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Archer-Daniels Midland Co
ADM : NYSE : Consumer Goods
$36.47 up0.43 | 1.19%
Today's Range: 35.98 - 36.75
Avg. Daily Volume: 4,044,100
11/25/15 - 4:01 PM ET

Financial Analysis

ARCHER-DANIELS-MIDLAND CO's gross profit margin for the third quarter of its fiscal year 2015 has decreased when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. ARCHER-DANIELS-MIDLAND CO has weak liquidity. Currently, the Quick Ratio is 0.71 which shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has decreased by 11.68% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q3 FY15 Q3 FY14
Net Sales ($mil)16565.018117.0
EBITDA ($mil)795.01233.0
EBIT ($mil)578.01019.0
Net Income ($mil)252.0747.0

Balance Sheet Q3 FY15 Q3 FY14
Cash & Equiv. ($mil)6303.09638.0
Total Assets ($mil)40877.041821.0
Total Debt ($mil)6782.05541.0
Equity ($mil)17863.020226.0

Profitability Q3 FY15 Q3 FY14
Gross Profit Margin7.889.3
EBITDA Margin4.796.8
Operating Margin3.495.62
Sales Turnover1.772.02
Return on Assets4.484.59
Return on Equity10.259.49
Debt Q3 FY15 Q3 FY14
Current Ratio1.631.94
Interest Expense69.079.0
Interest Coverage8.3812.9

Share Data Q3 FY15 Q3 FY14
Shares outstanding (mil)601.0646.0
Div / share0.280.24
Book value / share29.7231.31
Institutional Own % n/a n/a
Avg Daily Volume4081927.03613504.0


HOLD. The current P/E ratio indicates a significant discount compared to an average of 29.83 for the Food Products industry and a discount compared to the S&P 500 average of 21.93. For additional comparison, its price-to-book ratio of 1.23 indicates a significant discount versus the S&P 500 average of 2.77 and a significant discount versus the industry average of 5.53. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, ARCHER-DANIELS-MIDLAND CO proves to trade at a discount to investment alternatives within the industry.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
ADM 12.65 Peers 29.83   ADM 13.82 Peers 33.97

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

ADM is trading at a significant discount to its peers.


Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

ADM is trading at a significant discount to its peers.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
ADM 11.57 Peers 24.05   ADM NM Peers 1.34

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

ADM is trading at a significant discount to its peers.


Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

ADM's negative PEG ratio makes this valuation measure meaningless.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
ADM 1.23 Peers 5.53   ADM -1.04 Peers 105.64

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

ADM is trading at a significant discount to its peers.


Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, ADM is expected to significantly trail its peers on the basis of its earnings growth rate.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
ADM 0.30 Peers 2.87   ADM -14.57 Peers -0.29

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

ADM is trading at a significant discount to its industry on this measurement.


Lower. A sales growth rate that trails the industry implies that a company is losing market share.

ADM significantly trails its peers on the basis of sales growth



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