ARCHER-DANIELS-MIDLAND CO (ADM)

US0394831020 - Common Stock

53.7  -0.2 (-0.37%)

After market: 53.65 -0.05 (-0.09%)

Fundamental Rating

6

Taking everything into account, ADM scores 6 out of 10 in our fundamental rating. ADM was compared to 91 industry peers in the Food Products industry. While ADM belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. ADM has a valuation in line with the averages, but on the other hand it scores bad on growth. ADM also has an excellent dividend rating. These ratings would make ADM suitable for dividend investing!



7

1. Profitability

1.1 Basic Checks

In the past year ADM was profitable.
ADM had a positive operating cash flow in the past year.
Each year in the past 5 years ADM has been profitable.
In multiple years ADM reported negative operating cash flow during the last 5 years.

1.2 Ratios

With a decent Return On Assets value of 7.15%, ADM is doing good in the industry, outperforming 77.78% of the companies in the same industry.
With a decent Return On Equity value of 15.61%, ADM is doing good in the industry, outperforming 76.67% of the companies in the same industry.
ADM's Return On Invested Capital of 9.17% is amongst the best of the industry. ADM outperforms 84.44% 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 7.75%.
The last Return On Invested Capital (9.17%) for ADM is above the 3 year average (7.06%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 7.15%
ROE 15.61%
ROIC 9.17%
ROA(3y)5.22%
ROA(5y)4.64%
ROE(3y)12.93%
ROE(5y)11.1%
ROIC(3y)7.06%
ROIC(5y)6.26%

1.3 Margins

The Profit Margin of ADM (4.06%) is better than 61.11% of its industry peers.
ADM's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 4.23%, ADM is in line with its industry, outperforming 58.89% of the companies in the same industry.
In the last couple of years the Operating Margin of ADM has grown nicely.
ADM's Gross Margin of 7.78% is on the low side compared to the rest of the industry. ADM is outperformed by 73.33% of its industry peers.
ADM's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 4.23%
PM (TTM) 4.06%
GM 7.78%
OM growth 3Y17.48%
OM growth 5Y10.38%
PM growth 3Y26.07%
PM growth 5Y10.26%
GM growth 3Y5.14%
GM growth 5Y5.21%

6

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ADM is creating some value.
ADM has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, ADM has less shares outstanding
The debt/assets ratio for ADM has been reduced compared to a year ago.

2.2 Solvency

An Altman-Z score of 3.48 indicates that ADM is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.48, ADM is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
ADM has a debt to FCF ratio of 17.09. This is a negative value and a sign of low solvency as ADM would need 17.09 years to pay back of all of its debts.
With a Debt to FCF ratio value of 17.09, ADM perfoms like the industry average, outperforming 52.22% of the companies in the same industry.
ADM has a Debt/Equity ratio of 0.33. This is a healthy value indicating a solid balance between debt and equity.
ADM has a Debt to Equity ratio (0.33) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 0.33
Debt/FCF 17.09
Altman-Z 3.48
ROIC/WACC1.2
WACC7.65%

2.3 Liquidity

A Current Ratio of 1.69 indicates that ADM should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.69, ADM is in line with its industry, outperforming 56.67% of the companies in the same industry.
ADM has a Quick Ratio of 1.07. This is a normal value and indicates that ADM is financially healthy and should not expect problems in meeting its short term obligations.
ADM has a better Quick ratio (1.07) than 63.33% of its industry peers.
Industry RankSector Rank
Current Ratio 1.69
Quick Ratio 1.07

3

3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 1.75% over the past year.
ADM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 26.29% yearly.
The Revenue has decreased by -1.83% in the past year.
ADM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.80% yearly.
EPS 1Y (TTM)1.75%
EPS 3Y43.74%
EPS 5Y26.29%
EPS growth Q2Q-12.37%
Revenue 1Y (TTM)-1.83%
Revenue growth 3Y16.24%
Revenue growth 5Y10.8%
Revenue growth Q2Q-12.11%

3.2 Future

The Earnings Per Share is expected to decrease by -8.64% on average over the next years.
The Revenue is expected to decrease by -2.23% on average over the next years.
EPS Next Y-8.33%
EPS Next 2Y-10.27%
EPS Next 3Y-5.48%
EPS Next 5Y-8.64%
Revenue Next Year-6.22%
Revenue Next 2Y-4.24%
Revenue Next 3Y-3.14%
Revenue Next 5Y-2.23%

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.

6

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 7.12 indicates a rather cheap valuation of ADM.
Compared to the rest of the industry, the Price/Earnings ratio of ADM indicates a rather cheap valuation: ADM is cheaper than 95.56% of the companies listed in the same industry.
ADM is valuated cheaply when we compare the Price/Earnings ratio to 26.32, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 8.51, the valuation of ADM can be described as reasonable.
92.22% of the companies in the same industry are more expensive than ADM, based on the Price/Forward Earnings ratio.
ADM's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.63.
Industry RankSector Rank
PE 7.12
Fwd PE 8.51

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, ADM is valued cheaper than 86.67% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as ADM.
Industry RankSector Rank
P/FCF 58.69
EV/EBITDA 6.91

4.3 Compensation for Growth

The decent profitability rating of ADM may justify a higher PE ratio.
ADM's earnings are expected to decrease with -5.48% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.27
EPS Next 2Y-10.27%
EPS Next 3Y-5.48%

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5. Dividend

5.1 Amount

ADM has a Yearly Dividend Yield of 3.68%. Purely for dividend investing, there may be better candidates out there.
The stock price of ADM dropped by -27.73% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
ADM's Dividend Yield is rather good when compared to the industry average which is at 3.53. ADM pays more dividend than 83.33% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.48, ADM pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 3.68%

5.2 History

The dividend of ADM has a limited annual growth rate of 4.68%.
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)4.68%
Div Incr Years20
Div Non Decr Years20

5.3 Sustainability

ADM pays out 24.38% of its income as dividend. This is a sustainable payout ratio.
DP24.38%
EPS Next 2Y-10.27%
EPS Next 3Y-5.48%

ARCHER-DANIELS-MIDLAND CO

NYSE:ADM (2/22/2024, 6:33:17 PM)

After market: 53.65 -0.05 (-0.09%)

53.7

-0.2 (-0.37%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap28.64B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 3.68%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 7.12
Fwd PE 8.51
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.27
Profitability
Industry RankSector Rank
ROA 7.15%
ROE 15.61%
ROCE
ROIC
ROICexc
ROICexgc
OM 4.23%
PM (TTM) 4.06%
GM 7.78%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.76
Health
Industry RankSector Rank
Debt/Equity 0.33
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.69
Quick Ratio 1.07
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)1.75%
EPS 3Y43.74%
EPS 5Y
EPS growth Q2Q
EPS Next Y-8.33%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-1.83%
Revenue growth 3Y16.24%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y