Archer Daniels Midland (ADM) AI Stock Analysis

• Market Cap: $26.57B
• Dividend Yield: 3.69%
• Average Volume (3M): 3.77M
• Price to Earnings (P/E): 19.7
• Beta (1Y): 0.38
• Revenue Growth: -8.59%
• EPS Growth: -50.72%
• Country: US
• Employees: 42,383
• Sector: Industrials
• Sector Strength: 86
• Industry: Agricultural Farm Products
• EPS (TTM): 0.70
• Shares Outstanding: 480,450,000
• 10 Day Avg. Volume: 4,609,508
• 30 Day Avg. Volume: 3,766,776
• PEG Ratio: -0.83
• Price to Book (P/B): 1.17
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 114.99
• Enterprise Value/Market Cap: 1.40
• Enterprise Value/Revenue: 0.11
• Enterprise Value/Gross Profit: 7.04
• Enterprise Value/Ebitda: 2.24
• 1Y Price Target: $49.00
• Price Target Upside: -11.41% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 6

• Rating: 66 Neutral
• Price Target: $58.00 ▲(4.86%Upside)

ADM's overall stock score is driven by its solid financial stability and strategic cost-saving initiatives, balanced by challenges in revenue growth and cash flow pressures. Technical indicators suggest caution due to potential overbought conditions, while valuation metrics present a mixed picture with a reasonable P/E ratio and an attractive dividend yield. Earnings call insights highlight strategic adjustments and improvements in specific segments, but ongoing market pressures necessitate careful monitoring.

Positive Factors

Cost Efficiency

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.

Market Position

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

Negative Factors

Biofuel Policy Uncertainty

The ag cycle is at a trough, and biofuels policies remain uncertain, potentially keeping a lid on profitability and positioning downside risk.

Profitability 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.

Trade Policies

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

Archer Daniels Midland Business Overview & Revenue Model

Company Description

Archer Daniels Midland (ADM) is a global leader in human and animal nutrition and the world's premier agricultural origination and processing company. Operating across a variety of sectors, ADM is involved in the production and distribution of a wide array of products, including oilseeds, corn, wheat, cocoa, and other agricultural commodities. The company is also a prominent player in the food and beverage industry, providing ingredients and solutions to enhance the taste, texture, and nutritional profile of products. With a strong focus on sustainability and innovation, ADM serves a diverse range of industries and customers worldwide.

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 shows a mix of strengths and challenges across its financial statements. The income statement reveals solid historical profit margins, but recent revenue and profit growth challenges are evident. The balance sheet indicates strong financial stability with good leverage management and equity ratios. However, the significant decline in free cash flow growth presents a potential risk. Overall, while ADM is financially stable, it must address revenue and cash flow pressures to sustain long-term growth.

Income Statement

Archer Daniels Midland's income statement shows a strong historical gross profit margin, which stood at approximately 6.3% for the TTM period. However, the net profit margin has decreased from previous years to about 1.6% due to a decline in net income. Revenue growth has been volatile, decreasing by 2% in the most recent TTM period. Overall, the company maintains reasonable profitability but faces challenges with recent revenue contraction.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.56, indicating a balanced approach to leverage. The equity ratio is healthy at approximately 41.4%, suggesting strong equity financing. Return on equity is moderate at around 6.2% for the TTM, showing a slight decline from previous years. Overall, ADM exhibits solid financial stability despite fluctuating equity returns.

Cash Flow

Cash flow analysis reveals a decrease in free cash flow, which fell significantly by 81.7% in the TTM period. The operating cash flow to net income ratio is robust at 1.28, indicating effective cash generation from operations. However, the decline in free cash flow growth presents concerns about cash availability for future investments. Overall, while operating cash flows remain strong, the reduction in free cash flow growth is a potential risk.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	83.86B	85.53B	93.94B	101.85B	85.25B	64.36B
Gross Profit	5.30B	5.78B	7.51B	7.57B	5.99B	4.45B
EBITDA	3.57B	4.10B	6.01B	6.67B	4.58B	3.18B
Net Income	1.37B	1.80B	3.48B	4.34B	2.71B	1.77B
Balance Sheet
Total Assets	53.40B	53.27B	54.63B	59.77B	56.14B	49.72B
Cash, Cash Equivalents and Short-Term Investments	897.00M	857.00M	5.39B	1.04B	943.00M	666.00M
Total Debt	12.42B	11.54B	9.60B	10.29B	10.58B	11.05B
Total Liabilities	31.02B	30.84B	30.17B	35.16B	33.37B	29.62B
Stockholders Equity	22.12B	22.17B	24.13B	24.28B	22.48B	20.00B
Cash Flow
Free Cash Flow	224.00M	1.23B	2.97B	2.16B	5.43B	-3.21B
Operating Cash Flow	1.75B	2.79B	4.46B	3.48B	6.59B	-2.39B
Investing Cash Flow	-1.60B	-2.70B	-1.50B	-1.40B	-2.67B	4.46B
Financing Cash Flow	-941.00M	-1.53B	-4.60B	-2.50B	-1.12B	-423.00M

Archer Daniels Midland Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 55.31
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ADM, the sentiment is Positive. The current price of 55.31 is above the 20-day moving average (MA) of 51.94, above the 50-day MA of 49.65, and above the 200-day MA of 50.18, indicating a bullish trend. The MACD of 1.59 indicates Negative momentum. The RSI at 67.73 is Neutral, neither overbought nor oversold. The STOCH value of 87.05 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	$5.48B	5.08	48.27%	13.43%	60.00%	259.01%
SFD	73 Outperform	$9.61B	―		12.27%	―	―
FDP	72 Outperform	$1.59B	10.82	7.51%	3.62%	-0.64%	―
TSN	70 Outperform	$20.03B	21.85	5.01%	3.49%	1.39%	―
BG	69 Neutral	$10.54B	9.94	10.36%	3.57%	-10.90%	-36.54%
ADM	66 Neutral	$26.57B	19.72	6.03%	3.69%	-8.59%	-50.72%
Sector *	65 Neutral	$10.77B	15.80	5.51%	1.90%	3.03%	-26.66%

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.