Archer Daniels Midland Co.
ADM
Market Cap$22.96B
Close$
Earnings Call Q4 2024
February 4, 2025 - AI Summary
Earnings Performance: ADM reported Q4 adjusted EPS of $1.14, consistent with full-year guidance of $4.74. Total segment operating profit was $1.1 billion for Q4 and $4.2 billion for the full year, reflecting challenges in the marketplace with notable declines in profitability for Ag Services and Oilseeds (AS&O) which was down 32% YoY.
Guidance and Expectations for 2025: For 2025, ADM projects adjusted EPS to be between $4.00 and $4.75. The company anticipates a challenging first half due to lower soybean and canola crush margins (expected around $45 to $55 per ton for soy, $50 to $70 for canola). However, they expect margins to improve in the second half of the year as regulatory clarity and market fundamentals improve.
Cost Management Initiatives: ADM is aggressively managing costs with targeted actions expected to yield $500 million to $750 million in savings over the next 3-5 years, including a $200 million to $300 million benefit in 2025. The company is taking steps to eliminate non-critical spending while executing operational improvements.
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$65.56
35.1% upside
Current Fair Value
35.1% upsideUndervalued by 35.1% based on the discounted cash flow analysis.
Share Statistics
| Market cap | $22.96 Billion |
|---|---|
| Enterprise Value | $24.25 Billion |
| Dividend Yield | $2.01 (4.20326223337516%) |
| Earnings per Share | $3.77 |
| Beta | 0.65 |
| Outstanding Shares | 478,000,000 |
Return
| Return on Equity | - |
|---|---|
| Return on Assets | - |
| Return on Invested Capital | - |
Valuation & Multiples
| P/E Ratio | 12.7 |
|---|---|
| PEG | -12.98 |
| Price to Sales | 0.27 |
| Price to Book Ratio | 1.28 |
| Enterprise Value to Revenue | 0.28 |
| Enterprise Value to EBIT | 12.01 |
| Enterprise Value to Net Income | 13 |
| Total Debt to Enterprise | 0.08 |
| Debt to Equity | - |
Revenue Sources
No data
Insider Trades
ESG Score
No data
About Archer Daniels Midland Co.
38,100 employees
CEO: Patricia Woertz ADM unlocks the power of nature to provide access to nutrition worldwide. With industry-advancing innovations, a complete portfolio of ingredients and solutions to meet any taste, and a commitment to sustainability, ADM gives customers a...