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Archer-Daniels-Midland

NYSE:ADM
Snowflake Description

Undervalued established dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ADM
NYSE
$23B
Market Cap
  1. Home
  2. US
  3. Food, Beverage & Tobacco
Company description

Archer-Daniels-Midland Company procures, transports, stores, processes, and merchandises agricultural commodities, products, and ingredients in the United States and internationally. The last earnings update was 82 days ago. More info.


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ADM Share Price and Events
7 Day Returns
-3.6%
NYSE:ADM
-1%
US Food
0.6%
US Market
1 Year Returns
-14.8%
NYSE:ADM
-0.7%
US Food
4.1%
US Market
ADM Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Archer-Daniels-Midland (ADM) -3.6% -1.1% -5.7% -14.8% -7.1% -16.5%
US Food -1% -0.8% 1.9% -0.7% -17% 20.7%
US Market 0.6% 3.8% 2.8% 4.1% 37.3% 42.5%
1 Year Return vs Industry and Market
  • ADM underperformed the Food industry which returned -0.7% over the past year.
  • ADM underperformed the Market in United States of America which returned 4.1% over the past year.
Price Volatility
ADM
Industry
5yr Volatility vs Market

Value

 Is Archer-Daniels-Midland undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Archer-Daniels-Midland to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Archer-Daniels-Midland.

NYSE:ADM Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 10 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.8%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:ADM
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Food Unlevered Beta Simply Wall St/ S&P Global 0.56
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.563 (1 + (1- 21%) (47.39%))
0.849
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.85
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.849 * 5.96%)
7.79%

Discounted Cash Flow Calculation for NYSE:ADM using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Archer-Daniels-Midland is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:ADM DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 7.79%)
2020 1,627.33 Analyst x4 1,509.74
2021 1,958.00 Analyst x1 1,685.26
2022 2,227.03 Est @ 13.74% 1,778.31
2023 2,459.46 Est @ 10.44% 1,822.00
2024 2,659.28 Est @ 8.12% 1,827.68
2025 2,832.30 Est @ 6.51% 1,805.94
2026 2,984.50 Est @ 5.37% 1,765.48
2027 3,121.20 Est @ 4.58% 1,712.93
2028 3,246.84 Est @ 4.03% 1,653.12
2029 3,364.91 Est @ 3.64% 1,589.45
Present value of next 10 years cash flows $17,149.91
NYSE:ADM DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $3,364.91 × (1 + 2.73%) ÷ (7.79% – 2.73%)
$68,334.90
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $68,334.90 ÷ (1 + 7.79%)10
$32,278.62
NYSE:ADM Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $17,149.91 + $32,278.62
$49,428.53
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $49,428.53 / 560.17
$88.24
NYSE:ADM Discount to Share Price
Calculation Result
Value per share (USD) From above. $88.24
Current discount Discount to share price of $40.31
= -1 x ($40.31 - $88.24) / $88.24
54.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Archer-Daniels-Midland is available for.
Intrinsic value
>50%
Share price is $40.31 vs Future cash flow value of $88.24
Current Discount Checks
For Archer-Daniels-Midland to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Archer-Daniels-Midland's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Archer-Daniels-Midland's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Archer-Daniels-Midland's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Archer-Daniels-Midland's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:ADM PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $2.92
NYSE:ADM Share Price ** NYSE (2019-07-17) in USD $40.31
United States of America Food Industry PE Ratio Median Figure of 42 Publicly-Listed Food Companies 25.78x
United States of America Market PE Ratio Median Figure of 3,082 Publicly-Listed Companies 17.98x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Archer-Daniels-Midland.

NYSE:ADM PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:ADM Share Price ÷ EPS (both in USD)

= 40.31 ÷ 2.92

13.79x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Archer-Daniels-Midland is good value based on earnings compared to the US Food industry average.
  • Archer-Daniels-Midland is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Archer-Daniels-Midland's expected growth come at a high price?
Raw Data
NYSE:ADM PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 13.79x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts
9.1%per year
United States of America Food Industry PEG Ratio Median Figure of 31 Publicly-Listed Food Companies 1.55x
United States of America Market PEG Ratio Median Figure of 2,122 Publicly-Listed Companies 1.59x

*Line of best fit is calculated by linear regression .

