How Is Archer-Daniels-Midland Company (ADM)’s Price-To-Earnings Ratio?


As of Friday close, Archer-Daniels-Midland Company’s (NYSE:ADM) stock was down -$2.21, moving down -2.89 percent to $74.26. The average number of shares traded per day over the past five days has been 4,005,620 shares. 2 times new highs have been achieved over the past 5 days, with a -$2.40 fall in that time frame. In the last twenty days, the average volume was 3,190,710, while in the previous 50 days, it was 3,530,936.

Since last month, ADM stock retreated -9.15%. Shares of the company fell to $73.98 on 03/17/23, the lowest level in the past month. A 52-week high of $98.88 was reached on 01/03/23 after having rallying from a 52-week low of $70.02. Since the beginning of this year, ADM’s stock price has dropped by -20.02% or -$18.59, and marked a new high 1 time. However, the stock has declined by -24.90% since its 52-week high.

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ADM stock investors should be aware that Archer-Daniels-Midland Company (ADM) stock had its last reported insider trading activity 95 days ago on Dec 13. FINDLAY D CAMERON, the Senior Vice President of the company, disposed of 26,197 shares for $93.52 on Dec 13. It resulted in a $2,449,907 divestment by the insider. FINDLAY D CAMERON sold 26,198 shares at an average price of $92.64 on Dec 12. The insider now owns 284,987 shares following the transaction. On Nov 29, Senior Vice President FINDLAY D CAMERON sold 26,198 shares at $96.62 apiece. The transaction was valued at $2,531,333.

Valuation Metrics

Right now, Archer-Daniels-Midland Company (ADM) has a P/E ratio of about 9.64. The stock’s beta is 0.81. Besides these, the trailing price-to-sales (P/S) ratio of 0.41, the price-to-book (PB) ratio of 1.69, and the price-to-cash flow ratio of 32.86 may also be considered.

The latest dividend of $0.45 per share was paid out, which is 12.5% more than last year’s $0.40. On Thursday January 26 2023, a $0.05 dividend increase was announced.

Financial Health

In the three months ended December 30, Archer-Daniels-Midland Company’s quick ratio stood at 0.90, while its current ratio was 1.50, showing that the company is not able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending December 30 was 0.32, and the total debt-to-equity ratio was 0.38. On the profitability front, the trailing twelve-month gross margin is 7.50% percent. In the year ended December 30, operating margins totaled 4.10%. Based on annual data, ADM earned $7.57 billion in gross profit and brought in $101.56 billion in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 9.80%. Return on equity (ROE) for the past 12 months was 18.00%.

In Archer-Daniels-Midland Company’s quarter-end financial report for December 30, it reported total debt of $7.74 billion. According to the earnings report, the company had a higher net income in the recent quarter than it did in the previous quarter. ADM’s revenue rose 10.98% to $24.68 billion during the quarter, while net income inched up to $25.94 billion. While analysts expected Archer-Daniels-Midland Company to report $1.65 quarterly earnings, the actual figure was $1.93 per share, beating the consensus estimate by 17.00%. During the quarter, the company generated $1.12 billion in EBITDA. The liabilities of Archer-Daniels-Midland Company were 35.46 billion at the end of its most recent quarter ended December 30, and its total debt was $9.18 billion. The value of shareholders’ equity is $548.01 million.

Technical Picture

This quick technical analysis looks at Archer-Daniels-Midland Company’s (ADM) price momentum. With a historical volatility rate of 25.46%, the RSI 9-day stood at 25.60% on 17 March.

With respect to its five-day moving average, the current Archer-Daniels-Midland Company price is down by -3.13% percent or -$2.40. At present, ADM shares trade -8.79% below its 20-day simple moving average and -17.20% percent below its 100-day simple moving average. However, the stock is currently trading approximately -14.04% below its SMA50 and -18.23% below its SMA200.

Stochastic coefficient K was 14.70% and Stochastic coefficient D was 24.96%, while ATR was 1.90. Given the Stochastic reading of 3.76% for the 14-day period, the RSI (14) reading has been calculated as 28.37%. As of today, the MACD Oscillator reading stands at -1.71, while the 14-day reading stands at -2.72.

Analyst Ratings

UBS launched its rating on Archer-Daniels-Midland Company (NYSE: ADM) to a Buy in a note to investors on December 14, 2022. Archer-Daniels-Midland Company (ADM) has been rated Overweight by analysts. According to 0 brokerage firms, ADM is a sell, and 8 firms recommend it is a Hold. There are 1 analyst who say the stock is underweight. A total of 2 analysts rate Archer-Daniels-Midland Company stock as buy, with 6 recommending it as overweight.

With a median target price of $101.00, the current consensus forecast for the stock is $87.00 – $117.00. Based on these forecasts, analysts predict Archer-Daniels-Midland Company (ADM) will achieve an average price target of $101.69.


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