ARCHER-DANIELS-MIDLAND CO (ADM) Stock Fundamental Analysis
NYSE:ADM - New York Stock Exchange, Inc. - US0394831020 - Common Stock - Currency: USD
ADM gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 89 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. Finally ADM also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year ADM was profitable.
ADM had a positive operating cash flow in the past year.
ADM had positive earnings in each of the past 5 years.
ADM had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of ADM (3.38%) is comparable to the rest of the industry.
With a Return On Equity value of 8.12%, ADM perfoms like the industry average, outperforming 57.30% of the companies in the same industry.
ADM has a Return On Invested Capital of 4.69%. This is comparable to the rest of the industry: ADM outperforms 47.19% of its industry peers.
ADM had an Average Return On Invested Capital over the past 3 years of 7.66%. This is in line with the industry average of 9.00%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.38% | ||
| ROE | 8.12% | ||
| ROIC | 4.69% |
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 of 2.10%. This is comparable to the rest of the industry: ADM outperforms 48.31% of its industry peers.
In the last couple of years the Profit Margin of ADM has remained more or less at the same level.
The Operating Margin of ADM (2.42%) is worse than 60.67% of its industry peers.
In the last couple of years the Operating Margin of ADM has remained more or less at the same level.
Looking at the Gross Margin, with a value of 6.76%, ADM is doing worse than 78.65% 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 | 2.42% | ||
| PM (TTM) | 2.1% | ||
| GM | 6.76% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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.
The debt/assets ratio for ADM is higher compared to a year ago.
2.2 Solvency
ADM has an Altman-Z score of 2.93. This is not the best score and indicates that ADM is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of ADM (2.93) is better than 68.54% of its industry peers.
The Debt to FCF ratio of ADM is 8.28, which is on the high side as it means it would take ADM, 8.28 years of fcf income to pay off all of its debts.
ADM has a Debt to FCF ratio (8.28) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.43 indicates that ADM is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.43, ADM is in line with its industry, outperforming 53.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 8.28 | ||
| Altman-Z | 2.93 |
ROIC/WACC0.58
WACC8.09%
2.3 Liquidity
A Current Ratio of 1.39 indicates that ADM should not have too much problems paying its short term obligations.
ADM has a Current ratio of 1.39. This is comparable to the rest of the industry: ADM outperforms 49.44% of its industry peers.
A Quick Ratio of 0.81 indicates that ADM may have some problems paying its short term obligations.
ADM has a Quick ratio of 0.81. This is comparable to the rest of the industry: ADM outperforms 43.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.39 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
The earnings per share for ADM have decreased strongly by -32.28% 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 12.32% on average per year.
The Revenue has decreased by -8.95% in the past year.
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)-32.28%
EPS 3Y-3.11%
EPS 5Y12.32%
EPS Q2Q%-16.18%
Revenue 1Y (TTM)-8.95%
Revenue growth 3Y0.11%
Revenue growth 5Y5.76%
Sales Q2Q%-6.44%
3.2 Future
The Earnings Per Share is expected to decrease by -0.83% on average over the next years.
The Revenue is expected to decrease by -0.59% on average over the next years.
EPS Next Y-11.16%
EPS Next 2Y-0.85%
EPS Next 3Y1.45%
EPS Next 5Y-0.83%
Revenue Next Year1.81%
Revenue Next 2Y1.67%
Revenue Next 3Y1.79%
Revenue Next 5Y-0.59%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
ADM is valuated reasonably with a Price/Earnings ratio of 10.14.
Compared to the rest of the industry, the Price/Earnings ratio of ADM indicates a rather cheap valuation: ADM is cheaper than 82.02% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of ADM to the average of the S&P500 Index (28.22), we can say ADM is valued rather cheaply.
A Price/Forward Earnings ratio of 11.41 indicates a reasonable valuation of ADM.
83.15% of the companies in the same industry are more expensive than ADM, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.86, ADM is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.14 | ||
| Fwd PE | 11.41 |
4.2 Price Multiples
ADM's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ADM is cheaper than 61.80% of the companies in the same industry.
62.92% of the companies in the same industry are more expensive than ADM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.73 | ||
| EV/EBITDA | 9.34 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.82
EPS Next 2Y-0.85%
EPS Next 3Y1.45%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.18%, ADM is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.38, ADM pays a better dividend. On top of this ADM pays more dividend than 83.15% of the companies listed in the same industry.
ADM's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.18% |
5.2 History
The dividend of ADM is nicely growing with an annual growth rate of 7.05%!
