Archer-Daniels-Midland
Market Cap
US$24.7b
Last Updated
2020/02/22 00:11 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.
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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-1.9%
ADM
-1.2%
US Food
0.06%
US Market
1 Year Return
3.3%
ADM
13.3%
US Food
19.3%
US Market
Return vs Industry: ADM underperformed the US Food industry which returned 13.3% over the past year.
Return vs Market: ADM underperformed the US Market which returned 19.3% over the past year.
Shareholder returns
| ADM | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.9% | -1.2% | 0.06% |
| 30 Day | -2.4% | -1.8% | 1.7% |
| 90 Day | 2.8% | 3.2% | 9.0% |
| 1 Year | 6.9%3.3% | 16.3%13.3% | 21.8%19.3% |
| 3 Year | 6.7%-3.0% | -2.5%-10.4% | 49.5%39.9% |
| 5 Year | 6.8%-8.3% | 40.8%24.3% | 73.1%54.1% |
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
1 day ago | Simply Wall St
Here's What We Think About Archer-Daniels-Midland Company's (NYSE:ADM) CEO Pay1 week ago | Simply Wall St
Have Archer-Daniels-Midland Company (NYSE:ADM) Insiders Been Selling Their Stock?2 weeks ago | Simply Wall St
Archer-Daniels-Midland Company Just Released Its Annual Earnings: Here's What Analysts ThinkValuation
Is Archer-Daniels-Midland undervalued compared to its fair value and its price relative to the market?
38.1%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: ADM ($44.23) is trading below our estimate of fair value ($71.98)
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 (18.1x) compared to the Food industry average (24.1x).
PE vs Market: ADM is good value based on its PE Ratio (18.1x) compared to the US market (18.5x).
Price to Earnings Growth Ratio
PEG Ratio: ADM is poor value based on its PEG Ratio (1x)
Price to Book Ratio
PB vs Industry: ADM is good value based on its PB Ratio (1.3x) compared to the US Food industry average (2x).
Next Steps
Future Growth
How is Archer-Daniels-Midland forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
17.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ADM's forecast earnings growth (17.7% per year) is above the savings rate (1.7%).
Earnings vs Market: ADM's earnings (17.7% per year) are forecast to grow faster than the US market (14.2% per year).
High Growth Earnings: ADM's earnings are forecast to grow, but not significantly.
Revenue vs Market: ADM's revenue (2.4% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: ADM's revenue (2.4% 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 (9.4%).
Next Steps
Past Performance
How has Archer-Daniels-Midland performed over the past 5 years?
-7.3%
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 (2.1%) are lower than last year (2.8%).
Past Earnings Growth Analysis
Earnings Trend: ADM's earnings have declined by -7.3% per year over the past 5 years.
Accelerating Growth: ADM's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: ADM had negative earnings growth (-23.8%) over the past year, making it difficult to compare to the Food industry average (-5.9%).
Return on Equity
High ROE: ADM's Return on Equity (7.2%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Archer-Daniels-Midland's financial position?
Financial Position Analysis
Short Term Liabilities: ADM's short term assets ($8.8B) exceed its short term liabilities ($1.2B).
Long Term Liabilities: ADM's short term assets ($8.8B) do not cover its long term liabilities ($11.0B).
Debt to Equity History and Analysis
Debt Level: ADM's debt to equity ratio (41.7%) is considered high.
Reducing Debt: ADM's debt to equity ratio has increased from 28.9% to 41.7% 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 (7.9x coverage).
Balance Sheet
Inventory Level: ADM has a high level of physical assets or inventory.
Debt Coverage by Assets: ADM's debt is covered by short term assets (assets are 1.1x debt).
Next Steps
Dividend
What is Archer-Daniels-Midland's current dividend yield, its reliability and sustainability?
3.28%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: ADM's dividend (3.26%) is higher than the bottom 25% of dividend payers in the US market (1.44%).
High Dividend: ADM's dividend (3.26%) is low compared to the top 25% of dividend payers in the US market (3.71%).
