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%)
We assign a fundamental rating of 5 out of 10 to ADM. ADM was compared to 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 on the other hand it scores bad on growth.
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.
ADM had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
ADM has a Return On Assets (2.11%) which is comparable to the rest of the industry.
The Return On Equity of ADM (4.90%) is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 3.67%, ADM is in line with its industry, outperforming 51.72% of the companies in the same 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
Looking at the Profit Margin, with a value of 1.33%, ADM is in line with its industry, outperforming 43.68% of the companies in the same 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 Gross Margin of 6.37%. This is in the lower half of the industry: ADM underperforms 79.31% of its industry peers.
ADM's Gross Margin has been stable in the last couple of years.
| 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
ADM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
ADM has less shares outstanding than it did 1 year ago.
The number of shares outstanding for ADM has been reduced compared to 5 years ago.
ADM has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.02 indicates that ADM is not in any danger for bankruptcy at the moment.
ADM has a Altman-Z score of 3.02. This is in the better half of the industry: ADM outperforms 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.
ADM's Debt to FCF ratio of 2.25 is amongst the best of 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.
ADM has a Debt to Equity ratio (0.38) which is in line with its industry peers.
| 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.
ADM has a Current ratio (1.42) which is comparable to the rest of the industry.
A Quick Ratio of 0.90 indicates that ADM may have some problems paying its short term obligations.
ADM's Quick ratio of 0.90 is in line compared 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%.
ADM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.32% yearly.
ADM shows a decrease in Revenue. In the last year, the revenue decreased by -8.95%.
The Revenue has been growing slightly by 5.76% on average over the past years.
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
Based on estimates for the next years, ADM will show a small growth in Earnings Per Share. The EPS will grow by 0.03% on average per year.
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.
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
Based on the Price/Earnings ratio of 15.44, the valuation of ADM can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of ADM indicates a somewhat cheap valuation: ADM is cheaper than 65.52% of the companies listed 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.
With a Price/Forward Earnings ratio of 12.23, ADM is valued correctly.
Based on the Price/Forward Earnings ratio, ADM is valued a bit cheaper than 77.01% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 32.68. ADM is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.44 | ||
| Fwd PE | 12.23 |
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 cheaper than 89.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.66 | ||
| EV/EBITDA | 12.68 |
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%.
Compared to an average industry Dividend Yield of 5.18, ADM pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.37, ADM pays a better dividend.
| 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 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)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)11.45%
EPS NQ rev (1m)1.17%
EPS NQ rev (3m)-25.11%
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 | 12.68 |
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.