Discover PILGRIM'S PRIDE CORP (NASDAQ:PPC), an undervalued stock highlighted by our stock screener. NASDAQ:PPC showcases solid financial health and profitability while maintaining an appealing valuation. We'll explore the details.
Evaluating Valuation: NASDAQ:PPC
ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NASDAQ:PPC has earned a 9 for valuation:
- With a Price/Earnings ratio of 10.83, the valuation of PPC can be described as very reasonable.
- Based on the Price/Earnings ratio, PPC is valued cheaply inside the industry as 87.91% of the companies are valued more expensively.
- PPC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.55.
- The Price/Forward Earnings ratio is 11.11, which indicates a very decent valuation of PPC.
- Based on the Price/Forward Earnings ratio, PPC is valued cheaper than 87.91% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of PPC to the average of the S&P500 Index (24.22), we can say PPC is valued rather cheaply.
- PPC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. PPC is cheaper than 83.52% of the companies 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 90.11% 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 34.71% in the coming years.
Understanding NASDAQ:PPC's Profitability
Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:PPC has achieved a 6:
- PPC's Return On Assets of 9.21% is amongst the best of the industry. PPC outperforms 89.01% of its industry peers.
- PPC's Return On Equity of 23.43% is amongst the best of the industry. PPC outperforms 93.41% of its industry peers.
- With an excellent Return On Invested Capital value of 14.60%, PPC belongs to the best of the industry, outperforming 93.41% of the companies in the same industry.
- The last Return On Invested Capital (14.60%) for PPC is above the 3 year average (7.82%), which is a sign of increasing profitability.
- PPC has a Profit Margin of 5.46%. This is in the better half of the industry: PPC outperforms 72.53% of its industry peers.
- PPC has a Operating Margin of 8.16%. This is in the better half of the industry: PPC outperforms 71.43% of its industry peers.
Assessing Health Metrics for NASDAQ:PPC
A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:PPC has received a 7 out of 10:
- An Altman-Z score of 3.90 indicates that PPC is not in any danger for bankruptcy at the moment.
- PPC has a Altman-Z score of 3.90. This is in the better half of the industry: PPC outperforms 76.92% of its industry peers.
- The Debt to FCF ratio of PPC is 2.14, which is a good value as it means it would take PPC, 2.14 years of fcf income to pay off all of its debts.
- With a decent Debt to FCF ratio value of 2.14, PPC is doing good in the industry, outperforming 79.12% of the companies in the same industry.
- Although PPC does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
- PPC has a better Quick ratio (1.27) than 71.43% of its industry peers.
How do we evaluate the Growth for NASDAQ:PPC?
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 663.93% 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.
- 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.
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
This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.