ADM Profitability Analysis: Past Growth, Margins, Return on Capital, Free Cash Flow, and more - Archer-Daniels-Midland Co - Alpha Spread
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Archer-Daniels-Midland Co
NYSE:ADM

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Archer-Daniels-Midland Co
NYSE:ADM
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Price: 59.47 USD -1% Market Closed
Market Cap: 29.4B USD
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Profitability Summary

We take all the information about a company's profitability (such as its margins, capital efficiency, free cash flow generating ability, and more) and consolidate it into one single number - the profitability score. The higher the profitability score, the more profitable the company is.

Past Growth

To be successful and remain in business, both growth and profitability are important and necessary. Net Income growth is often seen as a sign of a company's efficiency from an operational standpoint, but is influenced heavily by a company's goals and challenges and should therefore be assessed in conjunction with other metrics like revenue and operating income growth.

Margins

Profit margins represent what percentage of sales has turned into profits. Simply put, the percentage figure indicates how many cents of profit the company has generated for each dollar of sale.

Profit margins help investors assess if a company's management is generating enough profit from its sales and whether operating costs and overhead costs are being contained.

Earnings Waterfall
Archer-Daniels-Midland Co

Revenue
88.8B USD
Cost of Revenue
-82.2B USD
Gross Profit
6.6B USD
Operating Expenses
-3.6B USD
Operating Income
3B USD
Other Expenses
-412m USD
Net Income
2.6B USD

Margins Comparison
Archer-Daniels-Midland Co Competitors

Country Company Market Cap Gross
Margin
Operating
Margin
Net
Margin
US
Archer-Daniels-Midland Co
XETRA:ADM
25.7B EUR
7%
3%
3%
MY
Negri Sembilan Oil Palms Bhd
KLSE:NSOP
108.6B MYR
43%
18%
23%
CY
Ros Agro PLC
LSE:AGRO
24B USD
26%
13%
11%
SG
Wilmar International Ltd
SGX:F34
19.4B SGD
8%
4%
2%
SA
Ash-Sharqiyah Development Company SJSC
SAU:6060
55.2B SAR N/A N/A N/A
US
Bunge Ltd
NYSE:BG
14.3B USD
8%
6%
4%
CN
Tongwei Co Ltd
SSE:600438
86B CNY
19%
8%
3%
US
Ingredion Inc
NYSE:INGR
8.8B USD
22%
12%
8%
MY
Sime Darby Plantation Bhd
KLSE:SIMEPLT
31.4B MYR
23%
10%
10%
US
Darling Ingredients Inc
NYSE:DAR
5.9B USD
24%
7%
6%
MY
IOI Corporation Bhd
KLSE:IOICORP
24.6B MYR
0%
12%
12%
Country US
Market Cap 25.7B EUR
Gross Margin
7%
Operating Margin
3%
Net Margin
3%
Country MY
Market Cap 108.6B MYR
Gross Margin
43%
Operating Margin
18%
Net Margin
23%
Country CY
Market Cap 24B USD
Gross Margin
26%
Operating Margin
13%
Net Margin
11%
Country SG
Market Cap 19.4B SGD
Gross Margin
8%
Operating Margin
4%
Net Margin
2%
Country SA
Market Cap 55.2B SAR
Gross Margin N/A
Operating Margin N/A
Net Margin N/A
Country US
Market Cap 14.3B USD
Gross Margin
8%
Operating Margin
6%
Net Margin
4%
Country CN
Market Cap 86B CNY
Gross Margin
19%
Operating Margin
8%
Net Margin
3%
Country US
Market Cap 8.8B USD
Gross Margin
22%
Operating Margin
12%
Net Margin
8%
Country MY
Market Cap 31.4B MYR
Gross Margin
23%
Operating Margin
10%
Net Margin
10%
Country US
Market Cap 5.9B USD
Gross Margin
24%
Operating Margin
7%
Net Margin
6%
Country MY
Market Cap 24.6B MYR
Gross Margin
0%
Operating Margin
12%
Net Margin
12%

Return on Capital

Return on capital ratios give a sense of how well a company is using its capital (equity, assets, capital employed, etc.) to generate profits (operating income, net income, etc.). In simple words, these ratios show how much income is generated for each dollar of capital invested.

Return on Capital Comparison
Archer-Daniels-Midland Co Competitors

Country Company Market Cap ROE ROA ROCE ROIC
US
Archer-Daniels-Midland Co
XETRA:ADM
25.7B EUR
11%
5%
9%
5%
MY
Negri Sembilan Oil Palms Bhd
KLSE:NSOP
108.6B MYR
4%
3%
2%
2%
CY
Ros Agro PLC
LSE:AGRO
24B USD
19%
8%
14%
10%
SG
Wilmar International Ltd
SGX:F34
19.4B SGD
8%
3%
9%
5%
SA
Ash-Sharqiyah Development Company SJSC
SAU:6060
55.2B SAR
-1%
-1%
-2%
-3%
US
Bunge Ltd
NYSE:BG
14.3B USD
22%
9%
21%
14%
CN
Tongwei Co Ltd
SSE:600438
86B CNY
6%
3%
8%
7%
US
Ingredion Inc
NYSE:INGR
8.8B USD
18%
9%
15%
11%
MY
Sime Darby Plantation Bhd
KLSE:SIMEPLT
31.4B MYR
9%
6%
7%
5%
US
Darling Ingredients Inc
NYSE:DAR
5.9B USD
9%
3%
4%
4%
MY
IOI Corporation Bhd
KLSE:IOICORP
24.6B MYR
10%
6%
7%
6%
Country US
Market Cap 25.7B EUR
ROE
11%
ROA
5%
ROCE
9%
ROIC
5%
Country MY
Market Cap 108.6B MYR
ROE
4%
ROA
3%
ROCE
2%
ROIC
2%
Country CY
Market Cap 24B USD
ROE
19%
ROA
8%
ROCE
14%
ROIC
10%
Country SG
Market Cap 19.4B SGD
ROE
8%
ROA
3%
ROCE
9%
ROIC
5%
Country SA
Market Cap 55.2B SAR
ROE
-1%
ROA
-1%
ROCE
-2%
ROIC
-3%
Country US
Market Cap 14.3B USD
ROE
22%
ROA
9%
ROCE
21%
ROIC
14%
Country CN
Market Cap 86B CNY
ROE
6%
ROA
3%
ROCE
8%
ROIC
7%
Country US
Market Cap 8.8B USD
ROE
18%
ROA
9%
ROCE
15%
ROIC
11%
Country MY
Market Cap 31.4B MYR
ROE
9%
ROA
6%
ROCE
7%
ROIC
5%
Country US
Market Cap 5.9B USD
ROE
9%
ROA
3%
ROCE
4%
ROIC
4%
Country MY
Market Cap 24.6B MYR
ROE
10%
ROA
6%
ROCE
7%
ROIC
6%

Free Cash Flow

Free cash flow (FCF) is the money a company has left over after paying its operating expenses and capital expenditures. The more free cash flow a company has, the more it can allocate to dividends, paying down debt, and growth opportunities.

If a company has a decreasing free cash flow, that is not necessarily bad if the company is investing in its growth.

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