PILGRIM'S PRIDE CORP (PPC) Stock Fundamental Analysis
USA - NASDAQ:PPC - US72147K1088 - Common Stock
37.05 USD
+0.44 (+1.2%)
37.05 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to PPC. PPC was compared to 87 industry peers in the Food Products industry. While PPC has a great profitability rating, there are some minor concerns on its financial health. 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
PPC had positive earnings in the past year.
PPC had a positive operating cash flow in the past year.
In the past 5 years PPC has always been profitable.
In the past 5 years PPC always reported a positive cash flow from operatings.
1.2 Ratios
PPC's Return On Assets of 12.36% is amongst the best of the industry. PPC outperforms 96.55% of its industry peers.
Looking at the Return On Equity, with a value of 34.73%, PPC belongs to the top of the industry, outperforming 98.85% of the companies in the same industry.
PPC has a better Return On Invested Capital (19.90%) than 96.55% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PPC is significantly below the industry average of 28.25%.
The 3 year average ROIC (12.54%) for PPC is below the current ROIC(19.90%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.36% | ||
| ROE | 34.73% | ||
| ROIC | 19.9% |
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
The Profit Margin of PPC (6.70%) is better than 78.16% of its industry peers.
In the last couple of years the Profit Margin of PPC has grown nicely.
PPC has a Operating Margin of 9.53%. This is in the better half of the industry: PPC outperforms 72.41% of its industry peers.
PPC's Operating Margin has improved in the last couple of years.
PPC has a Gross Margin (13.53%) which is in line with its industry peers.
In the last couple of years the Gross Margin of PPC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.53% | ||
| PM (TTM) | 6.7% | ||
| GM | 13.53% |
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
PPC has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
PPC has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, PPC has less shares outstanding
PPC has a better debt/assets ratio than last year.
2.2 Solvency
PPC has an Altman-Z score of 3.71. This indicates that PPC is financially healthy and has little risk of bankruptcy at the moment.
PPC's Altman-Z score of 3.71 is fine compared to the rest of the industry. PPC outperforms 79.31% of its industry peers.
PPC has a debt to FCF ratio of 3.73. This is a good value and a sign of high solvency as PPC would need 3.73 years to pay back of all of its debts.
The Debt to FCF ratio of PPC (3.73) is better than 80.46% of its industry peers.
PPC has a Debt/Equity ratio of 0.87. This is a neutral value indicating PPC is somewhat dependend on debt financing.
PPC's Debt to Equity ratio of 0.87 is on the low side compared to the rest of the industry. PPC is outperformed by 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 3.73 | ||
| Altman-Z | 3.71 |
ROIC/WACC2.61
WACC7.62%
2.3 Liquidity
A Current Ratio of 1.51 indicates that PPC should not have too much problems paying its short term obligations.
The Current ratio of PPC (1.51) is comparable to the rest of the industry.
PPC has a Quick Ratio of 1.51. This is a bad value and indicates that PPC is not financially healthy enough and could expect problems in meeting its short term obligations.
PPC has a Quick ratio of 0.78. This is comparable to the rest of the industry: PPC outperforms 40.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.51 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
PPC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 26.18%, which is quite impressive.
Measured over the past years, PPC shows a very strong growth in Earnings Per Share. The EPS has been growing by 27.16% on average per year.
PPC shows a small growth in Revenue. In the last year, the Revenue has grown by 1.76%.
The Revenue has been growing by 9.40% on average over the past years. This is quite good.
EPS 1Y (TTM)26.18%
EPS 3Y33.46%
EPS 5Y27.16%
EPS Q2Q%-6.75%
Revenue 1Y (TTM)1.76%
Revenue growth 3Y6.56%
Revenue growth 5Y9.4%
Sales Q2Q%3.8%
3.2 Future
The Earnings Per Share is expected to decrease by -4.42% on average over the next years.
Based on estimates for the next years, PPC will show a small growth in Revenue. The Revenue will grow by 1.59% on average per year.
EPS Next Y0.47%
EPS Next 2Y-10.28%
EPS Next 3Y-10.05%
EPS Next 5Y-4.42%
Revenue Next Year1.8%
Revenue Next 2Y1.15%
Revenue Next 3Y1.74%
Revenue Next 5Y1.59%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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 6.30, the valuation of PPC can be described as very cheap.
PPC's Price/Earnings ratio is rather cheap when compared to the industry. PPC is cheaper than 94.25% of the companies in the same industry.
PPC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.83.
PPC is valuated reasonably with a Price/Forward Earnings ratio of 8.49.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PPC indicates a rather cheap valuation: PPC is cheaper than 97.70% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 32.68. PPC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.3 | ||
| Fwd PE | 8.49 |
4.2 Price Multiples
85.06% 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 81.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.61 | ||
| EV/EBITDA | 5.09 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of PPC may justify a higher PE ratio.
A cheap valuation may be justified as PPC's earnings are expected to decrease with -10.05% in the coming years.
PEG (NY)13.35
PEG (5Y)0.23
EPS Next 2Y-10.28%
EPS Next 3Y-10.05%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 22.67%, PPC is a good candidate for dividend investing.
The stock price of PPC dropped by -25.84% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
PPC's Dividend Yield is rather good when compared to the industry average which is at 5.18. PPC pays more dividend than 100.00% of the companies in the same industry.
