- Archer Daniels Midland will continue to benefit from low corn and energy prices and strong demand for ethanol.
- ADM has shown EPS surprise in three of the last four quarters, and I believe that it will surprise by reporting better than estimate results also in the current quarter.
- Archer Daniels Midland is generating strong cash flows; its price-to-free-cash-flow ratio is very low at 9.45 and returns value to its shareholders by stock buyback and increasing dividend payments.
Bullish On Archer-Daniels-Midland Thanks To Expectations Of Accelerating Earnings Growth
- Archer-Daniels-Midland has a conservative balance sheet with $4 billion in net cash and an impressive history of consistent dividend growth.
- Trading at approximately 14 times projected earnings, the shares appear expensive based on their historical multiple, but cheap compared to the firm's projected earnings per share growth.
- The DRAG framework has some reservations about ADM's competitive position, but if the analysts are correct in their growth forecasts, 50% upside potential exists over the next 52 weeks.
Archer Daniels Midland - Shareholders Can Expect Bigger Pay Raises
- Archer Daniels Midland plays an important part in the world economy.
- ADM is a dividend champion that has raised dividends for 39 consecutive years.
- The company has indicated that it intends to send more cash to shareholders by increasing its future cash flow from the historic 20-25% to 30-40%.
Dividend Aristocrats In Focus Part 50: Archer Daniels Midland
- Archer Daniels Midland has increased its dividend payments for 39 consecutive years.
- The company grew EPS over 7% in 2009 when the rest of the market was faltering.
- Is Archer Daniels Midland a buy for dividend investors?
Archer Daniels Midland: Underperforming On A Comparative Basis
- The company is acquiring WILD Flavors which will enable Archer to provide food and beverage clients a complete range of systems to facilitate them in offering improved products.
- WILD Flavors is the world’s leading provider of natural flavor systems to the food and beverage industry.
- On a per share basis, the EBITDA per share is anticipated to go up by $0.58.
- However, on a comparative basis, it is better to invest in other players in the industry who are performing a lot better rather than this stock.
Why Archer Daniels Midland Looks Like A Good Bet Despite Declining Revenue
- Archer's profit grew at an impressive pace last quarter despite a fall in revenue, indicating that the company has prepared itself for weak ethanol prices.
- Archer's focus on productivity cost savings and diversifying the business by acquiring Wild Flavors is a smart move.
- Since demand for ethanol is expected to be strong and production costs are low, Archer investors don't have to worry much.
- Archer's cheap valuation and impressive bottom line growth expectations make it a stock worth considering.
Time To Go Long Big Agra? Archer-Daniels-Midland Q3 Results Show Promise
- Archer-Daniels-Midland released its Q3 results this morning.
- The company's Q3 results showed a surge in EPS and strong growth prospects ahead.
- Will management's new business strategy pay off?
- Archer Daniels Midland Co. is one of the world's leading agribusiness concerns, with major market positions in agricultural processing and merchandising.
- In early August, ADM reported better-than-expected adjusted earnings per share for second quarter 2014. Driving the performance was strong ethanol demand as well as improvement in U.S. grain export volumes.
- The company intends to return about $1.4 billion to shareholders in the form of dividends and share repurchases, and invest another $1.4 billion in capital spending and small acquisitions.
Archer Daniels Midland's 2nd Quarter Results Show Rising Profits
- Archer Daniels Midland's EPS increased to $0.77 in the 2nd quarter of 2014 from $0.46 in the 2nd quarter of 2013.
- The company's Asian operations are rapidly declining.
- Ethanol growth will likely continue in the future due to legislation, propelling Archer Daniels Midland's growth.
- The company has benefited from rising Cocoa costs.
- Archer Daniels Midland was founded in 1902 and has increased its dividend payments for 39 consecutive years.
- The food industry is changing rapidly, as the preference of consumers change.
- Food companies struggle to combine nutritional value with good taste.
- ADM should be able to fill this gap with the help of Wild Flavors.
