NYSE:ADM

Stock Analysis Report

Executive Summary

Archer-Daniels-Midland Company procures, transports, stores, processes, and merchandises agricultural commodities, products, and ingredients in the United States and internationally.

Snowflake

Fundamentals

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


Market Performance


7 Day Return

-1.3%

NYSE:ADM

0.4%

US Food

-0.02%

US Market


1 Year Return

-18.7%

NYSE:ADM

2.2%

US Food

1.6%

US Market

ADM underperformed the Food industry which returned 2.2% over the past year.

ADM underperformed the Market in United States of America which returned 1.6% over the past year.


Share holder returns

ADMIndustryMarket
7 Day-1.3%0.4%-0.02%
30 Day9.1%1.8%2.7%
90 Day-0.4%2.3%1.4%
1 Year-16.0%-18.7%5.3%2.2%3.8%1.6%
3 Year4.5%-4.8%-1.1%-9.6%45.2%35.8%
5 Year-6.2%-19.0%45.7%28.3%61.8%44.1%

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

Valuation

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

38%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

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, but not at a substantial discount (< 40%).


Price Based on Earnings

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

Archer-Daniels-Midland is good value based on expected growth next year.


Price Based on Value of Assets

Archer-Daniels-Midland is good value based on assets compared to the US Food industry average.


Next Steps

Future Growth

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

18.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Archer-Daniels-Midland's revenue is expected to grow by 2.1% yearly, however this is not considered high growth (20% yearly).

Archer-Daniels-Midland's earnings are expected to grow by 18.6% yearly, however this is not considered high growth (20% yearly).

Archer-Daniels-Midland's revenue growth is positive but not above the United States of America market average.

Archer-Daniels-Midland's earnings growth is expected to exceed the United States of America market average.

Archer-Daniels-Midland's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Archer-Daniels-Midland is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

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

-4.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Archer-Daniels-Midland's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

Archer-Daniels-Midland's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Archer-Daniels-Midland's 1-year earnings growth is negative, it can't be compared to the US Food industry average.


Return on Equity

Archer-Daniels-Midland has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Archer-Daniels-Midland used its assets less efficiently than the US Food industry average last year based on Return on Assets.


Return on Capital Employed

Archer-Daniels-Midland's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Archer-Daniels-Midland's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

Archer-Daniels-Midland's level of debt (49.7%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (27.8% vs 49.7% today).

Operating cash flow is negative therefore debt is not well covered.

Interest payments on debt are well covered by earnings (EBIT is 7.4x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 2.1x debt.


Next Steps

Dividend

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

3.49%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Archer-Daniels-Midland's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

Archer-Daniels-Midland's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).

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

Dividends paid are covered by earnings (1.7x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.5x coverage).


Next Steps

Management

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

4.5yrs

Average management tenure


CEO

Juan Luciano (58yo)

4.7yrs

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

Juan's remuneration is higher than average for companies of similar size in United States of America.

Juan's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

4.5yrs

Average Tenure

54.5yo

Average Age

The tenure for the Archer-Daniels-Midland management team is about average.


Board Age and Tenure

7.6yrs

Average Tenure

63.5yo

Average Age

The tenure for the Archer-Daniels-Midland board of directors is about average.


Insider Trading

More shares have been bought than sold by Archer-Daniels-Midland individual insiders in the past 3 months.


Recent Insider Transactions

BuyUS$199,99006 Aug 19
Juan Luciano
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares5,457
Max PriceUS$36.65
BuyUS$124,89906 Aug 19
Ray Young
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares3,400
Max PriceUS$36.74
BuyUS$1,000,69129 Apr 19
Juan Luciano
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares23,657
Max PriceUS$42.30
BuyUS$256,54229 Apr 19
Ray Young
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares6,000
Max PriceUS$42.76
BuyUS$2,508,00007 Feb 19
Donald Felsinger
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares60,000
Max PriceUS$41.80
BuyUS$99,42907 Nov 18
Ray Young
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares2,100
Max PriceUS$47.35

Ownership Breakdown


Management Team

  • Joe Taets (53yo)

    Senior VP & President of Global Business Readiness

    • Tenure: 12yrs
    • Compensation: US$6.59m
  • John Stott (51yo)

    Group VP of Finance

    • Tenure: 3.6yrs
  • Ray Young (57yo)

    Executive VP & CFO

    • Tenure: 8.8yrs
    • Compensation: US$7.50m
  • Chris Cuddy (45yo)

    Senior VP & President of Carbohydrate Solutions

    • Tenure: 4.3yrs
    • Compensation: US$4.81m
  • Juan Luciano (58yo)

    Chairman

    • Tenure: 4.7yrs
    • Compensation: US$19.64m
  • Todd Werpy (56yo)

    Senior VP & CTO

    • Tenure: 4.5yrs
  • Kristy Folkwein (56yo)

    Senior VP & Chief Information Officer

    • Tenure: 1.3yrs
  • Greg Morris (47yo)

    Senior VP & President of Agricultural Services and Oilseeds

    • Tenure: 4.8yrs
    • Compensation: US$5.03m
  • Mark Schweitzer

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Veronica Braker

    Senior Vice President of Global Operations

    • Tenure: 0.7yrs

Board Members

  • Pat Moore (64yo)

    Independent Director

    • Tenure: 15.8yrs
    • Compensation: US$315.00k
  • Don Felsinger (71yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: US$335.00k
  • Terry Crews (64yo)

    Independent Director

    • Tenure: 8.3yrs
    • Compensation: US$325.00k
  • Alan Boeckmann (70yo)

    Independent Director

    • Tenure: 7.6yrs
    • Compensation: US$300.00k
  • Kelvin Westbrook (63yo)

    Independent Director

    • Tenure: 15.8yrs
    • Compensation: US$324.00k
  • Pierre Dufour (64yo)

    Independent Director

    • Tenure: 9.3yrs
    • Compensation: US$300.00k
  • Frank Sanchez (59yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: US$300.00k
  • Suzan Harrison (61yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$300.00k
  • Juan Luciano (58yo)

    Chairman

    • Tenure: 4.7yrs
    • Compensation: US$19.64m
  • Debra Sandler (59yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: US$300.00k

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$22.780b
  • Shares outstanding: 556.97m
  • 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

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 Analysis2019/09/19 23:32
End of Day Share Price2019/09/19 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.