Archer Daniels Midland Stock Analysis, Valuation (NYSE:ADM)

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$41.67 $0.48 (1.14%) ADM stock closing price Aug 17, 2017 (Closing)
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Archer Daniels Midland
Updated on : Aug 17, 2017
previous close
ADM 41.7 (0%)
S&P 500 2430 (0%)
Closing Price On: Aug 17, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Agricultural Operations
Sector :
Consumer Staples
5 Quarter Revenue
Revenue Growth
2017-Q2
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
-6.9%
Operating Profit
Operating Margin:
2.9%
Sector Average:
10.8%
5 Quarter Net Profit
Net Margins
2017-Q2
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
6.78B
Debt/Equity Ratio:
 0.39
Compared to the industry
Cash Flow
Operating cash flow:
$905M
Net Income:
$276M
Dividend Yield
ADM dividend yield:
2.98%
PROS      CONS
Low Debt Burden
Cash Flow
PE Valuation
PS Valuation
Recent Growth
Long Term Growth
Operating Margins
Net Margins
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
ADM PS :
0.4
Industry PS :
1.7
Sector:   Consumer Staples.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
6.4%
Return on Equity:
7.9%
Free Cash Flow Margin:
4.4%
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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 (2.8/5)

Our Archer Daniels Midland stock opinion is based on fundamentals of the company. This Archer Daniels Midland stock analysis is based on latest 2017 Q2 earnings. The stock price analysis takes into account the company's valuation metrics.

Should you buy ADM stock?

  • With its debt/equity ratio of  0.39, Archer Daniels Midland has a lower debt burden when compared to the Consumer Staples average.
  • The company has an operating cash flow which is 3.3 times the net income.
  • The Archer Daniels Midland stock currently trades at a price to earnings ratio of 16.6. We rate this as a positive, compared to the industry average of 23.5.
  • The lower PS ratio 0.4 for ADM stock versus Agricultural Operations industry average of 1.7 is a positive for the company.

Should you sell ADM stock?

  • Archer Daniels Midland sales shrank by -4.4% year-over-year in 2017 Q2.
  • Revenue declined at a CAGR of -6.9% over the last 5 years.
  • Archer Daniels Midland's TTM operating margin of 2.9% was rather poor.
  • Archer Daniels Midland's LTM Net margins were poor at 2.2%.

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