Price movement of Archer-Daniels-Midland
Archer-Daniels-Midland (ADM) fell by 3.6% to close at $34.07 per share at the end of the first week of February 2016. The price movement on a weekly, monthly, and year-to-date (or YTD) basis is -3.6%, -3.7%, and -7.1%, respectively.
At times, the stock has broken the support of all moving day averages. Currently, ADM is trading 2.0% above its 20-day moving average, 2.3% below its 50-day moving average, and 21.6% below its 200-day moving average.
The FlexShares Morningstar Global Upstream Natural Resources Index Fund (GUNR) invests 3.4% of its holdings in ADM. The ETF tracks an index of companies that operate, manage, or produce natural resources in energy, gas, precious or industrial metals, timber, or water. The YTD price movement of GUNR is -2.7% as of February 4, 2016.
The iShares MSCI USA Value Factor ETF (VLUE) invests 2.2% of its holdings in ADM. The ETF tracks an index of large-cap and mid-cap US equities. Stocks are selected and weighted using fundamental metrics (earnings, revenue, book value, and cash earnings).
The market caps of ADM’s competitors are as follows:
Performance of ADM in 4Q15 and fiscal 2015
ADM reported 4Q15 revenues of $16,445.0 million, a fall of 21.3% compared to revenues of $20,894.0 million in 4Q14. Revenue from agricultural services, corn processing, oilseeds processing, and wild flavors and specialty ingredients fell by 22.1%, 20.2%, 22.4%, and 3.6%, respectively, in 4Q15, compared to revenue in 4Q14.
Its net income and EPS (earnings per share) rose to $718.0 million and $1.19, respectively, in 4Q15, compared to $701.0 million and $1.08, respectively, in 4Q14.
The company has declared a quarterly cash dividend of $0.30 per share on its common stock. This dividend is payable on March 8, 2016, to shareholders of record at the close of business on February 16, 2016.
Fiscal 2015 results
In fiscal 2015, ADM reported revenues of $67,702.0 million, a fall of 16.6% YoY (year-over-year). The processed volumes of oilseeds rose by 5.0%. The processed volumes of corn & milling and cocoa fell by 2.5% and 2.3%, respectively, in fiscal 2015.
The company’s net income and EPS fell to $1,849.0 million and $2.98, respectively, in fiscal 2015, compared to $2,248.0 million and $3.43, respectively, in fiscal 2014.
Meanwhile, the company’s cash and cash equivalents and operating working capital fell by 17.2% and 9.0%, respectively, in fiscal 2015. Its long-term debt-to-equity ratio rose to 0.32 in fiscal 2015 compared to 0.28 in fiscal 2014.
The PE (price-to-earnings) and PBV (price-to-book value) ratios of ADM are 11.4x and 1.2x, respectively, as of February 5, 2016.
ADM has entered into an agreement to purchase a controlling stake in Harvest Innovations. This transaction will be closed in the coming months, subject to regulatory approval.