Archer Daniels Midland (ADM) AI Stock Analysis

• Market Cap: $29.08B
• Dividend Yield: 3.35%
• Average Volume (3M): 3.79M
• Price to Earnings (P/E): 26.6
• Beta (1Y): 0.40
• 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: 2,536,838
• 30 Day Avg. Volume: 3,789,945
• 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: 1.05
• Enterprise Value/Revenue: 0.37
• Enterprise Value/Gross Profit: 6.22
• Enterprise Value/Ebitda: 9.43
• 1Y Price Target: $60.00
• Price Target Upside: -0.88% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 6

• Rating: 71 Outperform
• Price Target: $70.00 ▲(15.65% Upside)

ADM's overall stock score reflects a stable financial position with strong cash flow generation, positive technical indicators, and strategic cost management initiatives. However, valuation concerns and segment-specific challenges temper the outlook.

Positive Factors

Strong Cash Flow Generation

ADM's robust cash flow generation enhances its financial flexibility, allowing for strategic investments and debt management, supporting long-term stability.

Operational Excellence

Strategic cost management and operational optimizations position ADM to improve margins and competitiveness, ensuring sustainable growth.

Improved Biofuel Policy Environment

Favorable biofuel policies enhance ADM's market position in renewable energy, supporting long-term profitability in its biofuel segment.

Negative Factors

Declining Revenue and Profitability

Persistent revenue decline and margin pressure could hinder ADM's ability to invest in growth initiatives and maintain competitive positioning.

Challenges in South American Operations

Operational challenges in South America, including port facility issues, may affect ADM's global supply chain efficiency and profitability.

Pressure on Crushing Subsegment

Significant declines in crushing margins indicate potential structural challenges in this subsegment, impacting ADM's overall financial performance.

Archer Daniels Midland Business Overview & Revenue Model

Company Description

Archer Daniels Midland Company (ADM) is a global leader in agricultural processing and food ingredient production, headquartered in Chicago, Illinois. The company operates in two primary segments: Agricultural Services and Oilseeds and Corn Processing. ADM processes oilseeds and corn into a wide range of products, including vegetable oils, protein meals, corn sweeteners, and biofuels. Additionally, ADM is involved in the sourcing, transportation, and merchandising of agricultural commodities, making it an integral player in the global food supply chain.

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

ADM shows a mix of strengths and challenges across its financial statements. The company maintains reasonable profitability but faces challenges with recent revenue contraction and a significant decline in free cash flow growth. Its balance sheet remains robust, with good leverage management and equity ratios.

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	82.80B	85.53B	93.94B	101.56B	85.25B	64.36B
Gross Profit	4.90B	5.78B	7.51B	7.57B	5.99B	4.45B
EBITDA	3.23B	4.10B	6.00B	6.66B	4.57B	3.20B
Net Income	1.10B	1.80B	3.48B	4.34B	2.71B	1.77B
Balance Sheet
Total Assets	52.00B	53.27B	54.63B	59.77B	56.14B	49.72B
Cash, Cash Equivalents and Short-Term Investments	5.95B	857.00M	1.37B	1.04B	943.00M	666.00M
Total Debt	10.62B	11.54B	9.60B	10.29B	10.58B	11.05B
Total Liabilities	29.31B	30.84B	30.17B	35.16B	33.37B	29.62B
Stockholders Equity	22.43B	22.17B	24.13B	24.28B	22.48B	20.00B
Cash Flow
Free Cash Flow	4.11B	1.23B	2.97B	2.16B	5.43B	-3.21B
Operating Cash Flow	5.58B	2.79B	4.46B	3.48B	6.59B	-2.39B
Investing Cash Flow	-1.48B	-2.70B	-1.50B	-1.40B	-2.67B	4.46B
Financing Cash Flow	-2.45B	-1.53B	-4.60B	-2.50B	-1.12B	-423.00M

Archer Daniels Midland Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 60.53
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• 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 60.53 is below the 20-day moving average (MA) of 62.03, below the 50-day MA of 61.71, and above the 200-day MA of 52.56, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 44.17 is Neutral, neither overbought nor oversold. The STOCH value of 8.88 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	―	$4.26B	3.38	55.20%	9.87%	65.80%	197.95%
BG	―	$18.93B	9.45	13.20%	2.92%	-8.87%	13.21%
ADM	―	$29.08B	26.64	4.93%	3.35%	-6.70%	-54.38%
FDP	―	$1.69B	21.57	3.95%	3.35%	1.11%	414.23%
SFD	―	$8.77B	10.13	―	3.38%	―	―
TSN	―	$17.93B	22.85	4.31%	3.89%	1.99%	―
Sector *	―	$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.

The most recent analyst rating on (ADM) stock is a Buy with a $70.00 price target. To see the full list of analyst forecasts on Archer Daniels Midland stock, see the ADM Stock Forecast page.

ADM Reports Decline in Q2 2025 Earnings

Archer-Daniels-Midland Company (ADM) is a global leader in agricultural supply chain management and processing, providing essential food security and nutrition solutions worldwide. The company is recognized for its broad portfolio of ingredients and innovative bio-based solutions.

ADM Earnings Call: Balancing Optimism and Challenges

The recent earnings call of Archer-Daniels-Midland Company (ADM) painted a picture of a company advancing in cash flow generation and operational resilience, while also grappling with challenges in certain segments. The sentiment was a mix of optimism due to strategic investments and biofuel policy developments, tempered by difficulties in the Ag Services, Oilseeds, and Nutrition segments.