Archer Daniels Midland (ADM) AI Stock Analysis

• Market Cap: $27.99B
• Dividend Yield: 3.5%
• Average Volume (3M): 2.89M
• Price to Earnings (P/E): 23.7
• Beta (1Y): 0.39
• Revenue Growth: -4.31%
• EPS Growth: -29.96%
• Country: US
• Employees: 42,383
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Agricultural Farm Products
• EPS (TTM): 0.92
• Shares Outstanding: 480,569,730
• 10 Day Avg. Volume: 2,754,974
• 30 Day Avg. Volume: 2,885,601
• PEG Ratio: -0.31
• Price to Book (P/B): 1.09
• Price to Sales (P/S): 0.28
• P/FCF Ratio: 19.68
• Enterprise Value/Market Cap: 1.16
• Enterprise Value/Revenue: 0.16
• Enterprise Value/Gross Profit: 2.68
• Enterprise Value/Ebitda: 4.29
• 1Y Price Target: $58.50
• Price Target Upside: 0.45% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 6
• EPS Forecast (FY): 3.45
• Revenue Forecast (FY): $83.05B

• Rating: 64 Neutral
• Price Target: $62.00 ▲(6.46% Upside)

ADM's overall stock score reflects a stable financial foundation with strong cash flow management and a solid balance sheet. However, challenges in revenue growth, declining profit margins, and mixed technical indicators weigh on the score. The company's strategic initiatives, such as the joint venture with Alltech, and its commitment to operational efficiency and shareholder returns provide potential upside, but uncertainties in global demand and policy remain significant risks.

Positive Factors

Cash Flow Management

Strong cash flow management supports ADM's operational and financial activities, ensuring liquidity and the ability to invest in growth opportunities.

Operational Efficiency

Improvements in operational efficiency enhance productivity and cost management, contributing to sustained profitability and competitive advantage.

Animal Nutrition Growth

The significant growth in the Animal Nutrition segment indicates successful strategic focus on higher-margin products, boosting long-term profitability.

Negative Factors

Revenue Growth Challenges

Minimal revenue growth suggests challenges in expanding market share or product adoption, potentially limiting future earnings potential.

Declining Profit Margins

Decreasing profit margins indicate pressure on profitability, which can affect ADM's ability to reinvest in the business and sustain long-term growth.

Biofuel Policy Uncertainty

Uncertainty in biofuel policy affects demand and profitability in key segments, posing risks to ADM's revenue stability and strategic planning.

Archer Daniels Midland Business Overview & Revenue Model

Company Description

Archer Daniels Midland Company (ADM) is an American multinational food processing and commodities trading corporation headquartered in Chicago, Illinois. Founded in 1902, ADM operates in various sectors, primarily focusing on agricultural processing and the production of food ingredients. The company engages in the processing of oilseeds, corn, and wheat, and it produces a wide range of products including flour, sweeteners, oils, and protein-rich ingredients used in food, beverage, and animal nutrition markets. ADM also has a significant presence in biofuels and offers solutions for sustainable agricultural practices.

How the Company Makes Money

ADM generates revenue through multiple streams, primarily from the processing of agricultural commodities and the sale of derived products. Key revenue streams include the sale of oilseeds and their byproducts, corn processing (which includes sweeteners, starches, and ethanol), and milling operations for flour and related products. The company also earns income from its global trading operations and logistics services, which facilitate the movement of agricultural products. Significant partnerships with farmers, food manufacturers, and energy companies enhance ADM's supply chain efficiency and market reach. Additionally, ADM's investments in biotechnology and sustainability initiatives contribute to its earnings by meeting growing consumer demand for healthier and more sustainable food options.

Archer Daniels Midland Financial Statement Overview

Summary

ADM demonstrates a stable financial position with strengths in cash flow management and a solid balance sheet. However, challenges in revenue growth and declining profit margins highlight areas for improvement. The company maintains operational efficiency, but enhancing profitability and sustaining growth will be crucial for future success.