NYSE:ADM PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 13.79x ÷ 9.1%

1.52x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Archer-Daniels-Midland is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Archer-Daniels-Midland's assets?
Raw Data
NYSE:ADM PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $33.74
NYSE:ADM Share Price * NYSE (2019-07-17) in USD $40.31
United States of America Food Industry PB Ratio Median Figure of 68 Publicly-Listed Food Companies 2x
United States of America Market PB Ratio Median Figure of 5,241 Publicly-Listed Companies 1.81x
NYSE:ADM PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:ADM Share Price ÷ Book Value per Share (both in USD)

= 40.31 ÷ 33.74

1.19x

* Primary Listing of Archer-Daniels-Midland.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Archer-Daniels-Midland is good value based on assets compared to the US Food industry average.
X
Value checks
We assess Archer-Daniels-Midland's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Food industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Food industry average (and greater than 0)? (1 check)
  5. Archer-Daniels-Midland has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Archer-Daniels-Midland expected to perform in the next 1 to 3 years based on estimates from 10 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
9.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Archer-Daniels-Midland expected to grow at an attractive rate?
  • Archer-Daniels-Midland's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Archer-Daniels-Midland's earnings growth is positive but not above the United States of America market average.
  • Archer-Daniels-Midland's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:ADM Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:ADM Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts 9.1%
NYSE:ADM Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 10 Analysts 2.4%
United States of America Food Industry Earnings Growth Rate Market Cap Weighted Average 21.4%
United States of America Food Industry Revenue Growth Rate Market Cap Weighted Average 3.2%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.1%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:ADM Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:ADM Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 68,845 2,808 2,003 5
2020-12-31 68,308 2,891 2,012 10
2019-12-31 66,047 2,593 1,770 10
NYSE:ADM Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 64,119 -3,245 1,650
2018-12-31 64,341 -4,784 1,810
2018-09-30 64,464 1,780 2,283
2018-06-30 63,491 1,112 1,939
2018-03-31 61,366 -8,051 1,649
2017-12-31 60,828 -5,966 1,595
2017-09-30 61,259 -2,990 1,231
2017-06-30 62,264 -156 1,380
2017-03-31 62,950 41 1,388
2016-12-31 62,346 -6,508 1,279
2016-09-30 62,290 2,668 1,573
2016-06-30 63,023 1,694 1,484

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Archer-Daniels-Midland's earnings are expected to grow by 9.1% yearly, however this is not considered high growth (20% yearly).
  • Archer-Daniels-Midland's revenue is expected to grow by 2.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:ADM Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below

All data from Archer-Daniels-Midland Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:ADM Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 3.78 3.78 3.78 1.00
2020-12-31 3.53 3.80 2.95 4.00
2019-12-31 3.12 3.38 2.90 4.00
NYSE:ADM Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 2.92
2018-12-31 3.21
2018-09-30 4.05
2018-06-30 3.44
2018-03-31 2.91
2017-12-31 2.80
2017-09-30 2.15
2017-06-30 2.39
2017-03-31 2.38
2016-12-31 2.18
2016-09-30 2.65
2016-06-30 2.48

