ARCHER-DANIELS-MIDLAND CO (ADM)
US0394831020 - Common Stock
Taking everything into account, ADM scores 5 out of 10 in our fundamental rating. ADM was compared to 92 industry peers in the Food Products industry. ADM has an excellent financial health rating, but there are some minor concerns on its profitability. ADM is valued quite cheap, but it does not seem to be growing. Finally ADM also has an excellent dividend rating. These ratings would make ADM suitable for value and dividend investing!
1. Profitability
1.1 Basic Checks
ADM had positive earnings in the past year.
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
Looking at the Return On Assets, with a value of 5.55%, ADM is in the better half of the industry, outperforming 69.23% of the companies in the same industry.
With a decent Return On Equity value of 13.10%, ADM is doing good in the industry, outperforming 69.23% of the companies in the same industry.
With a decent Return On Invested Capital value of 7.94%, ADM is doing good in the industry, outperforming 78.02% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ADM is in line with the industry average of 8.76%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.55% | ||
| ROE | 13.1% | ||
| ROIC | 7.94% |
ROA(3y)6.15%
ROA(5y)5.03%
ROE(3y)14.79%
ROE(5y)12.08%
ROIC(3y)8.63%
ROIC(5y)6.9%
1.3 Margins
ADM has a Profit Margin of 3.32%. This is comparable to the rest of the industry: ADM outperforms 58.24% of its industry peers.
In the last couple of years the Profit Margin of ADM has grown nicely.
ADM has a Operating Margin (3.89%) which is in line with its industry peers.
In the last couple of years the Operating Margin of ADM has grown nicely.
ADM's Gross Margin of 7.73% is on the low side compared to the rest of the industry. ADM is outperformed by 72.53% of its industry peers.
ADM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.89% | ||
| PM (TTM) | 3.32% | ||
| GM | 7.73% |
OM growth 3Y16.32%
OM growth 5Y6.63%
PM growth 3Y10.43%
PM growth 5Y5.68%
GM growth 3Y4.95%
GM growth 5Y4.24%
2. Health
2.1 Basic Checks
ADM has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some 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 an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.27 indicates that ADM is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.27, ADM is doing good in the industry, outperforming 72.53% of the companies in the same industry.
ADM has a debt to FCF ratio of 1.89. This is a very positive value and a sign of high solvency as it would only need 1.89 years to pay back of all of its debts.
ADM's Debt to FCF ratio of 1.89 is amongst the best of the industry. ADM outperforms 82.42% of its industry peers.
ADM has a Debt/Equity ratio of 0.43. This is a healthy value indicating a solid balance between debt and equity.
ADM has a Debt to Equity ratio (0.43) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 1.89 | ||
| Altman-Z | 3.27 |
ROIC/WACC0.94
WACC8.42%
2.3 Liquidity
ADM has a Current Ratio of 1.47. This is a normal value and indicates that ADM is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.47, ADM is in line with its industry, outperforming 48.35% of the companies in the same industry.
A Quick Ratio of 0.88 indicates that ADM may have some problems paying its short term obligations.
With a Quick ratio value of 0.88, ADM perfoms like the industry average, outperforming 45.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.47 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
The earnings per share for ADM have decreased strongly by -21.05% in the last year.
The Earnings Per Share has been growing by 14.77% on average over the past years. This is quite good.
Looking at the last year, ADM shows a very negative growth in Revenue. The Revenue has decreased by -10.07% in the last year.
ADM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.86% yearly.
EPS 1Y (TTM)-21.05%
EPS 3Y24.75%
EPS 5Y14.77%
EPS Q2Q%-30.14%
Revenue 1Y (TTM)-10.07%
Revenue growth 3Y13.44%
Revenue growth 5Y7.86%
Sales Q2Q%-9.24%
3.2 Future
Based on estimates for the next years, ADM will show a decrease in Earnings Per Share. The EPS will decrease by -6.77% on average per year.
ADM is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.22% yearly.
EPS Next Y-19.64%
EPS Next 2Y-10.77%
EPS Next 3Y-6.94%
EPS Next 5Y-6.77%
Revenue Next Year-4.55%
Revenue Next 2Y-1.21%
Revenue Next 3Y-0.35%
Revenue Next 5Y-1.22%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
With a Price/Earnings ratio of 10.09, the valuation of ADM can be described as very reasonable.
91.21% 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 24.41.
With a Price/Forward Earnings ratio of 11.53, the valuation of ADM can be described as very reasonable.
Based on the Price/Forward Earnings ratio, ADM is valued cheaper than 84.62% of the companies in the same industry.
ADM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.09 | ||
| Fwd PE | 11.53 |
4.2 Price Multiples
79.12% of the companies in the same industry are more expensive than ADM, based on the Enterprise Value to EBITDA ratio.
90.11% of the companies in the same industry are more expensive than ADM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6 | ||
| EV/EBITDA | 8.33 |
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 -6.94% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.68
EPS Next 2Y-10.77%
EPS Next 3Y-6.94%
5. Dividend
5.1 Amount
ADM has a Yearly Dividend Yield of 3.09%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.74, ADM pays a bit more dividend than its industry peers.
ADM's Dividend Yield is a higher than the S&P500 average which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.09% |
5.2 History
The dividend of ADM is nicely growing with an annual growth rate of 6.30%!
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)6.3%
Div Incr Years33
Div Non Decr Years33
5.3 Sustainability
ADM pays out 32.41% of its income as dividend. This is a sustainable payout ratio.
DP32.41%
EPS Next 2Y-10.77%
EPS Next 3Y-6.94%
ARCHER-DANIELS-MIDLAND CO
NYSE:ADM (7/26/2024, 7:15:02 PM)
After market: 63.98 0 (0%)63.98
+0.66 (+1.04%)
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 Cap31.63B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.09% |
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)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.09 | ||
| Fwd PE | 11.53 | ||
| 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)0.68
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.55% | ||
| ROE | 13.1% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 3.89% | ||
| PM (TTM) | 3.32% | ||
| GM | 7.73% | ||
| 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 Turnover1.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.47 | ||
| Quick Ratio | 0.88 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)-21.05%
EPS 3Y24.75%
EPS 5Y
EPS Q2Q%
EPS Next Y-19.64%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-10.07%
Revenue growth 3Y13.44%
Revenue growth 5Y
Sales 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