Archer Daniels Midland Stock Analysis (NYSE:ADM)

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$44 $0.31 (0.7%) ADM stock closing price Dec 02, 2016 (Closing)
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Archer Daniels Midland
Updated on : Dec 02, 2016
previous close
ADM 44 (0%)
S&P 500 2192 (0%)
Closing Price On: Dec 02, 2016
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:
-0.3%
Compared to the industry
Operating Profit
Operating Margin:
2.4%
Sector Average:
9.9%
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:
2.68%
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 :
1.6
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?

  • Archer Daniels Midland has a lower debt burden than its peers in the Consumer Staples sector, with a debt/equity ratio of  0.4.
  • The operating cash flow looks good at 4.5 times the net income.
  • The lower PS ratio 0.4 for ADM stock versus Agricultural Operations industry average of 1.6 is a positive for the company.

Should you sell ADM stock?

  • Archer Daniels Midland revenue saw a decline of -4.4% YoY in 2016 Q3.
  • Long term revenue growth of -0.3% over the past 5 years has been disappointing.
  • Archer Daniels Midland's TTM operating margin of 2.4% was rather poor.
  • Archer Daniels Midland posted a TTM Net margin of 2.5%.

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