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Archer-Daniels-Midland is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Archer-Daniels-Midland's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Archer-Daniels-Midland has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Archer-Daniels-Midland performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Archer-Daniels-Midland's growth in the last year to its industry (Food).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Archer-Daniels-Midland's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • Archer-Daniels-Midland's 1-year earnings growth exceeds its 5-year average (0.1% vs -2.3%)
  • Archer-Daniels-Midland's earnings growth has exceeded the US Food industry average in the past year (0.1% vs -17.8%).
Earnings and Revenue History
Archer-Daniels-Midland's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Archer-Daniels-Midland Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:ADM Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 64,119.00 1,650.00 2,400.00
2018-12-31 64,341.00 1,810.00 2,257.00
2018-09-30 64,464.00 2,283.00 2,025.00
2018-06-30 63,491.00 1,939.00 2,002.00
2018-03-31 61,366.00 1,649.00 1,977.00
2017-12-31 60,828.00 1,595.00 1,994.00
2017-09-30 61,259.00 1,231.00 2,027.00
2017-06-30 62,264.00 1,380.00 2,066.00
2017-03-31 62,950.00 1,388.00 2,038.00
2016-12-31 62,346.00 1,279.00 1,966.00
2016-09-30 62,290.00 1,573.00 2,006.00
2016-06-30 63,023.00 1,484.00 1,972.00
2016-03-31 64,580.00 1,586.00 1,972.00
2015-12-31 67,702.00 1,849.00 1,980.00
2015-09-30 72,151.00 1,832.00 2,166.00
2015-06-30 73,703.00 2,327.00 2,105.00
2015-03-31 78,011.00 2,474.00 2,011.00
2014-12-31 81,201.00 2,248.00 1,907.00
2014-09-30 84,450.00 1,921.00 1,708.00
2014-06-30 87,726.00 1,650.00 1,688.00
2014-03-31 88,773.00 1,340.00 1,716.00
2013-12-31 89,804.00 1,342.00 1,759.00
2013-09-30 90,582.00 1,478.00 1,796.00
2013-06-30 90,997.00 1,184.00 1,757.00
2013-03-31 91,131.00 1,245.00 1,699.00
2012-12-31 90,559.00 1,375.00 1,665.00
2012-09-30 88,944.00 945.00 1,609.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Archer-Daniels-Midland has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Archer-Daniels-Midland used its assets less efficiently than the US Food industry average last year based on Return on Assets.
  • Archer-Daniels-Midland's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Archer-Daniels-Midland's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Food industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Archer-Daniels-Midland has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Archer-Daniels-Midland's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Archer-Daniels-Midland's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Archer-Daniels-Midland is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Archer-Daniels-Midland's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Archer-Daniels-Midland's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Archer-Daniels-Midland Company Filings, last reported 3 months ago.

