Archer-Daniels-Midland
Market Cap
US$29.4b
Last Updated
2021/01/14 23:48 UTC
Data Sources
Company Financials +
Executive Summary
Archer-Daniels-Midland Company procures, transports, stores, processes, and merchandises agricultural commodities, products, and ingredients in the United States and internationally. More Details
Rewards
Risk Analysis
Snowflake Analysis
Undervalued established dividend payer.
Similar Companies
Share Price & News
How has Archer-Daniels-Midland's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: ADM is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: ADM's weekly volatility (4%) has been stable over the past year.
Market Performance
7 Day Return
0.8%
ADM
-1.3%
US Food
0.6%
US Market
1 Year Return
16.6%
ADM
1.1%
US Food
21.0%
US Market
Return vs Industry: ADM exceeded the US Food industry which returned 1.1% over the past year.
Return vs Market: ADM underperformed the US Market which returned 22% over the past year.
Shareholder returns
| ADM | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.8% | -1.3% | 0.6% |
| 30 Day | 6.7% | -0.9% | 4.2% |
| 90 Day | 6.2% | -1.1% | 12.4% |
| 1 Year | 20.6%16.6% | 3.6%1.1% | 23.7%21.0% |
| 3 Year | 43.9%30.6% | 6.6%-2.3% | 47.4%37.6% |
| 5 Year | 94.2%65.6% | 25.7%8.5% | 131.6%105.9% |
Long-Term Price Volatility Vs. Market
How volatile is Archer-Daniels-Midland's share price compared to the market and industry in the last 5 years?
Simply Wall St News
3 days ago | Simply Wall St
Is Archer-Daniels-Midland Company (NYSE:ADM) Popular Amongst Institutions?2 weeks ago | Simply Wall St
Is There More To The Story Than Archer-Daniels-Midland's (NYSE:ADM) Earnings Growth?3 weeks ago | Simply Wall St
How Does Archer-Daniels-Midland's (NYSE:ADM) CEO Salary Compare to Peers?Valuation
Is Archer-Daniels-Midland undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: ADM ($52.87) is trading below our estimate of fair value ($106.55)
Significantly Below Fair Value: ADM is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: ADM is good value based on its PE Ratio (18.7x) compared to the US Food industry average (24.8x).
PE vs Market: ADM is good value based on its PE Ratio (18.7x) compared to the US market (21.1x).
Price to Earnings Growth Ratio
PEG Ratio: ADM is poor value based on its PEG Ratio (1.4x)
Price to Book Ratio
PB vs Industry: ADM is good value based on its PB Ratio (1.5x) compared to the US Food industry average (2.1x).
Next Steps
Future Growth
How is Archer-Daniels-Midland forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
13.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ADM's forecast earnings growth (13.1% per year) is above the savings rate (2%).
Earnings vs Market: ADM's earnings (13.1% per year) are forecast to grow slower than the US market (21.6% per year).
High Growth Earnings: ADM's earnings are forecast to grow, but not significantly.
Revenue vs Market: ADM's revenue (2.3% per year) is forecast to grow slower than the US market (10.2% per year).
High Growth Revenue: ADM's revenue (2.3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: ADM's Return on Equity is forecast to be low in 3 years time (9.1%).
Next Steps
Past Performance
How has Archer-Daniels-Midland performed over the past 5 years?
-0.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ADM has a high level of non-cash earnings.
Growing Profit Margin: ADM's current net profit margins (2.5%) are higher than last year (1.9%).
Past Earnings Growth Analysis
Earnings Trend: ADM's earnings have declined by 0.5% per year over the past 5 years.
Accelerating Growth: ADM's earnings growth over the past year (33.3%) exceeds its 5-year average (-0.5% per year).
Earnings vs Industry: ADM earnings growth over the past year (33.3%) exceeded the Food industry -6.5%.
Return on Equity
High ROE: ADM's Return on Equity (8.2%) is considered low.
Next Steps
Financial Health
How is Archer-Daniels-Midland's financial position?
Financial Position Analysis
Short Term Liabilities: ADM's short term assets ($22.8B) exceed its short term liabilities ($13.9B).
Long Term Liabilities: ADM's short term assets ($22.8B) exceed its long term liabilities ($11.5B).
Debt to Equity History and Analysis
Debt Level: ADM's debt to equity ratio (42%) is considered high.
Reducing Debt: ADM's debt to equity ratio has increased from 37.8% to 42% over the past 5 years.
Debt Coverage: ADM's operating cash flow is negative, therefore debt is not well covered.
Interest Coverage: ADM's interest payments on its debt are well covered by EBIT (6.7x coverage).
Balance Sheet
Next Steps
Dividend
What is Archer-Daniels-Midland current dividend yield, its reliability and sustainability?
