Archer-Daniels-Midland Company (ADM) is listed on NYSE and operates in the Agricultural Farm Products industry (Consumer Defensive sector).
Archer-Daniels-Midland Company procures, transports, stores, processes, and merchandises agricultural commodities, products, and ingredients in the United States, Switzerland, Cayman Islands, Brazil, Mexico, the United Kingdom, and internationally. The company operates through three segments: Ag Services and Oilseeds, Carbohydrate Solutions, and Nutrition. It procures, stores, cleans, and transports agricultural raw materials, such as oilseeds, corn, wheat, milo, oats, and barley. The company also engages in the agricultural commodity and feed product import, export, and distribution; and structured trade finance activities. In addition, it offers vegetable oils and protein meals; ingredients for the food, feed, energy, and industrial customers; crude vegetable oils, salad oils, margarine, shortening, and other food products; and partially refined oils to produce biodiesel and glycols for use in chemicals, paints, and other industrial products. Further, the company provides peanuts, peanut-derived ingredients, and cotton cellulose pulp; sweeteners, corn and wheat starches, syrup, glucose, wheat flour, and dextrose; alcohol and other food and animal feed ingredients; ethyl alcohol and ethanol; corn gluten feed and meal; distillers' grains; and citric acids. Additionally, the company provides natural flavors, flavor systems, natural colors, proteins, emulsifiers, soluble fiber, polyols, hydrocolloids, and natural health and nutrition products, including probiotics, prebiotic...
| Rating | Analysts |
|---|---|
| Strong Buy | 0 |
| Buy | 12 |
| Hold | 21 |
| Sell | 3 |
| Strong Sell | 0 |
Archer-Daniels-Midland Company (ADM) is involved in the procurement, transportation, storage, processing, and merchandising of agricultural commodities, products, and ingredients globally. Headquartered in Chicago, Illinois, ADM operates through three main segments: Ag Services and Oilseeds, Carbohydrate Solutions, and Nutrition. The company manages agricultural raw materials such as oilseeds, corn, wheat, and barley, and engages in the import, export, and distribution of agricultural commodities and feed products. ADM provides a range of products including vegetable oils, protein meals, sweeteners, starches, and various food and feed ingredients. It also produces biodiesel and glycols for industrial use. Additionally, ADM offers natural flavors, colors, proteins, and health and nutrition products like probiotics and enzymes. The company is active in commodity brokerage services and structured trade finance. Founded in 1902, ADM operates in the United States, Switzerland, Cayman Islands, Brazil, Mexico, the United Kingdom, and other international markets.
Over the past three fiscal years, the company has experienced a consistent decline in revenue, decreasing at a CAGR of -7.6% from $93.9 billion in 2023 to $80.3 billion in 2025. This revenue contraction has been accompanied by a notable decrease in profitability, with gross margins compressing by 1.7pp from 8.0% to 6.3%, and operating margins falling by 2.5pp from 4.3% to 1.8%. Net margins also declined by 2.4pp, ending at 1.3% in 2025. Despite these challenges, the company has managed to improve its cash generation capabilities. Free cash flow (FCF) increased from $2.97 billion in 2023 to $4.20 billion in 2025, with FCF margins expanding by 2.1pp to 5.2%. This improvement in cash flow is underscored by a strong cash conversion ratio (CCR) of 5.1, indicating that earnings are well-supported by actual cash. Additionally, the company has reduced its net debt from $8.23 billion to $7.40 billion, reflecting a more robust balance sheet. The company also executed a significant share buyback program, reducing its share count by 10.7%, which has enhanced per-share value creation despite the overall decline in earnings per share (EPS) from $6.43 to $2.23. However, the return on invested capital (ROIC) has consistently decreased, reaching 5.3% in 2025, suggesting challenges in capital efficiency amidst declining revenues.
Recent developments for Archer-Daniels-Midland Company (ADM) highlight a mix of financial anticipation and analyst sentiment. The company is set to release its first-quarter financial results on May 5, 2026, as announced on April 14. This comes amid a strong start to Q1 earnings, with ADM being one of the broker-adored stocks to watch, according to an April 21 report by Zacks Investment Research. Analyst ratings have been mixed; on April 7, ADM received a consensus rating of "Reduce," with a 12-month price target averaging $62, despite some analysts raising their targets. Additionally, on April 10, Zacks recommended ADM as a buy despite recent headwinds in the agriculture sector. Meanwhile, legal scrutiny has emerged as Halper Sadeh LLP investigates potential fiduciary breaches by ADM's officers and directors, as reported on April 9. In terms of trading activity, Patriot Financial Group Insurance Agency LLC recently purchased 8,953 shares of ADM, reflecting ongoing institutional interest. These developments collectively suggest a period of strategic evaluation and market positioning for ADM as it approaches its upcoming earnings release.