Archer-Daniels-Midland Company logo

Archer-Daniels-Midland Company(ADM)

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EXPLORE ADVISORIES AND THEIR HISTORY
QUALITY SIGNAL
2-STAR RATING
PASS
LAST CLOSE
$82.45
10/08/2026
(24-hour delay)

Advisory History & Simulated Performance *

*as per simulation (see disclosures)
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Simulated performance—not actual client returns. Results depend on calculation assumptions and do not guarantee future outcomes. See Disclosures for methodology, assumptions, and limitations.

Advisory Performance History (Simulated)Advisory Performance History info

Simulated performance—not actual client returns. Results depend on calculation assumptions and do not guarantee future outcomes. See Disclosures for methodology, assumptions, and limitations.

Upturn Advisory & Investor View for ADM

10/08/2026: ADM (2-star) is currently NOT-A-BUY. Pass it for now.

Archer-Daniels-Midland (ADM) is a major global player in agricultural processing and nutrition, serving as a critical bridge between farmers and the global food supply chain. The company has a leading position in commodity merchandising and has strategically expanded into higher-margin specialty ingredients, which supports its long-term growth story. Investors often value its status as a Dividend Aristocrat, providing consistent income. However, the business faces risks from volatile commodity cycles, geopolitical trade disruptions, and regulatory challenges that necessitate disciplined execution. ADM may suit income-focused and value-oriented investors who are comfortable with the cyclical nature of the global agricultural sector and monitoring ongoing operational and regulatory developments.

How to Read the Upturn Advisory

The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.

Company fundamentals, valuation, risks, and news provide supporting context about the business.

Investor Fit

Investor styleFitWhy
Growth investorMixed fitADM is a mature, cyclical company with moderate growth prospects tied to agricultural demand rather than rapid technology-driven expansion.
Momentum investorWeak fitThe stock price is often influenced by external macroeconomic commodity cycles rather than consistent momentum-based trends.
Value investorStrong fitThe company often trades at reasonable valuation multiples relative to its assets and long-term cash flow generation.
Dividend investorStrong fitA multi-decade history of annual dividend increases makes it a core holding for income-focused portfolios.
Low-risk investorMixed fitWhile established, the company's susceptibility to commodity price volatility and regulatory headlines can lead to short-term price swings.

Risk Profile

Risk factorLevelWhy it matters
Price volatilityHighFluctuations in commodity prices directly impact processing margins and inventory valuation.
Valuation riskLowThe stock often trades at valuations that reflect its long-term stability and mature nature.
Competition riskMediumGlobal grain merchandising faces fierce competition from large private entities and international players.
Business qualityStrongThe firm operates critical global food infrastructure that serves as a necessary backbone for food security.
Dividend incomeStrongThe company has a highly reliable track record of paying and growing dividends over many decades.
Execution riskMediumManaging complex global supply chains and integrating large acquisitions requires consistent operational execution.

Price Behavior

Strong Uptrend
PRICE PATH

Strong Uptrend

The stock has maintained a strong upward price trend across the last three quarters.

Smooth
PRICE STABILITY

Smooth

The stock has moved along a generally orderly path with only modest fluctuations.

Analysis of Past Performance

Type Stock
Historic Profit 4.38%
Avg. Invested days 50
Today’s Advisory PASS
Upturn Advisory Rating upturn star rating icon
Upturn Advisory Performance Upturn Advisory Performance icon 3.0
Stock Returns Performance Upturn Returns Performance icon 1.0
Upturn Profits based on simulation icon Profits based on simulation
Upturn last close icon Last Close 10/08/2026

Upturn Scorecard

Upturn Star Rating

★★★★★
ADM receives a 3-star rating, supported by solid quantitative characteristics. The rating is constrained by soft unit economics, weak price momentum, and limited analyst upside.

Company Fundamentals

★★★★★
ADM has moderate overall fundamentals (3 stars), with moderate financial health, moderate growth momentum, and solid ownership. In FY2025 versus FY2024, solid cash generation (FCF margin 5.2%) is partially offset by negative earnings growth (-40.1%), negative revenue growth (-6.2%), soft profitability (net margin 1.3%).

Financial Health Rating

★★★★★
ADM's financial health is supported by strong cash strength, including free-cash-flow generation of $4.2B (5.2% of revenue). Profitability is soft (2 stars), which helps explain the 3-star overall score.