NYSE:ADM Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 18,959.00 9,884.00 935.00
2018-12-31 19,045.00 8,388.00 2,003.00
2018-09-30 19,046.00 7,852.00 915.00
2018-06-30 18,765.00 7,623.00 851.00
2018-03-31 18,796.00 9,000.00 797.00
2017-12-31 18,375.00 7,493.00 804.00
2017-09-30 17,630.00 7,336.00 779.00
2017-06-30 17,445.00 6,980.00 670.00
2017-03-31 17,155.00 7,207.00 748.00
2016-12-31 17,205.00 6,931.00 915.00
2016-09-30 17,596.00 7,073.00 957.00
2016-06-30 17,710.00 7,386.00 730.00
2016-03-31 17,913.00 6,646.00 1,231.00
2015-12-31 17,915.00 5,877.00 1,348.00
2015-09-30 17,878.00 6,782.00 1,137.00
2015-06-30 18,558.00 6,923.00 1,176.00
2015-03-31 18,757.00 6,441.00 1,296.00
2014-12-31 19,630.00 5,660.00 1,614.00
2014-09-30 20,261.00 5,545.00 4,887.00
2014-06-30 20,219.00 5,622.00 1,996.00
2014-03-31 20,062.00 5,678.00 1,535.00
2013-12-31 20,194.00 6,879.00 3,554.00
2013-09-30 19,566.00 6,884.00 3,494.00
2013-06-30 19,013.00 7,524.00 2,029.00
2013-03-31 18,976.00 8,863.00 1,631.00
2012-12-31 19,131.00 9,540.00 2,290.00
2012-09-30 18,441.00 10,493.00 1,742.00
  • Archer-Daniels-Midland's level of debt (52.1%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (28.3% vs 52.1% today).
  • Operating cash flow is negative therefore debt is not well covered.
  • Interest payments on debt are well covered by earnings (EBIT is 9.3x coverage).
X
Financial health checks
We assess Archer-Daniels-Midland's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Archer-Daniels-Midland has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Archer-Daniels-Midland's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.47%
Current annual income from Archer-Daniels-Midland dividends. Estimated to be 3.55% next year.
If you bought $2,000 of Archer-Daniels-Midland shares you are expected to receive $69 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Archer-Daniels-Midland's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.43%).
  • Archer-Daniels-Midland's dividend is below the markets top 25% of dividend payers in United States of America (3.72%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:ADM Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
United States of America Food Industry Average Dividend Yield Market Cap Weighted Average of 30 Stocks 2.7%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2017 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:ADM Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 1.44 5.00
2020-12-31 1.48 9.00
2019-12-31 1.37 9.00
NYSE:ADM Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-05-01 1.400 3.428
2019-02-05 1.400 3.288
2018-11-08 1.340 3.044
2018-08-02 1.340 2.703
2018-05-03 1.340 2.929
2018-02-06 1.340 3.087
2017-11-02 1.280 3.158
2017-08-03 1.280 3.004
2017-05-04 1.280 3.062
2017-02-07 1.280 2.855
2016-11-02 1.200 2.678
2016-08-03 1.200 2.786
2016-05-05 1.200 2.867
2016-05-03 1.200 3.106
2016-02-19 1.200 3.261
2016-02-02 1.200 3.614
2015-11-04 1.120 3.138
2015-08-06 1.120 2.516
2015-05-07 1.120 2.238
2015-05-06 1.120 2.234
2015-02-20 1.120 2.348
2015-02-03 1.120 2.349
2014-11-05 0.960 1.899
2014-08-06 0.960 1.970
2014-05-01 0.960 2.118
2013-12-16 0.960 2.283
2013-10-31 0.760 1.844
2013-08-07 0.760 2.049
2013-05-02 0.760 2.198
2013-02-06 0.760 2.341
2012-11-01 0.700 2.558
2012-08-02 0.700 2.585
2012-05-03 0.700 2.350
2012-02-02 0.700 2.240
2011-11-03 0.700 2.413
2011-08-04 0.640 2.342
2011-05-05 0.640 2.077
2011-02-02 0.640 1.778
2010-11-04 0.600 1.935
2010-08-05 0.600 1.880
2010-05-06 0.600 2.268
2010-02-04 0.600 2.075
2009-11-05 0.560 1.800
2009-08-06 0.560 1.926
2009-05-07 0.560 2.030
2009-02-05 0.560 2.096
2008-11-06 0.520 1.968
2008-08-07 0.520 2.401

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Archer-Daniels-Midland's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.6x coverage).
X
Income/ dividend checks
We assess Archer-Daniels-Midland's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Archer-Daniels-Midland afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Archer-Daniels-Midland has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Archer-Daniels-Midland's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Juan Luciano
COMPENSATION $19,637,534
AGE 58
TENURE AS CEO 4.5 years
CEO Bio

