Archer Daniels Gross Profit vs. Operating Margin
| ADM Stock | USD 53.72 0.71 1.34% |
Gross Profit | First Reported 1985-09-30 | Previous Quarter 1.4 B | Current Value 1.4 B | Quarterly Volatility 493.3 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.1 | 0.08 |
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| Net Profit Margin | 0.0373 | 0.0371 |
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| Operating Profit Margin | 0.0435 | 0.0432 |
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| Pretax Profit Margin | 0.0536 | 0.0457 |
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| Return On Assets | 0.0529 | 0.0638 |
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| Return On Equity | 0.0785 | 0.1443 |
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For Archer Daniels profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Archer Daniels to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Archer Daniels Midland utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Archer Daniels's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Archer Daniels Midland over time as well as its relative position and ranking within its peers.
Archer |
Archer Daniels' Revenue Breakdown by Earning Segment
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Is Agricultural Products & Services space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Archer Daniels. If investors know Archer will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Archer Daniels listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.42) | Earnings Share 3.56 | Revenue Per Share 171.202 | Quarterly Revenue Growth (0.12) | Return On Assets 0.0342 |
The market value of Archer Daniels Midland is measured differently than its book value, which is the value of Archer that is recorded on the company's balance sheet. Investors also form their own opinion of Archer Daniels' value that differs from its market value or its book value, called intrinsic value, which is Archer Daniels' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Archer Daniels' market value can be influenced by many factors that don't directly affect Archer Daniels' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Archer Daniels' value and its price as these two are different measures arrived at by different means. Investors typically determine if Archer Daniels is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Archer Daniels' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Archer Daniels Midland Operating Margin vs. Gross Profit Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Archer Daniels's current stock value. Our valuation model uses many indicators to compare Archer Daniels value to that of its competitors to determine the firm's financial worth. Archer Daniels Midland is number one stock in gross profit category among its peers. It is rated below average in operating margin category among its peers . The ratio of Gross Profit to Operating Margin for Archer Daniels Midland is about 340,990,990,991 . At this time, Archer Daniels' Gross Profit is very stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Archer Daniels by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Archer Operating Margin vs. Gross Profit
Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.
Archer Daniels |
| = | 7.57 B |
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
Archer Daniels |
| = | 0.02 % |
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Archer Operating Margin Comparison
Archer Daniels is currently under evaluation in operating margin category among its peers.
Archer Daniels Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Archer Daniels, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Archer Daniels will eventually generate negative long term returns. The profitability progress is the general direction of Archer Daniels' change in net profit over the period of time. It can combine multiple indicators of Archer Daniels, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -2.5 B | -2.6 B | |
| Operating Income | 4.1 B | 4.3 B | |
| Income Before Tax | 4.3 B | 4.5 B | |
| Total Other Income Expense Net | 237 M | 184.2 M | |
| Net Income | 3.5 B | 3.7 B | |
| Income Tax Expense | 828 M | 442.3 M | |
| Net Income Applicable To Common Shares | 5 B | 5.2 B | |
| Net Income From Continuing Ops | 3.5 B | 2.3 B | |
| Non Operating Income Net Other | 1.4 B | 713.4 M | |
| Interest Income | 499 M | 258.6 M | |
| Net Interest Income | -148 M | -155.4 M | |
| Change To Netincome | -165.6 M | -157.3 M | |
| Net Income Per Share | 6.44 | 6.76 | |
| Income Quality | 1.28 | 1.36 | |
| Net Income Per E B T | 0.81 | 0.58 |
Archer Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Archer Daniels. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Archer Daniels position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Archer Daniels' important profitability drivers and their relationship over time.
Use Archer Daniels in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Archer Daniels position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Archer Daniels will appreciate offsetting losses from the drop in the long position's value.Archer Daniels Pair Trading
Archer Daniels Midland Pair Trading Analysis
The ability to find closely correlated positions to Archer Daniels could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Archer Daniels when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Archer Daniels - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Archer Daniels Midland to buy it.
The correlation of Archer Daniels is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Archer Daniels moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Archer Daniels Midland moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Archer Daniels can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Archer Daniels position
In addition to having Archer Daniels in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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To fully project Archer Daniels' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Archer Daniels Midland at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Archer Daniels' income statement, its balance sheet, and the statement of cash flows.