PILGRIM'S PRIDE CORP (PPC)
US72147K1088 - Common Stock
Taking everything into account, PPC scores 6 out of 10 in our fundamental rating. PPC was compared to 90 industry peers in the Food Products industry. PPC has an excellent financial health rating, but there are some minor concerns on its profitability. PPC may be a bit undervalued, certainly considering the very reasonable score on growth These ratings could make PPC a good candidate for value investing.
1. Profitability
1.1 Basic Checks
In the past year PPC was profitable.
In the past year PPC had a positive cash flow from operations.
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
PPC has a Return On Assets of 9.21%. This is amongst the best in the industry. PPC outperforms 90.00% of its industry peers.
PPC's Return On Equity of 23.43% is amongst the best of the industry. PPC outperforms 94.44% of its industry peers.
PPC has a Return On Invested Capital of 14.60%. This is amongst the best in the industry. PPC outperforms 93.33% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PPC is in line with the industry average of 8.88%.
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.21% | ||
| ROE | 23.43% | ||
| ROIC | 14.6% |
ROA(3y)3.89%
ROA(5y)3.88%
ROE(3y)12.37%
ROE(5y)11.77%
ROIC(3y)7.82%
ROIC(5y)7.44%
1.3 Margins
The Profit Margin of PPC (5.46%) is better than 71.11% of its industry peers.
PPC's Profit Margin has declined in the last couple of years.
PPC's Operating Margin of 8.16% is fine compared to the rest of the industry. PPC outperforms 70.00% of its industry peers.
PPC's Operating Margin has declined in the last couple of years.
PPC's Gross Margin of 11.54% is on the low side compared to the rest of the industry. PPC is outperformed by 65.56% of its industry peers.
In the last couple of years the Gross Margin of PPC has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.16% | ||
| PM (TTM) | 5.46% | ||
| GM | 11.54% |
OM growth 3Y17.22%
OM growth 5Y-6.55%
PM growth 3Y33.09%
PM growth 5Y-3.96%
GM growth 3Y-2.41%
GM growth 5Y-3.52%
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.
PPC has less shares outstanding than it did 5 years ago.
PPC has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.84 indicates that PPC is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.84, PPC is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
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.
PPC has a Debt to FCF ratio of 2.14. This is in the better half of the industry: PPC outperforms 77.78% of its industry peers.
A Debt/Equity ratio of 0.76 indicates that PPC is somewhat dependend on debt financing.
PPC has a worse Debt to Equity ratio (0.76) than 62.22% 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 | 2.14 | ||
| Altman-Z | 3.84 |
ROIC/WACC1.86
WACC7.84%
2.3 Liquidity
PPC has a Current Ratio of 1.95. This is a normal value and indicates that PPC is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.95, PPC is in line with its industry, outperforming 58.89% of the companies in the same industry.
PPC has a Quick Ratio of 1.27. This is a normal value and indicates that PPC is financially healthy and should not expect problems in meeting its short term obligations.
PPC has a Quick ratio of 1.27. This is in the better half of the industry: PPC outperforms 71.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.95 | ||
| Quick Ratio | 1.27 |
3. Growth
3.1 Past
PPC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 663.93%, which is quite impressive.
PPC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.44% yearly.
PPC shows a small growth in Revenue. In the last year, the Revenue has grown by 6.33%.
The Revenue has been growing by 9.68% on average over the past years. This is quite good.
EPS 1Y (TTM)663.93%
EPS 3Y11.47%
EPS 5Y4.44%
EPS Q2Q%181.03%
Revenue 1Y (TTM)6.33%
Revenue growth 3Y12.82%
Revenue growth 5Y9.68%
Sales Q2Q%5.16%
3.2 Future
The Earnings Per Share is expected to grow by 17.07% on average over the next years. This is quite good.
The Revenue is expected to grow by 1.77% on average over the next years.
EPS Next Y203.2%
EPS Next 2Y60.96%
EPS Next 3Y34.71%
EPS Next 5Y17.07%
Revenue Next Year4.94%
Revenue Next 2Y3.42%
Revenue Next 3Y2.14%
Revenue Next 5Y1.77%
3.3 Evolution
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.
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
With a Price/Earnings ratio of 9.91, the valuation of PPC can be described as very reasonable.
87.78% of the companies in the same industry are more expensive than PPC, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.73. PPC is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 10.54, which indicates a very decent valuation of PPC.
90.00% of the companies in the same industry are more expensive than PPC, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.83, PPC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.91 | ||
| Fwd PE | 10.54 |
4.2 Price Multiples
82.22% 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 cheaply inside the industry as 85.56% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.34 | ||
| EV/EBITDA | 6.59 |
4.3 Compensation for Growth
PPC's 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.
