Archer Daniels Valuation
| ADM Stock | USD 46.10 0.42 0.90% |
At this time, the firm appears to be undervalued. Archer Daniels Midland shows a prevailing Real Value of $51.64 per share. The current price of the firm is $46.1. Our model approximates the value of Archer Daniels Midland from analyzing the firm fundamentals such as return on equity of 0.0759, and Profit Margin of 0.02 % as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Archer Daniels' valuation include:
Undervalued
Today
Please note that Archer Daniels' price fluctuation is very steady at this time. Calculation of the real value of Archer Daniels Midland is based on 3 months time horizon. Increasing Archer Daniels' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Archer stock is determined by what a typical buyer is willing to pay for full or partial control of Archer Daniels Midland. Since Archer Daniels is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Archer Stock. However, Archer Daniels' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 46.1 | Real 51.64 | Target 56.18 | Hype 46.0 | Naive 43.28 |
The intrinsic value of Archer Daniels' stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Archer Daniels' stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Archer Daniels Midland helps investors to forecast how Archer stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Archer Daniels more accurately as focusing exclusively on Archer Daniels' fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Archer Daniels' intrinsic value based on its ongoing forecasts of Archer Daniels' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Archer Daniels' closest peers.
Archer Daniels Cash |
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Archer Valuation Trend
Knowing Archer Daniels' actual value is paramount for traders when making sound investment determinations. Using both Archer Daniels' enterprise value as well as its market capitalization is the best way to estimate the value of the company and is usually enough for investors to make market timing decisions.
Archer Revenue by Product
Archer Daniels Total Value Analysis
Archer Daniels Midland is presently forecasted to have company total value of 32.8 B with market capitalization of 22.11 B, debt of 10.16 B, and cash on hands of 1.04 B. Please note that company total value may be misleading and is a subject to accounting gimmicks. We encourage investors to carefully check all of the Archer Daniels fundamentals before making security assessment based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
32.8 B | 22.11 B | 10.16 B | 1.04 B |
Archer Daniels Investor Information
About 82.0% of the company shares are held by institutions such as insurance companies. The company has price-to-book (P/B) ratio of 1.0. Some equities with similar Price to Book (P/B) outperform the market in the long run. Archer Daniels Midland last dividend was issued on the 18th of February 2025. The entity had 105:100 split on the 30th of August 2001. Based on the key indicators related to Archer Daniels' liquidity, profitability, solvency, and operating efficiency, Archer Daniels Midland is doing better financially today then in previous quarter. It has a moderate probability of reporting better financial numbers in April.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Operating Profit Margin | 0.043 | 0.0242 |
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| Operating Income | 1.6 B | 2.1 B |
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Archer Daniels Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Archer Daniels has an asset utilization ratio of 160.56 percent. This suggests that the Company is making $1.61 for each dollar of assets. An increasing asset utilization means that Archer Daniels Midland is more efficient with each dollar of assets it utilizes for everyday operations.Archer Daniels Ownership Allocation
Archer Daniels holds a total of 479.71 Million outstanding shares. The majority of Archer Daniels Midland outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to acquire positions in Archer Daniels Midland to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Archer Daniels. Please pay attention to any change in the institutional holdings of Archer Daniels Midland as this could imply that something significant has changed or is about to change at the company. Please note that on October 8, 2024, Representative Ro Khanna of US Congress acquired under $15k worth of Archer Daniels Midland's common stock.Archer Daniels Profitability Analysis
The company reported the last year's revenue of 85.53 B. Total Income to common stockholders was 1.78 B with profit before taxes, overhead, and interest of 5.78 B.Archer Daniels Past Distributions to stockholders
About Archer Daniels Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Archer Daniels Midland. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Archer Daniels Midland based exclusively on its fundamental and basic technical indicators. By analyzing Archer Daniels's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Archer Daniels's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Archer Daniels. We calculate exposure to Archer Daniels's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Archer Daniels's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 5.8 B | 3.2 B | |
| Pretax Profit Margin | 0.03 | 0.03 | |
| Operating Profit Margin | 0.02 | 0.04 | |
| Net Profit Margin | 0.02 | 0.04 | |
| Gross Profit Margin | 0.07 | 0.10 |
Archer Daniels Quarterly Retained Earnings |
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A single share of Archer Daniels represents a small ownership stake in the entity. As a stockholder of Archer, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Archer Daniels Dividends Analysis For Valuation
As of the 23rd of March 2025, Dividends Paid is likely to grow to about 1 B. Also, Dividend Yield is likely to grow to 0.04. At this time, Archer Daniels' Retained Earnings are very stable compared to the past year. As of the 23rd of March 2025, Price Earnings Ratio is likely to grow to 18.29, while Retained Earnings Total Equity is likely to drop about 17.2 B.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 985 M | 1 B | |
| Dividend Yield | 0.04 | 0.04 | |
| Dividend Payout Ratio | 0.55 | 0.57 | |
| Dividend Paid And Capex Coverage Ratio | 1.09 | 1.44 |
There are various types of dividends Archer Daniels can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Archer shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Archer Daniels Midland directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Archer pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Archer Daniels by the value of the dividends paid out.
Archer Daniels Growth Indicators
Investing in growth stocks can be very risky. If the company such as Archer Daniels does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 493 M | |
| Quarterly Earnings Growth Y O Y | 0.103 | |
| Forward Price Earnings | 9.3458 |
Archer Daniels Current Valuation Indicators
Archer Daniels' valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Archer Daniels' valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Archer Daniels, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Archer Daniels' valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Archer Daniels' worth.When determining whether Archer Daniels Midland is a strong investment it is important to analyze Archer Daniels' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Archer Daniels' future performance. For an informed investment choice regarding Archer Stock, refer to the following important reports: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Archer Daniels Midland. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in unemployment. You can also try the Money Managers module to screen money managers from public funds and ETFs managed around the world.
Is Agricultural Products & Services space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Archer Daniels. If investors know Archer will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Archer Daniels listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.103 | Dividend Share 2 | Earnings Share 3.65 | Revenue Per Share | Quarterly Revenue Growth (0.06) |
The market value of Archer Daniels Midland is measured differently than its book value, which is the value of Archer that is recorded on the company's balance sheet. Investors also form their own opinion of Archer Daniels' value that differs from its market value or its book value, called intrinsic value, which is Archer Daniels' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Archer Daniels' market value can be influenced by many factors that don't directly affect Archer Daniels' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Archer Daniels' value and its price as these two are different measures arrived at by different means. Investors typically determine if Archer Daniels is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Archer Daniels' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.