Archer Daniels Midland (ADM) AI Stock Analysis

• Market Cap: $23.04B
• Dividend Yield: 4.19%
• Average Volume (3M): 3.09M
• Price to Earnings (P/E): 17.1
• Beta (1Y): 0.43
• Revenue Growth: -8.59%
• EPS Growth: -50.72%
• Country: US
• Employees: 42,383
• Sector: Industrials
• Sector Strength: 92
• Industry: Agricultural Farm Products
• EPS (TTM): 0.70
• Shares Outstanding: 480,450,000
• 10 Day Avg. Volume: 3,363,343
• 30 Day Avg. Volume: 3,088,501
• PEG Ratio: 3.95
• Price to Book (P/B): 0.99
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 18.15
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $48.67
• Price Target Upside: 1.52% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6

• Rating: 71 Outperform
• Price Target: $53.00 ▲( 10.55% Upside)

ADM's overall score reflects stable financial performance, fair valuation, and strategic cost-saving efforts. Nevertheless, it faces pressures from revenue contraction and cash flow challenges, coupled with mixed technical indicators and segment-specific hurdles.

Positive Factors

Cost Savings

ADM announced $200-300 million of cost savings in 2025 and $500-750 million of savings over the next 3-5 years, driven by improvements in manufacturing costs and targeted workforce reductions.

Earnings Growth

Policy tailwinds are expected to drive earnings growth, boosting the company's future prospects.

Positioning

ADM is relatively-better positioned against most companies in the new macro landscape.

Negative Factors

Market Outlook

The outlook for ADM's profitability has soured considerably with increased macro risks stemming from the US election results as well as the company's own performance.

Nutrition Segment

Nutrition continues to underperform expectations, and while it’s tough to gauge the segment’s normalized profitability, this figure increasingly looks far below the levels achieved in 2021-22.

Tariffs Impact

Chinese tariffs on US crop exports should pressure ADM's trading profits.

Archer Daniels Midland Business Overview & Revenue Model

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.

How the Company Makes Money

ADM generates revenue through several key streams: agricultural services, oilseeds processing, carbohydrate solutions, and nutrition. In the agricultural services segment, ADM earns money by sourcing, storing, and transporting agricultural commodities to meet global demand. In oilseeds processing, the company processes soybeans, cottonseed, sunflower seeds, canola, peanuts, and flaxseed into vegetable oils, protein meals, and other value-added products, which are sold to food, feed, energy, and industrial markets. The carbohydrate solutions segment involves the processing of corn and wheat into sweeteners, starches, and bioproducts, with applications in food and industrial sectors. The nutrition segment focuses on creating innovative ingredients and solutions for human and animal nutrition, including flavors, colors, and health-promoting ingredients. Significant partnerships and investments in research and development, as well as a commitment to sustainability, also play crucial roles in ADM's earnings by enhancing operational efficiencies and expanding market opportunities.

Archer Daniels Midland Financial Statement Overview

Summary

Archer Daniels Midland exhibits a mixed financial position with moderate stability in its balance sheet and operational efficiency, although revenue and profitability have declined over recent years. Cash flow management presents challenges given the downward trend in free cash flow.

Income Statement

The company has demonstrated fluctuating revenue trends, with revenue decreasing from $101.8 billion in 2022 to $85.5 billion in 2024. Gross profit margin and net profit margin have shown signs of contraction, reflecting operational challenges. However, the company maintains an EBIT margin of approximately 2.42% in 2024, indicating some level of operational efficiency.

Balance Sheet

Archer Daniels Midland has a solid equity base with a debt-to-equity ratio of 0.46 in 2024, indicating moderate leverage. The return on equity has decreased over the years, falling to 8.12% in 2024, suggesting reduced profitability from equity investments. The equity ratio stands at 61.72% in 2024, showcasing a strong asset base funded by equity.

Cash Flow

The cash flow shows a declining free cash flow trend, with free cash flow decreasing from $2.97 billion in 2023 to $1.22 billion in 2024. The operating cash flow to net income ratio of 1.54 indicates adequate cash generation relative to net income, but the declining cash flow is a concern.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
85.53B	93.94B	101.85B	85.25B	64.36B
	Gross Profit
5.78B	7.51B	7.57B	5.99B	4.45B
	EBIT
2.07B	4.06B	5.70B	3.78B	2.71B
	EBITDA
4.10B	6.01B	6.67B	4.58B	3.18B
	Net Income Common Stockholders
1.80B	3.48B	4.34B	2.71B	1.77B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
857.00M	5.39B	1.04B	943.00M	666.00M
	Total Assets
53.27B	54.63B	59.77B	56.14B	49.72B
	Total Debt
11.54B	9.60B	10.29B	10.58B	11.05B
	Net Debt
10.93B	8.23B	9.25B	9.64B	10.39B
	Total Liabilities
30.84B	30.17B	35.16B	33.37B	29.62B
	Stockholders Equity
22.17B	24.13B	24.28B	22.48B	20.00B
Cash Flow		Free Cash Flow
1.23B	2.97B	2.16B	5.43B	-3.21B
	Operating Cash Flow
2.79B	4.46B	3.48B	6.59B	-2.39B
	Investing Cash Flow
-2.70B	-1.50B	-1.40B	-2.67B	4.46B
	Financing Cash Flow
-1.53B	-4.60B	-2.50B	-1.12B	-423.00M

Archer Daniels Midland Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 47.94
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ADM, the sentiment is Neutral. The current price of 47.94 is below the 20-day moving average (MA) of 48.19, above the 50-day MA of 47.00, and below the 200-day MA of 51.08, indicating a neutral trend. The MACD of 0.48 indicates Positive momentum. The RSI at 49.80 is Neutral, neither overbought nor oversold. The STOCH value of 17.99 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ADM.

Archer Daniels Midland Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CALM	84 Outperform	$5.06B	4.69	48.27%	7.13%	60.00%	259.01%
FDP	76 Outperform	$1.62B	11.05	7.51%	3.11%	-0.64%	―
SFD	72 Outperform	$8.98B	―		―	―	―
ADM	71 Outperform	$23.04B	17.10	6.03%	4.19%	-8.59%	-50.72%
TSN	67 Neutral	$19.40B	21.16	5.01%	3.57%	1.39%	―
BG	67 Neutral	$10.46B	9.86	10.36%	3.50%	-10.90%	-36.54%
Sector *	64 Neutral	$4.39B	11.81	5.20%	249.38%	3.96%	-12.36%

Archer Daniels Midland Corporate Events

Archer Daniels Midland Holds Annual Stockholders Meeting

On May 8, 2025, Archer Daniels Midland held its Annual Meeting of Stockholders where all board nominees were elected, executive compensation was approved, and Ernst & Young LLP was ratified as independent auditors for 2025. However, a proposal to remove the one-year holding period requirement for calling a special stockholder meeting was not passed.

The most recent analyst rating on (ADM) stock is a Hold with a $66.00 price target. To see the full list of analyst forecasts on Archer Daniels Midland stock, see the ADM Stock Forecast page.