PILGRIM'S PRIDE CORP (PPC) Stock Fundamental Analysis
NASDAQ:PPC - Nasdaq - US72147K1088 - Common Stock - Currency: USD
PPC gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 91 industry peers in the Food Products industry. PPC gets an excellent profitability rating and is at the same time showing great financial health properties. PPC may be a bit undervalued, certainly considering the very reasonable score on growth With these ratings, PPC could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
PPC had positive earnings in the past year.
PPC had a positive operating cash flow in the past year.
PPC had positive earnings in each of the past 5 years.
PPC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 10.20%, PPC belongs to the best of the industry, outperforming 90.59% of the companies in the same industry.
Looking at the Return On Equity, with a value of 25.63%, PPC belongs to the top of the industry, outperforming 94.12% of the companies in the same industry.
With an excellent Return On Invested Capital value of 16.32%, PPC belongs to the best of the industry, outperforming 96.47% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for PPC is above the industry average of 9.02%.
The last Return On Invested Capital (16.32%) for PPC is above the 3 year average (12.54%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.2% | ||
| ROE | 25.63% | ||
| ROIC | 16.32% |
ROA(3y)7.18%
ROA(5y)4.63%
ROE(3y)20.51%
ROE(5y)13.29%
ROIC(3y)12.54%
ROIC(5y)8.81%
1.3 Margins
Looking at the Profit Margin, with a value of 6.08%, PPC is in the better half of the industry, outperforming 75.29% of the companies in the same industry.
PPC's Profit Margin has improved in the last couple of years.
The Operating Margin of PPC (8.95%) is better than 69.41% of its industry peers.
PPC's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 12.94%, PPC is doing worse than 64.71% of the companies in the same industry.
PPC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.95% | ||
| PM (TTM) | 6.08% | ||
| GM | 12.94% |
OM growth 3Y82.65%
OM growth 5Y8.11%
PM growth 3Y207.12%
PM growth 5Y8.74%
GM growth 3Y11.86%
GM growth 5Y6.64%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so PPC is creating value.
Compared to 1 year ago, PPC has about the same amount of shares outstanding.
Compared to 5 years ago, PPC has less shares outstanding
PPC has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.03 indicates that PPC is not in any danger for bankruptcy at the moment.
The Altman-Z score of PPC (4.03) is better than 80.00% of its industry peers.
The Debt to FCF ratio of PPC is 2.12, which is a good value as it means it would take PPC, 2.12 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of PPC (2.12) is better than 76.47% of its industry peers.
PPC has a Debt/Equity ratio of 0.76. This is a neutral value indicating PPC is somewhat dependend on debt financing.
The Debt to Equity ratio of PPC (0.76) is worse than 64.71% of its industry peers.
Even though the debt/equity ratio score it not favorable for PPC, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 2.12 | ||
| Altman-Z | 4.03 |
ROIC/WACC2
WACC8.14%
2.3 Liquidity
A Current Ratio of 2.01 indicates that PPC has no problem at all paying its short term obligations.
PPC's Current ratio of 2.01 is in line compared to the rest of the industry. PPC outperforms 56.47% of its industry peers.
A Quick Ratio of 1.31 indicates that PPC should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.31, PPC is in the better half of the industry, outperforming 70.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.01 | ||
| Quick Ratio | 1.31 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 220.71% over the past year.
The Earnings Per Share has been growing by 27.16% on average over the past years. This is a very strong growth
Looking at the last year, PPC shows a small growth in Revenue. The Revenue has grown by 2.97% in the last year.
The Revenue has been growing by 9.40% on average over the past years. This is quite good.
EPS 1Y (TTM)220.71%
EPS 3Y33.46%
EPS 5Y27.16%
EPS Q2Q%128.81%
Revenue 1Y (TTM)2.97%
Revenue growth 3Y6.56%
Revenue growth 5Y9.4%
Sales Q2Q%-3.45%
3.2 Future
Based on estimates for the next years, PPC will show a decrease in Earnings Per Share. The EPS will decrease by -1.92% on average per year.
The Revenue is expected to decrease by -2.22% on average over the next years.
EPS Next Y-12.26%
EPS Next 2Y-12%
EPS Next 3Y-11.02%
EPS Next 5Y-1.92%
Revenue Next Year-0.33%
Revenue Next 2Y0.25%
Revenue Next 3Y0.79%
Revenue Next 5Y-2.22%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 9.80 indicates a reasonable 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 88.24% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 29.63. PPC is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 11.17 indicates a reasonable valuation of PPC.
PPC's Price/Forward Earnings ratio is rather cheap when compared to the industry. PPC is cheaper than 87.06% of the companies in the same industry.
PPC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.8 | ||
| Fwd PE | 11.17 |
4.2 Price Multiples
81.18% 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 cheaper than 83.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.32 | ||
| EV/EBITDA | 6.61 |
4.3 Compensation for Growth
PPC has an outstanding profitability rating, which may justify a higher PE ratio.
