)-6.75%
Revenue growth 3Y0.11%
Revenue growth 5Y5.76%
Sales Q2Q%-4.86%
Revenue Next Year-2.42%
Revenue Next 2Y0.34%
Revenue Next 3Y1.55%
Revenue Next 5Y0.09%
EBIT growth 1Y-47.49%
EBIT growth 3Y-11.91%
EBIT growth 5Y4.61%
EBIT Next Year81.82%
EBIT Next 3Y25.8%
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