Archer-Daniels-Midland CoXSWX:ADM +2.71%75 Return-on-Tangible-Equity is 7.35% as of Mar. 2026, which is 38% below its 10-year median of 11.90. GuruFocus rates XSWX:ADM with a GF Score™ of 75/100 and a GF Value™ of CHF48.38. The stock has 10 warning signs investors should review. Among 1,876 Consumer Packaged Goods companies, Archer-Daniels-Midland Co ranks worse than 53.78% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Archer-Daniels-Midland Co's annualized net income for the quarter that ended in Mar. 2026 was CHF938 Mil. Archer-Daniels-Midland Co's average shareholder tangible equity for the quarter that ended in Mar. 2026 was CHF12,765 Mil. Therefore, Archer-Daniels-Midland Co's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 7.35%.
The historical rank and industry rank for Archer-Daniels-Midland Co's Return-on-Tangible-Equity or its related term are showing as below:
XSWX:ADM'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 6.87 Med: 11.9 Max: 25.93
Current: 6.88
During the past 13 years, Archer-Daniels-Midland Co's highest Return-on-Tangible-Equity was 25.93%. The lowest was 6.87%. And the median was 11.90%.
XSWX:ADM's Return-on-Tangible-Equity is ranked worse than 53.78% of 1876
companies
in the Consumer Packaged Goods industry
Industry Median: 7.695
vs XSWX:ADM: 6.88
Archer-Daniels-Midland Co (XSWX:ADM) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Archer-Daniels-Midland Co Return-on-Tangible-Equity Related Terms
Archer-Daniels-Midland Co Return-on-Tangible-Equity Historical Data
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The historical data trend for Archer-Daniels-Midland Co's Return-on-Tangible-Equity can be seen below:
* 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 Return-on-Tangible-Equity Chart
XSWX:ADM vs BG, TSN, CALM: Return-on-Tangible-Equity Comparison
For the Farm Products subindustry, Archer-Daniels-Midland Co's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Archer-Daniels-Midland Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Archer-Daniels-Midland Co's Return-on-Tangible-Equity 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 7.35% mean?
Archer-Daniels-Midland Co (XSWX:ADM) has a Return-on-Tangible-Equity of 7.35% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Archer-Daniels-Midland Co and its competitors. This is 38% below median its historical median of 11.90. Over the past decade, Archer-Daniels-Midland Co's Return-on-Tangible-Equity has ranged from 6.87 to 25.93. According to the industry distribution chart, Archer-Daniels-Midland Co ranks #1009 out of 1876 companies in the Consumer Packaged Goods industry, placing it in the top 53.8%.
Is Archer-Daniels-Midland Co's Return-on-Tangible-Equity too high?
Archer-Daniels-Midland Co's current Return-on-Tangible-Equity of 7.35% is 38% below median its 10-year median of 11.90. Over the past 10 years, this metric has ranged from a low of 6.87 to a high of 25.93. The Consumer Packaged Goods industry median Return-on-Tangible-Equity is 7.70. Archer-Daniels-Midland Co's value of 7.35% is 4.5% below this industry median. Based on the distribution chart, Archer-Daniels-Midland Co ranks #1009 out of 1876 companies in the Consumer Packaged Goods industry, which is below the industry midpoint. 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 Return-on-Tangible-Equity compare to BG and TSN?
According to the Consumer Packaged Goods industry distribution chart, Archer-Daniels-Midland Co ranks #1009 out of 1876 companies for Return-on-Tangible-Equity. This places Archer-Daniels-Midland Co in the lower half of its industry. The industry median Return-on-Tangible-Equity is 7.70. Archer-Daniels-Midland Co's value of 7.35% is 4.5% below this benchmark. Historically, Archer-Daniels-Midland Co's own Return-on-Tangible-Equity has ranged from 6.87 to 25.93 over the past decade. While the company's 10-year median is 11.90 vs. the industry median of 7.70, 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 Return-on-Tangible-Equity for a Consumer Packaged Goods company?
The median Return-on-Tangible-Equity among Consumer Packaged Goods companies is 7.70, based on 1,876 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Archer-Daniels-Midland Co's current Return-on-Tangible-Equity of 7.35% is 4.5% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Archer-Daniels-Midland Co and its competitors. For the Consumer Packaged Goods industry, the median Return-on-Tangible-Equity is 7.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Archer-Daniels-Midland Co's current Return-on-Tangible-Equity is 7.35%, which is 38% below median its own 10-year median of 11.90. 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 Return-on-Tangible-Equity of 7.35%. 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 Return-on-Tangible-Equity is 7.35%, which is 38% below median its 10-year median of 11.90 and 4.5% below the Consumer Packaged Goods industry median of 7.70. 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 Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Archer-Daniels-Midland Co (XSWX:ADM), the current Return-on-Tangible-Equity is 7.35% 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:
Return-on-Tangible-Equity: 7.35% (38% below median its 10-year median of 11.90)
GF Value™: CHF48.38 vs. price of CHF62.13 (28.4% above fair value)
Industry Position: 4.5% below the Consumer Packaged Goods median (#1009 of 1876)
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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