Archer-Daniels-Midland CoMIL:1ADM 46 Operating Margin % is 1.27% as of Mar. 2026, which is 53% below its 10-year median of 2.69. GuruFocus rates MIL:1ADM with a GF Score™ of 46/100 and a GF Value™ of €51.28 (Modestly Overvalued). The stock has 10 warning signs investors should review. Among 1,951 Consumer Packaged Goods companies, Archer-Daniels-Midland Co ranks worse than 69.71% on this metric.
Archer-Daniels-Midland Co operating margin has been in a 5-year decline. The average rate of decline per year is -8.9%.
The historical rank and industry rank for Archer-Daniels-Midland Co's Operating Margin % or its related term are showing as below:
MIL:1ADM'
s Operating Margin % Range Over the Past 10 Years
Min: 1.77 Med: 2.69 Max: 4.32
Current: 1.78
MIL:1ADM's Operating Margin % is ranked worse than 69.71% of 1951
companies
in the Consumer Packaged Goods industry
Industry Median: 5.26
vs MIL:1ADM: 1.78
Archer-Daniels-Midland Co (MIL:1ADM) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Archer-Daniels-Midland Co Operating Margin % Related Terms
Archer-Daniels-Midland Co Operating 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.
Archer-Daniels-Midland Co Operating Margin % Chart
MIL:1ADM vs BG, TSN, CALM: Operating Margin % Comparison
For the Farm Products subindustry, Archer-Daniels-Midland Co's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Archer-Daniels-Midland Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Archer-Daniels-Midland Co's Operating Margin % falls into.
Archer-Daniels-Midland Co Operating Margin % Calculation
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Archer-Daniels-Midland Co's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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 (MIL:1ADM) has a Operating Margin % of 1.27% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Archer-Daniels-Midland Co and its competitors. This is 53% below median its historical median of 2.69. Over the past decade, Archer-Daniels-Midland Co's Operating Margin % has ranged from 1.77 to 4.32. According to the industry distribution chart, Archer-Daniels-Midland Co ranks #1360 out of 1951 companies in the Consumer Packaged Goods industry, placing it in the top 69.7%.
Is Archer-Daniels-Midland Co's Operating Margin % too high?
Archer-Daniels-Midland Co's current Operating Margin % of 1.27% is 53% below median its 10-year median of 2.69. Over the past 10 years, this metric has ranged from a low of 1.77 to a high of 4.32. The Consumer Packaged Goods industry median Operating Margin % is 5.26. Archer-Daniels-Midland Co's value of 1.27% is 75.9% below this industry median. Based on the distribution chart, Archer-Daniels-Midland Co ranks #1360 out of 1951 companies in the Consumer Packaged Goods industry, which is below the industry midpoint. Overall, Archer-Daniels-Midland Co has a GF Score™ of 46/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Archer-Daniels-Midland Co's Operating Margin % compare to BG and TSN?
According to the Consumer Packaged Goods industry distribution chart, Archer-Daniels-Midland Co ranks #1360 out of 1951 companies for Operating Margin %. This places Archer-Daniels-Midland Co in the lower half of its industry. The industry median Operating Margin % is 5.26. Archer-Daniels-Midland Co's value of 1.27% is 75.9% below this benchmark. Historically, Archer-Daniels-Midland Co's own Operating Margin % has ranged from 1.77 to 4.32 over the past decade. While the company's 10-year median is 2.69 vs. the industry median of 5.26, 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 Operating Margin % for a Consumer Packaged Goods company?
The median Operating Margin % among Consumer Packaged Goods companies is 5.26, based on 1,951 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Archer-Daniels-Midland Co's current Operating Margin % of 1.27% is 75.9% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Archer-Daniels-Midland Co and its competitors. For the Consumer Packaged Goods industry, the median Operating Margin % is 5.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Archer-Daniels-Midland Co's current Operating Margin % is 1.27%, which is 53% below median its own 10-year median of 2.69. 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?
Based on GuruFocus' analysis, Archer-Daniels-Midland Co (MIL:1ADM) is currently considered Modestly Overvalued. The stock's GF Value™ is €51.28, compared to a current price of €65.06 — trading 26.9% above its estimated fair value. The current Operating Margin % is 1.27%, which is 53% below median its 10-year median of 2.69 and 75.9% below the Consumer Packaged Goods industry median of 5.26. Archer-Daniels-Midland Co's overall GF Score™ is 46/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Archer-Daniels-Midland Co (MIL:1ADM), the current Operating Margin % is 1.27% 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 (MIL:1ADM) Overvalued in 2026?
Based on GuruFocus' analysis, Archer-Daniels-Midland Co stock appears to be overvalued.
The current stock price of €65.06 is trading 26.9% above its estimated GF Value™ of €51.28.
GuruFocus considers Archer-Daniels-Midland Co to be Modestly Overvalued.
Key valuation signals for MIL:1ADM:
Operating Margin %: 1.27% (53% below median its 10-year median of 2.69)
GF Value™: €51.28 vs. price of €65.06 (26.9% above fair value)
Industry Position: 75.9% below the Consumer Packaged Goods median (#1360 of 1951)
No single metric tells the full story. See the MIL:1ADM 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.
46GF Score
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