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Archer-Daniels-Midland Company engages in the procurement, transportation, storage, processing, and merchandising of agricultural commodities, ingredients, flavors, and solutions in the United States, Switzerland, the Cayman Islands, Brazil, Mexico, Canada, the United Kingdom, and internationally. It operates in three segments: Ag Services and Oilseeds, Carbohydrate Solutions, and Nutrition. The company originates, merchandises, stores, and transports agricultural raw materials, such as oilseeds and soft seeds. It also engages in the agricultural commodity and feed product import, export, and distribution; and various structured trade finance activities. In addition, the company offers soybean meal and oil; vegetable and salad oils and protein meals; ingredients for the food, feed, energy, and industrial customers; margarine, shortening, and other food products; and partially refined oils to produce biodiesel and glycols for use in chemicals, paints, and other industrial products. Further, it provides peanuts, peanut-derived ingredients, and cotton cellulose pulp; sweeteners, corn and wheat starches, syrup, glucose, wheat flour, and dextrose; alcohol, and other food and animal feed ingredients; ethyl alcohol and ethanol; corn gluten feed and meal; distillers’ grains; corn germ; and citric acids. Additionally, the company provides proteins, natural flavors, flavor systems, natural colors, emulsifiers, soluble fiber, polyols, hydrocolloids, probiotics, prebiotics, postbiotics, enzymes, and botanical extracts; and other specialty food and feed ingredients; edible beans; formula feeds, and animal health and nutrition products; and contract and private label pet treats and food products. It also offers futures commission merchant; commodity brokerage services; cash margins and securities pledged to commodity exchange clearinghouse; and cash pledged as security under certain insurance arrangements. The company was founded in 1902 and is headquartered in Chicago, Illinois.
Financial Turmoil | ADM faces operational challenges and financial restatements, lowering FY2024 EPS guidance and postponing earnings calls amid internal control issues |
Market Dynamics Shift | Explore ADM's adaptation to changing feedstock demands, moving from soybean oil to lower carbon intensity options, impacting crush margins |
Segment Performance | Delve into ADM's mixed segment results: strong Carbohydrate Solutions contrasting with weaknesses in Human Nutrition and crush operations |
Future Outlook | Analysts maintain cautious optimism with price targets around $56-$60, anticipating potential improvements in H2 2024 despite current headwinds |
Metrics to compare | ADM | Sector Sector - Average of metrics from a broad group of related Consumer Non-Cyclicals sector companies | Relationship RelationshipADMPeersSector | |
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P/E Ratio | 13.6x | 20.4x | 11.7x | |
PEG Ratio | −0.27 | −0.47 | 0.03 | |
Price/Book | 1.1x | 2.0x | 1.5x | |
Price / LTM Sales | 0.3x | 1.1x | 0.9x | |
Upside (Analyst Target) | 9.0% | 18.4% | 22.9% | |
Fair Value Upside | Unlock | 2.6% | 8.9% | Unlock |