In a market where value is scarce, NASDAQ:PPC offers a refreshing opportunity with its solid fundamentals.

Last update: Aug 30, 2024

Take a closer look at PILGRIM'S PRIDE CORP (NASDAQ:PPC), a remarkable value stock uncovered by our stock screener. NASDAQ:PPC excels in fundamentals and maintains a very reasonable valuation. Let's break it down further.

A Closer Look at Valuation for NASDAQ:PPC

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NASDAQ:PPC scores a 8 out of 10:

Based on the Price/Earnings ratio, PPC is valued a bit cheaper than 79.35% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 30.07. PPC is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 11.36, the valuation of PPC can be described as reasonable.
86.96% of the companies in the same industry are more expensive than PPC, based on the Price/Forward Earnings ratio.
PPC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.69.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PPC indicates a rather cheap valuation: PPC is cheaper than 80.43% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PPC indicates a rather cheap valuation: PPC is cheaper than 81.52% of the companies listed in the same industry.
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 29.81% in the coming years.

Looking at the Profitability

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:PPC, the assigned 6 is noteworthy for profitability:

Looking at the Return On Assets, with a value of 7.51%, PPC is in the better half of the industry, outperforming 79.35% of the companies in the same industry.
With an excellent Return On Equity value of 20.28%, PPC belongs to the best of the industry, outperforming 90.22% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 12.08%, PPC belongs to the top of the industry, outperforming 90.22% of the companies in the same industry.
The 3 year average ROIC (7.82%) for PPC is below the current ROIC(12.08%), indicating increased profibility in the last year.
With a decent Profit Margin value of 4.25%, PPC is doing good in the industry, outperforming 66.30% of the companies in the same industry.
PPC has a Operating Margin of 6.40%. This is in the better half of the industry: PPC outperforms 64.13% of its industry peers.

What does the Health looks like for NASDAQ:PPC

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NASDAQ:PPC has earned a 6 out of 10:

An Altman-Z score of 3.78 indicates that PPC is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 3.78, PPC belongs to the best of the industry, outperforming 80.43% of the companies in the same industry.
The Debt to FCF ratio of PPC is 2.87, which is a good value as it means it would take PPC, 2.87 years of fcf income to pay off all of its debts.
PPC has a Debt to FCF ratio of 2.87. This is in the better half of the industry: PPC outperforms 79.35% of its industry peers.
The Current ratio of PPC (1.82) is better than 60.87% of its industry peers.
With a decent Quick ratio value of 1.09, PPC is doing good in the industry, outperforming 67.39% of the companies in the same industry.

Deciphering NASDAQ:PPC's Growth Rating

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:PPC has received a 6 out of 10:

The Earnings Per Share has grown by an impressive 222.32% over the past year.
PPC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.68% yearly.
The Earnings Per Share is expected to grow by 21.55% on average over the next years. This is a very strong growth
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.

Our latest full fundamental report of PPC contains the most current fundamental analsysis.

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.