ADMCAUTIOUS

Gross Margin

6.0%

Higher than 0% of Consumer Defensive sector peers

Updated 1734h ago

Sector Performance

0th percentile

ADM

6.0%

Sector Median

51.6%

Sector Avg

47.7%

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Deep Analysis

Archer-Daniels-Midland's current Gross Margin of 6.0% means that for every dollar of revenue, the company keeps only 6 cents after paying for the direct costs of producing its goods.

This is far below the Consumer Defensive sector median of 51.6%, placing ADM at the 0th percentile among its peers. Trend data is not available — the year-over-year change and quarter-over-quarter change are both listed as N/A, so no directional movement can be assessed. The combination of an exceptionally low gross margin and the absence of any trend information prevents a judgment on whether the margin is stabilizing or worsening, which leaves uncertainty about the company's cost structure and pricing power. This metric directly supports the overall CAUTIOUS verdict, as a gross margin near the bottom of the sector indicates fundamental profitability challenges that raise investment risk.

Frequently Asked Questions

What does the Gross Margin tell investors about ADM?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does ADM's Gross Margin compare to its sector?

ADM's Gross Margin of 6.0% compares to a Consumer Defensive sector median of 51.6%, placing it in the 0th percentile.

Who are ADM's closest peers by Gross Margin?

The closest Consumer Defensive peers by Gross Margin include: ABEV (51.6%), KDP (52.8%), PG (49.5%), CELH (48.3%), BUD (56.6%).

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.