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Here's How Much a $1000 Investment in Archer Daniels Midland Made 10 Years Ago Would Be Worth Today
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For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Archer Daniels Midland (ADM - Free Report) ten years ago? It may not have been easy to hold on to ADM for all that time, but if you did, how much would your investment be worth today?
Archer Daniels Midland's Business In-Depth
With that in mind, let's take a look at Archer Daniels Midland's main business drivers.
Incorporated in Delaware in 1923, Archer Daniels Midland Company is successor to the Daniels Linseed Co. Founded in 1902, this Illinois-based company is one of the leading producers of food and beverage ingredients as well as goods made from various agricultural products.
The company processes oilseeds, corn, wheat, cocoa and other feedstuffs. Moreover, it engages in the manufacturing, sale, and distribution of products like natural flavor ingredients, flavor systems, natural colors, proteins, emulsifiers, soluble fiber, polyols, hydrocolloids, natural health and nutrition products as well as other specialty food and feed ingredients.
Archer Daniels also has a worldwide grain elevator and transportation network for procurement, storage, cleansing and transportation of agricultural commodities. Archer Daniels also makes important investments in joint ventures to aid growth.
Starting first-quarter 2018, the company realigned its business segments to reflect a new operating structure. It currently reports through the Carbohydrate Solutions, Nutrition, Oilseeds and Origination segments.
On May 29, 2019, Archer Daniels created a new business unit, namely, Ag Services & Oilseeds. The unit combined the company’s Origination and Oilseed operations in a single reporting structure which came into operations from Jul 1, 2019.
The Ag Services & Oilseeds (78.6% of 2021 total revenues) includes the Agricultural Services business, excluding Milling and engages in originating, merchandising, crushing and processing oilseeds.
The Carbohydrate Solutions segment (13%) comprises the Corn and Milling operations.
Nutrition segment (7.9%) includes Animal Nutrition and Bioactives businesses as well as the Wild Flavors & Specialty Ingredients segment (WFSI).
The Other segment (0.4%) primarily includes the company’s financial business units. However, it makes negligible contribution to the company’s revenues.
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Archer Daniels Midland ten years ago, you're likely feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in November 2012 would be worth $3,784.45, or a gain of 278.45%, as of November 9, 2022, and this return excludes dividends but includes price increases.
The S&P 500 rose 177.90% and the price of gold increased -4.99% over the same time frame in comparison.
Looking ahead, analysts are expecting more upside for ADM.
Shares of Archer Daniels have outpaced the industry in a year's time on robust earnings surprise trend, which continued in third-quarter 2022. Both top and bottom lines beat estimates and grew year over year. This marked the 13th straight quarter of an earnings surprise and the 12th straight quarter of adjusted operating profit growth. Results were bolstered by robust global demand, gains from the integrated global value chain and a solid product portfolio. Persistent growth in the Nutrition segment remained a key growth driver. It expects the nutrition segment operating profit growth of 15-20% in 2022. The fourth-quarter performance is likely to be higher year over year, driven by the continued demand in the Human Nutrition unit. However, rising SG&A costs act as a deterrent. Higher inflation also remain concerning.
The stock is up 11.69% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 7 higher, for fiscal 2022. The consensus estimate has moved up as well.
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Here's How Much a $1000 Investment in Archer Daniels Midland Made 10 Years Ago Would Be Worth Today
For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Archer Daniels Midland (ADM - Free Report) ten years ago? It may not have been easy to hold on to ADM for all that time, but if you did, how much would your investment be worth today?
Archer Daniels Midland's Business In-Depth
With that in mind, let's take a look at Archer Daniels Midland's main business drivers.
Incorporated in Delaware in 1923, Archer Daniels Midland Company is successor to the Daniels Linseed Co. Founded in 1902, this Illinois-based company is one of the leading producers of food and beverage ingredients as well as goods made from various agricultural products.
The company processes oilseeds, corn, wheat, cocoa and other feedstuffs. Moreover, it engages in the manufacturing, sale, and distribution of products like natural flavor ingredients, flavor systems, natural colors, proteins, emulsifiers, soluble fiber, polyols, hydrocolloids, natural health and nutrition products as well as other specialty food and feed ingredients.
Archer Daniels also has a worldwide grain elevator and transportation network for procurement, storage, cleansing and transportation of agricultural commodities. Archer Daniels also makes important investments in joint ventures to aid growth.
Starting first-quarter 2018, the company realigned its business segments to reflect a new operating structure. It currently reports through the Carbohydrate Solutions, Nutrition, Oilseeds and Origination segments.
On May 29, 2019, Archer Daniels created a new business unit, namely, Ag Services & Oilseeds. The unit combined the company’s Origination and Oilseed operations in a single reporting structure which came into operations from Jul 1, 2019.
The Ag Services & Oilseeds (78.6% of 2021 total revenues) includes the Agricultural Services business, excluding Milling and engages in originating, merchandising, crushing and processing oilseeds.
The Carbohydrate Solutions segment (13%) comprises the Corn and Milling operations.
Nutrition segment (7.9%) includes Animal Nutrition and Bioactives businesses as well as the Wild Flavors & Specialty Ingredients segment (WFSI).
The Other segment (0.4%) primarily includes the company’s financial business units. However, it makes negligible contribution to the company’s revenues.
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Archer Daniels Midland ten years ago, you're likely feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in November 2012 would be worth $3,784.45, or a gain of 278.45%, as of November 9, 2022, and this return excludes dividends but includes price increases.
The S&P 500 rose 177.90% and the price of gold increased -4.99% over the same time frame in comparison.
Looking ahead, analysts are expecting more upside for ADM.
Shares of Archer Daniels have outpaced the industry in a year's time on robust earnings surprise trend, which continued in third-quarter 2022. Both top and bottom lines beat estimates and grew year over year. This marked the 13th straight quarter of an earnings surprise and the 12th straight quarter of adjusted operating profit growth. Results were bolstered by robust global demand, gains from the integrated global value chain and a solid product portfolio. Persistent growth in the Nutrition segment remained a key growth driver. It expects the nutrition segment operating profit growth of 15-20% in 2022. The fourth-quarter performance is likely to be higher year over year, driven by the continued demand in the Human Nutrition unit. However, rising SG&A costs act as a deterrent. Higher inflation also remain concerning.
The stock is up 11.69% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 7 higher, for fiscal 2022. The consensus estimate has moved up as well.