NYSE:ADM
Archer-Daniels-Midland Co
A global agribusiness giant transforming corn and soybeans into essential food, fuel, and industrial ingredients with a massive operating scale.
Key Metrics
Investment Thesis
Bull Case
ADM offers attractive exposure to the essential nature of agricultural commodities with a diversified revenue base that provides stability during economic downturns. The company's strong cash generation capabilities support consistent dividend payments and allow for strategic reinvestment in technology and sustainability initiatives. Valuation metrics may appear reasonable given the low net profit compared to historical peaks, yet the underlying asset quality and market share remain robust.
Bear Case
The consistent five-year decline in both revenue and net income suggests a secular headwind or loss of pricing power that could persist for extended periods. High levels of accounts payable at $5.20B relative to cash reserves indicate potential liquidity pressure if supply chain disruptions occur or if margins compress further. The significant retained earnings deficit of $21.98B alongside accumulated other comprehensive losses highlights underlying capital allocation challenges and equity erosion.
About Archer-Daniels-Midland Co
Archer-Daniels-Midland (ADM) is a global leader in agricultural processing and consumer products, specializing in the production and distribution of corn, soybean, wheat, canola, sugar, and starch derivatives. The company serves markets across North America, Europe, and Asia through its diverse portfolio including food ingredients, oilseeds, and renewable fuels. ADM leverages its extensive supply chain to convert raw agricultural commodities into essential ingredients for food, feed, fuel, and fiber applications.
Analysis
Management Discussion
Recent financial performance reflects a challenging macroeconomic environment with revenue declining from $101.56B in 2022 to $80.27B in 2025, mirroring the downward trend in net income from $4.37B to $1.07B over the same period. Despite lower absolute profits, the company maintains strong operating cash flow of $5.45B and a healthy balance sheet with ending cash of $5.50B against total liabilities of $29.65B. The substantial non-cash adjustments totaling $7.61B indicate significant depreciation and amortization activity typical of heavy asset agribusinesses.
Industry Overview
The agricultural processing industry is cyclical and heavily influenced by global weather patterns, geopolitical tensions, and shifting consumer dietary preferences toward plant-based proteins. Competition is intense among a small number of large integrated players who compete on scale, efficiency, and supply chain reach rather than product differentiation alone. Technological advancements in biotechnology and precision agriculture are reshaping how companies source raw materials and optimize conversion processes.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $101.56B | $93.94B | $85.53B | $80.27B |
| Cost of Revenue | $93.99B | $86.42B | $79.75B | $75.24B |
| Gross Profit | $7.57B | $7.51B | $5.78B | $5.03B |
| Operating Expenses | $2.34B | $3.22B | $3.52B | $3.78B |
| Operating Income | $5.23B | $4.29B | $2.25B | $1.25B |
| R&D | $216.0M | $256.0M | $269.0M | $246.0M |
| G&A | $3.36B | $3.46B | $3.71B | $3.61B |
| Stock-Based Comp | $147.0M | $112.0M | $74.0M | $83.0M |
| D&A | $1.03B | $1.06B | $1.14B | $1.18B |
| Depreciation | $794.0M | $825.0M | $875.0M | $932.0M |
| Amortization | $235.0M | $234.0M | $266.0M | $249.0M |
| Other OpEx | $-1.24B | $-493.0M | $-452.0M | $-77.0M |
| Non-Operating Income | $0 | $0 | $0 | $0 |
| Interest Expense | $396.0M | $647.0M | $706.0M | $612.0M |
| Pre-Tax Income | $5.23B | $4.29B | $2.25B | $1.25B |
| Income Tax | $868.0M | $828.0M | $476.0M | $182.0M |
| Continuing Ops | $4.37B | $3.47B | $1.78B | $1.07B |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $4.37B | $3.47B | $1.78B | $1.07B |
| Minority Interest | $25.0M | $-17.0M | $-21.0M | $-5.0M |
