Latest news with #ArcherDanielsMidland
Yahoo
21 hours ago
- Business
- Yahoo
Why Archer-Daniels-Midland Is a Strong Halal Dividend Stock Choice
Archer-Daniels-Midland Company (NYSE:ADM) is included among the 11 Best Halal Dividend Stocks to Buy Now. A wheat field at sunset, showing the company's commitment to agricultural commodities. Archer-Daniels-Midland Company (NYSE:ADM) stands out as a top player in both human and animal nutrition, as well as a key global force in agricultural sourcing and processing. Its various business divisions, especially the more profitable Nutrition segment, help strengthen its overall stability. Although the Ag Services & Oilseeds unit operates in a high-volume, low-margin environment influenced by commodity price swings, ADM has managed to steadily grow its earnings over time. Archer-Daniels-Midland Company (NYSE:ADM) reported mixed earnings in the first quarter of 2025. The company posted revenue of $20.1 billion, down 7.7% from the same period last year. The revenue also missed analysts' estimates by $1.9 billion. The company highlighted that it has made progress on several elements of its internal improvement strategy. This included enhancing operations in North America, achieving cost reductions through specific operational and organizational adjustments, making headway in streamlining its portfolio, and maintaining a disciplined stance on capital allocation. Archer-Daniels-Midland Company (NYSE:ADM) reported a strong cash position, ending the quarter with $864 million available in cash and cash equivalents. The company's operating cash flow before working capital was $439 million. ADM is a Dividend King with 52 consecutive years of dividend growth under its belt. In addition, it has paid uninterrupted dividends to shareholders for 90 years straight. Currently, Archer-Daniels-Midland Company (NYSE:ADM) offers a quarterly dividend of $0.51 per share and has a dividend yield of 3.75%, as of July 18. It is among the best halal stocks that pay dividends. While we acknowledge the potential of ADM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and . Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Forbes
a day ago
- Business
- Forbes
CVS And Archer-Daniels-Midland Look Good On This Ratio
An Archer Daniels Midland plant in Decatur, Illinois. AP Photo/Seth Perlman, File There are many ways companies can manipulate their reported profits. Fudging sales (also known as revenue) is more difficult. That's one reason why I always check the price-to- sales ratio when I'm considering a stock. It's simply the stock's price divided by sales per share. For example, CVS Health Corp. (CVS) sells for $64.78 a share. For each share of stock, it has revenue of $300.52. So, its price-to-sales ratio is 0.22. That's quite low. An average price-to-sales ratio today is 3.1, up from about 2.4 normally. I prefer to see ratios under 2.0, and anything under 1.0 really catches my eye. Naturally, companies with low profit margins sell for a lower price/sales multiple than very profitable companies do. So, it's useful to compare a stock's price/sales ratio with that same stock's historical average. Over the past ten years, CVS stock has averaged a 0.37 ratio. At the current 0.22, it's cheap compared to its own norm. I think CVS is a bargain. Rival Walgreen's is closing stores. Another rival, Rite Aid, declared bankruptcy in May – for the second time. Here are a few more stocks that look good to me now, based on their price-to-sales ratios. A processor of agricultural commodities and a big grain trader, Archer-Daniels-Midland Co. (ADM) is based in Chicago, Illinois. Its price/sales ratio is 0.32, which is below most of its industry peers and below its own historical average of 0.40. Wall Street analysts can't stand this stock. Of the dozen analysts who cover it, nary a one rates it a 'buy.' Nine call it a 'hold' (often a euphemism for sell) and three rate it 'underperform.' That's pretty gloomy, considering that Archer-Daniels has increased its earnings at better than a 10% annual clip in the past decade. Flex Ltd., headquartered in Austin, Texas, is a contract electronics manufacturer. Among its customers are Johnson & Johnson, Abbott, Nike, Bose, Ford, Applied Materials and Teradyne. To me, that looks like a high-quality and diversified customer base. Flex has increased its profits at a 10% annual clip for the past decade. Last year was better, with a 22% profit increase on an 8% increase in sales. The price/sales ratio is 0.8, which is above the company's usual valuation but still in attractive territory, by my reckoning. I don't know if we've already hit the bottom of the commercial real-estate bust that began with the Covid-19 epidemic. But if not, I think we're close. Therefore, I think this is a good time to consider Jones Lang LaSalle Inc. (JLL), a leading commercial real-estate broker, property manager and real-estate investor. It sells for 0.52 times revenue, and revenue has grown nearly 13% a year for the past decade. In a possible sign that the office market is reviving, Jones Lang's revenue rose a bit more than 13% last year. As a speculation, I like Mission Produce Inc. (AVO) of Oxnard, California, which produces and sells avocados. Perhaps it's a fad, but avocados have gotten very popular lately, so much so that avocado rustling (theft from orchards and trucks) has become a big problem. Last year, Mission's profits jumped 84% on a 29% sales increase. The stock trades at 0.62 times revenue. It has strong finances, and very little Wall Street coverage. In 22 years, my recommendations based on an attractive price-to-sales ratio have achieved an average return of 28.1%, dwarfing the 10.4% average for the Standard & Poor's 500 Total Return Index. Bear in mind that my column results are hypothetical and shouldn't be confused with results I obtain for clients. Also, past performance doesn't predict the future. My high average return owes a lot to large gains on the picks I made in 2000, 2002, and 2012. Of my 22 past columns on this subject, 18 have been profitable and 12 beat the S&P 500. My picks from a year ago mostly stumbled. Wabash National Corp. (WNC), which makes truck trailers, fell 51%. Bunge Global SA (BF), a processor of agricultural products, dropped nearly 29%. Reinsurance Group of America Inc. (RGA) fell 8%. Only two of my five picks rose. Pilgrims Pride Corp. (PPC), a chicken processor, jumped 32%. PC Connection Inc. (CNXN) eked out a small positive return, about 3%. For the same period (July 15, 2024 to July 11, 2025), the Standard & Poor's index advanced 12.6%. Disclosure: I currently have no positions in the stocks mentioned in today's column, personally or for clients.
