Archer-Daniels Midland Co (NYSE:ADM) is a global
agricultural logistics and raw materials processor. It also has a solid
dividend payment history going back almost 90 years. The company braced for the
coronavirus well in advance, although CEO Juan Luciano pointed out that trading
grain on a global scale won’t be affected.
Food is a staple in everyone’s life, but is Archer-Daniels
Midland stock a Buy?
The food industry certainly was impacted by COVID-19. It
caused dairy farmers to dump milk, produce to go bad, and major problems in the
global supply chain.
Restaurants and major events closing created complete chaos
for a time. But Archer-Daniels Midland quickly rebounded because it’s so high
up the literal food chain.
The company processes bulk oilseed, corn, and other food
ingredients for humans, animals, and even biofuels. It also provides financial
services for food industry and agricultural partners. These extensive revenue
streams give it exposure to not only survive a rough economy, but also find
growth opportunities.
It could be overpriced though, if it can’t find ways to
scale what’s already a large global operation. Let’s run against the grain to
see what this century-old Minneapolis, Minnesota-based company.
Archer-Daniels Midland is a global agricultural and food
processor founded in 1902 that serves major food manufacturers around the
world. Because it’s involved in the global supply chain, it has a comprehensive
R&D network, online platform, and logistics technology.
The company works closely with farmers and others in the
agricultural industry and is a member of over 200 trade and business
associations. It deals with commodities markets, which can be turbulent,
regardless of a global pandemic, and it did take some losses as the economy
slowed
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