5 Best Undervalued Aristocrats to Buy in September

2. Archer-Daniels-Midland Company (NYSE:ADM)

P/E Ratio: 13.63

Archer-Daniels-Midland Company (NYSE:ADM) is an American food processing company that is also a global leader in human and animal nutrition. The company ended the quarter with $906 million available in cash and cash equivalents, up from $869 million in the same period last year. Its operating cash flow for the quarter came in at $531 million while it generated $248 million in free cash flow.

Archer-Daniels-Midland Company (NYSE:ADM) has been making uninterrupted dividends for the past 90 years and maintains a 47-year streak of dividend growth. The company currently pays a quarterly dividend of $0.40 per share, with a dividend yield of 1.83%, as of September 7.

In August, Wolfe Research initiated its coverage of Archer-Daniels-Midland Company (NYSE:ADM) with an Outperform rating and a $117 price target, highlighting the company’s competitive dividend growth, which is generated through its Nutrition segment alone.

At the end of Q2 2022, 42 hedge funds in Insider Monkey’s database owned stakes in Archer-Daniels-Midland Company (NYSE:ADM), the same as in the previous quarter. These stakes hold a collective value of nearly $659 million, compared with $625.6 million worth of stakes owned by hedge funds in the preceding quarter.

Diamond Hill Capital mentioned Archer-Daniels-Midland Company (NYSE:ADM) in its Q1 2022 investor letter. Here is what the firm has to say:

“ADM is a leading agricultural processor that also operates a global nutrition business focused on the development of ingredients and flavors for food and beverages, supplements and more. The company’s recent operating results have benefited (unfortunately) from the war in Ukraine as grain prices and agricultural markets globally experienced strong price increases. ADM is positioned well to benefit from the volatility due to its stable North American agricultural base.”