Archer-Daniels-Midland Co ADM

Morningstar Rating
$75.66 −0.86 (1.12%)
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Company Report

Archer-Daniels-Midland Should See Higher Near-Term Profits From Middle East War-Related Volatility

Archer-Daniels-Midland buys, processes, and sells agricultural commodities. The firm purchases crops from farmers and then transports, stores, and/or processes the crops before selling them to food, feed, and energy buyers. The commodity products ADM moves around the world are readily available from competitors, and the company has little pricing power over the products it buys and sells, making for slim margins. In addition, the capital intensity of its operations makes it difficult, but not impossible, for ADM to generate consistent economic profits.

Price vs Fair Value

ADM is trading at a 216% premium.
Price
$76.50
Fair Value
$78.57
Uncertainty
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1-Star Price
$76.41
5-Star Price
$34.76
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

With a global network of processing, storage, and transportation assets, ADM has scale advantages over regional competitors. Its trading operations are often able to generate arbitrage opportunities from extensive market knowledge produced by the global origination and logistics network.

Bears

Grain merchandisers, including ADM, will continue to face structural headwinds as farmers and grain buyers have better access to price information. This will limit trading profits over the long term.

News

Trading Information

Previous Close Price
$76.50
Day Range
$75.5476.78
52-Week Range
$51.3485.36
Bid/Ask
$75.60 / $75.81
Shares Outstanding
481.96M
Market Cap
$36.51B
Volume/Avg
797,985 / 4M

Key Statistics

Price/Earnings (Normalized)
23.39
Price/Sales
0.48
Dividend Yield (Trailing)
2.57%
Dividend Yield (Forward)
2.59%
Total Yield
2.57%

Company Profile

Archer-Daniels-Midland is a major processor of oilseeds, corn, wheat, and other agricultural commodities. The company is also one of the largest grain merchandisers through its extensive network of logistical assets to store and transport crops around the globe. ADM also runs a nutrition business that focuses on both human and animal ingredients and is a large producer of corn-based sweeteners, starches, and ethanol.
Sector
Consumer Defensive
Industry
Farm Products
Stock Style Box
Mid Value
Total Number of Employees
41,496

Competitors

Valuation

Metric
ADM
INGR
IFF
Price/Earnings (Normalized)
23.399.6818.43
Price/Book Value
1.701.461.41
Price/Sales
0.480.911.86
Price/Cash Flow
14.436.9514.69
Price/Earnings
ADM
INGR
IFF

Financial Strength

Metric
ADM
INGR
IFF
Quick Ratio
0.281.780.71
Current Ratio
1.312.761.49
Interest Coverage
2.6525.355.05
Quick Ratio
ADM
INGR
IFF

Profitability

Metric
ADM
INGR
IFF
Return on Assets (Normalized)
3.14%9.03%3.75%
Return on Equity (Normalized)
7.40%16.68%7.00%
Return on Invested Capital (Normalized)
6.26%11.93%5.33%
Return on Assets
ADM
INGR
IFF

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