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. Luciano has the CEO and global business experience with Archer Daniels Midland Company, where he has established a reputation for strong result-oriented and strategic leadership, as well as many years of global leadership experience at The Dow Chemical Company. He has a strong technology and operations background, along with expertise in the food and agriculture sectors, an expanding area of focus for Lilly and its Elanco business. Mr. Luciano served as the Chief Operating Officer of Archer Daniels Midland Company from April 12, 2011 to December 2014 and also served as its Executive Vice President from April 12, 2011 to February 2014. He joined ADM in 2011. He served as the President of Performance Products & Systems Division and Executive Vice President of The Dow Chemical Company from August 2010 to 2011. He served as Senior Vice President of Hydrocarbons & Energy Basic Plastics and Joint Ventures at The Dow Chemical Company until August 2010. He served as Senior Vice President of Hydrocarbons & Basic Plastics Division at Dow Chemical Co. from December 2008 to August 2010. He served as the President of Hydrocarbons and Energy of Dow Chemical Co., since January 2007. Mr. Luciano joined Dow in Latin America in 1985 as Sales Representative of Basic Chemicals. He spent 25 years at The Dow Chemical Company. He served at Dow Chemical as Product Marketing Manager of Polyurethanes and Business Analyst, Economic Evaluation, in Argentina, Sales and Marketing Manager of Specialty Chemicals in Brazil since 1994 and served as Marketing Manager of Polyglycols, Oxygenated Solvents and DPO/HTF/Surfactants in Latin America. In 1996, he moved to the U.S. and served as Senior Marketing Manager of the Americas, Polyglycols, within the Specialty Chemicals portfolio of Dow Chemical and since 1999, he served as its Business Director of Chelants, Specialty Chemicals. He moved to the Polyethylene business of Dow Chemical, in July 2000 as Global Business Director of LDPE/PRIMACOR™/SARAN™/Slurry PE and also served as Global Business Director for Polypropylene of Dow Chemical’s since 2001. He served as Business Vice President of Engineering Polymers since January 2004. He served as Global Business Vice President of Olefins and Aromatics in the Hydrocarbons and Energy business of Dow Chemical Co., since February 2006. He has been the Chairman of Archer Daniels Midland Company since January 1, 2016. He managed a portfolio of companies that encompassed 29 countries and a global workforce of more than 8,000, with additional responsibilities for 10 joint venture companies with manufacturing locations in Kuwait, Argentina, Thailand, Japan, South Korea and the United States. He served as Non Executive Director of Wilmar International Limited since June 20, 2012 until December 28, 2018. He has been a Director of Eli Lilly and Company since February 1, 2016 and Lead Director since May 2019. He has been a Director of Archer Daniels Midland Company since November 5, 2014. He serves as Director of and Intersect Illinois. He serves as Governor of the Boys and Girls Clubs of America. He is a National Trustee in the Midwest region for the Boys & Girls Clubs of America. He serves on Non-profit Boards: Boys and Girls Clubs of America; Economic Club of Chicago, Commercial Club of Chicago and The Business Council. Mr. Luciano holds Bachelors and Masters degrees in Industrial Engineering from the Buenos Aires Institute of Technology.

CEO Compensation
  • Juan's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.
  • Juan's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Archer-Daniels-Midland management team in years:

4.3
Average Tenure
54.5
Average Age
  • The tenure for the Archer-Daniels-Midland management team is about average.
Management Team

Juan Luciano

TITLE
Chairman
COMPENSATION
$20M
AGE
58
TENURE
4.5 yrs

Ray Young

TITLE
Executive VP & CFO
COMPENSATION
$7M
AGE
57
TENURE
8.6 yrs

Joe Taets

TITLE
Senior VP & President of Global Business Readiness
COMPENSATION
$7M
AGE
53
TENURE
11.8 yrs

Chris Cuddy

TITLE
Senior VP & President of Carbohydrate Solutions
COMPENSATION
$5M
AGE
45
TENURE
4.2 yrs

Greg Morris

TITLE
Senior VP & President of Agricultural Services and Oilseeds
COMPENSATION
$5M
AGE
47
TENURE
4.7 yrs

Veronica Braker

TITLE
Senior Vice President of Global Operations
TENURE
0.5 yrs

John Stott

TITLE
Group VP of Finance
AGE
51
TENURE
3.4 yrs

Todd Werpy

TITLE
Senior VP & CTO
AGE
56
TENURE
4.3 yrs

Kristy Folkwein

TITLE
Senior VP & Chief Information Officer
AGE
56
TENURE
1.2 yrs

Mark Schweitzer

TITLE
Vice President of Investor Relations
Board of Directors Tenure

Average tenure and age of the Archer-Daniels-Midland board of directors in years:

7.4
Average Tenure
63.5
Average Age
  • The tenure for the Archer-Daniels-Midland board of directors is about average.
Board of Directors

