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Is this Large Market Cap Stock target price reasonable for Archer-Daniels-Midland Company (NYSE:ADM)?

The company in question is, Archer-Daniels-Midland Company (NYSE:ADM) currently with a stock price of 43.67 (0.65% today). The market cap for Archer-Daniels-Midland Company is 25222.61, and is in the sector Consumer Goods, and Farm Products industry. The target price for Archer-Daniels-Midland Company is 42. Currently Archer-Daniels-Midland Company is trading with a P/E of 16.66, and a forward P/E of 14.84. Average volume for Archer-Daniels-Midland Company is 3696.21 and so far today it is 723032.

Performance in the last year for Archer-Daniels-Midland Company has been -6.18%. For EPS growth, Archer-Daniels-Midland Company has seen a growth of -13.00%, and is looking to grow in the next year to 19.26%. More long term stats show that EPS growth has been -1.00% over the last five years and could be 5.63% for the next five years. Archer-Daniels-Midland Company has seen sales growth quarter over quarter at -17.80%, with EPS growth quarter over quarter at -50.10%. The 20-day simple moving average is 4.29%, with the 200-day simple moving average coming to 14.48%.

Since the IPO date for Archer-Daniels-Midland Company on the 4/5/1983, Archer-Daniels-Midland Company has seen performance year to date to be 20.33%. With Archer-Daniels-Midland Company trading at 43.67, the dividend yield is 2.77%, and the EPS is 2.6.

So could Archer-Daniels-Midland Company, be undervalued? Well as said before P/E is 16.66. The PEG is 2.96, P/S is 0.39 and the P/B is at 1.44. The P/cash is 20.49, with P/free cash flow at 35.47.

Archer-Daniels-Midland Company ability to deal with debt shows that the current ratio is 1.6, and the quick ratio is 1. This is with long term debt/equity at 0.33, and total debt/equity at 0.37.

In terms of margins, Archer-Daniels-Midland Company has a gross margin of 5.80%, an operating margin of 2.30% and a profit margin of 2.50%.Payout ratio for Archer-Daniels-Midland Company is 43.60%. Return on assets come to 3.90% with return on investment coming to 5.80%.

Insider ownership for Archer-Daniels-Midland Company, is at 0.20% and institutional ownership comes to 76.30%. Outstanding shares are at 581.3. While shares float is 573.56. The float short is currently 1.47%, and short ratio is 2.28.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Stephen Butters

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