ARCHER-DANIELS-MIDLAND CO (ADM) Stock Fundamental Analysis
NYSE:ADM • US0394831020
67.88 USD
-0.98 (-1.42%)
At close: Feb 20, 2026
67.88 USD
0 (0%)
After Hours: 2/20/2026, 8:15:56 PM
We assign a fundamental rating of 5 out of 10 to ADM. ADM was compared to 87 industry peers in the Food Products industry. ADM has an average financial health and profitability rating. 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
- 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.
- Each year in the past 5 years ADM had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 3.11%, ADM is in the better half of the industry, outperforming 62.07% of the companies in the same industry.
- ADM's Return On Equity of 4.74% is in line compared to the rest of the industry. ADM outperforms 55.17% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 3.38%, ADM is in line with its industry, outperforming 56.32% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for ADM is significantly below the industry average of 28.08%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.11% | ||
| ROE | 4.74% | ||
| ROIC | 3.38% |
ROA(3y)4.29%
ROA(5y)4.99%
ROE(3y)9.1%
ROE(5y)11.44%
ROIC(3y)5.82%
ROIC(5y)6.83%
1.3 Margins
- ADM has a Profit Margin (1.34%) which is comparable to the rest of the industry.
- In the last couple of years the Profit Margin of ADM has declined.
- ADM has a Operating Margin of 1.77%. This is comparable to the rest of the industry: ADM outperforms 45.98% of its industry peers.
- ADM's Operating Margin has declined in the last couple of years.
- ADM has a worse Gross Margin (6.27%) than 75.86% of its industry peers.
- In the last couple of years the Gross Margin of ADM has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.77% | ||
| PM (TTM) | 1.34% | ||
| GM | 6.27% |
OM growth 3Y-24.65%
OM growth 5Y-8.35%
PM growth 3Y-32.01%
PM growth 5Y-13.38%
GM growth 3Y-5.6%
GM growth 5Y-1.95%
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.
- Compared to 1 year ago, ADM has more shares outstanding
- 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
- ADM has a debt to FCF ratio of 2.00. This is a good value and a sign of high solvency as ADM would need 2.00 years to pay back of all of its debts.
- ADM's Debt to FCF ratio of 2.00 is amongst the best of the industry. ADM outperforms 85.06% of its industry peers.
- A Debt/Equity ratio of 0.37 indicates that ADM is not too dependend on debt financing.
- ADM has a Debt to Equity ratio (0.37) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 2 | ||
| Altman-Z | N/A |
ROIC/WACC0.44
WACC7.7%
2.3 Liquidity
- A Current Ratio of 11.20 indicates that ADM has no problem at all paying its short term obligations.
- Looking at the Current ratio, with a value of 11.20, ADM belongs to the top of the industry, outperforming 97.70% of the companies in the same industry.
- ADM has a Quick Ratio of 11.20. This indicates that ADM is financially healthy and has no problem in meeting its short term obligations.
- The Quick ratio of ADM (11.20) is better than 97.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 11.2 | ||
| Quick Ratio | 11.2 |
3. Growth
3.1 Past
- ADM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -27.54%.
- The Earnings Per Share has been decreasing by -0.97% on average over the past years.
- Looking at the last year, ADM shows a decrease in Revenue. The Revenue has decreased by -6.15% in the last year.
- The Revenue has been growing slightly by 4.52% on average over the past years.
EPS 1Y (TTM)-27.54%
EPS 3Y-24.16%
EPS 5Y-0.97%
EPS Q2Q%-23.68%
Revenue 1Y (TTM)-6.15%
Revenue growth 3Y-7.54%
Revenue growth 5Y4.52%
Sales Q2Q%-13.68%
3.2 Future
- ADM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.23% yearly.
- The Revenue is expected to grow by 0.79% on average over the next years.
EPS Next Y25.3%
EPS Next 2Y18.08%
EPS Next 3Y11.71%
EPS Next 5Y3.23%
Revenue Next Year4.42%
Revenue Next 2Y4.49%
Revenue Next 3Y0.5%
Revenue Next 5Y0.79%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better 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
- The Price/Earnings ratio is 19.85, which indicates a rather expensive current valuation of ADM.
- ADM's Price/Earnings is on the same level as the industry average.
- ADM's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.99.
- ADM is valuated correctly with a Price/Forward Earnings ratio of 15.84.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of ADM indicates a somewhat cheap valuation: ADM is cheaper than 68.97% of the companies listed in the same industry.
- ADM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 28.06, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.85 | ||
| Fwd PE | 15.84 |
4.2 Price Multiples
- ADM's Enterprise Value to EBITDA ratio is in line with the industry average.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of ADM indicates a rather cheap valuation: ADM is cheaper than 90.80% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.76 | ||
| EV/EBITDA | 15.21 |
4.3 Compensation for Growth
- ADM's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.78
PEG (5Y)N/A
EPS Next 2Y18.08%
EPS Next 3Y11.71%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.99%, ADM has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 2.28, ADM pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.85, ADM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.99% |
5.2 History
- On average, the dividend of ADM grows each year by 7.21%, which is quite nice.
- ADM has paid a dividend for at least 10 years, which is 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)7.21%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
- 91.56% of the earnings are spent on dividend by ADM. This is not a sustainable payout ratio.
