Archer Daniels Midland Stock Analysis, Valuation (NYSE:ADM)
ADM Stock Analysis
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 2.8/5
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 2017 Q4 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 its debt/equity ratio of 0.41, Archer Daniels Midland has a lower debt burden when compared to the Consumer Staples average.
- The price to earnings multiple of 17.1 is attractive when compared with the industry average PE ratio of 23.
- 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?
- The company saw an average annual sales decline of -7.7% in sales over the last 5 years.
- Archer Daniels Midland had a poor average operating margin of 2.5% over the last 4 quarters.
- Archer Daniels Midland posted a TTM Net margin of 2.6%.
- Cash flow from operations is low at 0.1 times the net income.
- The company has a negative free cash flow margin of -1.7%.
Archer Daniels Midland Related Company Stock Videos
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.