Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Archer-Daniels-Midland Co's
Operating Income
for the
three
months ended in Mar. 2026 was CHF205 Mil. Archer-Daniels-Midland Co's Interest Expense for the
three
months ended in Mar. 2026 was CHF-117 Mil.
Archer-Daniels-Midland Co's interest coverage for the quarter that ended in Mar. 2026 was 1.75.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Archer-Daniels-Midland Co's Interest Coverage or its related term are showing as below:
XSWX:ADM'
s Interest Coverage Range Over the Past 10 Years
Min: 2.14 Med: 5.38 Max: 11.29
Current: 2.14
XSWX:ADM's Interest Coverage is ranked worse than 81.66% of 1510
companies
in the Consumer Packaged Goods industry
Industry Median: 8.64
vs XSWX:ADM: 2.14
Archer-Daniels-Midland Co (XSWX:ADM) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Archer-Daniels-Midland Co Interest Coverage Related Terms
Archer-Daniels-Midland Co Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
XSWX:ADM vs BG, TSN, CALM: Interest Coverage Comparison
For the Farm Products subindustry, Archer-Daniels-Midland Co's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Archer-Daniels-Midland Co's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Archer-Daniels-Midland Co's Interest Coverage falls into.
Archer-Daniels-Midland Co Interest Coverage Calculation
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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.
Archer-Daniels-Midland Co (XSWX:ADM) has a Interest Coverage of 1.75 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Archer-Daniels-Midland Co and its competitors. This is 67% below median its historical median of 5.38. Over the past decade, Archer-Daniels-Midland Co's Interest Coverage has ranged from 2.14 to 11.29. According to the industry distribution chart, Archer-Daniels-Midland Co ranks #1233 out of 1510 companies in the Consumer Packaged Goods industry, placing it in the top 81.7%.
Is Archer-Daniels-Midland Co's Interest Coverage too high?
Archer-Daniels-Midland Co's current Interest Coverage of 1.75 is 67% below median its 10-year median of 5.38. Over the past 10 years, this metric has ranged from a low of 2.14 to a high of 11.29. The Consumer Packaged Goods industry median Interest Coverage is 8.64. Archer-Daniels-Midland Co's value of 1.75 is 79.7% below this industry median. Based on the distribution chart, Archer-Daniels-Midland Co ranks #1233 out of 1510 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 Interest Coverage compare to BG and TSN?
According to the Consumer Packaged Goods industry distribution chart, Archer-Daniels-Midland Co ranks #1233 out of 1510 companies for Interest Coverage. This places Archer-Daniels-Midland Co in the lower half of its industry. The industry median Interest Coverage is 8.64. Archer-Daniels-Midland Co's value of 1.75 is 79.7% below this benchmark. Historically, Archer-Daniels-Midland Co's own Interest Coverage has ranged from 2.14 to 11.29 over the past decade. While the company's 10-year median is 5.38 vs. the industry median of 8.64, 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 Interest Coverage for a Consumer Packaged Goods company?
The median Interest Coverage among Consumer Packaged Goods companies is 8.64, based on 1,510 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Archer-Daniels-Midland Co's current Interest Coverage of 1.75 is 79.7% 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Archer-Daniels-Midland Co and its competitors. For the Consumer Packaged Goods industry, the median Interest Coverage is 8.64 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Archer-Daniels-Midland Co's current Interest Coverage is 1.75, which is 67% below median its own 10-year median of 5.38. 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 Interest Coverage of 1.75. 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 Interest Coverage is 1.75, which is 67% below median its 10-year median of 5.38 and 79.7% below the Consumer Packaged Goods industry median of 8.64. 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 Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Archer-Daniels-Midland Co (XSWX:ADM), the current Interest Coverage is 1.75 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:
Interest Coverage: 1.75 (67% below median its 10-year median of 5.38)
GF Value™: CHF48.38 vs. price of CHF62.13 (28.4% above fair value)
Industry Position: 79.7% below the Consumer Packaged Goods median (#1233 of 1510)
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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