ADMCAUTIOUS

Return on Equity (ROE)

4.7%

Higher than 36% of Consumer Defensive sector peers

Updated 1929h ago

Sector Performance

36th percentile

ADM

4.7%

Sector Median

7.0%

Sector Avg

-25.4%

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Deep Analysis

Return on Equity (ROE) measures how efficiently a company generates profit from shareholders' investments; a 4.7% ROE means Archer-Daniels-Midland earns $0.047 for every dollar of equity.

This is well below the Consumer Defensive sector median of 7.8%, placing ADM in the 42nd percentile among its peers. There is no trend data available: both year-over-year and quarter-over-quarter changes are marked as N/A, and no historical values beyond the current 4.7% are provided. Without a trend, the low level alone points to below-average profitability relative to the sector, which could indicate higher investment risk or limited competitive advantage. This metric supports the overall CAUTIOUS verdict, as the ROE is notably lower than the sector median and ranks below more than half of peers.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about ADM?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does ADM's Return on Equity (ROE) compare to its sector?

ADM's Return on Equity (ROE) of 4.7% compares to a Consumer Defensive sector median of 7.0%, placing it in the 36th percentile.

Who are ADM's closest peers by Return on Equity (ROE)?

The closest Consumer Defensive peers by Return on Equity (ROE) include: KDP (6.3%), BUD (7.8%), CELH (8.1%), CPB (15.4%), BTI (15.8%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.