Archer-daniels-midland Co

Consumer Staples
Packaged Foods
www.adm.com

Earnings Score
Moat Score
Safety Score
Final Score

Market Cap $25.14B
PE 14
Debt $9.33B
Cash $4.40B
EV $30.07B
FCF $3.53B

Earnings

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Sales & Net Margins

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Earnings	$1.77B
EBIT	$2.32B
ROE	8%
ROA	4%
FCF	$3.53B
Equity	$21.98B
Growth Stability	88%
PE	14.23
PEG	0.79
PB	1.14
P/FCF	7.13
P/S	0.29
Price/Cash	0.17
Debt/Equity	0.42
Debt/FCF	2.65
Net Margins	2%
Gross Margins	7%
Op. Margins	3%
Earnings CAGR	12%
Sales Growth YoY	-8%
Sales Growth QoQ	-10%
Sales CAGR	6%
FCF CAGR	5%
Equity CAGR	4%
Earnings Stability	0.56
Earnings Growth YoY	-98%
Earnings Growth QoQ	-96%
Earnings CAGR 5Y	18%

Sales CAGR 5Y	11%
FCF CAGR 5Y	26%
Equity CAGR 5Y	5%
Earnings CAGR 3Y	-1%
Sales CAGR 3Y	-1%
FCF CAGR 3Y	-3%
Equity CAGR 3Y	-2%
Market Cap	$25.14B
Revenue	$87.01B
Dividend Yield	4%
Payout Ratio	56%
Assets	$52.20B
Total Debt	$9.33B
Cash	$4.40B
Shares Outstanding	482M
EV	30.07B
Earnings Score	78%
Moat Score	65%
Safety Score	91%
Final Score	78%
Working Capital	7.62B
Current Ratio	1.4
Gross Profit	$6.16B
Shares Growth 3y	-6%
Equity Growth QoQ	-1%
Equity Growth YoY	-13%

Assets & ROA

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Stockholders Equity & ROE

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Archer-Daniels Midland is a major processor of oilseeds, corn, wheat, and other agricultural commodities. Additionally, the company owns an 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.

SEC Filings

Direct access to Archer-daniels-midland Co (ADM) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Archer-daniels-midland Co compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Archer-daniels-midland Co compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 12%

Stability 56%

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Archer-daniels-midland Co Discounted Cash Flow

Fully customizable DCF calculator online for Archer-daniels-midland Co.

Years

Calculation mode

= $50B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$3.5B	$3.7B	$3.9B	$4.1B	$4.3B	$4.5B	$4.8B	$5B	$5.3B	$5.6B	$5.9B	$59B
DCF		$3.4B	$3.2B	$3.1B	$3B	$2.8B	$2.7B	$2.6B	$2.5B	$2.4B	$2.3B	$23B
Value	$50B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	3%	3%	2%	3%	3%	2%	3%	3%	4%	4%	2%
ROA	-	6%	5%	4%	5%	4%	4%	6%	9%	8%	4%
ROE	-	10%	7%	9%	10%	7%	9%	12%	18%	14%	8%

Bad Net Margins (1.9%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	4.33	11.89	6.45	-1.58	-1.41	-3.09	1.76	4.46	2.82	2.65
Debt over Equity	0.29	0.33	0.41	0.41	0.47	0.46	0.5	0.42	0.4	0.35	0.42
Growth Stability	-	-	-	89%	100%	88%	100%	100%	100%	100%	88%

Neutral Debt/FCF ratio (2.65)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Good Debt/Equity ratio (0.42)

The company is not overleveraged and has a good balance between equity and debt.

Neutral Graham’s Stability (88%)

The company has a stability in its earnings that is not too good nor too bad.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	-17%	-8%	-2%	6%	0%	-0%	32%	19%	-8%	11%
Earnings YoY growth	-	-18%	-31%	25%	13%	-24%	28%	53%	60%	-20%	18%
Equity YoY growth	-	-9%	-4%	7%	4%	1%	4%	12%	8%	-1%	5%
FCF YoY growth	-	-67%	-56%	96%	-584%	12%	-49%	-269%	-60%	37%	26%