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)7.05%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
54.72% of the earnings are spent on dividend by ADM. This is a bit on the high side, but may be sustainable.
The Dividend Rate of ADM has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP54.72%
EPS Next 2Y-0.85%
EPS Next 3Y1.45%
47.85
+0.27 (+0.57%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners81.96%
Inst Owner Change0.22%
Ins Owners0.55%
Ins Owner Change7.16%
Market Cap22.98B
Analysts50.53
Price Target50.55 (5.64%)
Short Float %3.06%
Short Ratio3.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.18% |
Yearly Dividend1.99
Dividend Growth(5Y)7.05%
DP54.72%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-7.51%
Min EPS beat(2)-13.33%
Max EPS beat(2)-1.69%
EPS beat(4)1
Avg EPS beat(4)-6.29%
Min EPS beat(4)-16.17%
Max EPS beat(4)6.01%
EPS beat(8)4
Avg EPS beat(8)1.08%
EPS beat(12)8
Avg EPS beat(12)9.19%
EPS beat(16)12
Avg EPS beat(16)11.69%
Revenue beat(2)0
Avg Revenue beat(2)-6.8%
Min Revenue beat(2)-7.52%
Max Revenue beat(2)-6.07%
Revenue beat(4)0
Avg Revenue beat(4)-5.35%
Min Revenue beat(4)-7.52%
Max Revenue beat(4)-2.85%
Revenue beat(8)0
Avg Revenue beat(8)-4.89%
Revenue beat(12)4
Avg Revenue beat(12)-0.71%
Revenue beat(16)8
Avg Revenue beat(16)3.14%
PT rev (1m)-5.86%
PT rev (3m)-13.25%
EPS NQ rev (1m)-0.6%
EPS NQ rev (3m)-39.87%
EPS NY rev (1m)-0.74%
EPS NY rev (3m)-10.38%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)-5%
Revenue NY rev (1m)0.83%
Revenue NY rev (3m)-0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.14 | ||
| Fwd PE | 11.41 | ||
| P/S | 0.27 | ||
| P/FCF | 18.73 | ||
| P/OCF | 8.24 | ||
| P/B | 1.04 | ||
| P/tB | 1.49 | ||
| EV/EBITDA | 9.34 |
EPS(TTM)4.72
EY9.86%
EPS(NY)4.19
Fwd EY8.76%
FCF(TTM)2.56
FCFY5.34%
OCF(TTM)5.81
OCFY12.14%
SpS178.13
BVpS46.17
TBVpS32.07
PEG (NY)N/A
PEG (5Y)0.82
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.38% | ||
| ROE | 8.12% | ||
| ROCE | 6.22% | ||
| ROIC | 4.69% | ||
| ROICexc | 4.81% | ||
| ROICexgc | 5.99% | ||
| OM | 2.42% | ||
| PM (TTM) | 2.1% | ||
| GM | 6.76% | ||
| FCFM | 1.43% |
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%
ROICexcg growth 3Y-12.07%
ROICexcg 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-Score5
Asset Turnover1.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 8.28 | ||
| Debt/EBITDA | 2.95 | ||
| Cap/Depr | 136.99% | ||
| Cap/Sales | 1.83% | ||
| Interest Coverage | 2.92 | ||
| Cash Conversion | 86.83% | ||
| Profit Quality | 68.17% | ||
| Current Ratio | 1.39 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z | 2.93 |
F-Score5
WACC8.09%
ROIC/WACC0.58
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)-32.28%
EPS 3Y-3.11%
EPS 5Y12.32%
EPS Q2Q%-16.18%
EPS Next Y-11.16%
EPS Next 2Y-0.85%
EPS Next 3Y1.45%
EPS Next 5Y-0.83%
Revenue 1Y (TTM)-8.95%
Revenue growth 3Y0.11%
Revenue growth 5Y5.76%
Sales Q2Q%-6.44%
Revenue Next Year1.81%
Revenue Next 2Y1.67%
Revenue Next 3Y1.79%
Revenue Next 5Y-0.59%
EBIT growth 1Y-48.93%
EBIT growth 3Y-11.91%
EBIT growth 5Y4.61%
EBIT Next Year90.48%
EBIT Next 3Y28.08%
EBIT Next 5Y16.03%
FCF growth 1Y-58.63%
FCF growth 3Y-39.08%
FCF growth 5YN/A
OCF growth 1Y-37.44%
OCF growth 3Y-24.93%
OCF growth 5YN/A