Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Archer-Daniels-Midland Company (0JQQ.L)

Company Dividend Discount ModelIndustry: Agricultural InputsSector: Basic Materials

Valuation Snapshot

Stable Growth$49.07 - $112.57$71.60
Multi-Stage$60.36 - $66.07$63.16
Blended Fair Value$67.38
Current Price$59.74
Upside12.79%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS4.54%4.67%2.042.021.861.721.671.631.571.511.451.42
YoY Growth--0.82%8.68%7.79%3.09%2.53%4.09%3.84%4.14%2.04%10.10%
Dividend Yield--4.24%3.24%2.33%1.91%2.93%4.64%3.67%3.48%3.15%3.91%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)1,189.00
(-) Cash Dividends Paid (M)984.00
(=) Cash Retained (M)205.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)237.80148.6389.18
Cash Retained (M)205.00205.00205.00
(-) Cash Required (M)-237.80-148.63-89.18
(=) Excess Retained (M)-32.8056.38115.83
(/) Shares Outstanding (M)483.75483.75483.75
(=) Excess Retained per Share-0.070.120.24
LTM Dividend per Share2.032.032.03
(+) Excess Retained per Share-0.070.120.24
(=) Adjusted Dividend1.972.152.27
WACC / Discount Rate6.78%6.78%6.78%
Growth Rate2.67%3.67%4.67%
Fair Value$49.07$71.60$112.57
Upside / Downside-17.86%19.85%88.44%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)1,189.001,232.641,277.891,324.801,373.431,423.841,466.56
Payout Ratio82.76%84.21%85.66%87.10%88.55%90.00%92.50%
Projected Dividends (M)984.001,037.971,094.581,153.951,216.191,281.461,356.57

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.78%6.78%6.78%
Growth Rate2.67%3.67%4.67%
Year 1 PV (M)962.65972.02981.40
Year 2 PV (M)941.48959.91978.52
Year 3 PV (M)920.51947.67975.36
Year 4 PV (M)899.77935.34971.95
Year 5 PV (M)879.25922.91968.29
PV of Terminal Value (M)24,593.4725,814.7127,084.00
Equity Value (M)29,197.1230,552.5731,959.52
Shares Outstanding (M)483.75483.75483.75
Fair Value$60.36$63.16$66.07
Upside / Downside1.03%5.72%10.59%

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