ADM - Archer-Daniels-Midland: Reassessing The Valuation And Summarizing Key Quarterly Results

2024-05-01 11:15:48 ET

Summary

• Archer-Daniels-Midland Company's valuation has been reassessed using a two stage dividend discount model and a set of price multiples.
• The fair value of ADM's stock is estimated to be $56 per share, close to the current share price of $58, without considering the impact of the share buybacks.
• The company's quarterly results show declining revenue and weak performance, but it has shown commitment to returning value to shareholders through increased dividends and share buybacks.
• For these reasons, we once again reiterate our neutral view.

Archer-Daniels-Midland Company ( ADM ) engages in the procurement, transportation, storage, processing, and merchandising of agricultural commodities, ingredients, flavors, and solutions in the United States and internationally....

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