NASDAQ:PPC stands out as a stock that provides good value for the fundamentals it showcases.

Last update: Jan 10, 2025

PILGRIM'S PRIDE CORP (NASDAQ:PPC) has caught the attention of our stock screener as a great value stock. NASDAQ:PPC excels in profitability, solvency, and liquidity, all while being very reasonably priced. Let's delve into the details.

Looking at the Valuation

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 9 out of 10:

A Price/Earnings ratio of 9.86 indicates a reasonable valuation of PPC.
87.95% of the companies in the same industry are more expensive than PPC, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.34, PPC is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.45, the valuation of PPC can be described as very reasonable.
Based on the Price/Forward Earnings ratio, PPC is valued cheaply inside the industry as 87.95% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.61, PPC is valued rather cheaply.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PPC indicates a rather cheap valuation: PPC is cheaper than 81.93% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, PPC is valued cheaply inside the industry as 84.34% of the companies are valued more expensively.
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 30.10% 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:

With an excellent Return On Assets value of 9.21%, PPC belongs to the best of the industry, outperforming 89.16% of the companies in the same industry.
PPC's Return On Equity of 23.43% is amongst the best of the industry. PPC outperforms 95.18% of its industry peers.
PPC has a Return On Invested Capital of 14.60%. This is amongst the best in the industry. PPC outperforms 92.77% of its industry peers.
The 3 year average ROIC (7.82%) for PPC is below the current ROIC(14.60%), indicating increased profibility in the last year.
PPC has a Profit Margin of 5.46%. This is in the better half of the industry: PPC outperforms 68.67% of its industry peers.
The Operating Margin of PPC (8.16%) is better than 67.47% of its industry peers.

Health Insights: 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:

PPC has an Altman-Z score of 3.80. This indicates that PPC is financially healthy and has little risk of bankruptcy at the moment.
PPC has a better Altman-Z score (3.80) than 77.11% 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.
The Debt to FCF ratio of PPC (2.14) is better than 75.90% of its industry peers.
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 71.08% of its industry peers.

Growth Examination for NASDAQ:PPC

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 5 out of 10:

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.
PPC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.07% yearly.
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

Every day, new Decent Value stocks can be found on ChartMill 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.