| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 16.10 | -71 |
| Intrinsic value (DCF) | 17.03 | -70 |
| Graham-Dodd Method | 21.50 | -62 |
| Graham Formula | n/a |
Archer-Daniels-Midland Company (ADM) is a global leader in agricultural processing and commodity trading, headquartered in Chicago, Illinois. Operating across three key segments—Ag Services and Oilseeds, Carbohydrate Solutions, and Nutrition—ADM procures, processes, and distributes a wide range of agricultural commodities, including oilseeds, grains, and sweeteners. The company serves diverse industries, from food and feed to biofuels and industrial products, leveraging its extensive supply chain and global footprint. ADM's vertically integrated business model allows it to capture value at every stage of production, from sourcing raw materials to delivering specialized ingredients. With a strong presence in the U.S., Europe, and emerging markets, ADM plays a pivotal role in the global food supply chain. Its focus on sustainability and innovation, particularly in plant-based proteins and nutrition solutions, positions it as a key player in the evolving agribusiness landscape. Investors value ADM for its defensive sector exposure, consistent cash flows, and dividend-paying track record.
ADM presents a compelling investment case due to its diversified revenue streams, strong market position in agricultural commodities, and defensive sector exposure. The company's robust operating cash flow (€2.79 billion in the latest period) supports its dividend (€1.8772 per share) and strategic investments in high-growth areas like nutrition and biofuels. However, risks include commodity price volatility, geopolitical disruptions to global trade, and margin pressures from input cost inflation. ADM's low beta (0.674) suggests relative stability compared to broader markets, but its high debt load (€11.54 billion) warrants monitoring. The stock appeals to income-focused investors and those seeking agribusiness exposure with a global footprint.
ADM's competitive advantage stems from its scale, vertically integrated operations, and global logistics network. As one of the 'ABCD' quartet dominating global agribusiness (alongside Bunge, Cargill, and Louis Dreyfus), ADM benefits from long-standing relationships with farmers, efficient processing facilities, and risk management expertise in commodity trading. Its Ag Services and Oilseeds segment provides stable cash flows, while the Nutrition segment drives higher-margin growth through value-added ingredients. ADM differentiates itself with a strong R&D focus, particularly in alternative proteins and sustainable solutions. However, it faces stiff competition from privately held Cargill (greater financial flexibility) and Bunge (stronger emerging markets presence). ADM's European operations, traded as ADM.DE, compete with local players like Südzucker in sweeteners. The company's ability to navigate commodity cycles and pivot toward nutrition trends will be critical to maintaining its edge.