Archer Daniels Midland Stock Analysis (NYSE:ADM)

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$44.71 $0.02 (0.04%) ADM stock closing price Jan 23, 2017 (Closing)
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Archer Daniels Midland
Updated on : Jan 23, 2017
previous close
ADM 44.7 (0%)
S&P 500 2265.2 (0%)
Closing Price On: Jan 23, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Agricultural Operations
Sector :
Consumer Staples
5 Quarter Revenue
Revenue Growth
2016-Q3
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
-6.2%
Operating Profit
Operating Margin:
2.4%
Sector Average:
10%
5 Quarter Net Profit
Net Margins
2016-Q3
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
6.95B
Debt/Equity Ratio:
 0.4
Compared to the industry
Cash Flow
Operating cash flow:
$1.52B
Net Income:
$341.6M
Dividend Yield
ADM dividend yield:
2.64%
PROS      CONS
Low Debt Burden
Cash Flow
PS Valuation
Recent Growth
Long Term Growth
Operating Margins
Net Margins
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
ADM PS :
0.4
Industry PS :
1.8
Sector:   Consumer Staples.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
6.3%
Return on Equity:
8.8%
Free Cash Flow Margin:
7.6%
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Archer Daniels Midland Analysis Video

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View Archer Daniels Midland stock analysis video. This is our ADM analyst opinion covering the buy and sell arguments for ADM stock.

Archer Daniels Midland Company Stock Rating (2.5/5)

Our Archer Daniels Midland stock opinion is based on fundamentals of the company. This Archer Daniels Midland stock analysis is based on latest Q3 earnings for 2016. The stock price analysis takes into account a company's valuation metrics.

Should you buy ADM stock?

  • With its debt/equity ratio of  0.4, Archer Daniels Midland has a lower debt burden when compared to the Consumer Staples average.
  • The company has an operating cash flow which is 4.5 times the net income.
  • When compared with the Agricultural Operations industry average PS ratio of 1.8, the price-to-sales ratio of 0.4 for ADM stock is attractive.

Should you sell ADM stock?

  • Archer Daniels Midland sales declined by -4.4% year on year in 2016 Q3.
  • Revenue declined at a CAGR of of the last 5 years.
  • Archer Daniels Midland's TTM operating margin of 2.4% was rather poor.
  • Archer Daniels Midland's LTM Net margins were poor at 2.5%.

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