When you look at NASDAQ:PPC, it's hard to ignore the strong fundamentals, especially considering its likely undervaluation.

Last update: Sep 20, 2024

Discover PILGRIM'S PRIDE CORP (NASDAQ:PPC)—an undervalued stock our stock screener has picked out. NASDAQ:PPC demonstrates solid fundamentals, including health and profitability, all while staying attractively priced. Let's explore the details.

Valuation Analysis 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 9 out of 10:

The Price/Earnings ratio is 11.98, which indicates a very decent valuation of PPC.
Compared to the rest of the industry, the Price/Earnings ratio of PPC indicates a rather cheap valuation: PPC is cheaper than 86.96% of the companies listed in the same industry.
PPC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 30.79.
PPC is valuated reasonably with a Price/Forward Earnings ratio of 10.99.
91.30% of the companies in the same industry are more expensive than PPC, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.21. PPC is valued rather cheaply when compared to this.
82.61% of the companies in the same industry are more expensive than PPC, based on the Enterprise Value to EBITDA ratio.
85.87% of the companies in the same industry are more expensive than PPC, based on the Price/Free Cash Flow ratio.
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.
PPC's earnings are expected to grow with 29.33% in the coming years. This may justify a more expensive valuation.

Profitability Examination for NASDAQ:PPC

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NASDAQ:PPC was assigned a score of 6 for profitability:

With a decent Return On Assets value of 7.51%, PPC is doing good in the industry, outperforming 78.26% of the companies in the same industry.
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 better Return On Invested Capital (12.08%) than 90.22% 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.
With a decent Profit Margin value of 4.25%, PPC is doing good in the industry, outperforming 65.22% of the companies in the same industry.
PPC's Operating Margin of 6.40% is fine compared to the rest of the industry. PPC outperforms 64.13% of its industry peers.

Analyzing Health Metrics

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 6 reflects its health status:

An Altman-Z score of 3.71 indicates that PPC is not in any danger for bankruptcy at the moment.
PPC has a better Altman-Z score (3.71) than 78.26% of its industry peers.
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.
The Debt to FCF ratio of PPC (2.87) is better than 77.17% of its industry peers.
The Quick ratio of PPC (1.09) is better than 66.30% of its industry peers.

Growth Assessment of NASDAQ:PPC

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NASDAQ:PPC has earned a 6 for growth:

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.
Based on estimates for the next years, PPC will show a very strong growth in Earnings Per Share. The EPS will grow by 21.55% on average per year.
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.