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Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, agribusiness giant Archer Daniels Midland (NYSE: ADM ) has earned a respected four-star ranking.
With that in mind, let's take a closer look at ADM's business and see what CAPS investors are saying about the stock right now.
|Headquarters (Founded)||Decatur, Ill. (1898)|
|Market Cap||$18.84 billion|
|Trailing-12-Month Revenue||$63.56 billion|
CEO Patricia Woertz (since 2006)
CFO Steven Mills (since 2008)
|Return on Equity (Average, Past 3 Years)||13.1%|
|Cash/Debt||$1.37 billion / $8.9 billion|
Bunge (NYSE: BG )
Corn Products International (NYSE: CPO )
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 93% of the 1,936 members who have rated ADM believe the stock will outperform the S&P 500 going forward. These bulls include lctycoon and All-Star Staka, who is ranked in the top 2% of our community.
Less than two months ago, lctycoon highlighted the trends working in ADM's favor: "This is a speculative pick, but in a world with a growing population, and growing uncertainty, food seems like a pretty good place to be."
ADM's massive scale, exposure to emerging markets, and cheapish valuation make it one of our community's favorite plays on the growing global demand for food. Currently, ADM's dividend yield (2.1%) is even higher than that of rivals Bunge (1.5%) and Corn Products (1.3%), as well as other ag plays like Agrium (NYSE: AGU ) (0.1%), Mosaic (NYSE: MOS ) (0.3%), and Monsanto (NYSE: MON ) (1.8%).
CAPS All-Star Staka weighs ADM's pros and cons:
- Not expensive, especially compared to own past
- Good growth
- Dedicated, good management
- Lots of insider selling
- Q3 worse than expected but mainly based on negative inventory value adjustments caused by corn price volatility
- High [dependence] on ethanol (subsidies) -> Risky but at least partly priced in the stock!
What do you think about ADM, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!