Yahoo
4 days ago
- Business
- Yahoo
Archer Daniels Midland (ADM) Advances While Market Declines: Some Information for Investors
Archer Daniels Midland (ADM) ended the recent trading session at $54.39, demonstrating a +1.59% change from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily loss of 0.01%. At the same time, the Dow lost 0.32%, and the tech-heavy Nasdaq gained 0.05%. The agribusiness giant's stock has dropped by 0.83% in the past month, falling short of the Consumer Staples sector's gain of 0.42% and the S&P 500's gain of 5.37%. Investors will be eagerly watching for the performance of Archer Daniels Midland in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.88, signifying a 14.56% drop compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $21.11 billion, indicating a 5.13% decline compared to the corresponding quarter of the prior year. Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.03 per share and revenue of $84.15 billion, indicating changes of -14.98% and -1.61%, respectively, compared to the previous year. Investors should also take note of any recent adjustments to analyst estimates for Archer Daniels Midland. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits. Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system. The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.44% lower. As of now, Archer Daniels Midland holds a Zacks Rank of #3 (Hold). Valuation is also important, so investors should note that Archer Daniels Midland has a Forward P/E ratio of 13.27 right now. For comparison, its industry has an average Forward P/E of 16.45, which means Archer Daniels Midland is trading at a discount to the group. We can also see that ADM currently has a PEG ratio of 2.99. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. ADM's industry had an average PEG ratio of 1.6 as of yesterday's close. The Agriculture - Operations industry is part of the Consumer Staples sector. With its current Zacks Industry Rank of 202, this industry ranks in the bottom 19% of all industries, numbering over 250. The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Keep in mind to rely on to watch all these stock-impacting metrics, and more, in the succeeding trading sessions. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Archer Daniels Midland Company (ADM) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
5 days ago
- Business
- Yahoo
US-based ADM shuts down Brazil pet food plant
By Ana Mano SAO PAULO (Reuters) -U.S.-based grain merchant Archer Daniels Midland is closing a pet food plant in Brazil, according to a statement sent this week to Reuters in response to questions, as part of broader efforts to streamline costs and operations. ADM said workers at the facility, which will operate for another 90 days, were informed of the decision on July 15, a Sao Paulo-based press officer said. "After exploring a wide range of alternatives, we have determined that our Tres Corações (TCO) facility and related businesses and assets are no longer aligned with our future operational needs, the ADM statement said. A source familiar with the matter said the company tried to sell the unit for about a year, with no buyers. ADM did not comment on the failed sale attempt, which was reported in the local press. ADM in February said it would cut hundreds of jobs and reduce costs by $500 million to $750 million over the next three to five years, after posting its lowest fourth-quarter adjusted profit in six years. In 2024, ADM's so-called nutrition division, the smallest of three business units, was at the center of an accounting investigation. The company remains a major grain trader and processor in South America, with facilities for vegetable oil and biodiesel production. Acquired by ADM in 2019, the Tres Coracoes plant had over 900 employees and annual production capacity of approximately 525,000 tons of pet food products, the company said. ADM said it still operates one animal nutrition products factory in the country, located in Sao Paulo state. Melden Sie sich an, um Ihr Portfolio aufzurufen.
Reuters
5 days ago
- Business
- Reuters
US-based ADM shuts down Brazil pet food plant
SAO PAULO, July 17 (Reuters) - U.S.-based grain merchant Archer Daniels Midland (ADM.N), opens new tab is closing a pet food plant in Brazil, according to a statement sent this week to Reuters in response to questions, as part of broader efforts to streamline costs and operations. ADM said workers at the facility, which will operate for another 90 days, were informed of the decision on July 15, a Sao Paulo-based press officer said. "After exploring a wide range of alternatives, we have determined that our Tres Corações (TCO) facility and related businesses and assets are no longer aligned with our future operational needs, the ADM statement said. A source familiar with the matter said the company tried to sell the unit for about a year, with no buyers. ADM did not comment on the failed sale attempt, which was reported in the local press. ADM in February said it would cut hundreds of jobs and reduce costs by $500 million to $750 million over the next three to five years, after posting its lowest fourth-quarter adjusted profit in six years. In 2024, ADM's so-called nutrition division, the smallest of three business units, was at the center of an accounting investigation. The company remains a major grain trader and processor in South America, with facilities for vegetable oil and biodiesel production. Acquired by ADM in 2019, the Tres Coracoes plant had over 900 employees and annual production capacity of approximately 525,000 tons of pet food products, the company said. ADM said it still operates one animal nutrition products factory in the country, located in Sao Paulo state.
