NASDAQ:PPC, an undervalued stock with good fundamentals.

Last update: Aug 9, 2024

Our stock screener has spotted PILGRIM'S PRIDE CORP (NASDAQ:PPC) as an undervalued stock with solid fundamentals. NASDAQ:PPC shows decent health and profitability. At the same time it remains remains attractively priced. We'll dive into each aspect below.

Assessing Valuation for NASDAQ:PPC

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NASDAQ:PPC has received a 8 out of 10:

80.43% of the companies in the same industry are more expensive than PPC, based on the Price/Earnings ratio.
PPC is valuated cheaply when we compare the Price/Earnings ratio to 28.78, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio, PPC is valued cheaply inside the industry as 80.43% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 20.41. PPC is valued slightly cheaper when compared to this.
Based on the Enterprise Value to EBITDA ratio, PPC is valued cheaply inside the industry as 80.43% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, PPC is valued cheaper than 81.52% of the companies in the same industry.
PPC's 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 28.80% in the coming years.

Exploring NASDAQ:PPC's Profitability

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NASDAQ:PPC has earned a 6 out of 10:

The Return On Assets of PPC (7.51%) is better than 78.26% of its industry peers.
PPC has a Return On Equity of 20.28%. This is amongst the best in the industry. PPC outperforms 90.22% of its industry peers.
PPC has a Return On Invested Capital of 12.08%. This is amongst the best in the industry. PPC outperforms 89.13% of its industry peers.
The last Return On Invested Capital (12.08%) for PPC is above the 3 year average (7.82%), which is a sign of increasing profitability.
The Profit Margin of PPC (4.25%) is better than 64.13% of its industry peers.
PPC has a better Operating Margin (6.40%) than 63.04% of its industry peers.

Exploring NASDAQ:PPC's Health

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NASDAQ:PPC, the assigned 7 reflects its health status:

PPC has an Altman-Z score of 3.73. This indicates that PPC is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 3.73, PPC belongs to the best of the industry, outperforming 80.43% of the companies in the same industry.
PPC has a debt to FCF ratio of 2.87. This is a good value and a sign of high solvency as PPC would need 2.87 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 2.87, PPC belongs to the best of the industry, outperforming 80.43% of the companies in the same industry.
With a decent Current ratio value of 1.82, PPC is doing good in the industry, outperforming 60.87% of the companies in the same industry.
PPC has a Quick ratio of 1.09. This is in the better half of the industry: PPC outperforms 65.22% of its industry peers.

Looking at the Growth

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NASDAQ:PPC has achieved a 6 out of 10:

PPC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 222.32%, which is quite impressive.
The Revenue has been growing by 9.68% on average over the past years. This is quite good.
PPC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.55% yearly.
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

More Decent Value stocks can be found in our Decent Value screener.

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

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.