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

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$45.49 $0.01 (0.02%) ADM stock closing price Apr 23, 2018 (Closing)
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Archer Daniels Midland
Updated on : Apr 23, 2018
previous close
ADM 45.5 (0%)
S&P 500 2670.3 (0%)
Closing Price On: Apr 23, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Agricultural Operations
Sector :
Consumer Staples
5 Quarter Revenue
Revenue Growth
Compared to the industry
Long Term Growth
5 Year CAGR:
Operating Profit
Operating Margin:
Sector Average:
5 Quarter Net Profit
Net Margins
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt/Equity Ratio:
Compared to the industry
Cash Flow
Operating cash flow:
Net Income:
Dividend Yield
ADM dividend yield:
Low Debt Burden
PE Valuation
PS Valuation
Long Term Growth
Operating Margins
Net Margins
Cash Flow
FCF Margin
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
Industry PS :
Sector:   Consumer Staples.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
Return on Equity:
Free Cash Flow Margin:
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ADM Stock Analysis

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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 2.7/5

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?

  • Archer Daniels Midland has a lower debt burden than its peers in the Consumer Staples sector, with a debt/equity ratio of  0.41.
  • The Archer Daniels Midland stock currently trades at a price to earnings ratio of 18.6. We rate this as a positive, compared to the industry average of 22.8.
  • When compared with the Agricultural Operations industry average PS ratio of 1.6, the price-to-sales ratio of 0.4 for ADM stock is attractive.

Should you sell ADM stock?

  • Sales declined by -7.7% annually over the last 5 years.
  • Archer Daniels Midland's TTM operating margin of 2.5% was rather poor.
  • Archer Daniels Midland's LTM Net margins were poor at 2.6%.
  • Cash flow from operations is low at 0.1 times the net income.
  • The company has negative Free Cash Flows (FCF), with a negative FCF margin of -2.9%.

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Comments on this video and Archer Daniels Midland stock

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.