Latest Ratios: P/E Ratio 36.9x · EV/EBITDA 18.6x · ROE 4.7%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $39.7B | $27.8B | $24.9B | $39.1B | $52.3B | $38.3B | $28.4B | $26.2B | $23.2B | $22.9B | $27.0B |
| Enterprise Value | $48.4B | $36.6B | $35.8B | $47.4B | $61.5B | $47.9B | $38.8B | $35.2B | $29.6B | $29.6B | $33.3B |
| P/E Ratio → | 36.92 | 25.78 | 13.84 | 11.23 | 12.04 | 14.11 | 16.00 | 19.00 | 12.84 | 14.37 | 21.13 |
| P/S Ratio | 0.49 | 0.35 | 0.29 | 0.42 | 0.51 | 0.45 | 0.44 | 0.41 | 0.36 | 0.38 | 0.43 |
| P/B Ratio | 1.73 | 1.21 | 1.11 | 1.60 | 2.12 | 1.68 | 1.41 | 1.36 | 1.22 | 1.25 | 1.57 |
| P/FCF | 9.44 | 6.62 | 20.30 | 13.20 | 24.21 | 7.05 | — | — | — | 19.73 | 45.50 |
| P/OCF | 7.28 | 5.10 | 8.93 | 8.78 | 15.03 | 5.80 | — | — | — | 10.37 | 18.29 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.46 | 0.42 | 0.50 | 0.61 | 0.56 | 0.60 | 0.54 | 0.46 | 0.49 | 0.53 |
| EV / EBITDA | 18.59 | 14.04 | 11.15 | 9.26 | 11.74 | 12.01 | 14.14 | 13.30 | 10.02 | 12.02 | 13.12 |
| EV / EBIT | 34.01 | 19.59 | 12.10 | 9.59 | 10.93 | 13.39 | 17.45 | 17.69 | 12.22 | 15.27 | 15.74 |
| EV / FCF | — | 8.70 | 29.20 | 15.97 | 28.50 | 8.83 | — | — | — | 25.49 | 56.14 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 6.3% | 6.3% | 6.8% | 8.0% | 7.5% | 7.0% | 6.9% | 6.4% | 6.5% | 5.8% | 5.8% |
| Operating Margin | 1.8% | 1.8% | 2.4% | 4.3% | 4.1% | 3.5% | 2.7% | 2.6% | 3.1% | 2.5% | 2.6% |
| Net Profit Margin | 1.3% | 1.3% | 2.1% | 3.7% | 4.3% | 3.2% | 2.8% | 2.1% | 2.8% | 2.6% | 2.1% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 4.7% | 4.7% | 7.7% | 14.2% | 18.3% | 12.6% | 9.0% | 7.2% | 9.7% | 9.0% | 7.3% |
| ROA | 2.0% | 2.0% | 3.3% | 6.1% | 7.5% | 5.1% | 3.8% | 3.3% | 4.5% | 4.0% | 3.2% |
| ROIC | 3.3% | 3.3% | 4.7% | 9.1% | 9.5% | 7.1% | 4.5% | 4.6% | 6.0% | 4.8% | 5.3% |
| ROCE | 4.3% | 4.3% | 6.0% | 11.3% | 12.1% | 9.1% | 5.7% | 5.6% | 7.1% | 5.7% | 6.1% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.42 | 0.42 | 0.51 | 0.39 | 0.42 | 0.46 | 0.55 | 0.51 | 0.44 | 0.41 | 0.40 |
| Debt / EBITDA | 3.75 | 3.75 | 3.59 | 1.88 | 1.96 | 2.65 | 4.03 | 3.73 | 2.84 | 3.04 | 2.73 |
| Net Debt / Equity | — | 0.38 | 0.49 | 0.34 | 0.38 | 0.42 | 0.52 | 0.47 | 0.34 | 0.36 | 0.37 |
| Net Debt / EBITDA | 3.36 | 3.36 | 3.40 | 1.61 | 1.77 | 2.42 | 3.79 | 3.41 | 2.16 | 2.71 | 2.49 |
| Debt / FCF | — | 2.08 | 8.91 | 2.77 | 4.28 | 1.78 | — | — | — | 5.76 | 10.64 |
| Interest Coverage | 3.05 | 3.05 | 4.19 | 7.57 | 13.90 | 12.60 | 6.94 | 4.94 | 6.64 | 5.86 | 7.27 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.37 | 1.37 | 1.39 | 1.60 | 1.46 | 1.45 | 1.50 | 1.55 | 1.75 | 1.59 | 1.60 |
| Quick Ratio | 0.83 | 0.83 | 0.81 | 0.95 | 0.85 | 0.79 | 0.86 | 0.89 | 1.00 | 0.86 | 0.93 |
| Cash Ratio | 0.05 | 0.05 | 0.04 | 0.07 | 0.04 | 0.04 | 0.04 | 0.06 | 0.17 | 0.06 | 0.07 |
| Asset Turnover | — | 1.53 | 1.61 | 1.72 | 1.70 | 1.52 | 1.29 | 1.47 | 1.58 | 1.52 | 1.57 |
