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 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.
Analyst Outlook | Analysts project a price target range of $48 to $60, reflecting mixed views on ADM's ability to navigate current challenges and capitalize on growth opportunities |
Biofuel Market Dynamics | Delve into the opportunities and risks ADM faces in the evolving biofuel landscape, including regulatory uncertainties and shifts in feedstock demand |
Strategic Cost-Cutting | Explore ADM's ambitious $200-300 million cost reduction plan over 3-5 years, aimed at offsetting market pressures and enhancing profitability |
Financial Headwinds | ADM faces challenges in Ag Services & Oilseeds, with crush profits declining by nearly 50% year-over-year, impacting overall financial performance |
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 | 12.9x | 9.8x | 11.6x | |
PEG Ratio | −0.30 | 0.00 | 0.03 | |
Price / Book | 1.0x | 5.0x | 1.5x | |
Price / LTM Sales | 0.3x | 1.0x | 0.9x | |
Upside (Analyst Target) | 1.6% | 20.0% | 19.6% | |
Fair Value Upside | Unlock | 49.7% | 11.2% | Unlock |