At the moment, the debt-to-equity of Archer-Daniels-Midland Company (NYSE:ADM) is low, standing at 40.92, a figure that is less than the 52.08 average recorded by the industry. This means that the company is currently holding a debt level at 7.85 B. ADM shares have a strong debt-to-equity ratio but their quick ratio which reads 0.90 is strong and might cause problems for them later in the future.
Even though there was a rise of +6.43% in revenue, the company failed to succeed in outperforming the industry average of 47.59%. For the most recent quarter, the net income has jumped by +179.17%. This strength in their income has affected them and thus increased their earnings to $736.00 M. The 6.56% yoy growth of ADM’s revenue has gone up that of the industry average by 1.33%. For the past 12 months, Archer-Daniels-Midland Company revenue has gone up by 5.23%. The sustained growth in their revenue has helped boost their earnings per share.
Archer-Daniels-Midland Company (ADM) has seen their earnings per share increased to $0.94 during the last quarter in comparison to the same quarter last year. They have recorded a -5.47% declining earnings per share earnings. They have recorded a -5.47% declining earnings per share earnings. Analysts expect increase in earnings is also on the cards next quarter with an average estimate at $0.83. In the fiscal year 2018, Archer-Daniels-Midland Company overcame its bottom line by hitting earning $2.79 per share compared to the $2.16 in 2017.
The 12-month return on equity has significantly fallen to 11.21 in comparison to the same data for other companies in the same industry. This shows that there is a major weakness within the organization over the past one year. Comparing them to other companies in the industry and the overall Consumer Goods sector, the industry average is 14.91 while 60.82 is of the sector.
Also, looking at the price to cash flow of the company and the industry average, the 8.60 ratio of the stock is lower than the industry’s 14.69.
Archer-Daniels-Midland Company (NYSE:ADM) has a price-to-earnings ratio of 12.74 which is lower than the 20.85 industry average at the moment. In addition to their unfavorable P/E ratio, Archer-Daniels-Midland Company has maintained a gross margin of 6.31. This shows whether the company has what it takes to effectively turn the revenue into profit.
The company’s ROA is 5.23 when compared to 7.71 for the stocks operating in the same industry. This can be attributed to the strength recorded in the net income produced by total assets. Comparing it to other companies in the sector, Archer-Daniels-Midland Company ROE is above 60.82 that of both the sector average.
The operating profit margin for Archer-Daniels-Midland Company (ADM) is 2.97%, a figure which is considered to be weak. It has gone 12.26 from the 2.53 over the past 5 years. In addition to this, their operating margin is -9.29 lower than the industry average.
The net profit margin which stood at 2.24 on average in the past 5 years has jumped to 3.19 in the last 12 months. Added to that, this ratio has missed the industry net margin that stands at 8.15.
Analysts meanwhile rate Archer-Daniels-Midland Company (NYSE:ADM) as a buy. Still some above discussed indicators of the $24.50B company show strength while others show weakness. There is little evidence at the moment to justify the expectation of the ADM shares to either perform positively or negatively when compared to other stocks. The primary strengths of Archer-Daniels-Midland Company can be witnessed in its increased revenue, growing earnings per share, higher return on equity, increased operating cash and high net margin. Subsequently, financial analysis have also identified some weak areas that includes high debt, relatively high P/E ratio, lower return on assets and low net margin.