Is Archer Daniels Midland Still a Safe Play?

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E = Equity to Debt Ratio Is Normal

The debt-to-equity ratio and balance sheet are both normal. There is no reason for excitement or worry.  

Debt-To-Equity

Cash

Long-Term Debt

ADM

0.57

$5.52 Billion

$6.82 Billion

BG

0.66

$690.00 Million

$7.93 Billion

INGR

0.72

$532.00 Million

$1.77 Billion

 

T = Technicals on the Stock Chart Are Mixed

Archer Daniels Midland has underperformed Bunge Limited (NYSE:BG) and Ingredion Incorporated (INGR) over the past three years.

1 Month

Year-To-Date

1 Year

3 Year

ADM

8.73%

5.99%

4.04%

-0.93%

BG

1.05%

1.71%

31.32%

21.29%

INGR

3.14%

22.04%

4.83%

27.40%

 

At $28.51, Archer Daniels Midland is currently trading above its 50-day and 100-day SMA, and slightly below its 200-day SMA.   

50-Day SMA

26.84

100-Day SMA

27.00

200-Day SMA

28.65

 

E = Earnings Have Been Inconsistent

Archer Daniels Midland has had no problem increasing revenue, especially over the past three years, but earnings growth has left a lot to be desired.

2008

2009

2010

2011

2012

Revenue ($)in billions

69.82

69.21

61.68

80.68

89.04

Diluted EPS ($)

2.75

2.62

3.00

3.13

1.84

 

When we look at last quarter on a YoY basis, we see a decrease in revenue, and a significant decrease in earnings. It’s becoming evident that Archer Daniels Midland is having an increasingly difficult time with the bottom line.

9/2011

12/2011

3/2012

6/2012

9/2012

Revenue ($)in billions

21.90

23.31

21.16

22.68

21.81

Diluted EPS ($)

0.68

0.12

0.60

0.44

0.28

 

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