ARCHER-DANIELS-MIDLAND CO (ADM) Stock Fundamental Analysis
USA - NYSE:ADM - US0394831020 - Common Stock
56.98 USD
+0.26 (+0.46%)
57.169 USD
+0.19 (+0.33%)
Overall ADM gets a fundamental rating of 5 out of 10. We evaluated ADM 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 is valued correctly, but it does not seem to be growing.
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.
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
ADM has a Return On Assets (2.11%) which is in line with its industry peers.
ADM has a Return On Equity of 4.90%. This is comparable to the rest of the industry: ADM outperforms 55.17% of its industry peers.
ADM has a Return On Invested Capital (3.67%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for ADM is significantly below the industry average of 28.25%.
| 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.
In the last couple of years the Profit Margin of ADM has remained more or less at the same level.
ADM's Operating Margin of 1.91% is in line compared to the rest of the industry. ADM outperforms 44.83% of its industry peers.
ADM's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 6.37%, ADM is doing worse than 79.31% of the companies in the same industry.
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.
Compared to 1 year ago, ADM has a worse debt to assets ratio.
2.2 Solvency
ADM has an Altman-Z score of 3.02. This indicates that ADM is financially healthy and has little risk of bankruptcy at the moment.
ADM's Altman-Z score of 3.02 is fine compared to the rest of the industry. ADM outperforms 65.52% of its industry peers.
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.
ADM has a Debt to FCF ratio of 2.25. This is amongst the best in the industry. ADM outperforms 82.76% of its industry peers.
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 | 3.02 |
ROIC/WACC0.45
WACC8.09%
2.3 Liquidity
A Current Ratio of 1.42 indicates that ADM should not have too much problems paying its short term obligations.
With a Current ratio value of 1.42, ADM perfoms like the industry average, outperforming 47.13% 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 has a Quick ratio of 0.90. This is comparable to the rest of the industry: ADM outperforms 52.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.42 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
ADM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -25.30%.
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 -8.95%.
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)-25.3%
EPS 3Y-3.11%
EPS 5Y12.32%
EPS Q2Q%-15.6%
Revenue 1Y (TTM)-8.95%
Revenue growth 3Y0.11%
Revenue growth 5Y5.76%
Sales Q2Q%2.18%
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.
The Revenue is expected to grow by 0.09% on average over the next years.
EPS Next Y-17.85%
EPS Next 2Y-0.63%
EPS Next 3Y2.16%
EPS Next 5Y0.03%
Revenue Next Year-2.47%
Revenue Next 2Y0.43%
Revenue Next 3Y1.84%
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.
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
Based on the Price/Earnings ratio of 15.44, the valuation of ADM can be described as correct.
ADM's Price/Earnings ratio is a bit cheaper when compared to the industry. ADM is cheaper than 65.52% of the companies in the same industry.
ADM is valuated rather cheaply when we compare the Price/Earnings ratio to 25.83, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 12.23, which indicates a correct valuation of ADM.
ADM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ADM is cheaper than 77.01% of the companies in the same industry.
ADM's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 32.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.44 | ||
| Fwd PE | 12.23 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ADM is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, ADM is valued cheaper than 89.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.66 | ||
| EV/EBITDA | 12.63 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.25
EPS Next 2Y-0.63%
EPS Next 3Y2.16%
5. Dividend
5.1 Amount
ADM has a Yearly Dividend Yield of 3.60%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.19, ADM pays a bit more dividend than its industry peers.
ADM's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.6% |
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 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.
The dividend of ADM is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP88.9%
EPS Next 2Y-0.63%
EPS Next 3Y2.16%
56.98
+0.26 (+0.46%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners84.35%
Inst Owner Change0.96%
Ins Owners0.59%
Ins Owner Change-0.79%
Market Cap27.38B
Revenue(TTM)85.53B
Net Income(TTM)1.10B
Analysts66.25
Price Target59.55 (4.51%)
Short Float %2.61%
Short Ratio3.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.6% |
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)0.96%
PT rev (3m)14.12%
EPS NQ rev (1m)0.73%
EPS NQ rev (3m)-25.44%
EPS NY rev (1m)-3.96%
EPS NY rev (3m)-3.94%
Revenue NQ rev (1m)-0.15%
Revenue NQ rev (3m)-1.78%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-0.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.44 | ||
| Fwd PE | 12.23 | ||
| P/S | 0.33 | ||
| P/FCF | 6.66 | ||
| P/OCF | 4.91 | ||
| P/B | 1.22 | ||
| P/tB | 1.78 | ||
| EV/EBITDA | 12.63 |
EPS(TTM)3.69
EY6.48%
EPS(NY)4.66
Fwd EY8.18%
FCF(TTM)8.55
FCFY15.01%
OCF(TTM)11.61
OCFY20.38%
SpS172.28
BVpS46.68
TBVpS32.04
PEG (NY)N/A
PEG (5Y)1.25
Graham Number62.26
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%
ROICexgc growth 3Y-12.07%
ROICexgc 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 | 3.02 |
F-Score4
WACC8.09%
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)-25.3%
EPS 3Y-3.11%
EPS 5Y12.32%
EPS Q2Q%-15.6%
EPS Next Y-17.85%
EPS Next 2Y-0.63%
EPS Next 3Y2.16%
EPS Next 5Y0.03%
Revenue 1Y (TTM)-8.95%
Revenue growth 3Y0.11%
Revenue growth 5Y5.76%
Sales Q2Q%2.18%
Revenue Next Year-2.47%
Revenue Next 2Y0.43%
Revenue Next 3Y1.84%
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
ARCHER-DANIELS-MIDLAND CO / ADM FAQ
What is the fundamental rating for ADM stock?
ChartMill assigns a fundamental rating of 5 / 10 to ADM.
What is the valuation status of ARCHER-DANIELS-MIDLAND CO (ADM) stock?
ChartMill assigns a valuation rating of 5 / 10 to ARCHER-DANIELS-MIDLAND CO (ADM). This can be considered as Fairly Valued.
What is the profitability of ADM stock?
ARCHER-DANIELS-MIDLAND CO (ADM) has a profitability rating of 4 / 10.
What is the valuation of ARCHER-DANIELS-MIDLAND CO based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ARCHER-DANIELS-MIDLAND CO (ADM) is 15.44 and the Price/Book (PB) ratio is 1.22.
Can you provide the expected EPS growth for ADM stock?
The Earnings per Share (EPS) of ARCHER-DANIELS-MIDLAND CO (ADM) is expected to decline by -17.85% in the next year.