Archer-Daniels-Midland Co. (ADM) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Cal-Maine Foods, Inc.

Vital Farms, Inc.

Seaboard Corp.

Pilgrim's Pride Corp.

Fresh Del Monte Produce, Inc.

Archer-Daniels-Midland Co.

Mission Produce, Inc.

Tilray Brands, Inc.

Bunge Ltd.

Adecoagro SA

MGP Ingredients, Inc.

Why is Archer-Daniels-Midland Co. ?

Company has a low Debt to Equity ratio (avg) at times

Healthy long term growth as Operating profit has grown by an annual rate -11.06%

The company has declared Negative results for the last 3 consecutive quarters

ROCE(HY) Lowest at 4.93%
PRE-TAX PROFIT(Q) Lowest at USD 51 MM
RAW MATERIAL COST(Y) Grown by 39.34% (YoY)

With ROCE of 5.60%, it has a very expensive valuation with a 1.28 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 12.47%, its profits have fallen by -56.8%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Archer-Daniels-Midland Co. should be less than 10%
Overall Portfolio exposure to Other Agricultural Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Agricultural Products)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Archer-Daniels-Midland Co. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Archer-Daniels-Midland Co.

14.66%

-0.12

28.86%

S&P 500

13.22%

0.64

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.20%

EBIT Growth (5y)

-11.06%

EBIT to Interest (avg)

7.84

Debt to EBITDA (avg)

1.47

Net Debt to Equity (avg)

0.33

Sales to Capital Employed (avg)

2.74

Tax Ratio

21.58%

Dividend Payout Ratio

54.78%

Pledged Shares

Institutional Holding

87.96%

ROCE (avg)

10.79%

ROE (avg)

13.74%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.37

EV to EBIT

22.85

EV to EBITDA

13.47

EV to Capital Employed

1.28

EV to Sales

0.45

PEG Ratio

Dividend Yield

ROCE (Latest)

5.60%

ROE (Latest)

5.41%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

No Trend

Mildly Bearish

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 5,576 MM

DIVIDEND PER SHARE(HY)

Highest at USD 13.59

DIVIDEND PAYOUT RATIO(Y)

Highest at 112.71%

INVENTORY TURNOVER RATIO(HY)

Highest at 7.75 times

-20What is not working for the Company

ROCE(HY)

Lowest at 4.93%

PRE-TAX PROFIT(Q)

Lowest at USD 51 MM

RAW MATERIAL COST(Y)

Grown by 39.34% (YoY

NET PROFIT(Q)

Lowest at USD 41.67 MM

Here's what is working for Archer-Daniels-Midland Co.

Dividend per share

Highest at USD 13.59 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Operating Cash Flow

Highest at USD 5,576 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Inventory Turnover Ratio

Highest at 7.75 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend Payout Ratio

Highest at 112.71%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Depreciation

Highest at USD 291 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Archer-Daniels-Midland Co.

Pre-Tax Profit

At USD 51 MM has Fallen at -89.82%

over average net sales of the previous four periods of USD 501 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD 41.67 MM has Fallen at -86.24%

over average net sales of the previous four periods of USD 302.71 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Pre-Tax Profit

Lowest at USD 51 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD 41.67 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Raw Material Cost

Grown by 39.34% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales