ADM
Archer Daniels Midland Co.
Industrial/Transportation
09/16/2013
Presented
| Date | 09/12/2013 |
| Price | $36.13 |
| Market Cap | $23.80B |
| Ent Value | $29.33B |
| P/E Ratio | 13.84x |
| Book Value | $30.73 |
| Div Yield | 2.3% |
| Shares O/S | 659.19M |
| Ave Daily Vol | 3,480,000 |
| Short Int | 1.15% |
Current
| Price | $57.67 |
| Market Cap | $27.57B |
| Archer-Daniels-Midland Company manufactures and sells protein meal, vegetable oil, corn sweeteners, flour, biodiesel, ethanol, and other value-added food and feed ingredients; and processes oilseeds, corn, wheat, cocoa, and other agricultural commodities. The company’s Oilseeds Processing segment originates, merchandises, crushes, and processes oilseeds, such as soybeans and soft seeds into vegetable oils and protein meals. Its products include oilseeds products; crude vegetable and salad oils; margarine, shortening, and other food products; partially refined oils; oilseed protein meals; cottonseed flour; and cotton cellulose pulp. This segment also blends fertilizers; procures and processes cocoa beans into cocoa liquor, cocoa butter, cocoa powder, chocolate, and various compounds; and supplies peanuts and peanut-derived ingredients, and agricultural commodity raw materials. Its Corn Processing segment converts corn into sweeteners, starches, and bio products. Its products include sweeteners, starch, syrup, glucose, and dextrose; alcohol, amino acids, and other specialty food and animal feed ingredients; ethyl alcohol; corn gluten feed and meals, and distillers’ grains; citric and lactic acids, lactates, sorbitol, xanthan gum, and glycols; propylene and ethylene glycol; and sugarcane ethanol. The company’s Agricultural Services segment engages in buying, storing, cleaning, and transporting agricultural commodities, such as oilseeds, corn, wheat, milo, oats, rice, and barley; and reselling those commodities primarily as food and feed ingredients. This segment is also involved in the merchandising of agricultural commodities and processed products; origination and processing of wheat flour; and processing and distribution of formula feeds, animal health and nutrition products, and edible beans. Archer-Daniels-Midland Company also engages in futures commission merchant business. The company was founded in 1898 and is headquartered in Decatur, Illinois. |
Highlights
The presenter believes the cost cutting measures Archer Daniels’ (ADM) CEO, Patricia Woertz, has been focused on since her appointment in 2006 will benefit the company as fundamentals improve following one of the worst droughts the US has experienced during the past century. Despite half of ADM’s business running on trough margins and US exports of agricultural commodities sitting at 25-year lows, the company is generating profits and could substantially outperform the Street’s expectations over the next three-to-four quarters, in his opinion.
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