Archer-Daniels-Midland Company (NYSE:ADM): A Fundamentally Attractive Investment

I’ve been keeping an eye on Archer-Daniels-Midland Company (NYSE:ADM) because I’m attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe ADM has a lot to offer. Basically, it is a highly-regarded dividend-paying company that has been a rockstar for income investors, currently trading at an attractive share price. Below, I’ve touched on some key aspects you should know on a high level. For those interested in digging a bit deeper into my commentary, read the full report on Archer-Daniels-Midland here.

Very undervalued established dividend payer

ADM’s share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of ADM’s earnings, investors now have the opportunity to buy into the stock to reap capital gains. Also, relative to the rest of its peers with similar levels of earnings, ADM’s share price is trading below the group’s average. This further reaffirms that ADM is potentially undervalued.

NYSE:ADM Intrinsic value, August 9th 2019
NYSE:ADM Intrinsic value, August 9th 2019

Income investors would also be happy to know that ADM is a great dividend company, with a current yield standing at 3.7%. ADM has also been regularly increasing its dividend payments to shareholders over the past decade.

NYSE:ADM Historical Dividend Yield, August 9th 2019
NYSE:ADM Historical Dividend Yield, August 9th 2019

Next Steps:

For Archer-Daniels-Midland, there are three important aspects you should further examine:

  1. Future Outlook: What are well-informed industry analysts predicting for ADM’s future growth? Take a look at our free research report of analyst consensus for ADM’s outlook.
  2. Historical Performance: What has ADM’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of ADM? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.