Archer-Daniels-Midland
Market Cap
US$34.4b
Last Updated
2021/06/23 01:04 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
Earnings are forecast to decline by an average of 1.3% per year for the next 3 years
Snowflake Analysis
Undervalued with solid track record and pays a dividend.
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 +/- 3% a week.
Volatility Over Time: ADM's weekly volatility (3%) has been stable over the past year.
Market Performance
7 Day Return
-4.6%
ADM
-2.5%
US Food
-0.1%
US Market
1 Year Return
54.4%
ADM
18.3%
US Food
39.0%
US Market
Return vs Industry: ADM exceeded the US Food industry which returned 17% over the past year.
Return vs Market: ADM exceeded the US Market which returned 39% over the past year.
Shareholder returns
| ADM | Industry | Market | |
|---|---|---|---|
| 7 Day | -4.6% | -2.5% | -0.1% |
| 30 Day | -8.0% | -2.9% | 2.6% |
| 90 Day | 10.2% | 4.0% | 8.0% |
| 1 Year | 58.7%54.4% | 21.1%18.3% | 41.2%39.0% |
| 3 Year | 46.5%33.3% | 27.6%17.3% | 62.4%52.3% |
| 5 Year | 77.3%52.0% | 22.1%5.4% | 132.3%106.2% |
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
1 week ago | Simply Wall St
Is Archer-Daniels-Midland Company (NYSE:ADM) Potentially Undervalued?4 weeks ago | Simply Wall St
An Intrinsic Calculation For Archer-Daniels-Midland Company (NYSE:ADM) Suggests It's 24% Undervalued1 month ago | Simply Wall St
The Returns At Archer-Daniels-Midland (NYSE:ADM) Aren't GrowingValuation
Is Archer-Daniels-Midland undervalued compared to its fair value and its price relative to the market?
29.1%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: ADM ($61.64) is trading below our estimate of fair value ($86.92)
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 (16.7x) compared to the US Food industry average (22.2x).
PE vs Market: ADM is good value based on its PE Ratio (16.7x) compared to the US market (19.2x).
Price to Earnings Growth Ratio
PEG Ratio: ADM's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: ADM is good value based on its PB Ratio (1.7x) compared to the US Food industry average (2.3x).
Future Growth
How is Archer-Daniels-Midland forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
-1.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ADM's earnings are forecast to decline over the next 3 years (-1.3% per year).
Earnings vs Market: ADM's earnings are forecast to decline over the next 3 years (-1.3% per year).
High Growth Earnings: ADM's earnings are forecast to decline over the next 3 years.
Revenue vs Market: ADM's revenue (0.06% per year) is forecast to grow slower than the US market (9.4% per year).
High Growth Revenue: ADM's revenue (0.06% 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 (9.6%).
Past Performance
How has Archer-Daniels-Midland performed over the past 5 years?
3.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ADM has high quality earnings.
Growing Profit Margin: ADM's current net profit margins (3%) are higher than last year (2.4%).
Past Earnings Growth Analysis
Earnings Trend: ADM's earnings have grown by 3.5% per year over the past 5 years.
Accelerating Growth: ADM's earnings growth over the past year (34.7%) exceeds its 5-year average (3.5% per year).
Earnings vs Industry: ADM earnings growth over the past year (34.7%) exceeded the Food industry 23.6%.
Return on Equity
High ROE: ADM's Return on Equity (10%) is considered low.
Financial Health
How is Archer-Daniels-Midland's financial position?
Financial Position Analysis
Short Term Liabilities: ADM's short term assets ($29.3B) exceed its short term liabilities ($18.5B).
Long Term Liabilities: ADM's short term assets ($29.3B) exceed its long term liabilities ($12.0B).
Debt to Equity History and Analysis
Debt Level: ADM's debt to equity ratio (53.5%) is considered high.
Reducing Debt: ADM's debt to equity ratio has increased from 37.2% to 53.5% 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 (8.3x coverage).
Balance Sheet
Dividend
What is Archer-Daniels-Midland current dividend yield, its reliability and sustainability?
2.40%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: ADM's dividend (2.4%) is higher than the bottom 25% of dividend payers in the US market (1.31%).
High Dividend: ADM's dividend (2.4%) is low compared to the top 25% of dividend payers in the US market (3.44%).
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 reasonably low payout ratio (39.3%), ADM's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: ADM's dividends in 3 years are forecast to be well covered by earnings (39.3% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
6.4yrs
Average management tenure
CEO
Juan Luciano (59 yo)
6.42yrs
Tenure
US$21,994,433
Compensation
Mr. Juan Ricardo Luciano has been the Chief Executive Officer of Archer Daniels Midland Company (Archer-Daniels-Midland Company) since January 1, 2015 and has been its President since February 2014. Mr. Lu...
CEO Compensation Analysis
Compensation vs Market: Juan's total compensation ($USD21.99M) is above average for companies of similar size in the US market ($USD11.28M).
Compensation vs Earnings: Juan's compensation has increased by more than 20% in the past year.
Leadership Team
Experienced Management: ADM's management team is seasoned and experienced (6.4 years average tenure).
Board Members
Experienced Board: ADM's board of directors are considered experienced (5.4 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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$34.438b
- Shares outstanding: 558.70m
- 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
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 | 2021/06/23 01:04 |
| End of Day Share Price | 2021/06/22 00:00 |
| Earnings | 2021/03/31 |
| Annual Earnings | 2020/12/31 |
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.