Income Statement

ADM's income statement shows a mixed performance. The TTM data indicates a slight revenue growth of 0.53%, but this follows a decline in the previous year. Gross profit and net profit margins have decreased over the years, indicating pressure on profitability. However, the company maintains positive EBIT and EBITDA margins, suggesting operational efficiency. Overall, while there are challenges in maintaining growth, the company remains profitable.

Balance Sheet

ADM's balance sheet reflects a stable financial position with a moderate debt-to-equity ratio of 0.41 in the TTM period, showing a decrease from previous years, which is a positive sign. The return on equity has decreased to 5.33% in the TTM period, indicating a decline in profitability relative to shareholder equity. The equity ratio remains healthy, suggesting a solid capital structure. Overall, the balance sheet indicates financial stability with manageable leverage.

Cash Flow

ADM's cash flow statement shows strong free cash flow growth of 14.46% in the TTM period, recovering from previous declines. The operating cash flow to net income ratio is healthy, indicating good cash generation relative to net income. The free cash flow to net income ratio is also strong, suggesting efficient cash management. Overall, the cash flow position is robust, supporting the company's operational and financial activities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	207.21B	85.53B	93.94B	101.56B	85.25B	64.36B
Gross Profit	12.15B	5.78B	7.51B	7.57B	5.99B	4.45B
EBITDA	7.58B	4.10B	6.00B	6.66B	4.57B	3.20B
Net Income	2.59B	1.80B	3.48B	4.34B	2.71B	1.77B
Balance Sheet
Total Assets	51.92B	53.27B	54.63B	59.77B	56.14B	49.72B
Cash, Cash Equivalents and Short-Term Investments	5.88B	857.00M	1.37B	1.04B	943.00M	666.00M
Total Debt	9.21B	11.54B	9.60B	10.29B	10.58B	11.05B
Total Liabilities	29.17B	30.84B	30.17B	35.16B	33.37B	29.62B
Stockholders Equity	22.49B	22.17B	24.13B	24.28B	22.48B	20.00B
Cash Flow
Free Cash Flow	12.43B	1.23B	2.97B	2.16B	5.43B	-3.21B
Operating Cash Flow	15.79B	2.79B	4.46B	3.48B	6.59B	-2.39B
Investing Cash Flow	-3.19B	-2.70B	-1.50B	-1.40B	-2.67B	4.46B
Financing Cash Flow	-9.76B	-1.53B	-4.60B	-2.50B	-1.12B	-423.00M

Archer Daniels Midland Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 58.24
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ADM, the sentiment is Negative. The current price of 58.24 is below the 20-day moving average (MA) of 59.22, below the 50-day MA of 59.59, and above the 200-day MA of 54.12, indicating a neutral trend. The MACD of -0.15 indicates Positive momentum. The RSI at 45.45 is Neutral, neither overbought nor oversold. The STOCH value of 32.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	$4.25B	3.37	55.20%	10.08%	65.80%	197.95%
FDP	69 Neutral	$1.83B	23.36	3.95%	3.10%	1.11%	414.23%
SFD	69 Neutral	$8.96B	10.34	―	4.38%	―	―
TSN	69 Neutral	$20.23B	42.93	2.60%	3.45%	2.12%	-40.75%
BG	66 Neutral	$17.97B	9.98	10.24%	3.03%	10.29%	17.32%
ADM	64 Neutral	$27.99B	23.70	5.35%	3.50%	-4.31%	-29.96%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Archer Daniels Midland Corporate Events

ADM Announces Joint Venture with Alltech

On September 23, 2025, ADM announced a definitive agreement to form a North American Animal Feed Joint Venture with Alltech. This strategic move aims to transition ADM’s animal nutrition business into higher-margin specialty ingredients. The joint venture, expected to launch in the first quarter of 2026, will be majority-owned by Alltech and will combine the companies’ extensive experience and capabilities in animal nutrition. The venture will not materially impact ADM’s 2025 financial results but is part of ADM’s broader focus on optimizing its portfolio and streamlining operations to focus on higher-value growth.