XSWX:ADM's Gross Margin % is ranked worse than 91.9% of 1902
companies
in the Consumer Packaged Goods industry
Industry Median: 26.37
vs XSWX:ADM: 6.30
Archer-Daniels-Midland Co had a gross margin of 5.96% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
Archer-Daniels-Midland Co (XSWX:ADM) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Archer-Daniels-Midland Co had a gross margin of 5.96% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Archer-Daniels-Midland Co Gross Margin % Related Terms
Archer-Daniels-Midland Co Gross Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
XSWX:ADM vs BG, TSN, CALM: Gross Margin % Comparison
For the Farm Products subindustry, Archer-Daniels-Midland Co's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Archer-Daniels-Midland Co Gross Margin % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Archer-Daniels-Midland Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Archer-Daniels-Midland Co's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Archer-Daniels-Midland Co (XSWX:ADM) has a Gross Margin % of 5.96% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Archer-Daniels-Midland Co and its competitors. This is 10% below median its historical median of 6.63. Over the past decade, Archer-Daniels-Midland Co's Gross Margin % has ranged from 5.78 to 8.00. According to the industry distribution chart, Archer-Daniels-Midland Co ranks #1748 out of 1902 companies in the Consumer Packaged Goods industry, placing it in the top 91.9%.
Is Archer-Daniels-Midland Co's Gross Margin % too high?
Archer-Daniels-Midland Co's current Gross Margin % of 5.96% is 10% below median its 10-year median of 6.63. Over the past 10 years, this metric has ranged from a low of 5.78 to a high of 8.00. The Consumer Packaged Goods industry median Gross Margin % is 26.37. Archer-Daniels-Midland Co's value of 5.96% is 77.4% below this industry median. Based on the distribution chart, Archer-Daniels-Midland Co ranks #1748 out of 1902 companies in the Consumer Packaged Goods industry, which is in the bottom quartile relative to peers. Overall, Archer-Daniels-Midland Co has a GF Score™ of 75/100, reflecting its overall financial health beyond just this single metric.
How does Archer-Daniels-Midland Co's Gross Margin % compare to BG and TSN?
According to the Consumer Packaged Goods industry distribution chart, Archer-Daniels-Midland Co ranks #1748 out of 1902 companies for Gross Margin %. This places Archer-Daniels-Midland Co in the lower half of its industry. The industry median Gross Margin % is 26.37. Archer-Daniels-Midland Co's value of 5.96% is 77.4% below this benchmark. Historically, Archer-Daniels-Midland Co's own Gross Margin % has ranged from 5.78 to 8.00 over the past decade. While the company's 10-year median is 6.63 vs. the industry median of 26.37, Archer-Daniels-Midland Co has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Consumer Packaged Goods company?
The median Gross Margin % among Consumer Packaged Goods companies is 26.37, based on 1,902 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Archer-Daniels-Midland Co's current Gross Margin % of 5.96% is 77.4% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Archer-Daniels-Midland Co and its competitors. For the Consumer Packaged Goods industry, the median Gross Margin % is 26.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Archer-Daniels-Midland Co's current Gross Margin % is 5.96%, which is 10% below median its own 10-year median of 6.63. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Archer-Daniels-Midland Co stock overvalued right now?
Archer-Daniels-Midland Co (XSWX:ADM) has a current Gross Margin % of 5.96%. The stock's GF Value™ is CHF48.38, compared to a current price of CHF62.13 — trading 28.4% above its estimated fair value. The current Gross Margin % is 5.96%, which is 10% below median its 10-year median of 6.63 and 77.4% below the Consumer Packaged Goods industry median of 26.37. Archer-Daniels-Midland Co's overall GF Score™ is 75/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Archer-Daniels-Midland Co (XSWX:ADM), the current Gross Margin % is 5.96% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Archer-Daniels-Midland Co (XSWX:ADM) Overvalued in 2026?
Based on GuruFocus' analysis, Archer-Daniels-Midland Co stock appears to be overvalued.
The current stock price of CHF62.13 is trading 28.4% above its estimated GF Value™ of CHF48.38.
Key valuation signals for XSWX:ADM:
Gross Margin %: 5.96% (10% below median its 10-year median of 6.63)
GF Value™: CHF48.38 vs. price of CHF62.13 (28.4% above fair value)
Industry Position: 77.4% below the Consumer Packaged Goods median (#1748 of 1902)
No single metric tells the full story. See the XSWX:ADM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Archer-Daniels-Midland is a major processor of oilseeds, corn, wheat, and other agricultural commodities. The company is also one of the largest grain merchandisers through its extensive network of logistical assets to store and transport crops around the globe. ADM also runs a nutrition business that focuses on both human and animal ingredients and is a large producer of corn-based sweeteners, starches, and ethanol.
75GF Score
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