NYSE:ADM

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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


Snowflake Analysis

Solid track record 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 +/- 3% a week.

Volatility Over Time: ADM's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

0.8%

ADM

-0.8%

US Food

-1.3%

US Market


1 Year Return

47.5%

ADM

11.9%

US Food

41.9%

US Market

Return vs Industry: ADM exceeded the US Food industry which returned 15.8% over the past year.

Return vs Market: ADM exceeded the US Market which returned 36.5% over the past year.


Shareholder returns

ADMIndustryMarket
7 Day0.8%-0.8%-1.3%
30 Day14.6%1.4%7.5%
90 Day14.3%1.2%15.9%
1 Year52.4%47.5%14.7%11.9%44.8%41.9%
3 Year47.7%34.1%13.9%4.5%49.1%41.0%
5 Year80.5%54.3%16.8%1.0%113.1%92.8%

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

Valuation

Is Archer-Daniels-Midland undervalued compared to its fair value and its price relative to the market?

18.14x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ADM ($57.3) is trading above our estimate of fair value ($38.27)

Significantly Below Fair Value: ADM is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ADM is good value based on its PE Ratio (18.1x) compared to the US Food industry average (23.8x).

PE vs Market: ADM is good value based on its PE Ratio (18.1x) compared to the US market (21.2x).


Price to Earnings Growth Ratio

PEG Ratio: ADM is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: ADM is good value based on its PB Ratio (1.6x) compared to the US Food industry average (2.2x).


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?

10.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ADM's forecast earnings growth (10.3% per year) is above the savings rate (2%).

Earnings vs Market: ADM's earnings (10.3% per year) are forecast to grow slower than the US market (20% per year).

High Growth Earnings: ADM's earnings are forecast to grow, but not significantly.

Revenue vs Market: ADM's revenue (1.9% per year) is forecast to grow slower than the US market (10.4% per year).

High Growth Revenue: ADM's revenue (1.9% 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 (8.5%).


Next Steps

Past Performance

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

1.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ADM has high quality earnings.

Growing Profit Margin: ADM's current net profit margins (2.8%) are higher than last year (2.1%).


Past Earnings Growth Analysis

Earnings Trend: ADM's earnings have grown by 1% per year over the past 5 years.

Accelerating Growth: ADM's earnings growth over the past year (28.3%) exceeds its 5-year average (1% per year).

Earnings vs Industry: ADM earnings growth over the past year (28.3%) exceeded the Food industry 8.7%.


Return on Equity

High ROE: ADM's Return on Equity (8.9%) 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 ($27.3B) exceed its short term liabilities ($18.2B).

Long Term Liabilities: ADM's short term assets ($27.3B) exceed its long term liabilities ($11.4B).


Debt to Equity History and Analysis

Debt Level: ADM's debt to equity ratio (49.5%) is considered high.

Reducing Debt: ADM's debt to equity ratio has increased from 32.9% to 49.5% 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 (7.2x coverage).


Balance Sheet


Next Steps

Dividend

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

2.58%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ADM's dividend (2.58%) is higher than the bottom 25% of dividend payers in the US market (1.33%).

High Dividend: ADM's dividend (2.58%) is low compared to the top 25% of dividend payers in the US market (3.76%).


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 (45.6%), 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 (42.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.1yrs

Average management tenure


CEO

Juan Luciano (59 yo)

6.08yrs

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

NamePositionTenureCompensationOwnership
Juan Luciano
Chairman6.08yrsUS$18.14m0.14%
$ 43.5m
Ray Young
Executive VP & CFO10.17yrsUS$6.83m0.056%
$ 17.8m
Vincent Macciocchi
Chief Sales & Marketing Officer1.08yrsUS$4.32m0.0056%
$ 1.8m
Joseph Taets
Senior VP and President of Global Business Readiness & Global Procurement13.42yrsUS$5.32m0.038%
$ 12.1m
Gregory Morris
Senior VP and President of Agricultural Services & Oilseeds6.25yrsUS$5.12m0.033%
$ 10.7m
Veronica Braker
Senior Vice President of Global Operations1.83yrsno datano data
Kristy Folkwein
Senior VP & Chief Technology Officer1.08yrsno datano data
Mark Schweitzer
Vice President of Investor Relationsno datano datano data
D. Findlay
Senior VP7.58yrsUS$3.79m0.042%
$ 13.5m
Benjamin Bard
VP, Head of Global Security & Chief Compliance Officer7.08yrsno datano data
Jennifer Weber
Senior VP & Chief Human Resources Officer1.08yrsno data0.011%
$ 3.7m
Vikram Luthar
Senior VP & CFO of Nutrition5.92yrsno datano data

6.1yrs

Average Tenure

54yo

Average Age

Experienced Management: ADM's management team is seasoned and experienced (6.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Juan Luciano
Chairman6.08yrsUS$18.14m0.14%
$ 43.5m
Patrick Moore
Independent Director17.25yrsUS$320.00k0%
$ 0
Donald Felsinger
Lead Independent Directorno dataUS$335.00k0.011%
$ 3.4m
Terrell Crews
Independent Director9.75yrsUS$325.00k0.00014%
$ 44.8k
Kelvin Westbrook
Independent Director17.25yrsUS$320.00k0%
$ 0
Pierre Dufour
Independent Director10.75yrsUS$300.00k0.0037%
$ 1.2m
Francisco Sanchez
Independent Director6.75yrsUS$300.00k0.00078%
$ 249.6k
Suzan Harrison
Independent Director3.75yrsUS$306.68k0%
$ 0
Michael Burke
Independent Director2.75yrsUS$300.00k0%
$ 0
Debra Sandler
Independent Director4.75yrsUS$300.00k0%
$ 0
Lei Schlitz
Independent Director1.75yrsUS$214.70k0%
$ 0

5.9yrs

Average Tenure

62yo

Average Age

Experienced Board: ADM's board of directors are considered experienced (5.9 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$31.997b
  • Shares outstanding: 558.41m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ADMNYSE (New York Stock Exchange)YesCommon StockUSUSDMar 1964
ADMSWX (SIX Swiss Exchange)YesCommon StockCHCHFMar 1964
ADMXTRA (XETRA Trading Platform)YesCommon StockDEEURMar 1964
ADM *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNMar 1964
0JQQLSE (London Stock Exchange)YesCommon StockGBUSDMar 1964
ADMDB (Deutsche Boerse AG)YesCommon StockDEEURMar 1964
ARDAWBAG (Wiener Boerse AG)YesCommon StockATEURMar 1964
ADMETLX (Eurotlx)YesCommon StockITEURMar 1964
A1DM34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COM NPVBRBRLDec 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/02 00:01
End of Day Share Price2021/03/01 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.