Archer Daniels Midland Company
Exchange: NYSESector: Consumer DefensiveIndustry: Farm Products
Archer-Daniels-Midland-Company, is engaged in the processing of oilseeds, corn, wheat, cocoa, and other agricultural commodities. The Company manufactures protein meal, vegetable oil, corn sweeteners, flour, biodiesel, ethanol, and other value-added food and feed ingredients. The Company also has a grain elevator and transportation network to procure, store, clean, and transport agricultural commodities, such as oilseeds, corn, wheat, milo, oats, and barley, as well as processed agricultural commodities. Its operations are classified into three business segments: Oilseeds Processing, Corn Processing, and Agricultural Services. In January 2012, the Company acquired three grain elevators in Slovakia from the companies Palma Group a.s. and Polnonakup Hont a.s. In October 2012, the Company acquired 10% interest in GrainCorp Ltd.
Did you know?
A large-cap company with a $35.5B market cap.
Current Price
$73.83
+2.02%GoodMoat Value
$28.62
61.2% overvaluedProfile
Valuation (TTM)
Market Cap$35.48B
P/E32.91
EV$32.95B
P/B1.56
Shares Out480.57M
P/Sales0.44
Revenue$80.27B
EV/EBITDA11.71
Archer Daniels Midland Company (ADM) Stock Analysis
GoodMoat Analysis
Archer Daniels Midland (ADM) appears unfavourable for a value investor. The business shows a weak competitive moat and poor quality metrics, failing the initial gate of the investment framework. Its current price is significantly above the GoodMoat target, indicating a substantial overvaluation.
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Archer Daniels Midland is a global agricultural processor and food ingredient provider, operating in the farm products sector. Applying the GoodMoat framework, the company's competitive advantages are weak. A systematic moat analysis would likely yield a low score, as the business operates in a commoditized industry with low switching costs, minimal proprietary technology advantages, and faces intense competition, failing to meet the required threshold of 5+ for a durable moat. The quality indicators are also poor. The company's profit margin of 1.3% and ROE of 4.7% are far below the high-return thresholds expected of a quality business. While the free cash flow yield of 12.2% and a reasonable debt/equity ratio of 0.43 are positive, they are overshadowed by negative revenue growth of -13.7% and thin operating margins of 1.2%. According to the Decision Framework, a business with a low moat score and multiple weak quality ratings fails the initial gate and does not warrant further valuation analysis. The valuation context confirms this: the stock trades at a P/E of 31.9x despite the low growth and profitability profile, and the GoodMoat target price of $28.62 suggests the current price of $71.66 represents a severe overvaluation, aligning with an 'unfavourable' assessment. For a value investor, ADM does not pass the fundamental tests for a high-quality business trading at an attractive price. Analysis based on data as of 2024-05-15.
Market Cap$35.48B
Current Price$73.83
P/E Ratio32.91
Forward P/E—
PEG Ratio-1.67
EPS$2.23
Book Value$47.32
P/B Ratio1.56
ADM Financial Charts
FCF vs CAPEX
FCFCAPEX
Cash vs Debt
Net Debt: 8.7B
Revenue
64.7B
FY19
64.4B
FY20
85.2B
FY21
101.6B
FY22
93.9B
FY23
85.5B
FY24
80.3B
FY25
Net Income
1.4B
FY19
1.8B
FY20
2.7B
FY21
4.3B
FY22
3.5B
FY23
1.8B
FY24
1.1B
FY25
ADM 52-Week Range
$40.35
$73.83
50-Day MA: $68.81200-Day MA: $60.81
Did you know?
Profit margin stands at 1.3%.
Archer Daniels Midland Company (ADM) Financial Summary
Archer Daniels Midland Company (ADM) is a Consumer Defensive company in the Farm Products industry, listed on NYSE. The stock currently trades at $73.83 with a market capitalization of $35.48B.
Key valuation metrics include a P/E ratio of 32.91, price-to-book ratio of 1.56, and EPS of $2.23. The company reports a profit margin of 1.3% and return on equity of 4.7%.
ADM Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $35.48B |
| P/E Ratio | 32.91 |
| EPS | $2.23 |
| P/B Ratio | 1.56 |
| P/S Ratio | 0.44 |
| EV/EBITDA | 11.71 |
| Dividend Yield | 2.78% |
| Profit Margin | 1.3% |
| Return on Equity | 4.7% |
| Debt/Equity | 0.43 |
ADM Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $64.66B | $1.38B |
| FY20 | $64.36B | $1.77B |
| FY21 | $85.25B | $2.71B |
| FY22 | $101.56B | $4.34B |
| FY23 | $93.94B | $3.48B |
| FY24 | $85.53B | $1.80B |
| FY25 | $80.27B | $1.08B |
Archer Daniels Midland Company (ADM) Valuation
Based on GoodMoat's DCF model, Archer Daniels Midland Company has a fair value estimate of $28.62. At the current price of $73.83, the stock appears 157.9% overvalued relative to our intrinsic value estimate.
ADM Quality Indicators
Archer Daniels Midland Company maintains a profit margin of 1.3% and an operating margin of 1.2%. Return on equity stands at 4.7%. The current ratio is 1.37. Debt-to-equity ratio is 0.43.
About Archer Daniels Midland Company
Archer-Daniels-Midland-Company, is engaged in the processing of oilseeds, corn, wheat, cocoa, and other agricultural commodities. The Company manufactures protein meal, vegetable oil, corn sweeteners, flour, biodiesel, ethanol, and other value-added food and feed ingredients. The Company also has a grain elevator and transportation network to procure, store, clean, and transport agricultural commodities, such as oilseeds, corn, wheat, milo, oats, and barley, as well as processed agricultural commodities. Its operations are classified into three business segments: Oilseeds Processing, Corn Processing, and Agricultural Services. In January 2012, the Company acquired three grain elevators in Slovakia from the companies Palma Group a.s. and Polnonakup Hont a.s. In October 2012, the Company acquired 10% interest in GrainCorp Ltd.
ADM Free Cash Flow
Archer Daniels Midland Company generated $4.20B in trailing twelve-month free cash flow, representing an FCF yield of 11.85%. This strong FCF yield suggests the company generates substantial cash relative to its market value.
ADM Shares Outstanding
Archer Daniels Midland Company has 0.48 billion shares outstanding at a share price of $73.83, giving it a market capitalization of $35.48B.
ADM Recent Insider Trades
Recent insider transactions at Archer Daniels Midland Company include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Cuddy Christopher M (Senior Vice President) | SELL | 35,000 | $2.57M |
| Pinner Ian R (Senior Vice President) | SELL | 34,106 | $2.44M |
| Morris Gregory A (Senior Vice President) | SELL | 50,000 | $3.42M |