2024-03-31 22:41:15 ET
Summary
- Archer-Daniels-Midland shares have fallen 12% in the past three months, while the S&P 500 has returned 10%.
- ADM faced unfavorable headlines and a lack of trust due to an investigation into its accounting practices.
- The company's internal investigation found certain intersegment sales were not recorded at market amounts, but these adjustments did not impact its financial statements or incentive plans.
- Going forward, it benefits from a strong business model, growth opportunities, a focus on dividend growth and buybacks, and a highly favorable valuation.
Introduction
On December 27, I wrote an article titled " Ultrawide Moat, Great Valuation, Dividend Growth: Archer-Daniels-Midland Has It All. "
Although a three-month period is not a great measurement to check if a long-term thesis is working out, it needs to be said that Archer-Daniels-Midland Company ( ADM ) shares have fallen 12% since then. During this period, the S&P 500 has returned 10%.
While ADM had been struggling with margins due to lower inflation, the main reason why its stock price is down is a lack of trust after some very unfavorable headlines started to pop up in January....
Read the full article on Seeking Alpha
For further details see:
Archer-Daniels-Midland: Solid Fundamentals, Bargain Price