PPC's earnings are expected to decrease with -11.02% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.36
EPS Next 2Y-12%
EPS Next 3Y-11.02%
5. Dividend
5.1 Amount
No dividends for PPC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
53.13
+1.29 (+2.49%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners16.53%
Inst Owner Change4.45%
Ins Owners0.04%
Ins Owner Change0%
Market Cap12.60B
Analysts70.91
Price Target48.76 (-8.23%)
Short Float %22.9%
Short Ratio8.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)-53.25%
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)17.51%
Min EPS beat(2)16.95%
Max EPS beat(2)18.08%
EPS beat(4)4
Avg EPS beat(4)20.49%
Min EPS beat(4)16.95%
Max EPS beat(4)27.43%
EPS beat(8)8
Avg EPS beat(8)34.29%
EPS beat(12)11
Avg EPS beat(12)-174.8%
EPS beat(16)14
Avg EPS beat(16)-129.14%
Revenue beat(2)0
Avg Revenue beat(2)-4.14%
Min Revenue beat(2)-5.67%
Max Revenue beat(2)-2.61%
Revenue beat(4)0
Avg Revenue beat(4)-3.39%
Min Revenue beat(4)-5.67%
Max Revenue beat(4)-2.33%
Revenue beat(8)3
Avg Revenue beat(8)-1.68%
Revenue beat(12)6
Avg Revenue beat(12)-0.4%
Revenue beat(16)10
Avg Revenue beat(16)0.76%
PT rev (1m)0%
PT rev (3m)5%
EPS NQ rev (1m)5.01%
EPS NQ rev (3m)5.6%
EPS NY rev (1m)0.07%
EPS NY rev (3m)2.5%
Revenue NQ rev (1m)-0.96%
Revenue NQ rev (3m)-0.96%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.8 | ||
| Fwd PE | 11.17 | ||
| P/S | 0.7 | ||
| P/FCF | 8.32 | ||
| P/OCF | 6.33 | ||
| P/B | 2.97 | ||
| P/tB | 5.74 | ||
| EV/EBITDA | 6.61 |
EPS(TTM)5.42
EY10.2%
EPS(NY)4.76
Fwd EY8.95%
FCF(TTM)6.38
FCFY12.02%
OCF(TTM)8.39
OCFY15.8%
SpS75.4
BVpS17.88
TBVpS9.25
PEG (NY)N/A
PEG (5Y)0.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.2% | ||
| ROE | 25.63% | ||
| ROCE | 19.75% | ||
| ROIC | 16.32% | ||
| ROICexc | 21.85% | ||
| ROICexgc | 33.02% | ||
| OM | 8.95% | ||
| PM (TTM) | 6.08% | ||
| GM | 12.94% | ||
| FCFM | 8.47% |
ROA(3y)7.18%
ROA(5y)4.63%
ROE(3y)20.51%
ROE(5y)13.29%
ROIC(3y)12.54%
ROIC(5y)8.81%
ROICexc(3y)14.93%
ROICexc(5y)10.36%
ROICexgc(3y)22.39%
ROICexgc(5y)15.57%
ROCE(3y)15.18%
ROCE(5y)10.66%
ROICexcg growth 3Y91.19%
ROICexcg growth 5Y15.95%
ROICexc growth 3Y95.13%
ROICexc growth 5Y14.73%
OM growth 3Y82.65%
OM growth 5Y8.11%
PM growth 3Y207.12%
PM growth 5Y8.74%
GM growth 3Y11.86%
GM growth 5Y6.64%
F-Score7
Asset Turnover1.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 2.12 | ||
| Debt/EBITDA | 1.58 | ||
| Cap/Depr | 109.81% | ||
| Cap/Sales | 2.66% | ||
| Interest Coverage | 8.79 | ||
| Cash Conversion | 97.89% | ||
| Profit Quality | 139.35% | ||
| Current Ratio | 2.01 | ||
| Quick Ratio | 1.31 | ||
| Altman-Z | 4.03 |
F-Score7
WACC8.14%
ROIC/WACC2
Cap/Depr(3y)120.05%
Cap/Depr(5y)113.13%
Cap/Sales(3y)2.86%
Cap/Sales(5y)2.82%
Profit Quality(3y)68.51%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)220.71%
EPS 3Y33.46%
EPS 5Y27.16%
EPS Q2Q%128.81%
EPS Next Y-12.26%
EPS Next 2Y-12%
EPS Next 3Y-11.02%
EPS Next 5Y-1.92%
Revenue 1Y (TTM)2.97%
Revenue growth 3Y6.56%
Revenue growth 5Y9.4%
Sales Q2Q%-3.45%
Revenue Next Year-0.33%
Revenue Next 2Y0.25%
Revenue Next 3Y0.79%
Revenue Next 5Y-2.22%
EBIT growth 1Y182.28%
EBIT growth 3Y94.62%
EBIT growth 5Y18.28%
EBIT Next Year11.03%
EBIT Next 3Y-2.84%
EBIT Next 5Y-0.6%
FCF growth 1Y1029.32%
FCF growth 3YN/A
FCF growth 5Y36.59%
OCF growth 1Y193.58%
OCF growth 3Y82.68%
OCF growth 5Y24.46%