NASDAQ:PPC is a prime example of a stock that offers more than what meets the eye in terms of fundamentals.

Last update: Nov 6, 2024

Uncover the potential of PILGRIM'S PRIDE CORP (NASDAQ:PPC) as our stock screener's choice for an undervalued stock. NASDAQ:PPC maintains a strong financial position and offers an appealing valuation. We'll delve into the specifics below.

Assessing Valuation for NASDAQ:PPC

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NASDAQ:PPC was assigned a score of 8 for valuation:

PPC is valuated reasonably with a Price/Earnings ratio of 11.54.
82.42% of the companies in the same industry are more expensive than PPC, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of PPC to the average of the S&P500 Index (27.91), we can say PPC is valued rather cheaply.
PPC's Price/Forward Earnings ratio is rather cheap when compared to the industry. PPC is cheaper than 82.42% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.57. PPC is valued slightly cheaper when compared to this.
76.92% of the companies in the same industry are more expensive than PPC, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, PPC is valued a bit cheaper than 78.02% 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.
The decent profitability rating of PPC may justify a higher PE ratio.
A more expensive valuation may be justified as PPC's earnings are expected to grow with 28.86% in the coming years.

Exploring NASDAQ:PPC's Profitability

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:

PPC has a better Return On Assets (7.51%) than 78.02% of its industry peers.
The Return On Equity of PPC (20.28%) is better than 87.91% of its industry peers.
The Return On Invested Capital of PPC (12.08%) is better than 90.11% of its industry peers.
The 3 year average ROIC (7.82%) for PPC is below the current ROIC(12.08%), indicating increased profibility in the last year.
The Profit Margin of PPC (4.25%) is better than 64.84% of its industry peers.
Looking at the Operating Margin, with a value of 6.40%, PPC is in the better half of the industry, outperforming 63.74% of the companies in the same industry.

Unpacking NASDAQ:PPC's Health Rating

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

An Altman-Z score of 3.94 indicates that PPC is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.94, PPC is doing good in the industry, outperforming 79.12% 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 a decent Debt to FCF ratio value of 2.87, PPC is doing good in the industry, outperforming 76.92% of the companies in the same industry.
The Quick ratio of PPC (1.09) is better than 67.03% 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 5 for growth:

The Earnings Per Share has grown by an impressive 663.93% over the past year.
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.

Check the latest full fundamental report of PPC for a complete fundamental analysis.

Keep in mind

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.