Archer Daniels Midland - A Much Rumored Deal Has Finally Become Reality
- After news reports hit the wires last week, a rumored deal has finally become reality.
- The $3.1 billion acquisition of WILD Flavors is the biggest deal in the company's history.
- Long term appeal relies on the achievement of aggressive capital efficiency targets.
Best S&P 500 Dividend Stocks According To Piotroski Principles: Archer Daniels Midland
- Ranking the top twenty S&P 500 stocks that pay a dividend with higher than 2% yield, according to principles of the well-known investor Joseph Piotroski.
- Explanation and back-testing of the "All-Stars: Piotroski" ranking system.
- Description and a buy recommendation for the fourth-ranked stock of the system; Archer Daniels Midland.
Is Archer Daniels Midland Growing Abundant Dividends Or Withering Into Dust?
- ADM will benefit from global population growth.
- Shareholders of ADM can expect a 10%+ CAGR going forward.
- ADM has grown dividends for 39 consecutive years.
- The business is focusing on global expansion and improving portfolio focus.
- ADM’s management has proven to be very shareholder friendly.
ADM Getting More Than The Usual Benefit Of The Doubt
- Good crush margins and ethanol pricing are encouraging ADM bulls as crop availability and weather issues are expected to improve later in 2014.
- ADM is on the prowl for deals, and building up storage and handling assets outside the U.S. should be a priority.
- ADM is trading at the high end of its EV/EBITDA range and free cash flow modeling suggests a pretty optimistic scenario is already factored into the stock.
Archer Daniels Midland: Feeding The World And Your Pocket Book
- One of the world's largest processors of wheat, corn, oilseeds and cocoa into foodstuffs and industrial products.
- By 2050, the world's population will rise to 9 billion, and global agriculture will need to double its capacity to meet the increased demand.
- Archer Daniels Midland is a dividend champion that has raised its dividend 39 straight years at a growth rate of 13.5% CAGR.
- Archer Daniels Midland has a total return of 14.2% CAGR over the last 38 years. This means $10,000 invested in 1975 is worth $1.54 million today.
- The company is trading at a 15.5% discount to fair value and is likely to return 15.3% CAGR over the next 5 years.
Dec. 15, 2014, 6:46 PM| Comment!
Oct. 13, 2014, 1:00 PM| Comment!
Sep. 2, 2014, 12:02 PM| Comment!
Jul. 7, 2014, 4:08 AM| Comment!
Jul. 3, 2014, 10:56 AM| 4 Comments
Jun. 23, 2014, 2:48 PM
- Talk that a takeover of GrainCorp (GRCLF) is still a possibility has lifted the share price of the Australian grain handler, as broker Bell Potter believes the stock will continue to incorporate a takeover premium in its price even though the company itself is "overvalued."
- Archer Daniels Midland's (ADM) A$2.8B bid for GrainCorp last year was rejected by the Australian government in November, saying a takeover would go against the national interest, but Bell Potter says GrainCorp is pricing in a 50% chance that ADM will return with a bid.
- Not everyone is so optimistic; J.P. Morgan believes a deal is unlikely due to the political cost of allowing a foreign takeover, as well as the reduced strategic value of GrainCorp’s assets.
May. 27, 2014, 7:28 AM
- A $6.4B offer by Pilgrim Pride's (PPC) to buy Hillshire Brands (HSH) could rattle the food sector.
- For starters, the deal could spoil Hillshire's offer on the table to buy Pinnacle Foods (PF).
- The quick analyst take on a PPC-HSH combination is favorable with the companies focused in different areas (chicken vs. packaged meat) which could lead to easy access to new distribution channels.
- Premarket: HSH +22.9% to $45.49, PF -5.3% to $31.50.
- Also on merger watch in the food sector: THS, SJM, GIS, KRFT, CPB, ADM, BGS, RAH, HAIN, K CAG
May. 12, 2014, 7:13 AM
- A merger between Hillshire Brands and Pinnacle Foods could kickstart the consolidation frenzy in the food industry analysts have been forecasting.
