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Archer-Daniels Midland Co ADM

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Stock XNYS Rating as of
$60.10 −0.90 (1.48%)
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As of Delayed Price Post-Trading: $60.20 +0.10
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Company Report

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Archer-Daniels Midland Will See Profits Fall to Midcycle Levels on Lower Long-Term Crop Prices

Seth Goldstein

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 economic profits.

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Price vs Fair Value

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ADM is trading within a range we consider fairly valued.
Price
$61.79
Fair Value
$28.00
Uncertainty
High
1-Star Price
$84.00
5-Star Price
$26.00
Economic Moat
Rzb
Capital Allocation
Dqnwskxdt

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.

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News

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Trading Information

Previous Close Price
$61.00
Day Range
$60.08–61.00
52-Week Range
$51.49–87.30
Bid/Ask
$60.10 / $60.53
Market Cap
$30.16 Bil
Volume/Avg
2.7 Mil / 5.0 Mil

Key Statistics

Price/Earnings (Normalized)
8.75
Price/Sales
0.35
Dividend Yield (Trailing)
3.03%
Dividend Yield (Forward)
3.28%
Total Yield
11.62%

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
41,802
Website
https://www.adm.com

Competitors

Valuation

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Metric
ADM
IFF
INGR
Price/Earnings (Normalized)
 8.7536.2012.15
Price/Book Value
 1.301.472.11
Price/Sales
 0.351.870.94
Price/Cash Flow
 6.9922.547.83
Price/Earnings
ADM
IFF
INGR

Financial Strength

Metric
ADM
IFF
INGR
Quick Ratio
 0.420.740.95
Current Ratio
 1.601.671.92
Interest Coverage
 6.87−5.638.36
Quick Ratio
ADM
IFF
INGR

Profitability

Metric
ADM
IFF
INGR
Return on Assets (Normalized)
 6.67%0.70%8.68%
Return on Equity (Normalized)
 15.33%1.40%19.76%
Return on Invested Capital (Normalized)
 11.10%1.90%12.55%
Return on Assets
ADM
IFF
INGR
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