2.72%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: ADM's dividend (2.72%) is higher than the bottom 25% of dividend payers in the US market (1.38%).
High Dividend: ADM's dividend (2.72%) is low compared to the top 25% of dividend payers in the US market (3.88%).
Stability and Growth of Payments
Stable Dividend: ADM's dividends per share have been stable in the past 10 years.
Growing Dividend: ADM's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (50.5%), ADM's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: ADM's dividends in 3 years are forecast to be well covered by earnings (41.3% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
6.0yrs
Average management tenure
CEO
Juan Luciano (59 yo)
6yrs
Tenure
US$18,140,421
Compensation
Mr. Juan Ricardo Luciano has been the Chief Executive Officer of Archer Daniels Midland Company (Archer-Daniels-Midland Company) since January 1, 2015 and has been its President since February 2014. Mr. Lu...
CEO Compensation Analysis
Compensation vs Market: Juan's total compensation ($USD18.14M) is above average for companies of similar size in the US market ($USD10.54M).
Compensation vs Earnings: Juan's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 6yrs | US$18.14m | 0.094% $ 27.5m | |
| Executive VP & CFO | 10.08yrs | US$6.83m | 0.041% $ 12.1m | |
| Chief Sales & Marketing Officer | 1yr | US$4.32m | 0.0068% $ 2.0m | |
| Senior VP and President of Global Business Readiness & Global Procurement | 13.33yrs | US$5.32m | 0.034% $ 10.1m | |
| Senior VP & President of Agricultural Services and Oilseeds | 6.17yrs | US$5.12m | 0.030% $ 8.7m | |
| Senior Vice President of Global Operations | 1.75yrs | no data | no data | |
| Group VP of Finance | 4.92yrs | no data | 0.0062% $ 1.8m | |
| Senior VP & Chief Technology Officer | 1yr | no data | no data | |
| Vice President of Investor Relations | no data | no data | no data | |
| Senior VP | 7.5yrs | US$3.79m | 0.039% $ 11.5m | |
| VP. Head of Global Security & Chief Compliance Officer | 7yrs | no data | no data | |
| Senior VP & Chief Human Resources Officer | 1yr | no data | 0.0080% $ 2.4m |
6.0yrs
Average Tenure
54yo
Average Age
Experienced Management: ADM's management team is seasoned and experienced (6 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 6yrs | US$18.14m | 0.094% $ 27.5m | |
| Independent Director | 17.17yrs | US$320.00k | 0% $ 0 | |
| Lead Independent Director | no data | US$335.00k | 0.011% $ 3.2m | |
| Independent Director | 9.67yrs | US$325.00k | 0.00014% $ 41.2k | |
| Independent Director | 17.17yrs | US$320.00k | 0% $ 0 | |
| Independent Director | 10.67yrs | US$300.00k | 0.0038% $ 1.1m | |
| Independent Director | 6.67yrs | US$300.00k | 0.00079% $ 232.4k | |
| Independent Director | 3.67yrs | US$306.68k | 0% $ 0 | |
| Independent Director | 2.67yrs | US$300.00k | 0% $ 0 | |
| Independent Director | 4.67yrs | US$300.00k | 0% $ 0 | |
| Independent Director | 1.67yrs | US$214.70k | 0% $ 0 |
5.8yrs
Average Tenure
62yo
Average Age
Experienced Board: ADM's board of directors are considered experienced (5.8 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: ADM insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Archer-Daniels-Midland Company's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Archer-Daniels-Midland Company
- Ticker: ADM
- Exchange: NYSE
- Founded: 1902
- Industry: Agricultural Products
- Sector: Food, Beverage & Tobacco
- Market Cap: US$29.416b
- Shares outstanding: 556.39m
- Website: https://www.adm.com
Number of Employees
Location
- Archer-Daniels-Midland Company
- 77 West Wacker Drive
- Suite 4600
- Chicago
- Illinois
- 60601
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| ADM | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Mar 1964 |
| ADM | SWX (SIX Swiss Exchange) | Yes | Common Stock | CH | CHF | Mar 1964 |
| ADM | XTRA (XETRA Trading Platform) | Yes | Common Stock | DE | EUR | Mar 1964 |
| ADM * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Mar 1964 |
| 0JQQ | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Mar 1964 |
| ADM | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Mar 1964 |
| ARDA | WBAG (Wiener Boerse AG) | Yes | Common Stock | AT | EUR | Mar 1964 |
| ADM | ETLX (Eurotlx) | Yes | Common Stock | IT | EUR | Mar 1964 |
| A1DM34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH REPR 1 COM NPV | BR | BRL | Dec 2019 |
Biography
Archer-Daniels-Midland Company procures, transports, stores, processes, and merchandises agricultural commodities, products, and ingredients in the United States and internationally. The company operates t...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/14 23:48 |
| End of Day Share Price | 2021/01/14 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.