AI Spotlight on ADM
Company Description
Archer-Daniels-Midland Company procures, transports, stores, processes, and merchandises agricultural commodities, products, and ingredients in the United States, Switzerland, Cayman Islands, Brazil, Mexico, the United Kingdom, and internationally.The company operates through three segments: Ag Services and Oilseeds, Carbohydrate Solutions, and Nutrition.It procures, stores, cleans, and transports agricultural raw materials, such as oilseeds, corn, wheat, milo, oats, and barley.
The company also engages in the agricultural commodity and feed product import, export, and distribution; and structured trade finance activities.In addition, it offers vegetable oils and protein meals; ingredients for the food, feed, energy, and industrial customers; crude vegetable oils, salad oils, margarine, shortening, and other food products; and partially refined oils to produce biodiesel and glycols for use in chemicals, paints, and other industrial products.Further, the company provides peanuts, peanut-derived ingredients, and cotton cellulose pulp; sweeteners, corn and wheat starches, syrup, glucose, wheat flour, and dextrose; alcohol and other food and animal feed ingredients; ethyl alcohol and ethanol; corn gluten feed and meal; distillers' grains; and citric acids.
Additionally, the company provides natural flavors, flavor systems, natural colors, proteins, emulsifiers, soluble fiber, polyols, hydrocolloids, and natural health and nutrition products, including probiotics, prebiotics, enzymes, and botanical extracts; and other specialty food and feed ingredients; edible beans; formula feeds, and animal health and nutrition products; and contract and private label pet treats and foods.It also offers futures commission merchant; commodity brokerage services; cash margins and securities pledged to commodity exchange clearinghouses; and cash pledged as security under certain insurance arrangements.The company was founded in 1902 and is headquartered in Chicago, Illinois.
Market Data
Last Price | 51.67 |
Change Percentage | 0.02% |
Open | 51.84 |
Previous Close | 51.66 |
Market Cap ( Millions) | 24726 |
Volume | 2393723 |
Year High | 66.08 |
Year Low | 48.4 |
M A 50 | 51.65 |
M A 200 | 57.86 |
Financial Ratios
FCF Yield | 14.27% |
Dividend Yield | 3.87% |
ROE | 7.86% |
Debt / Equity | 51.65% |
Net Debt / EBIDTA | 283.85% |
Price To Book | 1.13 |
Price Earnings Ratio | 13.85 |
Price To FCF | 7.01 |
Price To sales | 0.28 |
EV / EBITDA | 9.48 |
News
- 00:06 - Archer Daniels Midland (ADM) Rises But Trails Market: What Investors Should Know
- Jan -29 - Archer Daniels to Report Q4 Earnings: What Surprise Awaits Investors?
- Jan -29 - ADM Announces Appointment of Carrie Nichol as Vice President and Chief Accounting Officer
- Jan -29 - 4 Stock Picks To Get A 10% Dividend Yield In 10 Years
- Jan -29 - My Best Dividend Aristocrats For February 2025
- Jan -24 - What Can The Dividend Kings Deliver In 2025?
- Jan -23 - ADM to Release Fourth Quarter Financial Results on Feb. 4, 2025
- Jan -21 - Zacks Industry Outlook Archer Daniels, Adecoagro, Mission Produce, Calavo Growers and Alico
- Jan -17 - 5 Prominent Agriculture Operations Stocks Navigating Market Challenges
- Jan -16 - Archer Daniels Midland (ADM) Stock Declines While Market Improves: Some Information for Investors
- Jan -15 - Buy 3 'Safer' Dividend Kings Of 25 From 53Β For January
- Jan -12 - Archer-Daniels-Midland: Pessimism Offers Chance To Acquire This Market Leader At A Discount
- Jan -07 - Buy 1 January S&P 500 Dividend Aristocrat Out Of 38 'Safer'
- Jan -04 - 5 Relatively Secure And Cheap Dividend Stocks, Yields Up To 8% (January 2025)
- Jan -03 - All 12 Dividend Aristocrats That Raised Their Dividends 10% or More in 2024
- Jan -02 - If I Could Only Buy 3 High-Yield Dividend Kings For 2025
- Dec -31 - My Best Dividend Aristocrats For January 2025
- Dec -30 - 3 Companies Buying Back Stock: Here's Why They're Doing It
- Dec -18 - Of 63 Fortune500 Industry Leaders, 57 Pay Dividends, 38 Test 'Safer' & 1 Is Ideal To Buy
- Dec -13 - Buy 6 December Dividend Kings But Watch 22 With 'Safer' Dividends
Business Breakdown
Expected Mid-Term Growth
Segment nΒ°1 -> Ag Services and Oilseeds
Expected Growth : 1.2 %
What the company do ?
Ag Services and Oilseeds from Archer-Daniels-Midland Company provides agricultural commodities, oilseeds, and related products to food, feed, and industrial customers globally.
Why we expect these perspectives ?
