NASDAQ:PPC stands out as a stock that provides good value for the fundamentals it showcases.

Last update: Jul 1, 2024

Our stock screener has singled out PILGRIM'S PRIDE CORP (NASDAQ:PPC) as a stellar value proposition. NASDAQ:PPC not only scores well in profitability, solvency, and liquidity but also maintains a very reasonable price point. We'll explore this further.

Assessing Valuation Metrics for NASDAQ:PPC

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NASDAQ:PPC, the assigned 7 reflects its valuation:

Based on the Price/Earnings ratio, PPC is valued a bit cheaper than the industry average as 72.83% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 28.36, PPC is valued a bit cheaper.
PPC is valuated reasonably with a Price/Forward Earnings ratio of 11.24.
82.61% of the companies in the same industry are more expensive than PPC, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.16, PPC is valued a bit cheaper.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PPC indicates a somewhat cheap valuation: PPC is cheaper than 73.91% of the companies listed in the same industry.
71.74% of the companies in the same industry are more expensive than PPC, based on the Price/Free Cash Flow ratio.
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PPC has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as PPC's earnings are expected to grow with 28.50% in the coming years.

Assessing Profitability for NASDAQ:PPC

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:PPC, the assigned 6 is a significant indicator of profitability:

PPC has a better Return On Assets (5.02%) than 67.39% of its industry peers.
Looking at the Return On Equity, with a value of 14.10%, PPC is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 8.52%, PPC belongs to the top of the industry, outperforming 82.61% of the companies in the same industry.
The 3 year average ROIC (7.82%) for PPC is below the current ROIC(8.52%), indicating increased profibility in the last year.
With a decent Operating Margin value of 4.51%, PPC is doing good in the industry, outperforming 60.87% of the companies in the same industry.

ChartMill's Evaluation of Health

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NASDAQ:PPC, the assigned 6 for health provides valuable insights:

PPC has an Altman-Z score of 3.49. This indicates that PPC is financially healthy and has little risk of bankruptcy at the moment.
PPC has a Altman-Z score of 3.49. This is in the better half of the industry: PPC outperforms 76.09% of its industry peers.
PPC's Debt to FCF ratio of 5.67 is fine compared to the rest of the industry. PPC outperforms 67.39% of its industry peers.
With a decent Current ratio value of 1.83, PPC is doing good in the industry, outperforming 60.87% of the companies in the same industry.
PPC has a Quick ratio of 1.01. This is in the better half of the industry: PPC outperforms 61.96% of its industry peers.

Unpacking NASDAQ:PPC's Growth Rating

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NASDAQ:PPC boasts a 5 out of 10:

PPC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.68% yearly.
PPC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.55% yearly.
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

For an up to date full fundamental analysis you can check the fundamental report of PPC

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.