- ADM's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP91.56%
EPS Next 2Y18.08%
EPS Next 3Y11.71%
67.88
-0.98 (-1.42%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)02-03 2026-02-03/bmo
Earnings (Next)05-04 2026-05-04/bmo
Inst Owners86.87%
Inst Owner Change1.75%
Ins Owners0.59%
Ins Owner Change4.09%
Market Cap32.62B
Revenue(TTM)80.27B
Net Income(TTM)1.08B
Analysts53
Price Target59.07 (-12.98%)
Short Float %2.8%
Short Ratio3.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.99% |
Yearly Dividend2.06
Dividend Growth(5Y)7.21%
DP91.56%
Div Incr Years34
Div Non Decr Years34
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.52%
Min EPS beat(2)6.8%
Max EPS beat(2)8.23%
EPS beat(4)4
Avg EPS beat(4)7.37%
Min EPS beat(4)3.39%
Max EPS beat(4)11.04%
EPS beat(8)5
Avg EPS beat(8)0.54%
EPS beat(12)8
Avg EPS beat(12)3.18%
EPS beat(16)12
Avg EPS beat(16)8.73%
Revenue beat(2)0
Avg Revenue beat(2)-7.66%
Min Revenue beat(2)-13.01%
Max Revenue beat(2)-2.32%
Revenue beat(4)0
Avg Revenue beat(4)-6.92%
Min Revenue beat(4)-13.01%
Max Revenue beat(4)-2.32%
Revenue beat(8)0
Avg Revenue beat(8)-6.13%
Revenue beat(12)0
Avg Revenue beat(12)-5.57%
Revenue beat(16)4
Avg Revenue beat(16)-2.26%
PT rev (1m)1.4%
PT rev (3m)-0.8%
EPS NQ rev (1m)-17.55%
EPS NQ rev (3m)-21.04%
EPS NY rev (1m)-0.46%
EPS NY rev (3m)-8.05%
Revenue NQ rev (1m)-6.5%
Revenue NQ rev (3m)-8.37%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.85 | ||
| Fwd PE | 15.84 | ||
| P/S | 0.41 | ||
| P/FCF | 7.76 | ||
| P/OCF | 5.98 | ||
| P/B | 1.43 | ||
| P/tB | 2.04 | ||
| EV/EBITDA | 15.21 |
EPS(TTM)3.42
EY5.04%
EPS(NY)4.29
Fwd EY6.31%
FCF(TTM)8.75
FCFY12.89%
OCF(TTM)11.34
OCFY16.71%
SpS167.03
BVpS47.32
TBVpS33.29
PEG (NY)0.78
PEG (5Y)N/A
Graham Number60.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.11% | ||
| ROE | 4.74% | ||
| ROCE | 4.21% | ||
| ROIC | 3.38% | ||
| ROICexc | 3.48% | ||
| ROICexgc | 4.36% | ||
| OM | 1.77% | ||
| PM (TTM) | 1.34% | ||
| GM | 6.27% | ||
| FCFM | 5.24% |
ROA(3y)4.29%
ROA(5y)4.99%
ROE(3y)9.1%
ROE(5y)11.44%
ROIC(3y)5.82%
ROIC(5y)6.83%
ROICexc(3y)6.01%
ROICexc(5y)7.04%
ROICexgc(3y)7.43%
ROICexgc(5y)8.7%
ROCE(3y)7.23%
ROCE(5y)8.48%
ROICexgc growth 3Y-28.95%
ROICexgc growth 5Y-3.77%
ROICexc growth 3Y-29.36%
ROICexc growth 5Y-4.62%
OM growth 3Y-24.65%
OM growth 5Y-8.35%
PM growth 3Y-32.01%
PM growth 5Y-13.38%
GM growth 3Y-5.6%
GM growth 5Y-1.95%
F-Score5
Asset Turnover2.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 2 | ||
| Debt/EBITDA | 3.23 | ||
| Cap/Depr | 105.67% | ||
| Cap/Sales | 1.55% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 209.29% | ||
| Profit Quality | 389.98% | ||
| Current Ratio | 11.2 | ||
| Quick Ratio | 11.2 | ||
| Altman-Z | N/A |
F-Score5
WACC7.7%
ROIC/WACC0.44
Cap/Depr(3y)127.91%
Cap/Depr(5y)125.88%
Cap/Sales(3y)1.66%
Cap/Sales(5y)1.53%
Profit Quality(3y)181.1%
Profit Quality(5y)158.67%
High Growth Momentum
Growth
EPS 1Y (TTM)-27.54%
EPS 3Y-24.16%
EPS 5Y-0.97%
EPS Q2Q%-23.68%
EPS Next Y25.3%
EPS Next 2Y18.08%
EPS Next 3Y11.71%
EPS Next 5Y3.23%
Revenue 1Y (TTM)-6.15%
Revenue growth 3Y-7.54%
Revenue growth 5Y4.52%
Sales Q2Q%-13.68%
Revenue Next Year4.42%
Revenue Next 2Y4.49%
Revenue Next 3Y0.5%
Revenue Next 5Y0.79%
EBIT growth 1Y-31.27%
EBIT growth 3Y-30.34%
EBIT growth 5Y-4.21%
EBIT Next Year190.05%
EBIT Next 3Y43.54%
EBIT Next 5Y25.55%
FCF growth 1Y242.62%
FCF growth 3Y24.87%
FCF growth 5YN/A
OCF growth 1Y95.41%
OCF growth 3Y16.17%
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 for ADM stock?
ChartMill assigns a valuation rating of 5 / 10 to ARCHER-DANIELS-MIDLAND CO (ADM). This can be considered as Fairly Valued.
Can you provide the profitability details for ARCHER-DANIELS-MIDLAND CO?
ARCHER-DANIELS-MIDLAND CO (ADM) has a profitability rating of 4 / 10.
What is the earnings growth outlook for ARCHER-DANIELS-MIDLAND CO?
The Earnings per Share (EPS) of ARCHER-DANIELS-MIDLAND CO (ADM) is expected to grow by 25.3% in the next year.
Can you provide the dividend sustainability for ADM stock?
The dividend rating of ARCHER-DANIELS-MIDLAND CO (ADM) is 6 / 10 and the dividend payout ratio is 91.56%.