Growth Momentum Score

★★★★★
Free-cash-flow growth is ADM's strongest growth driver at +242.6% FY2025 versus FY2024 (strong, 5 stars). By comparison, while revenue growth (-6.2%, negative) and earnings growth (-40.1%, negative) hold the profile back, so recent growth is not broad-based across the business.

Ownership

★★★★★
Institutional ownership is 88.9% and approximately 99.1% of outstanding shares are publicly tradable, supporting liquidity and institutional participation. Insider ownership is only 0.71%, which materially reduces the ownership score.

Top 5 Institutional Investors

State Farm Mutual Automobile Ins Co 9.71%
BlackRock Inc 9.26%
State Street Corp 6.98%
Vanguard Capital Management, LLC 6.53%
Vanguard Portfolio Management, LLC 5.59%

Unit Economics (Per $1K Revenue)

★★★★★
ADM generates approximately $63 of gross profit, $18 of operating income, and $52 of free cash flow for every $1,000 of revenue. Based on FY2025 results. Weak margins explain the 2-star rating, with solid cash conversion and weak capital efficiency.

Economic Dimensions

★★★★★
Effective Tax Rate: 14.50%

Quantitative Style Profile

★★★★★
ADM has a large-cap, liquid, relatively low-volatility profile. Weak momentum is the primary drawback.

Style Classification

Quality Focused

Value-OrientedLow VolatilityLarge / Mega Cap StabilityHighly Liquid / Institution-Friendly

Key Highlights

Company Size Large-Cap Stock
Market Capitalization 39.20B USD
Price to earnings Ratio 22.53
1Y Target Price 80.4
Price to earnings Ratio 22.53
1Y Target Price 80.4
Volume (30-day avg) 3.6M shares
Beta 0.63
52 Weeks Range 54.00 - 88.75
Updated Date 10/08/2026
52 Weeks Range 54.00 - 88.75
Updated Date 10/08/2026
Dividends yield (FY) 2.51%
Basic EPS (TTM) 3.61

How Company Makes Money

Business areaWhat it includesRetail investor read
Ag Services & OilseedsGlobal grain storage, transportation, and crushing operations.The foundational part of the business that earns money by moving crops from where they grow to where they are needed.
Carbohydrate SolutionsProcessing corn and wheat into sweeteners, starches, and ethanol.A steady revenue stream serving the food and energy markets.
NutritionSpecialty food ingredients, flavors, and animal feed products.The growth segment focused on higher-margin, specialized ingredients for the human and animal health markets.
GeographyOperations spanning North America, South America, Europe, and Asia.Global reach provides a buffer against localized harvest issues or regional economic downturns.

Analyzing Revenue: Products, Geography and Growth

Revenue by Products

Product revenue - Year on Year

Revenue by Geography

Geography revenue - Year on Year

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Valuation

Trailing PE 22.53
Forward PE 15.62
Enterprise Value 47.84B
Price to Sales(TTM) 0.48
Enterprise Value 47.84B
Price to Sales(TTM) 0.48
Enterprise Value to Revenue 0.58
Enterprise Value to EBITDA 12.34
Shares Outstanding 481.96M
Shares Floating 477.84M
Shares Outstanding 481.96M
Shares Floating 477.84M
Percent Insiders 0.71
Percent Institutions 88.93

Financial Metrics

🧭 Investment Snapshot

Total Revenue (Scale)

Information icon Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.

Net Income (Profit)

Information icon Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.

Free Cash Flow (Cash Strength)

Information icon Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.

📈 Growth & Strength

Operating Income (Core Profit)

Information icon Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.

EBITDA (Cash Earnings)

Information icon Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.

Gross Profit (Unit Profitability)

Information icon Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.

🛡️ Financial Safety

Cash (Liquidity Buffer)

Information icon Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.

Total Debt (Leverage Risk)

Information icon Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.

Net Working Capital (Short-Term Health)

Information icon Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.

🧱 Balance Sheet Strength

Stockholder Equity (Net Worth)

Information icon Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.

Total Assets (Asset Base)

Information icon The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.

Income Before Tax (Pre-Tax Earnings)

Information icon Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.

⚙️ Cost & Drag Factors

Cost of Revenue (Production Cost)

Information icon Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.

Total Operating Expenses (Operating Cost)

Information icon Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.

Income Tax Expense (Tax Drag)

Information icon Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.

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