ADMArcher-Daniels-Midland Company (ADM) demonstrates a solid fundamental profile with a consistent dividend and a diverse business in essential agricultural products. While recent performance shows some weakness, the company's stability and market position, particularly in food ingredients and animal nutrition, provide a defensive quality. Technicals suggest a period of consolidation, but the underlying business remains robust for long-term investors.
ADM operates in the stable, yet evolving, agricultural and food sectors. Key themes include sustainable agriculture, plant-based alternatives, and global food security, where ADM holds a significant position. Emerging trends in nutrition and bio-based industrial products offer growth avenues, though the company's scale and commodity exposure temper rapid thematic acceleration.
ADM exhibits strong financial health with substantial revenue and consistent profitability. The company maintains a manageable debt level relative to its assets and generates robust cash flow. The dividend yield is attractive, reflecting its commitment to shareholder returns, although recent earnings show some pressure on margins.
ADM's stock price is currently trading below its recent highs and shows mixed signals across different timeframes. While it remains above longer-term moving averages, shorter-term indicators suggest a period of consolidation or potential downside risk, warranting a neutral stance for short-to-medium term traders.
| Factor | Score |
|---|---|
| Sustainable Agriculture & Food Security | 85 |
| Nutrition & Health Trends | 80 |
| Bio-based Materials & Energy | 65 |
| Supply Chain Resilience | 75 |
| Commodity Price Volatility | 40 |
| Factor | Score |
|---|---|
| Valuation | 50 |
| Profitability | 65 |
| Growth | 40 |
| Balance Sheet Health | 85 |
| Cash Flow | 45 |
| Dividends | 90 |
| Factor | Score |
|---|---|
| Trend Analysis | 40 |
| Momentum | 55 |
| Volume Confirmation | 70 |
| Support & Resistance | 75 |
| Short-Term Performance | 70 |
Attractive Valuation Metrics
The P/E ratio of 19.54 (TTM) and 13.2 (2024 estimates) suggest potential undervaluation compared to market averages, especially given its market capitalization of $26.66 billion.
Consistent Dividend Payout
The dividend yield is 3.57%, and the company has a history of regular dividend payments, indicating a commitment to returning value to shareholders.
Elevated Price-to-Sales Ratio
The Price-to-Sales (P/S) ratio of 0.3 (TTM) is stable, but recent quarterly P/S ratios (e.g., 1.1 for 2025Q1, 1.2 for 2024Q1) indicate potential price sensitivity relative to revenue. A P/E of 30.3 (TTM) suggests high growth expectations.
Recent EPS Misses and Declines
Several recent quarters show EPS misses (e.g., 2024Q4, 2024Q3, 2024Q1) and a significant decline in net income in 2024Q3 ($18M), indicating potential operational headwinds or margin pressures.
May 2025
21
Ex-Dividend Date
June 2025
11
Next Dividend Date
August 2025
5
Next Earnings Date
H: $0.85
A: $0.80
L: $0.69
H: 24.76B
A: 21.81B
L: 20.23B
Archer-Daniels-Midland Company engages in the procurement, transportation, storage, processing, and merchandising of agricultural commodities, ingredients, flavors, and solutions in the United States, Switzerland, the Cayman Islands, Brazil, Mexico, Canada, the United Kingdom, and internationally. It operates in three segments: Ag Services and Oilseeds; Carbohydrate Solutions; and Nutrition. The company originates, merchandises, stores, and transports agricultural raw materials, such as oilseeds and soft seeds. It engages in the agricultural commodity and feed product import, export, and distribution; and various structured trade finance activities. In addition, the company offers soybean meal and oil; vegetable and salad oils and protein meals; ingredients for the food, feed, energy, and industrial customers; margarine, shortening, and other food products; and partially refined oils to produce biodiesel and glycols for use in chemicals, paints, and other industrial products. Further, it provides peanuts, peanut-derived ingredients, and cotton cellulose pulp; sweeteners, corn and wheat starches, syrup, glucose, wheat flour, and dextrose; alcohol, and other food and animal feed ingredients; ethyl alcohol and ethanol; corn gluten feed and meal; distillers' grains; corn germ; and citric acids. Additionally, the company provides proteins, natural flavors, flavor systems, natural colors, emulsifiers, soluble fiber, polyols, hydrocolloids, probiotics, prebiotics, postbiotics, enzymes, and botanical extracts; and other specialty food and feed ingredients; edible beans; formula feeds, and animal health and nutrition products; and contract and private label pet treats and food products. It also offers futures commission merchant; commodity brokerage services; cash margins and securities pledged to commodity exchange clearinghouse; and cash pledged as security under certain insurance arrangements. The company was founded in 1902 and is headquartered in Chicago, Illinois.
51.04 USD
The 39 analysts offering 1 year price forecasts for ADM have a max estimate of 60.00 and a min estimate of 45.00.