Archer Daniels Midland (ADM) AI Stock Analysis

• Market Cap: $29.62B
• Dividend Yield: 3.29%
• Average Volume (3M): 3.46M
• Price to Earnings (P/E): 26.8
• Beta (1Y): 0.43
• Revenue Growth: -6.70%
• EPS Growth: -54.38%
• Country: US
• Employees: 42,383
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Agricultural Farm Products
• EPS (TTM): 0.93
• Shares Outstanding: 480,464,480
• 10 Day Avg. Volume: 3,161,396
• 30 Day Avg. Volume: 3,457,911
• 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: 1.03
• Enterprise Value/Revenue: 0.36
• Enterprise Value/Gross Profit: 5.75
• Enterprise Value/Ebitda: 8.53
• 1Y Price Target: $60.83
• Price Target Upside: -1.33% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 6

• Rating: 77 Outperform
• Price Target: $68.00 ▲(10.30% Upside)

ADM's overall stock score reflects strong technical momentum and stable financial performance, despite valuation concerns and segment-specific challenges. The company's strategic initiatives and positive policy developments provide a favorable outlook, but recent profitability and cash flow issues need addressing.

Positive Factors

Operational Excellence

ADM's focus on cost management and operational optimizations is expected to enhance profitability and efficiency, supporting long-term financial health.

Biofuel Policy Developments

Favorable biofuel policies can improve margins and support ADM's strategic initiatives, strengthening its position in the renewable energy market.

Decatur East Plant Recommissioning

The recommissioning of the Decatur East plant will enhance ADM's production capabilities and cost efficiency, benefiting the Specialty Ingredients business.

Negative Factors

Decline in Free Cash Flow

A significant drop in free cash flow limits ADM's ability to invest in growth opportunities and manage financial obligations, posing a risk to future expansion.

Challenges in South American Operations

Operational challenges in South America, including infrastructure issues and currency impacts, could hinder ADM's ability to capitalize on market opportunities in the region.

Pressure on Crushing Subsegment

Significant declines in the Crushing subsegment's profitability indicate challenges in maintaining competitive margins, affecting ADM's overall financial performance.

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: the processing of oilseeds and corn into various food and feed ingredients, which includes vegetable oils, protein meals, and sweeteners; the trading and transportation of agricultural commodities; and the production of biofuels. The company benefits from economies of scale and a vast network of facilities that allow it to optimize its supply chain and reduce costs. Significant partnerships with farmers, suppliers, and distributors enhance its operational efficiency and market reach. Additionally, ADM's commitment to innovation in food and nutrition, including the development of sustainable and plant-based products, positions it favorably to capitalize on growing consumer trends.

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	101.56B	85.25B	64.36B
Gross Profit	5.30B	5.78B	7.51B	7.57B	5.99B	4.45B
EBITDA	3.57B	4.10B	6.00B	6.66B	4.57B	3.20B
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	1.37B	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: 61.65
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 61.65 is below the 20-day moving average (MA) of 62.10, above the 50-day MA of 58.48, and above the 200-day MA of 50.80, indicating a neutral trend. The MACD of 0.71 indicates Positive momentum. The RSI at 55.23 is Neutral, neither overbought nor oversold. The STOCH value of 45.88 is Neutral, 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	4.85B	4.19	0.00%	8.32%	83.19%	339.22%
ADM	77 Outperform	$29.62B	26.77	4.93%	3.29%	-6.70%	-54.38%
FDP	76 Outperform	1.71B	11.61	7.30%	3.22%	1.41%	0.00%
BG	73 Outperform	15.84B	7.98	12.66%	3.49%	-8.87%	13.21%
SFD	71 Outperform	9.42B	―	16.34%	3.13%	0.00%	0.00%
TSN	66 Neutral	18.69B	24.00	4.35%	3.73%	1.99%	0.00%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

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.