Archer-Daniels-Midland Company (ADM)

FairStock Score: 50/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach ADM as a cyclical processor, not a stable consumer staple. It has real scale in origination, transport, storage, and oilseed crushing, and that network can be a modest moat. But the numbers show the limits: FairStock reports ROE of 7.64% and ROCE of 2.26%, which are weak for a business with a $38.1B market cap. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $6.4B, net income $908.0M, and diluted EPS $1.87; that compares with $6.3B, $219.0M, and $0.45 in fiscal Q2 2025. The rebound is real but from a low base and in a cyclical industry. Full-year fiscal 2025 was weaker: revenue $25.0B, net income $1.1B, EPS $2.23, down from fiscal 2024 net income $1.8B and EPS $3.65, and far below fiscal 2023 EPS $6.43. Financial health is acceptable: D/E 0.39, Piotroski 9/9, Altman Z-Score 2.03, FCF $1.7B, FCF yield 4.4%. The computed Lynch category is CYCLICAL — Farm Products, because earnings follow the economic cycle. Valuation is the issue. At the 2026-10-26 close of $79.01, FairStock calculates P/E 21.59, P/B 1.62, Graham Number $63.46, and margin of safety -26.28%, meaning the price sits above the Graham value. PEG 0.07 looks optical because profit growth is measured off depressed earnings. FairStock Score is 49/100. I would want a wider discount to normalized earnings and asset value before calling this a compelling Graham-style bargain.

In plain English: ADM buys, moves, stores, and processes crops such as soybeans into food ingredients and animal feed. The company looks financially sturdy, with modest debt and positive cash flow, but profits move with the farm cycle and the profit earned on invested money is low. At $79.01, the shares look somewhat expensive versus recent profits and the value of the company’s assets.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer