NASDAQ:PPC, an undervalued stock with good fundamentals.

Consider PILGRIM'S PRIDE CORP (NASDAQ:PPC) as a top value stock, identified by our stock screening tool. NASDAQ:PPC shines in terms of profitability, solvency, and liquidity, all while remaining very reasonably priced. Let's dive deeper into the analysis.

Valuation Analysis for NASDAQ:PPC

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NASDAQ:PPC has achieved a 9 out of 10:

• PPC is valuated reasonably with a Price/Earnings ratio of 10.15.
• Compared to the rest of the industry, the Price/Earnings ratio of PPC indicates a rather cheap valuation: PPC is cheaper than 86.05% of the companies listed in the same industry.
• When comparing the Price/Earnings ratio of PPC to the average of the S&P500 Index (28.51), we can say PPC is valued rather cheaply.
• The Price/Forward Earnings ratio is 10.76, which indicates a very decent valuation of PPC.
• Based on the Price/Forward Earnings ratio, PPC is valued cheaper than 87.21% of the companies in the same industry.
• When comparing the Price/Forward Earnings ratio of PPC to the average of the S&P500 Index (93.88), 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 81.40% of the companies in the same industry.
• 84.88% of the companies in the same industry are more expensive than PPC, based on the Price/Free Cash Flow ratio.
• 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 30.10% in the coming years.

Looking at the Profitability

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

• Looking at the Return On Assets, with a value of 9.21%, PPC belongs to the top of the industry, outperforming 89.53% of the companies in the same industry.
• PPC has a better Return On Equity (23.43%) than 94.19% of its industry peers.
• The Return On Invested Capital of PPC (14.60%) is better than 91.86% of its industry peers.
• 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.
• The Profit Margin of PPC (5.46%) is better than 69.77% of its industry peers.
• With a decent Operating Margin value of 8.16%, PPC is doing good in the industry, outperforming 68.60% of the companies in the same industry.

Health Assessment of 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 7 out of 10:

• PPC has an Altman-Z score of 3.83. This indicates that PPC is financially healthy and has little risk of bankruptcy at the moment.
• PPC's Altman-Z score of 3.83 is fine compared to the rest of the industry. PPC outperforms 77.91% of its industry peers.
• PPC has a debt to FCF ratio of 2.14. This is a good value and a sign of high solvency as PPC would need 2.14 years to pay back of all of its debts.
• Looking at the Debt to FCF ratio, with a value of 2.14, PPC is in the better half of the industry, outperforming 75.58% 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.
• With a decent Quick ratio value of 1.27, PPC is doing good in the industry, outperforming 70.93% of the companies in the same industry.

A Closer Look at 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 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.
• 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.

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.

Disclaimer

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.