ARCHER-DANIELS-MIDLAND CO (ADM)
US0394831020 - Common Stock
Taking everything into account, ADM scores 6 out of 10 in our fundamental rating. ADM was compared to 92 industry peers in the Food Products industry. ADM has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. ADM has a bad growth rate and is valued cheaply. 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.
ADM had positive earnings in each of the past 5 years.
In multiple years ADM reported negative operating cash flow during the last 5 years.
1.2 Ratios
The Return On Assets of ADM (6.38%) is better than 73.63% of its industry peers.
Looking at the Return On Equity, with a value of 14.43%, ADM belongs to the top of the industry, outperforming 81.32% of the companies in the same industry.
ADM has a Return On Invested Capital of 9.23%. This is amongst the best in the industry. ADM outperforms 84.62% 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 7.56%.
The 3 year average ROIC (8.63%) for ADM is below the current ROIC(9.23%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.38% | ||
| ROE | 14.43% | ||
| ROIC | 9.23% |
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 decent Profit Margin value of 3.71%, ADM is doing good in the industry, outperforming 63.74% of the companies in the same industry.
ADM's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 4.32%, ADM is doing good in the industry, outperforming 60.44% of the companies in the same industry.
ADM's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 8.00%, ADM is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of ADM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.32% | ||
| PM (TTM) | 3.71% | ||
| GM | 8% |
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
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 3.42 indicates that ADM is not in any danger for bankruptcy at the moment.
ADM's Altman-Z score of 3.42 is fine compared to the rest of the industry. ADM outperforms 78.02% of its industry peers.
ADM has a debt to FCF ratio of 2.82. This is a good value and a sign of high solvency as ADM would need 2.82 years to pay back of all of its debts.
The Debt to FCF ratio of ADM (2.82) is better than 80.22% of its industry peers.
A Debt/Equity ratio of 0.35 indicates that ADM is not too dependend on debt financing.
ADM has a Debt to Equity ratio (0.35) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 2.82 | ||
| Altman-Z | 3.42 |
ROIC/WACC1.06
WACC8.67%
2.3 Liquidity
A Current Ratio of 1.60 indicates that ADM should not have too much problems paying its short term obligations.
ADM has a Current ratio of 1.60. This is comparable to the rest of the industry: ADM outperforms 58.24% of its industry peers.
A Quick Ratio of 0.95 indicates that ADM may have some problems paying its short term obligations.
ADM has a Quick ratio of 0.95. This is in the better half of the industry: ADM outperforms 60.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.6 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
ADM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -11.10%.
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.
ADM shows a decrease in Revenue. In the last year, the revenue decreased by -7.50%.
ADM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.86% yearly.
EPS 1Y (TTM)-11.1%
EPS 3Y24.75%
EPS 5Y14.77%
EPS growth Q2Q-29.53%
Revenue 1Y (TTM)-7.5%
Revenue growth 3Y13.44%
Revenue growth 5Y7.86%
Revenue growth Q2Q-11.42%
3.2 Future
Based on estimates for the next years, ADM will show a decrease in Earnings Per Share. The EPS will decrease by -8.02% on average per year.
The Revenue is expected to decrease by -1.16% on average over the next years.
EPS Next Y-18.99%
EPS Next 2Y-8.96%
EPS Next 3Y-5.69%
EPS Next 5Y-8.02%
Revenue Next Year-3.97%
Revenue Next 2Y-0.94%
Revenue Next 3Y-0.83%
Revenue Next 5Y-1.16%
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
With a Price/Earnings ratio of 8.83, the valuation of ADM can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of ADM indicates a rather cheap valuation: ADM is cheaper than 95.60% of the companies listed in the same industry.
ADM is valuated cheaply when we compare the Price/Earnings ratio to 25.25, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 10.90, the valuation of ADM can be described as reasonable.
92.31% 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 valuation a bit cheaper than the S&P500 average which is at 21.67.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.83 | ||
| Fwd PE | 10.9 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ADM indicates a rather cheap valuation: ADM is cheaper than 85.71% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ADM is valued cheaply inside the industry as 83.52% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.41 | ||
| EV/EBITDA | 7.38 |
4.3 Compensation for Growth
The decent profitability rating of ADM may justify a higher PE ratio.
A cheap valuation may be justified as ADM's earnings are expected to decrease with -5.69% in the coming years.
PEG (NY)N/A
PEG (5Y)0.6
EPS Next 2Y-8.96%
EPS Next 3Y-5.69%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.24%, ADM has a reasonable but not impressive dividend return.
ADM's Dividend Yield is a higher than the industry average which is at 3.58.
ADM's Dividend Yield is a higher than the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.24% |
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 Years19
Div Non Decr Years19
5.3 Sustainability
ADM pays out 28.05% of its income as dividend. This is a sustainable payout ratio.
DP28.05%
EPS Next 2Y-8.96%
EPS Next 3Y-5.69%
ARCHER-DANIELS-MIDLAND CO
NYSE:ADM (4/24/2024, 7:04:00 PM)
After market: 61.56 0 (0%)61.56
-0.23 (-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 Cap30.89B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.24% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.83 | ||
| Fwd PE | 10.9 | ||
| 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)0.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.38% | ||
| ROE | 14.43% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 4.32% | ||
| PM (TTM) | 3.71% | ||
| GM | 8% | ||
| 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 Turnover1.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.6 | ||
| Quick Ratio | 0.95 | ||
| 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)-11.1%
EPS 3Y24.75%
EPS 5Y
EPS growth Q2Q
EPS Next Y-18.99%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-7.5%
Revenue growth 3Y13.44%
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
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OCF growth 1Y
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OCF growth 5Y