Archer-Daniels Midland Co

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ADM : NYSE : Consumer Goods
$44.69 up 0.59 | 1.34%
Today's Range: 43.978 - 44.69
Avg. Daily Volume: 3287700.0
02/17/17 - 4:00 PM ET

Financial Analysis


ARCHER-DANIELS-MIDLAND CO's gross profit margin for the fourth quarter of its fiscal year 2016 has increased when compared to the same period a year ago. Even though sales increased, the net income has decreased.

During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 4.01% from the same quarter last year.

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Income Statement Q4 FY16 Q4 FY15
Net Sales ($mil)16501.016445.0
EBITDA ($mil)778.0607.0
EBIT ($mil)556.0383.0
Net Income ($mil)424.0718.0


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)619.06562.0
Total Assets ($mil)0.040157.0
Total Debt ($mil)6931.05877.0
Equity ($mil)17181.017899.0


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin7.566.62
EBITDA Margin4.713.69
Operating Margin3.372.33
Sales Turnover0.01.69
Return on Assets0.04.6
Return on Equity7.4410.33
Debt Q4 FY16 Q4 FY15
Current Ratio0.01.62
Debt/Capital0.290.25
Interest Expense80.073.0
Interest Coverage6.955.25


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)578.0595.0
Div / share0.30.28
EPS0.731.19
Book value / share29.7230.08
Institutional Own % n/a n/a
Avg Daily Volume3301395.02847675.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 30.76 for the Food Products industry and a discount compared to the S&P 500 average of 26.35. To use another comparison, its price-to-book ratio of 1.48 indicates a discount versus the S&P 500 average of 2.94 and a significant discount versus the industry average of 5.27. 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.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
ADM 20.23 Peers 30.76   ADM 17.28 Peers 17.61

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.

 

Average. 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 valuation on par to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
ADM 14.20 Peers 20.98   ADM NM Peers 1.45

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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
ADM 1.48 Peers 5.27   ADM -27.10 Peers 1403.49

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
ADM 0.41 Peers 2.35   ADM -7.92 Peers 8.79

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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