5Mon·

Archer Daniels

What is the general feeling of well-being here regarding $ADM (-0.32%) ?

9 Comments

Sansebastian@Sansebastian

5Mon

The performance speaks against an investment for me

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Krisztian@Krisztian99

5Mon

I see it as an essential business which is fairly priced. It's also a boring company that's why nobody really is interested. There will be no 10x of earnings, no AI involved which changes the world etc.

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M_Dx@M_Dx

5Mon

Very good stock, I like to stay invested and occasionally buy more. I don't care if they are down 10/20/30% in the meantime. They are systemically relevant in the food sector

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Peter A.@Kamahl_

5Mon

Assuming net income continues to fall to 1 billion, the share price will probably fall a little further. But we are currently in a negative food cycle. They will very likely reach the 4 bn net income again by 2030 (similar to 2022 and 2023). At a P/E ratio of 15, where the shares belong, that is a market cap of 60 bn. That means that the current market cap of 20 bn will be 3x in the next 5-10 years. In the meantime, you are pocketing a 4-5% dividend. Not a bad risk ratio in my eyes. If the share falls further, I will buy more.

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Ruben Schoff@Sand

4Mon

@Kamahl_ I have a similar view and would also like to get on board. Do you know whether the problems with the incorrect accounting have been resolved? They stated the wrong amount in 2024 or glossed over the figures? Thank you already.

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Peter A.@Kamahl_

4Mon

@Sand the accounting problems are apparently not yet 100% solved, but only affect the Nutrition division, which is very small compared to the others

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Seventrader@7Trader

5Mon

Is only on the watchlist

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Peter A.@Kamahl_

5Mon

Just a classic cyclical. I bought my first position a few months ago and always buy more as long as it drops. So in the long term I expect my 8-10% return (dividend, buybacks, multiple expansion) with manageable risk.

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Ruben Schoff@Sand

4Mon

Would like to buy my first tranche for under 40 euros. Nice divi and already came back very strong.

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