ARCHER-DANIELS-MIDLAND CO (ADM) Stock Fundamental Analysis
USA - NYSE:ADM - US0394831020 - Common Stock
61.85 USD
+0.21 (+0.34%)
63.78 USD
+1.93 (+3.12%)
ADM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 87 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 has a valuation in line with the averages, 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.
ADM had positive earnings in each of the past 5 years.
Of the past 5 years ADM 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of ADM (2.11%) is comparable to the rest of the industry.
The Return On Equity of ADM (4.90%) is comparable to the rest of the industry.
ADM has a Return On Invested Capital (3.67%) which is comparable to the rest of the industry.
ADM had an Average Return On Invested Capital over the past 3 years of 7.66%. This is significantly below the industry average of 28.34%.
| 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
ADM has a Profit Margin (1.33%) which is comparable to the rest of the industry.
ADM's Profit Margin has been stable in the last couple of years.
ADM has a Operating Margin (1.91%) which 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 has a worse Gross Margin (6.37%) than 79.31% 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 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.
Compared to 1 year ago, ADM has less shares outstanding
Compared to 5 years ago, ADM has less shares outstanding
The debt/assets ratio for ADM is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.06 indicates that ADM is not in any danger for bankruptcy at the moment.
ADM has a better Altman-Z score (3.06) than 65.52% of its industry peers.
ADM has a debt to FCF ratio of 2.25. This is a good value and a sign of high solvency as ADM would need 2.25 years to pay back of all of its debts.
The Debt to FCF ratio of ADM (2.25) is better than 82.76% of its industry peers.
A Debt/Equity ratio of 0.38 indicates that ADM is not too dependend on debt financing.
ADM's Debt to Equity ratio of 0.38 is in line compared to the rest of the industry. ADM outperforms 54.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 2.25 | ||
| Altman-Z | 3.06 |
ROIC/WACC0.45
WACC8.08%
2.3 Liquidity
A Current Ratio of 1.42 indicates that ADM should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.42, ADM is in line with its industry, outperforming 47.13% of the companies in the same industry.
A Quick Ratio of 0.90 indicates that ADM may have some problems paying its short term obligations.
ADM has a Quick ratio (0.90) which is comparable to the rest of the industry.
| 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.
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 -6.75%.
The Revenue has been growing slightly by 5.76% on average over the past years.
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.
Based on estimates for the next years, ADM will show a small growth in Revenue. The Revenue will grow by 0.09% on average per year.
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
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 16.02 indicates a correct valuation of ADM.
65.52% 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 valuation a bit cheaper than the S&P500 average which is at 27.50.
With a Price/Forward Earnings ratio of 13.08, ADM is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ADM indicates a somewhat cheap valuation: ADM is cheaper than 75.86% of the companies listed in the same industry.
ADM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.99, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.02 | ||
| Fwd PE | 13.08 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ADM.
Based on the Price/Free Cash Flow ratio, ADM is valued cheaply inside the industry as 89.66% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.23 | ||
| EV/EBITDA | 13.5 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.3
EPS Next 2Y0.07%
EPS Next 3Y2.38%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.33%, ADM has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.05, ADM pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, ADM pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.33% |
5.2 History
On average, the dividend of ADM grows each year by 7.05%, which is quite nice.
ADM has been paying a dividend for at least 10 years, so it has 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
5.3 Sustainability
88.90% of the earnings are spent on dividend by ADM. 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%
61.85
+0.21 (+0.34%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners84.35%
Inst Owner Change0%
Ins Owners0.59%
Ins Owner Change-0.79%
Market Cap29.72B
Analysts66.25
Price Target58.98 (-4.64%)
Short Float %2.02%
Short Ratio2.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.33% |
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)0%
PT rev (3m)18.01%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-27.18%
EPS NY rev (1m)0%
EPS NY rev (3m)0.02%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.92%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.02 | ||
| Fwd PE | 13.08 | ||
| P/S | 0.36 | ||
| P/FCF | 7.23 | ||
| P/OCF | 5.33 | ||
| P/B | 1.32 | ||
| P/tB | 1.93 | ||
| EV/EBITDA | 13.5 |
EPS(TTM)3.86
EY6.24%
EPS(NY)4.73
Fwd EY7.64%
FCF(TTM)8.55
FCFY13.83%
OCF(TTM)11.61
OCFY18.77%
SpS172.28
BVpS46.68
TBVpS32.04
PEG (NY)N/A
PEG (5Y)1.3
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 | 3.06 |
F-Score4
WACC8.08%
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 Year81.69%
EBIT Next 3Y26.8%
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