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 (57.4%), 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 (42.2% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
5.1yrs
Average management tenure
CEO
Juan Luciano (58yo)
5.1yrs
Tenure
US$19,637,534
Compensation
Mr. Juan Ricardo Luciano has been the Chief Executive Officer of Archer Daniels Midland Company (Archer-Daniels-Midland Company) since January 1, 2015 and has been its President since February 2014. Mr. Lu ...
CEO Compensation Analysis
Compensation vs Market: Juan's total compensation ($USD19.64M) is above average for companies of similar size in the US market ($USD10.79M).
Compensation vs Earnings: Juan's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 5.1yrs | US$19.64m | 0.18% $44.8m | |
| Executive VP & CFO | 9.2yrs | US$7.50m | 0.072% $17.7m | |
| Senior VP | 12.4yrs | US$6.59m | 0.040% $9.8m | |
| Senior VP & President of Carbohydrate Solutions | 4.8yrs | US$4.81m | 0.031% $7.5m | |
| Senior VP & President of Agricultural Services and Oilseeds | 5.3yrs | US$5.03m | 0.033% $8.2m | |
| Senior Vice President of Global Operations | 0.8yrs | no data | no data | |
| Group VP of Finance | 4yrs | no data | 0.0070% $1.7m | |
| Senior VP & Chief Technology Officer | 0.08yrs | no data | no data | |
| Vice President of Investor Relations | 0yrs | no data | no data | |
| Senior VP | 6.6yrs | US$3.79m | 0.040% $9.8m |
5.1yrs
Average Tenure
53yo
Average Age
Experienced Management: ADM's management team is seasoned and experienced (5.1 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 5.1yrs | US$19.64m | 0.18% $44.8m | |
| Independent Director | 16.3yrs | US$315.00k | no data | |
| Lead Independent Director | 0yrs | US$335.00k | 0.011% $2.7m | |
| Independent Director | 8.8yrs | US$325.00k | 0.00014% $34.5k | |
| Independent Director | 16.3yrs | US$324.00k | no data | |
| Independent Director | 9.8yrs | US$300.00k | 0.0014% $340.5k | |
| Independent Director | 5.8yrs | US$300.00k | 0.00054% $133.2k | |
| Independent Director | 2.8yrs | US$300.00k | no data | |
| Independent Director | 1.8yrs | US$196.98k | no data | |
| Independent Director | 3.8yrs | US$300.00k | no data |
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$24.675b
- Shares outstanding: 557.89m
- 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 through three segments: Ag Services and Oilseeds, Carbohydrate Solutions, and Nutrition. It procures, stores, cleans, and transports agricultural raw materials, such as oilseeds, corn, wheat, milo, oats, rice, and barley. The company also engages in the agricultural commodity and feed product import, export, and distribution; and structured trade finance activities. In addition, it offers vegetable oils and protein meals; ingredients for the food, feed, energy, and industrial customers; crude vegetable oils, salad oils, margarine, shortening, and other food products; and partially refined oils to produce biodiesel and glycols for use in chemicals, paints, and other industrial products. Further, the company provides peanuts, tree nuts, peanut-derived ingredients, and cotton cellulose pulp; sweeteners, corn and wheat starches, syrup, glucose, wheat flour, dextrose, and bioproducts; alcohol and other food and animal feed ingredients; ethyl alcohol and ethanol; corn gluten feed and meal, as well as distillers’ grains; and citric acids. Additionally, the company provides natural flavor ingredients, flavor systems, natural colors, proteins, emulsifiers, soluble fiber, polyols, hydrocolloids, and natural health and nutrition products, including probiotics, prebiotics, enzymes, and botanical extracts; and other specialty food and feed ingredients; edible beans; formula feeds, and animal health and nutrition products; and contract and private label pet treats and foods. It also engages in futures commission merchant and insurance services. The company was founded in 1902 and is headquartered in Chicago, Illinois.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/22 00:11 |
| End of Day Share Price | 2020/02/21 00:00 |
| Earnings | 2019/12/31 |
| 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.