Archer-Daniels-Midland Co (ADM) stock analysis

P/E above its 5-year median

Archer-Daniels-Midland's P/E of 19.4 is above its own 5-year median of 13.9.

P/E below the industry

Archer-Daniels-Midland's P/E of 19.4 is below the Food and Kindred Products median of 21.0.

EV/EBITDA above its 5-year median

Archer-Daniels-Midland's EV/EBITDA of 10.6 is above its 5-year median of 9.6.

P/S below the industry

Archer-Daniels-Midland's price-to-sales of 0.42 is below the Food and Kindred Products median of 0.81 (book value is negative, so we use sales).

Trading below fair value

The share price of $70.92 is below our fair value estimate of $73.21.

Margin of safety under 20%

The price is 3.1% below fair value, less than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew -7.5% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -33.9% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 61.1% over the last twelve months, against a 5-year average of -9.5% a year.

Growing slower than the industry

Revenue grew -0.8% over the last twelve months; the Food and Kindred Products median is 2.7%.

Guidance raised

Archer-Daniels-Midland raised its 2026 adjusted EPS outlook on Aug 4, 2026.

Gross margin improving

Gross margin was 6.9% over the last twelve months, against 6.4% a year earlier.

Return on equity

Needs positive equity and five years of results.

Return on invested capital

Needs operating income and invested capital.

Return on equity against the industry

Needs positive equity.

Earnings shrank over 5 years

Net income shrank 9.5% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 2.2% over the last twelve months, against a 5-year average of 2.9%.

Net margin below the industry

Archer-Daniels-Midland's net margin of 2.2% is below the Food and Kindred Products median of 2.7%.

Debt level

Needs debt and equity figures.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 34.9% of total debt.

Interest coverage

Interest expense is not reported separately.

Short-term assets cover short-term debts

Current assets are 1.39 times current liabilities.

Bankruptcy risk in the grey zone

The Altman Z-score is 2.99; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Archer-Daniels-Midland paid dividends worth 2.9% of the share price over the last twelve months.

Yield below Treasuries

The 2.9% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Archer-Daniels-Midland yields 2.9%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 56.6% of net income.

Covered by free cash flow

Dividends take 59.7% of free cash flow.