Archer Daniels Midland (ADM) AI Stock Analysis

• Market Cap: $28.69B
• Dividend Yield: 3.42%
• Average Volume (3M): 3.68M
• Price to Earnings (P/E): 24.3
• 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: 3,618,513
• 30 Day Avg. Volume: 3,680,463
• 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: 1.13
• Enterprise Value/Revenue: 0.39
• Enterprise Value/Gross Profit: 6.77
• Enterprise Value/Ebitda: 10.08
• 1Y Price Target: $60.20
• Price Target Upside: 0.84% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5
• EPS Forecast (FY): 3.5
• Revenue Forecast (FY): $84.08B

• Rating: 63 Neutral
• Price Target: $62.00 ▲(3.85% Upside)

ADM's overall stock score is driven by its stable financial position and strong cash flow management, which are offset by challenges in revenue growth and declining profit margins. The technical analysis indicates a bearish trend, while the valuation suggests the stock might be overvalued. The earnings call highlights both challenges and opportunities, with a focus on operational efficiency and future growth potential.

Positive Factors

Cash Flow Strength

Strong cash flow generation supports ADM's operational and financial activities, ensuring the company can invest in growth and manage debt effectively.

Operational Efficiency

Improved operational efficiency in key segments enhances ADM's ability to maintain profitability and competitive positioning in the agricultural sector.

Carbon Capture Initiative

The carbon capture project positions ADM as a leader in sustainability, potentially opening new revenue streams and aligning with global environmental trends.

Negative Factors

Declining Profit Margins

Decreasing profit margins indicate pressure on profitability, which could impact ADM's ability to reinvest in the business and sustain growth.

Biofuel Policy Uncertainty

Uncertainty in biofuel policies can disrupt ADM's revenue streams and strategic planning, affecting long-term growth prospects in this segment.

Carbohydrate Solutions Decline

A decline in the Carbohydrate Solutions segment signals challenges in meeting global demand, which could hinder ADM's overall revenue growth.

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 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 faces challenges with declining revenue and profitability margins, yet maintains a stable balance sheet with moderate leverage. The company demonstrates strong cash flow generation, which is a positive indicator for future financial flexibility. While profitability has been pressured, the overall financial health remains sound, supported by efficient cash management and a solid capital structure.

Income Statement

The income statement shows a declining revenue trend with a negative revenue growth rate of -1.26% TTM. Gross profit margin has decreased to 5.92% TTM from 6.76% in the previous year, indicating pressure on profitability. Net profit margin also fell to 1.33% TTM from 2.10% annually. Despite these challenges, the company maintains a positive EBIT margin of 2.51% and EBITDA margin of 3.90% TTM, though both have declined from previous levels.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.47 TTM, showing moderate leverage. Return on equity has decreased to 4.96% TTM from 8.12% annually, indicating reduced profitability. The equity ratio remains healthy, suggesting a solid capital structure.

Cash Flow

Cash flow analysis reveals a significant improvement in free cash flow growth, up by 1734.38% TTM, highlighting strong cash generation capabilities. The operating cash flow to net income ratio is 0.30, indicating efficient cash conversion. Free cash flow to net income ratio is 0.74, reflecting a robust cash flow position relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	83.23B	85.53B	93.94B	101.56B	85.25B	64.36B
Gross Profit	4.80B	5.78B	7.51B	7.57B	5.99B	4.45B
EBITDA	3.22B	4.10B	6.00B	6.66B	4.57B	3.20B
Net Income	1.19B	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	4.70B	1.23B	2.97B	2.16B	5.43B	-3.21B
Operating Cash Flow	6.09B	2.79B	4.46B	3.48B	6.59B	-2.39B
Investing Cash Flow	-1.34B	-2.70B	-1.50B	-1.40B	-2.67B	4.46B
Financing Cash Flow	-3.26B	-1.53B	-4.60B	-2.50B	-1.12B	-423.00M

