Archer Daniels Midland Company : Support level could play as stepping stone
 |
07/02/2012 | 11:05am
Opinion : Bullish above 28 USD
Target price : 32 USD
Stop loss: 27.8 USD
|
NYSE
Food Processing |
Archer-Daniels-Midland Company procures, transports, stores, processes, and merchandises agricultural commodities and products. The company processes oilseeds, corn, milo, oats, barley, peanuts, and wheat. Archer-Daniels-Midland also processes produce products which have primarily two end uses including food or feed ingredients.
From a fundamental viewpoint, the company shows positive indicators with a PER of 12.37x for this year. In addition, with an "entreprise value to sales" ratio of 0.29x, the company is low valued. The turnover's growth rate adds relevance to this enterprise.
On the short term, the share was heavily penalized. The bearish trend pushed the stock towards mid and long term support of USD 28.6. Even if moving averages are downward oriented, we could forecast that this level could set up a stock’s recovery.
We suggest a long position in order to aim a return towards USD 32, with a stop loss order placed USD 27.8.
 |
|
Copyright (c) 2013 4-Traders.com |
Disclaimer : 4-Traders.com is not registered as a securities broker-dealer or investment adviser with any jurisdiction and is not providing any personalized financial, investment or tax advice. 4-Traders cannot assess or guarantee the suitability of any particular investment to any personal situation. Accordingly, you bear complete responsibility for your own investment, financial, and tax research and decisions and should seek the advice of a qualified professional prior to making any decisions based on 4-Traders' website information. This article is provided solely for informational purposes, and does not constitute an offer or solicitation to buy or sell any securities. All opinions expressed and information and data provided therein are subject to change without notice.
|
|
|
|
|
Valuation |
2013e |
2014e |
|
PER (Price / EPS)
|
14,6x |
11,4x |
|
Capitalization / Revenue
|
0,25x |
0,25x |
|
EV / Revenue
|
0,27x |
0,28x |
|
EV / EBITDA
|
7,81x |
7,01x |
|
Yield (DPS / Price)
|
2,08% |
2,15% |
| Profitability |
2013e |
2014e |
|
Operating Margin (EBIT / Sales)
|
2,43% |
3,01% |
|
operating laverage (Delta EBIT / Delta Sales)
|
- |
12,8x |
|
Net Margin (Net Profit / Revenue)
|
1,73% |
2,15% |
|
ROA (Net Profit / Asset)
|
3,42% |
4,25% |
|
ROE (Net Profit / Equities)
|
7,88% |
9,23% |
|
Rate of Dividend
|
30,3% |
24,5% |
|
|
|
