Archer-Daniels-Midland Company engages in the procurement, transportation, storage, processing, and merchandising of agricultural commodities, ingredients, flavors, and solutions. 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 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; cash margins and securities pledged to commodity exchange clearinghouse; and cash pledged as security under certain insurance arrangements. It operates in the United States, Switzerland, the Cayman Islands, Brazil, Mexico, Canada, the United Kingdom, and internationally. The company was founded in 1902 and is headquartered in Chicago, Illinois.
Financial Headwinds | ADM faces challenges with mixed Q4 results and conservative FY25 guidance, reflecting pressures in key segments amid a complex market landscape |
Strategic Resilience | Explore ADM's robust cost-saving initiatives targeting $200-300M, aiming to enhance operational efficiency and offset margin pressures |
Market Dynamics | Delve into ADM's navigation of evolving biofuel policies and shifting consumer preferences, presenting both risks and growth opportunities |
Valuation Insights | Analyst price targets range from $48 to $60, with ADM's stock potentially undervalued despite challenges, according to InvestingPro analysis |
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 | 27.4x | 17.0x | 12.1x | |
PEG Ratio | −0.50 | −0.39 | 0.03 | |
Price/Book | 1.3x | 1.3x | 1.5x | |
Price / LTM Sales | 0.4x | 0.7x | 0.9x | |
Upside (Analyst Target) | −9.0% | 0.0% | 16.0% | |
Fair Value Upside | Unlock | 9.4% | 9.8% | Unlock |