Archer Daniels Midland Stock Analysis, Valuation (NYSE:ADM)
Take a look at Amigobulls Archer Daniels Midland stock analysis video. This is our analyst opinion covering the buy and sell arguments for ADM stock.
Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.
Archer Daniels Midland Company Stock Rating 2.3/5
Amigobulls ADM stock analysis takes into account various financial ratios like relative valuation, Archer Daniels Midland revenue, growth and return on equity based on latest quarter 2018 Q1 financial statements. We also check Archer Daniels Midland dividend performance. Archer Daniels Midland valuation forms a crucial part of our stock analysis. Archer Daniels Midland stock rating encapsulates our opinion about the company based on the fundamentals.
Should you buy ADM stock?
- With a debt/equity ratio of 0.4, Archer Daniels Midland is comparatively less leveraged than its peers in the Consumer Staples sector.
- The price to earnings multiple of 18.7 is attractive when compared with the sector average PE ratio of 21.7.
- The lower PS ratio 0.4 for ADM stock versus Consumer Staples sector average of 1.7 is a positive for the company.
Should you sell ADM stock?
- The company saw an average annual sales decline of -7.6 in sales over the last 5 years.
- Archer Daniels Midland had an unimpressive average operating margin of 2.51 during the Last Twelve Months (LTM).
- Archer Daniels Midland's Net margins were poor at 2.7% in the last twelve months.
- Operating cash flows are negative.
- The company has negative Free Cash Flows (FCF), with a negative FCF margin of -24.3.
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Amigobulls Archer Daniels Midland stock analysis helps in evaluating the financial statements of a company to arrive at a conclusion about the fair value of ADM stock. The fundamentals of a company are vital to identify long-term investment opportunities.
Archer Daniels Midland revenue growth is an indicator of the demand for a company's products while profit margin is indicative of company's pricing power and pricing strategy. Investors could make use of ADM technical analysis to check whether the fundamental story is reflected in the market sentiment.