PEG (NY)0.05
PEG (5Y)2.23
EPS Next 2Y60.96%
EPS Next 3Y34.71%
5. Dividend
5.1 Amount
No dividends for PPC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
PILGRIM'S PRIDE CORP
NASDAQ:PPC (12/20/2024, 8:00:00 PM)
After market: 46.16 0 (0%)46.16
-1.37 (-2.88%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners16.53%
Inst Owner Change22.73%
Ins Owners0.04%
Ins Owner Change-0.04%
Market Cap10.95B
Analysts70.91
Price Target47.12 (2.08%)
Short Float %16.2%
Short Ratio6.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)22.19%
Min EPS beat(2)16.95%
Max EPS beat(2)27.43%
EPS beat(4)4
Avg EPS beat(4)27.48%
Min EPS beat(4)16.95%
Max EPS beat(4)46.04%
EPS beat(8)7
Avg EPS beat(8)-283.68%
EPS beat(12)11
Avg EPS beat(12)-176.11%
EPS beat(16)13
Avg EPS beat(16)-131.83%
Revenue beat(2)0
Avg Revenue beat(2)-2.47%
Min Revenue beat(2)-2.61%
Max Revenue beat(2)-2.33%
Revenue beat(4)1
Avg Revenue beat(4)-1.92%
Min Revenue beat(4)-2.94%
Max Revenue beat(4)0.18%
Revenue beat(8)4
Avg Revenue beat(8)-0.87%
Revenue beat(12)7
Avg Revenue beat(12)0.48%
Revenue beat(16)10
Avg Revenue beat(16)0.73%
PT rev (1m)5%
PT rev (3m)5.48%
EPS NQ rev (1m)0.56%
EPS NQ rev (3m)51.83%
EPS NY rev (1m)0.1%
EPS NY rev (3m)12.45%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.87%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.91 | ||
| Fwd PE | 10.54 | ||
| P/S | 0.61 | ||
| P/FCF | 7.34 | ||
| P/OCF | 5.7 | ||
| P/B | 2.6 | ||
| P/tB | 5.39 | ||
| EV/EBITDA | 6.59 |
EPS(TTM)4.66
EY10.1%
EPS(NY)4.38
Fwd EY9.49%
FCF(TTM)6.29
FCFY13.62%
OCF(TTM)8.09
OCFY17.53%
SpS76.06
BVpS17.73
TBVpS8.56
PEG (NY)0.05
PEG (5Y)2.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.21% | ||
| ROE | 23.43% | ||
| ROCE | 18.14% | ||
| ROIC | 14.6% | ||
| ROICexc | 19.03% | ||
| ROICexgc | 29.26% | ||
| OM | 8.16% | ||
| PM (TTM) | 5.46% | ||
| GM | 11.54% | ||
| FCFM | 8.27% |
ROA(3y)3.89%
ROA(5y)3.88%
ROE(3y)12.37%
ROE(5y)11.77%
ROIC(3y)7.82%
ROIC(5y)7.44%
ROICexc(3y)8.41%
ROICexc(5y)7.98%
ROICexgc(3y)12.63%
ROICexgc(5y)11.81%
ROCE(3y)9.71%
ROCE(5y)9.24%
ROICexcg growth 3Y20.59%
ROICexcg growth 5Y-6.8%
ROICexc growth 3Y20.37%
ROICexc growth 5Y-5.99%
OM growth 3Y17.22%
OM growth 5Y-6.55%
PM growth 3Y33.09%
PM growth 5Y-3.96%
GM growth 3Y-2.41%
GM growth 5Y-3.52%
F-Score7
Asset Turnover1.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 2.14 | ||
| Debt/EBITDA | 1.67 | ||
| Cap/Depr | 98.66% | ||
| Cap/Sales | 2.38% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 100.7% | ||
| Profit Quality | 151.3% | ||
| Current Ratio | 1.95 | ||
| Quick Ratio | 1.27 | ||
| Altman-Z | 3.84 |
F-Score7
WACC7.84%
ROIC/WACC1.86
Cap/Depr(3y)116.86%
Cap/Depr(5y)115.41%
Cap/Sales(3y)2.83%
Cap/Sales(5y)2.9%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)663.93%
EPS 3Y11.47%
EPS 5Y4.44%
EPS Q2Q%181.03%
EPS Next Y203.2%
EPS Next 2Y60.96%
EPS Next 3Y34.71%
EPS Next 5Y17.07%
Revenue 1Y (TTM)6.33%
Revenue growth 3Y12.82%
Revenue growth 5Y9.68%
Sales Q2Q%5.16%
Revenue Next Year4.94%
Revenue Next 2Y3.42%
Revenue Next 3Y2.14%
Revenue Next 5Y1.77%
EBIT growth 1Y346.42%
EBIT growth 3Y32.24%
EBIT growth 5Y2.49%
EBIT Next Year282.15%
EBIT Next 3Y47.79%
EBIT Next 5Y21.07%
FCF growth 1Y330.65%
FCF growth 3Y-28.67%
FCF growth 5Y-1.28%
OCF growth 1Y143.05%
OCF growth 3Y-2.18%
OCF growth 5Y6.63%