- The sector has been tapped to see a high rate of mergers and buyouts due to the significant synergies that could be unleashed through combinations.
- On watch: THS, SJM, GIS, KRFT, CPB, ADM, BGS, RAH, HAIN, K, CAG
Dec. 6, 2013, 4:45 PM
- Archer Daniels Midland (ADM) is still looking for deals overseas despite last week's failure of the GrainCorp acquisition that upended its plans in Asia, CFO Ray Young says.
- ADM is interested in acquisitions as well as other investments and joint ventures to help spread its business deeper into Asia, South America and eastern Europe, areas where ADM's vast storage and transportation network may be attractive to smaller agribusiness operators, Young says.
- The global agricultural business, already dominated by a handful of major players, will continue to consolidate, the CFO says.
Nov. 15, 2013, 2:28 AM
- Australian Prime Minister Tony Abbott may reportedly veto Archer Daniels Midland's (ADM) A$2.2B ($2.1B) acquisition of crop handler GrainCorp (GRCLF) or impose conditions that would make the deal unviable.
- The ruling coalition is divided over the transaction, with some members, including Deputy Prime Minister Warren Truss, opposing it on the grounds of national interest. Wheat growers across Australia are also against the deal.
- The decision is the first big test of Abbott's declaration that Australia is "open for business."
Oct. 4, 2013, 6:05 PM
- Archer Daniels Midland (ADM) will find out whether it has received approval from Australia’s Foreign Investment Review Board for its planned A$3B acquisition of GrainCorp (GRCLF.PK) in about two months, Australia’s treasurer says.
- GrainCorp shares closed today at A$12.35/share, a 6.4% discount to the A$13.20 shareholders would receive under ADM’s buyout offer, perhaps an indicator that investors are skeptical the deal will be completed.
- Sizable deals that have been blocked by Australia’s FIRB in the past include the Singapore Exchange's proposed 2011 A$8.4B takeover of the Australian Stock Exchange and Shell's 2001 attempt to buy Woodside Petroleum for A$10B.
- Separately, Illinois Gov. Pat Quinn says he will veto any legislation with special tax incentives for ADM to keep its global headquarters in the state until legislators approve a fix for the pension crisis.
Oct. 2, 2013, 3:11 AM
- Archer Daniels Midland (ADM) is reportedly close to selling its cocoa business to Cargill in a deal that could be worth up to $2B.
- The divestiture would further strengthen ADM's shift towards the grains industry as it completes its $3B acquisition of GrainCorp. The transaction would also reduce ADM's exposure to the lower profitability that's affecting the cocoa sector.
- The deal would create a global price-setting giant to rival Zurich-based Barry Callebaut (BYCBF.PK), the world's biggest producer of industrial chocolate products. Cargill and Barry Callebaut would account for over 50% of world capacity.
- Food producers that could be affected include MDLZ, HSY, RMCF, KRFT, NSRGY.PK.
- ETF: NIB
Aug. 5, 2013, 7:51 AM
- Glencore Xstrata (GLCNF.PK) agrees to sell Joe White Maltings, Australia’s biggest malt producer, to rival commodities trader Cargill for a reported ~A$420M ($373M).
- The deal underscores ongoing interest in Australian assets from firms such as Archer Daniels Midland (ADM) and Bunge (BG) that dominate the world’s trading of agricultural commodities.
- The unit had been acquired through Glencore’s $6.2B takeover of Canadian grain handler Viterra last year.
Jul. 2, 2013, 2:03 PM
Jun. 24, 2013, 9:29 AM
May. 1, 2013, 5:56 PM
ADM vs. ETF Alternatives
Archer-Daniels Midland Co is a processor of oilseeds, corn, wheat, cocoa, and other feedstuffs and is a manufacturer of vegetable oil and protein meal, corn sweeteners, flour, biodiesel, ethanol, and other value-added food and feed ingredients.
Other News & PR