Archer-daniels-midland Company Intrinsic Value Calculator – ADM Pivots Away from Commodities, Transforming Its Business Model
December 14, 2023
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ARCHER-DANIELS-MIDLAND ($NYSE:ADM): Archer-Daniels-Midland (ADM) is a major agricultural processor and food ingredient provider. It has been a leader in the commodities market for the past century, but recently it has been making a pivot away from its traditional focus on commodities. Instead, the company is taking bold steps to transform its business model and focus on more value-added products. This shift away from commodities will help ADM achieve sustainable growth and margin expansion. ADM is also one of the world’s leading food ingredient providers, with products ranging from sweeteners to starches and proteins. To move away from commodities and into a more value-added products business, ADM has been investing in new technologies and services. These include plant-based ingredients, crop protection and nutritional solutions, which are all designed to help increase the value of the products they offer to customers. The company is also looking to create innovative solutions for customers, such as integrated supply chain solutions.
In addition to investing in new technologies, ADM is looking to strengthen its customer relationships. This includes offering more personalized services and tailoring products according to their individual needs. ADM is also exploring strategic partnerships with other companies in order to create even more value-added products. As ADM pivots away from commodities and focuses on transforming its business model, the company is poised to gain significant benefits. This shift away from commodities will help ADM achieve sustained growth and margin expansion. It will also create opportunities to reach new customers, while better serving existing customers with more personalized service and high-value products.
Market Price
On Wednesday, ARCHER-DANIELS-MIDLAND COMPANY (ADM) stock opened at $74.4 and closed at $75.3, up by 0.9% from previous closing price of 74.6. This is likely due to the company’s decision to pivot away from its traditional commodities-based business model, which has long been its focus. Instead, ADM is seeking to expand into other markets such as food ingredients, nutrition, and sustainability in order to diversify its portfolio and maintain a competitive edge.
With its new strategy, ADM will be able to capitalize on new opportunities for growth and profit in the long-term. The move away from its old model comes as ADM seeks to further differentiate itself in a highly competitive market. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Archer-daniels-midland Company. More…
| Total Revenues | Net Income | Net Margin |
| 96.9k | 3.94k | 4.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Archer-daniels-midland Company. More…
| Operations | Investing | Financing |
| 2.02k | -1.51k | -2.94k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Archer-daniels-midland Company. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 55.09k | 29.51k | 47.3 |
Key Ratios Snapshot
Some of the financial key ratios for Archer-daniels-midland Company are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 15.6% | 34.7% | 5.6% |
| FCF Margin | ROE | ROA |
| 0.5% | 13.4% | 6.1% |
Analysis – Archer-daniels-midland Company Intrinsic Value Calculator
At GoodWhale, we have conducted an analysis of ARCHER-DANIELS-MIDLAND COMPANY‘s wellbeing. We have determined that the fair value of ARCHER-DANIELS-MIDLAND COMPANY share is around $82.1, calculated by our proprietary Valuation Line. Currently, the stock is trading at $75.3, making it an undervalued investment opportunity as it stands 8.3% lower than its fair value. Investing in ARCHER-DANIELS-MIDLAND COMPANY now could bring large rewards for savvy investors. More…
Peers
The Archer-Daniels Midland Co is in competition with Darling Ingredients Inc, Vilmorin & Cie, and Golden Growers Coop. All four companies produce food ingredients and additives. Archer-Daniels Midland Co has an edge over its competitors because it is the largest producer of corn sweeteners and corn oil in the United States.
– Darling Ingredients Inc ($NYSE:DAR)
Darling Ingredients Inc has a market cap of 12.59B as of 2022, a Return on Equity of 16.72%. Darling is in the business of turning animal by-products into renewable ingredients for the food, feed, fuel, and other industries. The company operates in three segments: Feed Ingredients, Food Ingredients, and Fuel Ingredients.
– Vilmorin & Cie ($LTS:0HJC)
Vilmorin & Cie is a French multinational agricultural and horticultural company. It is the world’s fourth-largest seed company. The company has a market cap of 1.03B as of 2022 and a Return on Equity of 7.29%. The company specializes in the production of seeds for a range of crops, including vegetables, fruits, cereals, and forage plants. The company also provides agricultural services, such as crop consulting, soil analysis, and irrigation design.
Summary
Archer-Daniels-Midland (ADM) is shifting its business model away from reliance on commodities and towards a more diversified portfolio. The company is investing in new technologies and products to expand its offerings and position itself as a global leader in nutrition, health, and wellness. ADM has made significant investments in new product lines that include plant-based proteins, food ingredients, animal nutrition, and sweeteners. These investments are intended to drive higher margins, create strong competitive advantages, and deliver growth in sales and revenue.
The company is also investing in its global operations and infrastructure to enhance efficiency and reduce costs. Investors may benefit from ADM’s focus on developing innovative solutions for the food, health and wellness industry. With its global presence, ADM is well-positioned to capitalize on future growth opportunities.
