Archer Daniels Midland Stock Analysis (NYSE:ADM)

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$44.81 $0.09 (0.2%) ADM stock closing price Apr 21, 2017 (Closing)
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Archer Daniels Midland
Updated on : Apr 21, 2017
previous close
ADM 44.8 (0%)
S&P 500 2348.7 (0%)
Closing Price On: Apr 21, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Agricultural Operations
Sector :
Consumer Staples
5 Quarter Revenue
Revenue Growth
2016-Q4
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
-6.7%
Operating Profit
Operating Margin:
2.6%
Sector Average:
10.8%
5 Quarter Net Profit
Net Margins
2016-Q4
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
6.93B
Debt/Equity Ratio:
 0.4
Compared to the industry
Cash Flow
Operating cash flow:
$319M
Net Income:
$424M
Dividend Yield
ADM dividend yield:
2.68%
PROS      CONS
Low Debt Burden
PE Valuation
PS Valuation
Recent Growth
Long Term Growth
Operating Margins
Net Margins
FCF Margin
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%
Return on Equity:
7.3%
Free Cash Flow Margin:
0.4%
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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 (2.4/5)

Our Archer Daniels Midland stock opinion is based on fundamentals of the company. This Archer Daniels Midland stock analysis is based on latest Q4 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 Archer Daniels Midland stock currently trades at a price to earnings ratio of 20.7. We rate this as a positive, compared to the industry average of 23.8.
  • 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 had a low YoY revenue growth of 0.3% in the 2016 Q4.
  • The company saw an average annual sales decline of -6.7% in sales over the last 5 years.
  • Archer Daniels Midland had a poor average operating margin of 2.6% over the last 4 quarters.
  • Archer Daniels Midland's Net margins were poor at 2.1% in the last twelve months.
  • Archer Daniels Midland has a low FCF (Free Cash Flow) margin of 0.4%.

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