Juan Luciano

TITLE
Chairman
COMPENSATION
$20M
AGE
58
TENURE
3.5 yrs

Kelvin Westbrook

TITLE
Independent Director
COMPENSATION
$324K
AGE
63
TENURE
15.7 yrs

Pat Moore

TITLE
Independent Director
COMPENSATION
$315K
AGE
64
TENURE
15.7 yrs

Terry Crews

TITLE
Independent Director
COMPENSATION
$325K
AGE
64
TENURE
8.2 yrs

Don Felsinger

TITLE
Lead Independent Director
COMPENSATION
$335K
AGE
71

Alan Boeckmann

TITLE
Independent Director
COMPENSATION
$300K
AGE
70
TENURE
7.4 yrs

Pierre Dufour

TITLE
Independent Director
COMPENSATION
$300K
AGE
64
TENURE
9.2 yrs

Frank Sanchez

TITLE
Independent Director
COMPENSATION
$300K
AGE
59
TENURE
5.2 yrs

Debra Sandler

TITLE
Independent Director
COMPENSATION
$300K
AGE
59
TENURE
3.2 yrs

Suzan Harrison

TITLE
Independent Director
COMPENSATION
$300K
AGE
61
TENURE
2.2 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Archer-Daniels-Midland individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
29. Apr 19 Buy Ray Young Individual 29. Apr 19 29. Apr 19 6,000 $42.76 $256,542
29. Apr 19 Buy Juan Luciano Individual 29. Apr 19 29. Apr 19 23,657 $42.30 $1,000,691
07. Feb 19 Buy Donald Felsinger Individual 07. Feb 19 07. Feb 19 60,000 $41.80 $2,508,000
07. Nov 18 Buy Ray Young Individual 07. Nov 18 07. Nov 18 2,100 $47.35 $99,429
X
Management checks
We assess Archer-Daniels-Midland's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Archer-Daniels-Midland has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Archer-Daniels-Midland (NYSE:ADM) Takes On Some Risk With Its Use Of Debt

We note that Archer-Daniels-Midland Company (NYSE:ADM) does have debt on its balance sheet. … NYSE:ADM Historical Debt, July 10th 2019 How Strong Is Archer-Daniels-Midland's Balance Sheet? … Either way, since Archer-Daniels-Midland does have more debt than cash, it's worth keeping an eye on its balance sheet.

Simply Wall St -

Does Archer-Daniels-Midland Company (NYSE:ADM) Create Value For Shareholders?

The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Archer-Daniels-Midland: 8.7% = US$1.7b ÷ US$19b (Based on the trailing twelve months to March 2019.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. … Conservative use of debt to boost returns is usually a good move for shareholders, though it does leave the company more exposed to interest rate rises. … In my book the highest quality companies have high return on equity, despite low debt.

Simply Wall St -

Does Archer-Daniels-Midland Company's (NYSE:ADM) Debt Level Pose A Problem?

With this growth in debt, the current cash and short-term investment levels stands at US$935m to keep the business going. … With current liabilities at US$13b, it seems that the business has been able to meet these obligations given the level of current assets of US$20b, with a current ratio of 1.52x. … Next Steps: At its current level of cash flow coverage, ADM has room for improvement to better cushion for events which may require debt repayment.

Simply Wall St -

Here's What We Think About Archer-Daniels-Midland Company's (NYSE:ADM) CEO Pay

According to our data, Archer-Daniels-Midland Company has a market capitalization of US$23b, and pays its CEO total annual compensation worth US$20m. … It would therefore appear that Archer-Daniels-Midland Company pays Juan Luciano more than the median CEO remuneration at large companies, in the same market. … With a total shareholder return of 10% over three years, Archer-Daniels-Midland Company shareholders would, in general, be reasonably content.

Simply Wall St -

Does Archer-Daniels-Midland Company (NYSE:ADM) Have A Good P/E Ratio?

View our latest analysis for Archer-Daniels-Midland How Do I Calculate Archer-Daniels-Midland's Price To Earnings Ratio? … The formula for price to earnings is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for Archer-Daniels-Midland: P/E of 14.51 = $42.42 ÷ $2.92 (Based on the trailing twelve months to March 2019.) Is A High Price-to-Earnings Ratio Good? … All else being equal, it's better to pay a low price -- but as Warren Buffett said, 'It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.' How Growth Rates Impact P/E Ratios Generally speaking the rate of earnings growth has a profound impact on a company's P/E multiple.

Simply Wall St -

Could Archer-Daniels-Midland Company (NYSE:ADM) Have The Makings Of Another Dividend Aristocrat?

