PILGRIM'S PRIDE CORP (PPC)
US72147K1088 - Common Stock
We assign a fundamental rating of 6 out of 10 to PPC. 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings would make PPC suitable 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.
Each year in the past 5 years PPC has been profitable.
PPC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PPC's Return On Assets of 9.21% is amongst the best of the industry. PPC outperforms 89.89% of its industry peers.
PPC has a better Return On Equity (23.43%) than 93.26% of its industry peers.
The Return On Invested Capital of PPC (14.60%) is better than 93.26% of its industry peers.
PPC had an Average Return On Invested Capital over the past 3 years of 7.82%. This is in line with the industry average of 9.03%.
The 3 year average ROIC (7.82%) for PPC is below the current ROIC(14.60%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 5.46%, PPC is in the better half of the industry, outperforming 69.66% of the companies in the same industry.
PPC's Profit Margin has declined in the last couple of years.
The Operating Margin of PPC (8.16%) is better than 71.91% 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 64.04% 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
PPC has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for PPC remains at a similar level compared to 1 year ago.
PPC has less shares outstanding than it did 5 years ago.
The debt/assets ratio for PPC has been reduced compared to a year ago.
2.2 Solvency
PPC has an Altman-Z score of 3.93. This indicates that PPC is financially healthy and has little risk of bankruptcy at the moment.
PPC has a Altman-Z score of 3.93. This is in the better half of the industry: PPC outperforms 78.65% 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.
PPC's Debt to FCF ratio of 2.14 is amongst the best of the industry. PPC outperforms 80.90% of its industry peers.
A Debt/Equity ratio of 0.76 indicates that PPC is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.76, PPC is not doing good in the industry: 61.80% of the companies in the same industry are doing better.
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 | 3.93 |
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 59.55% of the companies in the same industry.
A Quick Ratio of 1.27 indicates that PPC should not have too much problems paying its short term obligations.
PPC's Quick ratio of 1.27 is fine compared to the rest of the industry. PPC outperforms 74.16% 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.
Measured over the past 5 years, PPC shows a small growth in Earnings Per Share. The EPS has been growing by 4.44% on average per year.
The Revenue has been growing slightly by 6.33% in 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.
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 21.55% on average over the next years. This is a very strong growth
Based on estimates for the next years, PPC will show a small growth in Revenue. The Revenue will grow by 2.46% on average per year.
EPS Next Y202.9%
EPS Next 2Y63.93%
EPS Next 3Y34.71%
EPS Next 5Y21.55%
Revenue Next Year4.94%
Revenue Next 2Y3.42%
Revenue Next 3Y2.14%
Revenue Next 5Y2.46%
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 11.27, the valuation of PPC can be described as very reasonable.
Based on the Price/Earnings ratio, PPC is valued cheaper than 83.15% of the companies in the same industry.
PPC is valuated cheaply when we compare the Price/Earnings ratio to 28.65, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 11.57, the valuation of PPC can be described as reasonable.
85.39% of the companies in the same industry are more expensive than PPC, based on the Price/Forward Earnings ratio.
PPC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.50.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.27 | ||
| Fwd PE | 11.57 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PPC is valued cheaply inside the industry as 83.15% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, PPC is valued cheaply inside the industry as 86.52% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.36 | ||
| EV/EBITDA | 7.11 |
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.
The decent profitability rating of PPC may justify a higher PE ratio.
PPC's earnings are expected to grow with 34.71% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.06
PEG (5Y)2.54
EPS Next 2Y63.93%
EPS Next 3Y34.71%
5. Dividend
5.1 Amount
PPC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
PILGRIM'S PRIDE CORP
NASDAQ:PPC (11/19/2024, 12:32:05 PM)
52.5356
+0.84 (+1.62%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap12.46B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.27 | ||
| Fwd PE | 11.57 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.06
PEG (5Y)2.54
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.21% | ||
| ROE | 23.43% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.16% | ||
| PM (TTM) | 5.46% | ||
| GM | 11.54% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.95 | ||
| Quick Ratio | 1.27 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)663.93%
EPS 3Y11.47%
EPS 5Y
EPS Q2Q%
EPS Next Y202.9%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)6.33%
Revenue growth 3Y12.82%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y