PILGRIM'S PRIDE CORP (PPC) Stock Fundamental Analysis
NASDAQ:PPC - Nasdaq - US72147K1088 - Common Stock
We assign a fundamental rating of 6 out of 10 to PPC. PPC was compared to 91 industry peers in the Food Products industry. While PPC has a great health rating, its profitability is only average at the moment. PPC is valued quite cheap, while showing a decent growth score. This is a good combination! 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.
Each year in the past 5 years PPC has been profitable.
In the past 5 years PPC always reported a positive cash flow from operatings.
1.2 Ratios
PPC has a Return On Assets of 9.21%. This is amongst the best in the industry. PPC outperforms 89.53% of its industry peers.
Looking at the Return On Equity, with a value of 23.43%, PPC belongs to the top of the industry, outperforming 94.19% of the companies in the same industry.
With an excellent Return On Invested Capital value of 14.60%, PPC belongs to the best of the industry, outperforming 91.86% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for PPC is in line with the industry average of 9.02%.
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
PPC's Profit Margin of 5.46% is fine compared to the rest of the industry. PPC outperforms 69.77% of its industry peers.
In the last couple of years the Profit Margin of PPC has declined.
PPC has a better Operating Margin (8.16%) than 68.60% of its industry peers.
In the last couple of years the Operating Margin of PPC has declined.
The Gross Margin of PPC (11.54%) is worse than 68.60% 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.
The number of shares outstanding for PPC has been reduced compared to 5 years ago.
The debt/assets ratio for PPC has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.77 indicates that PPC is not in any danger for bankruptcy at the moment.
PPC's Altman-Z score of 3.77 is fine compared to the rest of the industry. PPC outperforms 77.91% 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 has a Debt to FCF ratio of 2.14. This is in the better half of the industry: PPC outperforms 75.58% of its industry peers.
A Debt/Equity ratio of 0.76 indicates that PPC is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.76, PPC is doing worse than 63.95% 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 2.14 | ||
| Altman-Z | 3.77 |
ROIC/WACC1.87
WACC7.83%
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.
PPC's Current ratio of 1.95 is in line compared to the rest of the industry. PPC outperforms 56.98% of its industry peers.
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 better Quick ratio (1.27) than 70.93% 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.
Looking at the last year, PPC shows a small growth in Revenue. The Revenue has grown by 6.33% in the last year.
Measured over the past years, PPC shows a quite strong growth in Revenue. The Revenue has been growing by 9.68% on average per year.
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
Based on estimates for the next years, PPC will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.07% on average per year.
Based on estimates for the next years, PPC will show a small growth in Revenue. The Revenue will grow by 1.77% on average per year.
EPS Next Y210.26%
EPS Next 2Y61.26%
EPS Next 3Y30.1%
EPS Next 5Y17.07%
Revenue Next Year4.85%
Revenue Next 2Y3.36%
Revenue Next 3Y2.04%
Revenue Next 5Y1.77%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 9.55, the valuation of PPC can be described as very reasonable.
88.37% of the companies in the same industry are more expensive than PPC, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of PPC to the average of the S&P500 Index (28.29), we can say PPC is valued rather cheaply.
The Price/Forward Earnings ratio is 10.13, which indicates a very decent valuation of PPC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PPC indicates a rather cheap valuation: PPC is cheaper than 88.37% of the companies listed in the same industry.
PPC is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.55 | ||
| Fwd PE | 10.13 |
4.2 Price Multiples
PPC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. PPC is cheaper than 82.56% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, PPC is valued cheaply inside the industry as 84.88% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.08 | ||
| EV/EBITDA | 6.21 |
4.3 Compensation for Growth
The 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 30.10% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.05
PEG (5Y)2.15
EPS Next 2Y61.26%
EPS Next 3Y30.1%
5. Dividend
5.1 Amount
No dividends for PPC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
PILGRIM'S PRIDE CORP
NASDAQ:PPC (1/21/2025, 8:21:21 PM)
After market: 44.99 +0.47 (+1.06%)44.52
-0.78 (-1.72%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners16.53%
Inst Owner Change-0.25%
Ins Owners0.04%
Ins Owner Change-0.04%
Market Cap10.56B
Analysts70.91
Price Target47.12 (5.84%)
Short Float %19.15%
Short Ratio7.65
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)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)0%
PT rev (3m)4.52%
EPS NQ rev (1m)0%
EPS NQ rev (3m)51.83%
EPS NY rev (1m)0%
EPS NY rev (3m)15.07%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.87%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.55 | ||
| Fwd PE | 10.13 | ||
| P/S | 0.59 | ||
| P/FCF | 7.08 | ||
| P/OCF | 5.5 | ||
| P/B | 2.51 | ||
| P/tB | 5.2 | ||
| EV/EBITDA | 6.21 |
EPS(TTM)4.66
EY10.47%
EPS(NY)4.39
Fwd EY9.87%
FCF(TTM)6.29
FCFY14.12%
OCF(TTM)8.09
OCFY18.18%
SpS76.06
BVpS17.73
TBVpS8.56
PEG (NY)0.05
PEG (5Y)2.15
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 | 3.77 |
F-Score7
WACC7.83%
ROIC/WACC1.87
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 Y210.26%
EPS Next 2Y61.26%
EPS Next 3Y30.1%
EPS Next 5Y17.07%
Revenue 1Y (TTM)6.33%
Revenue growth 3Y12.82%
Revenue growth 5Y9.68%
Sales Q2Q%5.16%
Revenue Next Year4.85%
Revenue Next 2Y3.36%
Revenue Next 3Y2.04%
Revenue Next 5Y1.77%
EBIT growth 1Y346.42%
EBIT growth 3Y32.24%
EBIT growth 5Y2.49%
EBIT Next Year288.91%
EBIT Next 3Y42.4%
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%