ARCHER-DANIELS-MIDLAND CO (ADM)
US0394831020 - Common Stock
ADM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 91 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 bad growth rate and is valued cheaply. ADM also has an excellent dividend rating. With these ratings, ADM could be worth investigating further 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.
The reported operating cash flow has been mixed in the past 5 years: ADM reported negative operating cash flow in multiple years.
1.2 Ratios
ADM's Return On Assets of 4.94% is fine compared to the rest of the industry. ADM outperforms 64.84% of its industry peers.
Looking at the Return On Equity, with a value of 11.74%, ADM is in the better half of the industry, outperforming 68.13% of the companies in the same industry.
ADM has a better Return On Invested Capital (6.81%) than 68.13% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ADM is in line with the industry average of 8.95%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.94% | ||
| ROE | 11.74% | ||
| ROIC | 6.81% |
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
The Profit Margin of ADM (2.93%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of ADM has grown nicely.
ADM has a Operating Margin (3.39%) which is comparable to the rest of the industry.
ADM's Operating Margin has improved in the last couple of years.
The Gross Margin of ADM (7.44%) is worse than 75.82% of its industry peers.
In the last couple of years the Gross Margin of ADM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.39% | ||
| PM (TTM) | 2.93% | ||
| GM | 7.44% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ADM is still creating some value.
The number of shares outstanding for ADM has been reduced compared to 1 year ago.
The number of shares outstanding for ADM has been reduced compared to 5 years ago.
Compared to 1 year ago, ADM has an improved debt to assets ratio.
2.2 Solvency
ADM has an Altman-Z score of 3.17. This indicates that ADM is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of ADM (3.17) is better than 73.63% of its industry peers.
ADM has a debt to FCF ratio of 3.34. This is a good value and a sign of high solvency as ADM would need 3.34 years to pay back of all of its debts.
The Debt to FCF ratio of ADM (3.34) is better than 74.73% of its industry peers.
A Debt/Equity ratio of 0.48 indicates that ADM is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.48, ADM is in line with its industry, outperforming 51.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 3.34 | ||
| Altman-Z | 3.17 |
ROIC/WACC0.83
WACC8.21%
2.3 Liquidity
ADM has a Current Ratio of 1.44. This is a normal value and indicates that ADM is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.44, ADM perfoms like the industry average, outperforming 45.05% of the companies in the same industry.
A Quick Ratio of 0.88 indicates that ADM may have some problems paying its short term obligations.
ADM's Quick ratio of 0.88 is in line compared to the rest of the industry. ADM outperforms 45.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.44 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
ADM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -29.47%.
The Earnings Per Share has been growing by 14.77% on average over the past years. This is quite good.
Looking at the last year, ADM shows a very negative growth in Revenue. The Revenue has decreased by -11.13% in the last year.
ADM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.86% yearly.
EPS 1Y (TTM)-29.47%
EPS 3Y24.75%
EPS 5Y14.77%
EPS Q2Q%-45.5%
Revenue 1Y (TTM)-11.13%
Revenue growth 3Y13.44%
Revenue growth 5Y7.86%
Sales Q2Q%-11.68%
3.2 Future
ADM is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -6.77% yearly.
ADM is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.22% yearly.
EPS Next Y-21.97%
EPS Next 2Y-11.51%
EPS Next 3Y-7.78%
EPS Next 5Y-6.77%
Revenue Next Year-7.71%
Revenue Next 2Y-2.71%
Revenue Next 3Y-1.12%
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 10.24, the valuation of ADM can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of ADM indicates a rather cheap valuation: ADM is cheaper than 91.21% of the companies listed in the same industry.
ADM's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 31.46.
ADM is valuated reasonably with a Price/Forward Earnings ratio of 10.28.
Based on the Price/Forward Earnings ratio, ADM is valued cheaply inside the industry as 94.51% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of ADM to the average of the S&P500 Index (22.63), we can say ADM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.24 | ||
| Fwd PE | 10.28 |
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.
89.01% 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 | 8.5 | ||
| EV/EBITDA | 8.34 |
4.3 Compensation for Growth
The decent profitability rating of ADM may justify a higher PE ratio.
ADM's earnings are expected to decrease with -7.78% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.69
EPS Next 2Y-11.51%
EPS Next 3Y-7.78%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.41%, ADM has a reasonable but not impressive dividend return.
ADM's Dividend Yield is rather good when compared to the industry average which is at 3.51. ADM pays more dividend than 83.52% of the companies in the same industry.
ADM's Dividend Yield is rather good when compared to the S&P500 average which is at 2.18.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.41% |
5.2 History
On average, the dividend of ADM grows each year by 6.30%, which is quite nice.
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
37.91% of the earnings are spent on dividend by ADM. This is a low number and sustainable payout ratio.
DP37.91%
EPS Next 2Y-11.51%
EPS Next 3Y-7.78%
ARCHER-DANIELS-MIDLAND CO
NYSE:ADM (10/21/2024, 8:04:00 PM)
After market: 55.8537 -0.28 (-0.49%)56.13
-0.27 (-0.48%)
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 Cap26.84B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.41% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(16)
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Revenue beat(2)
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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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.24 | ||
| Fwd PE | 10.28 | ||
| 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 Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.94% | ||
| ROE | 11.74% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 3.39% | ||
| PM (TTM) | 2.93% | ||
| GM | 7.44% | ||
| 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 Turnover1.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.44 | ||
| 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)-29.47%
EPS 3Y24.75%
EPS 5Y
EPS Q2Q%
EPS Next Y-21.97%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-11.13%
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