| Inventory Turnover | 7.26 | 7.26 | 6.89 | 7.23 | 6.36 | 5.47 | 5.11 | 6.60 | 6.83 | 6.25 | 6.65 |
| Days Sales Outstanding | — | 21.86 | 25.39 | 25.24 | 27.20 | 24.71 | 28.27 | 29.39 | 21.81 | 22.57 | 25.79 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 2.5% | 3.5% | 4.0% | 2.5% | 1.7% | 2.2% | 2.9% | 3.0% | 3.3% | 3.2% | 2.6% |
| Payout Ratio | 91.6% | 91.6% | 54.7% | 28.1% | 20.7% | 30.8% | 45.7% | 57.2% | 41.9% | 45.8% | 54.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.7% | 3.9% | 7.2% | 8.9% | 8.3% | 7.1% | 6.2% | 5.3% | 7.8% | 7.0% | 4.7% |
| FCF Yield | 10.6% | 15.1% | 4.9% | 7.6% | 4.1% | 14.2% | — | — | — | 5.1% | 2.2% |
| Buyback Yield | 0.0% | 0.0% | 9.3% | 6.8% | 2.8% | 0.0% | 0.5% | 0.6% | 0.3% | 3.3% | 3.7% |
| Total Shareholder Yield | 2.5% | 3.5% | 13.3% | 9.3% | 4.5% | 2.2% | 3.3% | 3.6% | 3.6% | 6.5% | 6.3% |
| Shares Outstanding | — | $484M | $493M | $542M | $563M | $566M | $563M | $565M | $567M | $572M | $591M |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying ADM stock.
Archer-Daniels-Midland Company's current P/E ratio is 36.9x. The historical average is 18.2x. This places it at the 93th percentile of its historical range.
Archer-Daniels-Midland Company's current EV/EBITDA is 18.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 10.8x.
Archer-Daniels-Midland Company's return on equity (ROE) is 4.7%. The historical average is 9.7%.
Based on historical data, Archer-Daniels-Midland Company is trading at a P/E of 36.9x. This is at the 93th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Archer-Daniels-Midland Company's current dividend yield is 2.48% with a payout ratio of 91.6%.
Archer-Daniels-Midland Company has 6.3% gross margin and 1.8% operating margin.
Archer-Daniels-Midland Company's Debt/EBITDA ratio is 3.7x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.
Key Metrics
Top Statement Risk
Nutrition segment accounting integrity
Metrics are mathematically derived from official filings.
Margin Recovery Amidst Structural Thinness
ADM's gross margin expanded to 8.5% in 2026Q2 from 4.7% a year earlier, as reported in financial statements, yet operating margin remains thin at 4.0%, reflecting the high-volume, low-margin nature of commodity processing.
The sequential improvement in gross margin from 6.0% in 2026Q1 to 8.5% in 2026Q2 suggests a favorable crush spread environment and better cost pass-through, but the absolute level remains structurally low compared to specialty peers like Ingredion (10.1% net margin). Operating margin of 4.0% in 2026Q2, while up from 0.5% in 2025Q2, is still below the 3.2% seen in 2024Q1, indicating that the recovery is not yet back to prior peaks. The reliance on volatile commodity spreads for profitability means that margin sustainability is uncertain, especially with revenue still down 6.2% YoY.
