ARCHER-DANIELS-MIDLAND CO (ADM)

US0394831020 - Common Stock

64.15  -0.04 (-0.06%)

After market: 64.15 0 (0%)

Fundamental Rating

5

ADM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 92 industry peers in the Food Products industry. While ADM has a great health rating, its profitability is only average at the moment. ADM is valued quite cheap, but it does not seem to be growing. Finally ADM also has an excellent dividend rating. These ratings could make ADM a good candidate for value and dividend investing.



6

1. Profitability

1.1 Basic Checks

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

1.2 Ratios

The Return On Assets of ADM (5.55%) is better than 69.23% of its industry peers.
ADM has a better Return On Equity (13.10%) than 69.23% of its industry peers.
ADM has a better Return On Invested Capital (7.94%) than 78.02% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ADM is in line with the industry average of 8.76%.
Industry RankSector 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

With a Profit Margin value of 3.32%, ADM perfoms like the industry average, outperforming 58.24% of the companies in the same industry.
In the last couple of years the Profit Margin of ADM has grown nicely.
Looking at the Operating Margin, with a value of 3.89%, ADM is in line with its industry, outperforming 57.14% 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 7.73% is on the low side compared to the rest of the industry. ADM is outperformed by 72.53% of its industry peers.
In the last couple of years the Gross Margin of ADM has grown nicely.
Industry RankSector 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%

7

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.
The number of shares outstanding for ADM has been reduced compared to 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

ADM has an Altman-Z score of 3.28. This indicates that ADM is financially healthy and has little risk of bankruptcy at the moment.
ADM has a Altman-Z score of 3.28. This is in the better half of the industry: ADM outperforms 72.53% of its industry peers.
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.
The Debt to FCF ratio of ADM (1.89) is better than 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.
Looking at the Debt to Equity ratio, with a value of 0.43, ADM is in line with its industry, outperforming 53.85% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.43
Debt/FCF 1.89
Altman-Z 3.28
ROIC/WACC0.95
WACC8.4%

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.
ADM has a Current ratio of 1.47. This is comparable to the rest of the industry: ADM outperforms 48.35% of its industry peers.
A Quick Ratio of 0.88 indicates that ADM may have some problems paying its short term obligations.
ADM has a Quick ratio (0.88) which is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 1.47
Quick Ratio 0.88

1

3. Growth

3.1 Past

The earnings per share for ADM have decreased strongly by -21.05% 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 14.77% on average per year.
The Revenue for ADM has decreased by -10.07% in the past year. This is quite bad
Measured over the past years, ADM shows a small growth in Revenue. The Revenue has been growing by 7.86% on average per year.
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

The Earnings Per Share is expected to decrease by -6.77% on average over the next years.
The Revenue is expected to decrease by -1.22% on average over the next years.
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

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.

7

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 10.12, the valuation of ADM can be described as very reasonable.
Based on the Price/Earnings ratio, ADM is valued cheaply inside the industry as 91.21% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of ADM to the average of the S&P500 Index (29.08), we can say ADM is valued rather cheaply.
ADM is valuated reasonably with a Price/Forward Earnings ratio of 11.56.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ADM indicates a rather cheap valuation: ADM is cheaper than 83.52% of the companies listed in the same industry.
ADM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.74, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 10.12
Fwd PE 11.56

4.2 Price Multiples

ADM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ADM is cheaper than 80.22% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ADM indicates a rather cheap valuation: ADM is cheaper than 90.11% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 6.01
EV/EBITDA 8.42

4.3 Compensation for Growth

ADM has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as ADM's earnings are expected to decrease with -6.94% in the coming years.
PEG (NY)N/A
PEG (5Y)0.69
EPS Next 2Y-10.77%
EPS Next 3Y-6.94%

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5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 3.09%, ADM has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.75, ADM pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.29, ADM pays a bit more dividend than the S&P500 average.
Industry RankSector 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 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)6.3%
Div Incr Years33
Div Non Decr Years33

5.3 Sustainability

32.41% of the earnings are spent on dividend by ADM. This is a low number and sustainable payout ratio.
DP32.41%
EPS Next 2Y-10.77%
EPS Next 3Y-6.94%

ARCHER-DANIELS-MIDLAND CO

NYSE:ADM (7/22/2024, 7:07:39 PM)

After market: 64.15 0 (0%)

64.15

-0.04 (-0.06%)

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 Cap31.72B
Analysts
Price Target
Dividend
Industry RankSector 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)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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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 10.12
Fwd PE 11.56
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)0.69
Profitability
Industry RankSector 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 RankSector 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