Archer Daniels Midland Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 59.70
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 59.7 is above the 20-day moving average (MA) of 58.31, below the 50-day MA of 59.93, and above the 200-day MA of 52.99, indicating a neutral trend. The MACD of -0.35 indicates Negative momentum. The RSI at 53.16 is Neutral, neither overbought nor oversold. The STOCH value of 53.59 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	$4.07B	3.22	55.20%	10.35%	65.80%	197.95%
BG	74 Outperform	$18.08B	10.05	10.24%	2.88%	10.29%	17.32%
FDP	69 Neutral	$1.66B	21.20	3.95%	3.45%	1.11%	414.23%
SFD	69 Neutral	$8.31B	9.59	―	4.68%	―	―
ADM	63 Neutral	$28.69B	24.29	5.35%	3.42%	-4.31%	-29.96%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
TSN	62 Neutral	$19.77B	41.95	2.60%	3.50%	2.12%	-40.75%

Archer Daniels Midland Corporate Events

ADM Reports Strong Q3 2025 Amid Global Challenges

Archer-Daniels-Midland Company (ADM) is a global leader in agricultural supply chain management and processing, providing essential services in food security, human and animal nutrition, and bio-based solutions. The company recently reported its third-quarter 2025 earnings, highlighting strong business execution and portfolio optimization efforts despite a challenging global environment. ADM’s third-quarter earnings were $108 million, with adjusted net earnings of $448 million, and an EPS of $0.22, adjusted to $0.92. Year-to-date cash flows from operations reached $5.8 billion, with significant contributions from portfolio optimization and improved working capital. However, the company revised its full-year 2025 EPS guidance to $3.25 – $3.50 per share due to lower crush margins. Despite the challenges, ADM’s management remains optimistic about future demand signals driven by biofuel policy clarity and global trade evolution. The company continues to focus on operational efficiency and strategic initiatives to support its long-term growth and resilience.

ADM Earnings Call: Mixed Sentiment Amid Challenges

The recent earnings call of Archer-Daniels-Midland Company (ADM) painted a picture of mixed sentiment, with both challenges and achievements highlighted. The company faced significant hurdles due to biofuel policy uncertainties and global demand issues, which impacted financial performance. Despite these challenges, ADM showcased notable achievements in operational efficiency, cash flow generation, and growth in specific business segments such as Animal Nutrition and Flavors.

ADM’s Probiotic Study: A Potential Game-Changer for Infant Colic Relief

Archer-Daniels-Midland Company (ADM) is conducting a clinical study titled ‘A Randomized, Double-blinded, Placebo-controlled Study to Evaluate the Efficacy of a Probiotic in Infantile Colic Symptoms Relief.’ The study aims to assess the effectiveness of a probiotic in alleviating symptoms of infantile colic in infants aged 3-12 weeks. This research is significant as it could offer a non-pharmaceutical solution to a common condition affecting infants and their families.

ADM’s New Clinical Study on Enzyme Cocktails: A Potential Game-Changer for Digestive Health

Archer-Daniels-Midland Company (ADM) has announced a new clinical study titled ‘Evaluate the Safety and Efficacy of Two Enzyme Cocktails in Healthy Adults With Subclinical Mild to Moderate Gastrointestinal Complaints.’ The study aims to assess the safety and effectiveness of two enzyme cocktails in improving gut health among participants with mild gastrointestinal issues. The significance of this study lies in its potential to offer a dietary supplement solution for common digestive concerns.

ADM’s New Study on Probiotics and Protein: A Potential Game-Changer for Nutritional Supplements

Archer-Daniels-Midland Company (ADM) has initiated a clinical study titled ‘Comparative Differences of Amino Acid Appearance with Milk Protein Ingestion with and Without Probiotic Supplementation.’ This study aims to explore how amino acid absorption rates and concentrations are affected by a three-week regimen of milk protein supplementation, with and without a probiotic. The study is significant as it could enhance nutritional strategies and product offerings in the dietary supplement market.

ADM’s Probiotic Study: A Potential Game-Changer for Recurrent Vulvovaginal Candidiasis

Archer-Daniels-Midland Company (ADM) is conducting a pilot clinical trial titled ‘A Pilot Clinical Trial Assessing the Effect of a Multi-strain Probiotic on the Risk of Recurrence and Severity of Symptoms in Females With Recurrent Vulvovaginal Candidiasis.’ The study aims to evaluate the effectiveness of a multi-strain probiotic in reducing the recurrence and severity of symptoms in females suffering from recurrent vulvovaginal candidiasis (R-VVC), a common and recurring condition.

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.