Return on Capital Remains Subdued
ROIC improved to 2.4% in 2026Q2 from 0.2% a year earlier, as per reported figures, but remains well below the cost of capital, suggesting that ADM is not yet generating adequate returns on its asset-heavy infrastructure.
The ten-quarter trend shows ROIC oscillating between 0.2% and 2.4%, with no clear upward trajectory, indicating that the company's massive capital base in logistics and processing is not translating into consistent returns. ROE of 3.9% in 2026Q2, while up from 1.0% in 2025Q2, is still far below the peer average, with Bunge at 5.8% and Ingredion at 13.4%. The low asset turnover of 0.42x, combined with thin margins, underscores that ADM's returns are driven by volume and spread capture rather than structural efficiency, and the recent goodwill impairment suggests past acquisitions have not yet delivered expected returns.
Working Capital Efficiency Shows Stability
ADM's cash conversion cycle remained stable at 52 days in 2026Q2, as reported in financial statements, with DSO at 26 days and DPO at 23 days, indicating consistent working capital management despite commodity price volatility.
The CCC has hovered between 48 and 57 days over the past ten quarters, showing no significant deterioration or improvement, which suggests that ADM's working capital management is mature but offers limited upside for cash generation. The slight reduction in DIO from 55 days in 2025Q1 to 49 days in 2026Q2 may indicate better inventory management, but the low DPO of 23 days implies limited supplier leverage, consistent with the commodity procurement model. The stability in these metrics is notable given the large swings in operating cash flow, which are driven more by commodity price changes than by operational efficiency.
Leverage Eases but Off-Balance-Sheet Risks Loom
ADM's debt-to-equity ratio improved to 0.39 in 2026Q2 from 0.56 in 2025Q1, as per financial statements, while interest coverage rose to 8.35x, but the reported figures may understate true obligations from trade finance and leases.
The improvement in leverage is supported by a surge in cash to $9.6B, which strengthens the balance sheet, but the D/EBITDA of 7.56x in 2026Q2 is elevated compared to the 6.59x in 2025Q4, indicating that EBITDA growth has not kept pace with debt reduction. Interest coverage of 8.35x is comfortable, but it was as low as 1.62x in 2024Q3, highlighting the cyclicality of earnings and the potential for coverage to deteriorate if crush spreads weaken. The discrepancy between the reported D/E and industry norms suggests that investors should monitor off-balance-sheet obligations, as the true leverage may be higher than reported.
Liquidity Buffer Strengthens with Cash Surge
ADM's current ratio improved to 1.39 in 2026Q2, with cash jumping to $9.6B from $591M in Q1, as reported in financial statements, providing a substantial buffer against commodity price shocks.
The quick ratio of 0.86 in 2026Q2, while below 1.0, is an improvement from 0.80 in 2026Q1, and the large cash balance mitigates the risk of inventory illiquidity. The current ratio has been stable around 1.4 over the past year, indicating that ADM maintains adequate short-term coverage, but the reliance on inventory (DIO of 49 days) means that a sharp drop in commodity prices could pressure liquidity. The cash build in 2026Q2 appears to be a deliberate move to strengthen the balance sheet, but the sustainability of this buffer depends on continued positive free cash flow, which has been volatile.
Misapplied Metric: P/E on Cyclical Earnings
The trailing P/E of 35.94 is misleading for ADM because it is based on trough earnings, while the forward P/E of 15.49 better reflects normalized earnings, as per reported figures, but even that may overstate value if crush spreads revert.
ADM's earnings are highly cyclical, driven by volatile crush spreads and commodity prices, so a trailing P/E based on depressed 2025 earnings overstates the multiple. The forward P/E of 15.49 is more reasonable, but it still assumes that the 2026Q2 earnings recovery is sustainable, which is uncertain given the still-negative revenue trend. A better metric for ADM is EV/EBITDA, which at 18.18 trailing and 10.11 forward, captures the company's capital structure and is less distorted by non-cash items like depreciation and amortization. Investors should also consider P/B of 1.68, which is below the peer average, but this may reflect the asset-heavy nature of the business and the recent goodwill impairment.