Archer-Daniels-Midland's Ag Services and Oilseeds segment growth of 1.2% is driven by increasing global demand for soybeans and corn, expansion in emerging markets, and strategic acquisitions. Additionally, the company's focus on high-margin products, such as soybean meal and oil, and its ability to manage costs and optimize logistics also contribute to growth.
Segment nΒ°2 -> Carbohydrate Solutions
Expected Growth : 0.8 %
What the company do ?
Carbohydrate Solutions from Archer-Daniels-Midland Company provides a range of starches, sweeteners, and fibers for food, beverage, and pharmaceutical applications.
Why we expect these perspectives ?
Archer-Daniels-Midland's Carbohydrate Solutions segment growth is driven by increasing demand for natural sweeteners, expanding beverage market, and rising consumer preference for low-calorie products. Additionally, strategic partnerships and investments in research and development enable the company to innovate and stay competitive in the market, contributing to a growth rate of 0.8.
Segment nΒ°3 -> Nutrition
Expected Growth : 1.1 %
What the company do ?
Archer-Daniels-Midland Company's Nutrition segment provides soy protein, soy flour, and other ingredients for food, beverages, and animal feed, as well as bioactives and specialty food ingredients.
Why we expect these perspectives ?
Archer-Daniels-Midland Company's Nutrition segment growth of 1.1% is driven by increasing demand for plant-based proteins, expansion in emerging markets, and strategic acquisitions. Additionally, growing consumer awareness of health and wellness, and the need for sustainable food solutions, contribute to the segment's growth.
Segment nΒ°4 -> Other
Expected Growth : 0.9 %
What the company do ?
The 'Other' segment from Archer-Daniels-Midland Company includes milling operations and its investments in Wilmar International Limited.
Why we expect these perspectives ?
Archer-Daniels-Midland Company's 0.9 growth in 'Other' segment is driven by increasing demand for bio-based products, expansion in Asia-Pacific region, and strategic investments in innovation and technology. Additionally, the company's focus on sustainability and renewable energy solutions contributes to its growth.
Archer-Daniels-Midland Company Products
Product Range | What is it ? |
---|---|
Oilseeds | Archer-Daniels-Midland Company is a leading processor of oilseeds such as soybeans, sunflower seeds, and canola, which are used to produce vegetable oils and protein meal. |
Corn Processing | The company converts corn into various products such as ethanol, corn syrup, and high-fructose corn syrup, which are used in food, beverages, and biofuels. |
Wild Flavors and Specialty Ingredients | Archer-Daniels-Midland Company offers a range of natural flavor ingredients, specialty proteins, and emulsifiers used in food, beverages, and personal care products. |
Agricultural Services | The company provides agricultural services such as grain merchandising, transportation, and storage to farmers, processors, and other customers. |
Wheat and Milling | Archer-Daniels-Midland Company is a leading processor of wheat, producing flour, bakery mixes, and other wheat-based products for the baking industry. |
Archer-Daniels-Midland Company's Porter Forces
Threat Of Substitutes
The threat of substitutes for Archer-Daniels-Midland Company is medium due to the availability of alternative products in the market, but the company's strong brand presence and quality products reduce the threat.
Bargaining Power Of Customers
The bargaining power of customers is low due to the company's strong distribution network and the lack of concentration of buyers in the market.
Bargaining Power Of Suppliers
The bargaining power of suppliers is medium due to the presence of few large suppliers in the market, but the company's strong relationships with suppliers reduce the threat.
Threat Of New Entrants
The threat of new entrants is low due to the high barriers to entry in the industry, including high capital requirements and regulatory hurdles.
Intensity Of Rivalry
The intensity of rivalry is high due to the presence of several large players in the market, leading to intense competition and pricing pressures.
Capital Structure
Value | |
---|---|
Debt Weight | 26.42% |
Debt Cost | 7.85% |
Equity Weight | 73.58% |
Equity Cost | 7.85% |
WACC | 7.85% |
Leverage | 35.91% |
Archer-Daniels-Midland Company : Quality Control
Archer-Daniels-Midland Company passed 5 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
Company | Rational |
---|---|
CHSCP | CHS Inc., an integrated agricultural company, provides grains, foods, and energy resources to businesses and consumers in North America, South America, Europe, the Middle East, Africa, and the Asia Pacific. β¦ |
MO | Altria Group, Inc., through its subsidiaries, manufactures and sells smokeable and oral tobacco products in the United States. The company provides cigarettes primarily under the Marlboro brand; cigars and pipe β¦ |
CALM | Cal-Maine Foods, Inc., together with its subsidiaries, produces, grades, packages, markets, and distributes shell eggs. The company offers specialty shell eggs, such as nutritionally enhanced, cage free, organic, and brown β¦ |
KHC | The Kraft Heinz Company, together with its subsidiaries, manufactures and markets food and beverage products in the United States, Canada, the United Kingdom, and internationally. Its products include condiments and β¦ |
BG | Bunge Limited operates as an agribusiness and food company worldwide. It operates through four segments: Agribusiness, Refined and Specialty Oils, Milling, and Sugar and Bioenergy. The Agribusiness segment purchases, stores, β¦ |