| Net to Common | $4.34B | $3.48B | $1.80B | $1.08B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $35.41B | $29.77B | $27.72B | $26.66B |
| Cash & Equivalents | $1.04B | $1.37B | $611.0M | $1.01B |
| Accounts Receivable | $4.93B | $4.23B | $3.71B | $3.02B |
| Inventory | $14.77B | $11.96B | $11.57B | $10.37B |
| Other Current Assets | $14.68B | $12.21B | $11.83B | $12.26B |
| Long-Term Assets | $24.36B | $24.86B | $25.55B | $25.72B |
| PP&E (Net) | $9.93B | $10.51B | $10.84B | $11.18B |
| Intangibles | $2.38B | $2.24B | $2.26B | $1.98B |
| Goodwill | $4.16B | $4.10B | $4.51B | $4.77B |
| Operating Leases | $1.09B | $1.21B | $1.36B | $1.32B |
| Other LT Assets | $6.80B | $6.80B | $6.59B | $6.48B |
| Total Assets | $59.77B | $54.63B | $53.27B | $52.39B |
| Current Liabilities | $24.19B | $18.66B | $19.94B | $19.53B |
| Accounts Payable | $7.80B | $6.31B | $5.54B | $5.20B |
| Current Debt | $942.0M | $1.0M | $674.0M | $1.01B |
| Current Leases | $292.0M | $300.0M | $324.0M | $303.0M |
| Deferred Revenue | $694.0M | $626.0M | $534.0M | $333.0M |
| Taxes Payable | $248.0M | $284.0M | $167.0M | $83.0M |
| Other Current Liab | $12.74B | $9.76B | $11.61B | $11.59B |
| Long-Term Liabilities | $11.27B | $11.82B | $11.15B | $10.12B |
| Long-Term Debt | $7.74B | $8.26B | $7.58B | $6.61B |
| LT Operating Leases | $816.0M | $931.0M | $1.06B | $1.04B |
| Other LT Liab | $2.71B | $2.63B | $2.52B | $2.46B |
| Total Liabilities | $35.46B | $30.49B | $31.09B | $29.65B |
| Shareholders' Equity | $24.32B | $24.14B | $22.18B | $22.74B |
| Retained Earnings | $23.65B | $23.46B | $21.93B | $21.98B |
| AOCI | $-2.51B | $-2.49B | $-2.99B | $-2.53B |
| Treasury Stock | $1.70B | $2.70B | $2.30B | — |
| Total L&E | $59.77B | $54.63B | $53.27B | $52.39B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $4.37B | $3.47B | $1.78B | $1.07B |
| Non-Cash Adjustments | $-6.89B | $9.51B | $2.67B | $7.61B |
| Working Capital Changes | $6.00B | $-8.52B | $-1.65B | $-3.23B |
| Cash from Operations | $3.48B | $4.46B | $2.79B | $5.45B |
| Capital Expenditures | $1.32B | $1.49B | $1.56B | $1.25B |
| Cash from Investing | $-1.40B | $-1.50B | $-2.70B | $-1.02B |
| Debt Issuances | $752.0M | $501.0M | — | — |
| Debt Repayments | $482.0M | $963.0M | $1.0M | $772.0M |
| Share Buybacks | $1.45B | $2.67B | $2.33B | $0 |
| Dividends Paid | $899.0M | $977.0M | $985.0M | $987.0M |
| Cash from Financing | $-2.50B | $-4.60B | $-1.53B | $-2.89B |
| FX Effect | $0 | $-3.0M | $-24.0M | $33.0M |
| Net Change in Cash | $-421.0M | $-1.64B | $-1.47B | $1.58B |
| Beginning Cash | $7.45B | $7.03B | $5.39B | $3.92B |
| Ending Cash | $7.03B | $5.39B | $3.92B | $5.50B |
Frequently Asked Questions
How does Archer-Daniels-Midland Co make money?
The company operates primarily through three core segments: North American Products (focusing on corn and wheat processing), International Products (handling grains, oilseeds, and sugar globally), and Oilseeds and Grains (managing the supply chain from farm to factory for soybeans and other oilseeds).
What are the main risks for ADM?
Significant exposure to fluctuations in agricultural commodity prices which can impact margins and working capital requirements. Regulatory changes regarding biofuels and trade policies could disrupt international export markets and supply chain operations. Rising input costs for energy, labor, and transportation may compress operating profitability if not passed on to customers. Environmental sustainability pressures and climate change impacts on crop yields pose long-term operational threats.
What is ADM's competitive advantage?
ADM possesses a deeply integrated supply chain that provides unmatched scale and efficiency in sourcing and converting agricultural commodities. Its diversified product portfolio across food, feed, fuel, and fiber creates multiple revenue streams that mitigate commodity price volatility. The company's global logistics network allows it to capitalize on regional arbitrage opportunities and maintain strong relationships with farmers and industrial customers.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.