Dividend paying stocks like Archer-Daniels-Midland Company (NYSE:ADM) tend to be popular with investors, and for good reason - some research shows that a significant amount of all stock market returns come from reinvested dividends. … Regular readers know we like to apply the same approach to each dividend stock, and we hope you'll find our analysis useful. … With Archer-Daniels-Midland yielding 3.2% and having paid a dividend for over 10 years, many investors likely find the company quite interesting.

Simply Wall St -

Need To Know: Archer-Daniels-Midland Company (NYSE:ADM) Insiders Have Been Buying Shares

So shareholders might well want to know whether insiders have been buying or selling shares in Archer-Daniels-Midland Company (NYSE:ADM). … The Last 12 Months Of Insider Transactions At Archer-Daniels-Midland. … In the last twelve months Archer-Daniels-Midland insiders were buying shares, but not selling

Simply Wall St -

Why We Think Archer-Daniels-Midland Company (NYSE:ADM) Could Be Worth Looking At

Archer-Daniels-Midland Company (NYSE:ADM) is a stock with outstanding fundamental characteristics. … When we build an investment case, we need to look at the stock with a holistic perspective. … that has been a rockstar for income investors, currently trading at an attractive share price

Simply Wall St -

Here's How P/E Ratios Can Help Us Understand Archer-Daniels-Midland Company (NYSE:ADM)

This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … We'll look at Archer-Daniels-Midland Company's (NYSE:ADM) P/E ratio and reflect on what it tells us about the company's share price. … Archer-Daniels-Midland has a price to earnings ratio of 13.44, based on the last twelve months.

Simply Wall St -

Archer-Daniels-Midland (NYSE:ADM) Shareholders Have Enjoyed A 16% Share Price Gain

Unfortunately for shareholders, while the Archer-Daniels-Midland Company (NYSE:ADM) share price is up 16% in the last three years, that falls short of the market return. … By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. … Archer-Daniels-Midland was able to grow its EPS at 2.4% per year over three years, sending the share price higher.

Simply Wall St -

Company Info

Description

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 four segments: Origination, Oilseeds, Carbohydrate Solutions, and Nutrition. It buys, stores, cleans, and transports agricultural commodities, such as oilseeds, corn, wheat, milo, oats, rice, and barley, as well as resells these commodities primarily as food and feed ingredients and as raw materials for the agricultural processing industry. The company also engages in agricultural commodities merchandising and handling activities; and activities related to structured trade finance, and import and distribution of agricultural feed products. In addition, it offers vegetable oils and protein meals; ingredients for the food, feed, energy, and industrial products industries; 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, cottonseed flour, and cotton cellulose pulp; sweeteners, corn and wheat starches, syrup, glucose, 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, natural health and nutrition products, 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. Archer-Daniels-Midland Company was founded in 1902 and is headquartered in Chicago, Illinois.

Details
Name: Archer-Daniels-Midland Company
ADM
Exchange: NYSE
Founded: 1902
$22,580,259,050
560,165,196
Website: http://www.adm.com
Address: Archer-Daniels-Midland Company
77 West Wacker Drive,
Suite 4600,
Chicago,
Illinois, 60601,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE ADM Common Stock New York Stock Exchange US USD 01. Mar 1964
DB ADM Common Stock Deutsche Boerse AG DE EUR 01. Mar 1964
XTRA ADM Common Stock XETRA Trading Platform DE EUR 01. Mar 1964
LSE 0JQQ Common Stock London Stock Exchange GB USD 01. Mar 1964
SWX ADM Common Stock SIX Swiss Exchange CH CHF 01. Mar 1964
WBAG ARDA Common Stock Wiener Boerse AG AT EUR 01. Mar 1964
BMV ADM * Common Stock Bolsa Mexicana de Valores MX MXN 01. Mar 1964
Number of employees
Current staff
Staff numbers
31,600
Archer-Daniels-Midland employees.
Industry
Agricultural Products
Food, Beverage & Tobacco
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/17 23:32
End of day share price update: 2019/07/17 00:00
Last estimates confirmation: 2019/07/16
Last earnings filing: 2019/04/26
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.