Archer-Daniels-Midland Company (ADM) Stock Guide

June 12, 2020
80

Before we start: if you're looking for ADM stock price, you can quickly find it out by visiting Finny and typing "ADM quote". If you're looking for a quick scoop on ADM stock (chart, price target, market cap, news and buy or sell analysis), go to Finny and look for "ADM". You'll get all this info in one place. Or you can just type "ADM news" to get the latest stock news.

Looking to buy or sell Archer-Daniels-Midland Company (ADM)? Interested in getting the full scoop on ADM, including earnings and dividends, stock forecast, buy or sell analysis and key stats? If so, you came to the right place.

In this ADM stock guide, we'll address key questions about ADM, above and beyond what you can find on Yahoo Finance, Zacks, MarketWatch or Morningstar.

Here is what you'll be able to find in this guide:

Earnings and Dividends: earnings, earnings date, dividend rate and dividend yield;
Analyst Predictions: stock forecast and analyst ratings;
Analysis: Finny Score and buy or sell analysis;
Key Stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio, industry, sector, and number of employees.

And here is the list of questions we'll answer:
1. What are ADM earnings?
2. When is ADM earnings date?
3. What is ADM dividend?
4. What is ADM dividend yield?
5. What is ADM stock forecast (i.e., prediction)?
6. ADM buy or sell? What is ADM Finny Score?
7. What are the reasons to buy ADM? Why should I buy ADM stock?
8. What are the reasons to sell ADM? Why should I sell ADM stock?
9. What are ADM key stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

So let's start. Scroll down to the question that interests you the most.

Earnings and Dividends

1. What are ADM earnings?

ADM trailing 12-month earnings per share (EPS) is $2.72.

2. When is ADM earnings date?

ADM earnings date is July 30, 2020.

3. What is ADM dividend?

ADM forward dividend is $1.44.

4. What is ADM dividend yield?

ADM forward dividend yield is 4.26%.

Analyst Predictions

5. What is ADM stock forecast (i.e., prediction)?

Based on ADM analyst price targets, ADM stock forecast is $46.75 (for a year from now). That means the average analyst price target for ADM stock is $46.75. The prediction is based on 16 analyst estimates.

The low price target for ADM is $40.00, while the high price target is $53.00.

ADM analyst rating is Hold.

Analysis

6. ADM buy or sell? What is ADM Finny Score?

Our quantitative analysis shows 8 reasons to buy and 2 reasons to sell ADM, resulting in Finny Score of 80.

7. What are the reasons to buy ADM? Why should I buy ADM stock?

Here are the reasons to buy ADM stock:

  • With a global network of processing, storage, and transportation assets, ADM's size gives the company scale advantages over regional competitors.
  • The firm's trading operations are often able to generate arbitrage opportunities from extensive market knowledge produced by the global origination and logistics network.
  • As a major processor of soybeans--a key component in animal feeds--Archer Daniels Midland should benefit as emerging economies consume more meat.
  • ADM profitability is improving. The YoY profit margin change was 0.19 percentage points. See ADM profitability chart.
  • ADM forward dividend yield is 4.26%, higher than the industry (0.55%) and sector (0.62%) forward dividend yields. See ADM forward dividend chart.
  • ADM forward P/E ratio is 9.99, which is low compared to its industry peers’ P/E ratios. See ADM forward P/E ratio chart.
  • ADM Price/Book ratio is 1.00, which is low compared to its industry peers’ P/B ratios. See ADM forward Price/Book ratio chart.
  • ADM Price/Sales ratio is 0.30, which is low compared to its industry peers’ P/S ratios. See ADM forward Price/Sales ratio chart.
  • ADM average analyst price target ($46.75) is above its current price ($38.60). See ADM price target chart.
  • ADM cash to debt ratio is 0.35, higher than the average industry (0.08) and sector (0.11) cash to debt ratio. See ADM cash to debt chart.
  • ADM Enterprise Value/Revenue multiple is 0.45, which is low compared to its industry peers’ Enterprise Value/Revenue multiples. See ADM Enterprise Value/Revenue chart.

8. What are the reasons to sell ADM? Why should I sell ADM stock?

Let's look at the reasons to sell ADM stock (i.e., the bear case):

  • Corn ethanol demand in the U.S. is propped up by the renewable fuel standard, creating artificial demand that would not be present if the standard were eventually removed.
  • Profitability is subject to operating rates in each segment, which can be negatively affected by a number of factors outside ADM's control.
  • As a trader of commodity products, ADM is essentially a price taker competing in a market where similar products are available from rivals.
  • ADM quarterly revenue growth was -2.20%, lower than the industry and sector average revenue growth (0.40% and 1.32%, respectively). See ADM revenue growth chart.
  • ADM short interest (days to cover the shorts) ratio is 2.5. The stock garners more short interest than the average industry, sector or S&P 500 stock. See ADM short interest ratio chart.

Key Stats

9. What are ADM key stats : revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

Let's look at the key statistics for ADM:

Metrics ADM
Price $39.55
Average Price Target / Upside $46.75 / 18.20%
Average Analyst Rating Hold
Forward Dividend Yield 4.26%
Industry Farm Products
Sector Consumer Defensive
Number of Employees 31,600
Market Cap $18.98B
Forward P/E Ratio 9.99
Price/Book Ratio 0.3
Revenue (TTM) $64.32B
YoY Quarterly Revenue Growth -2.20%
Profit Margin 2.39%

If you liked this analysis, check out Stock Guides for other stocks.

Follow Us