PPC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 22.67% |
5.2 History
PPC is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y-10.28%
EPS Next 3Y-10.05%
37.05
+0.44 (+1.2%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners21.29%
Inst Owner Change-1.64%
Ins Owners0.07%
Ins Owner Change-0.04%
Market Cap8.80B
Revenue(TTM)18.35B
Net Income(TTM)1.23B
Analysts69.23
Price Target48.34 (30.47%)
Short Float %25.06%
Short Ratio6.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 22.67% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.19%
Min EPS beat(2)6.7%
Max EPS beat(2)7.69%
EPS beat(4)3
Avg EPS beat(4)7.4%
Min EPS beat(4)-2.87%
Max EPS beat(4)18.08%
EPS beat(8)7
Avg EPS beat(8)17.44%
EPS beat(12)10
Avg EPS beat(12)-186.66%
EPS beat(16)14
Avg EPS beat(16)-130.23%
Revenue beat(2)2
Avg Revenue beat(2)1.01%
Min Revenue beat(2)0.28%
Max Revenue beat(2)1.74%
Revenue beat(4)2
Avg Revenue beat(4)-1.31%
Min Revenue beat(4)-5.67%
Max Revenue beat(4)1.74%
Revenue beat(8)3
Avg Revenue beat(8)-1.62%
Revenue beat(12)6
Avg Revenue beat(12)-1.02%
Revenue beat(16)9
Avg Revenue beat(16)0.03%
PT rev (1m)-3.32%
PT rev (3m)-2.82%
EPS NQ rev (1m)-4.77%
EPS NQ rev (3m)-6.05%
EPS NY rev (1m)-2.16%
EPS NY rev (3m)-2.06%
Revenue NQ rev (1m)0.98%
Revenue NQ rev (3m)1.8%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)0.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.3 | ||
| Fwd PE | 8.49 | ||
| P/S | 0.48 | ||
| P/FCF | 10.61 | ||
| P/OCF | 6.16 | ||
| P/B | 2.48 | ||
| P/tB | 6.38 | ||
| EV/EBITDA | 5.09 |
EPS(TTM)5.88
EY15.87%
EPS(NY)4.36
Fwd EY11.78%
FCF(TTM)3.49
FCFY9.42%
OCF(TTM)6.02
OCFY16.25%
SpS77.25
BVpS14.91
TBVpS5.81
PEG (NY)13.35
PEG (5Y)0.23
Graham Number44.41
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.36% | ||
| ROE | 34.73% | ||
| ROCE | 24.08% | ||
| ROIC | 19.9% | ||
| ROICexc | 21.73% | ||
| ROICexgc | 32.2% | ||
| OM | 9.53% | ||
| PM (TTM) | 6.7% | ||
| GM | 13.53% | ||
| FCFM | 4.52% |
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%
ROICexgc growth 3Y91.19%
ROICexgc 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-Score6
Asset Turnover1.84
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 3.73 | ||
| Debt/EBITDA | 1.41 | ||
| Cap/Depr | 134.52% | ||
| Cap/Sales | 3.27% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 65.12% | ||
| Profit Quality | 67.42% | ||
| Current Ratio | 1.51 | ||
| Quick Ratio | 0.78 | ||
| Altman-Z | 3.71 |
F-Score6
WACC7.62%
ROIC/WACC2.61
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)26.18%
EPS 3Y33.46%
EPS 5Y27.16%
EPS Q2Q%-6.75%
EPS Next Y0.47%
EPS Next 2Y-10.28%
EPS Next 3Y-10.05%
EPS Next 5Y-4.42%
Revenue 1Y (TTM)1.76%
Revenue growth 3Y6.56%
Revenue growth 5Y9.4%
Sales Q2Q%3.8%
Revenue Next Year1.8%
Revenue Next 2Y1.15%
Revenue Next 3Y1.74%
Revenue Next 5Y1.59%
EBIT growth 1Y18.88%
EBIT growth 3Y94.62%
EBIT growth 5Y18.28%
EBIT Next Year31.68%
EBIT Next 3Y3.3%
EBIT Next 5Y0.11%
FCF growth 1Y378.32%
FCF growth 3YN/A
FCF growth 5Y36.59%
OCF growth 1Y412.74%
OCF growth 3Y82.68%
OCF growth 5Y24.46%
PILGRIM'S PRIDE CORP / PPC FAQ
What is the ChartMill fundamental rating of PILGRIM'S PRIDE CORP (PPC) stock?
ChartMill assigns a fundamental rating of 7 / 10 to PPC.
Can you provide the valuation status for PILGRIM'S PRIDE CORP?
ChartMill assigns a valuation rating of 8 / 10 to PILGRIM'S PRIDE CORP (PPC). This can be considered as Undervalued.
How profitable is PILGRIM'S PRIDE CORP (PPC) stock?
PILGRIM'S PRIDE CORP (PPC) has a profitability rating of 8 / 10.
How financially healthy is PILGRIM'S PRIDE CORP?
The financial health rating of PILGRIM'S PRIDE CORP (PPC) is 6 / 10.
Can you provide the expected EPS growth for PPC stock?
The Earnings per Share (EPS) of PILGRIM'S PRIDE CORP (PPC) is expected to grow by 0.47% in the next year.