PILGRIM'S PRIDE CORP (PPC) Stock Fundamental Analysis
USA - NASDAQ:PPC - US72147K1088 - Common Stock
36.96 USD
-0.29 (-0.78%)
36.96 USD
0 (0%)
PPC gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 87 industry peers in the Food Products industry. PPC scores excellent on profitability, but there are some minor concerns on its financial health. PPC is valued quite cheap, while showing a decent growth score. This is a good 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.
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
The Return On Assets of PPC (12.36%) is better than 96.55% of its industry peers.
PPC's Return On Equity of 34.73% is amongst the best of the industry. PPC outperforms 98.85% of its industry peers.
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 last Return On Invested Capital (19.90%) for PPC is above the 3 year average (12.54%), which is a sign of increasing profitability.
| 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
With a decent Profit Margin value of 6.70%, PPC is doing good in the industry, outperforming 78.16% of the companies in the same industry.
PPC's Profit Margin has improved in the last couple of years.
The Operating Margin of PPC (9.53%) is better than 72.41% of its industry peers.
In the last couple of years the Operating Margin of PPC has grown nicely.
With a Gross Margin value of 13.53%, PPC perfoms like the industry average, outperforming 40.23% of the companies in the same industry.
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
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
The debt/assets ratio for PPC has been reduced compared to a year ago.
2.2 Solvency
PPC has an Altman-Z score of 3.72. This indicates that PPC is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.72, PPC is doing good in the industry, outperforming 79.31% of the companies in the same industry.
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.
PPC has a Debt to FCF ratio of 3.73. This is amongst the best in the industry. PPC outperforms 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 has a Debt to Equity ratio of 0.87. This is in the lower half of the industry: PPC underperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 3.73 | ||
| Altman-Z | 3.72 |
ROIC/WACC2.61
WACC7.61%
2.3 Liquidity
PPC has a Current Ratio of 1.51. 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 1.51 is in line compared to the rest of the industry. PPC outperforms 51.72% of its industry peers.
A Quick Ratio of 0.78 indicates that PPC may have some problems paying its short term obligations.
The Quick ratio of PPC (0.78) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.51 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 26.18% over the past year.
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.
The Revenue has been growing slightly by 1.76% in the past year.
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.
The Revenue is expected to grow by 1.59% on average over the next years.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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 6.29 indicates a rather cheap 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 94.25% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.13. PPC is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 8.47 indicates a reasonable 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 95.40% of the companies listed in the same industry.
PPC is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.35, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.29 | ||
| Fwd PE | 8.47 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PPC is valued cheaply inside the industry as 85.06% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PPC indicates a rather cheap valuation: PPC is cheaper than 80.46% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.59 | ||
| EV/EBITDA | 5.16 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates PPC does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of PPC may justify a higher PE ratio.
PPC's earnings are expected to decrease with -10.05% in the coming years. This may justify a cheaper valuation.
PEG (NY)13.31
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 22.55%, PPC is a good candidate for dividend investing.
The stock price of PPC dropped by -26.02% 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.
Compared to an average industry Dividend Yield of 5.27, PPC pays a better dividend. On top of this PPC pays more dividend than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, PPC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 22.55% |
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%
36.96
-0.29 (-0.78%)
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 Cap8.78B
Revenue(TTM)18.35B
Net Income(TTM)1.23B
Analysts69.23
Price Target48.34 (30.79%)
Short Float %25.06%
Short Ratio6.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 22.55% |
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 | 6.29 | ||
| Fwd PE | 8.47 | ||
| P/S | 0.48 | ||
| P/FCF | 10.59 | ||
| P/OCF | 6.14 | ||
| P/B | 2.48 | ||
| P/tB | 6.37 | ||
| EV/EBITDA | 5.16 |
EPS(TTM)5.88
EY15.91%
EPS(NY)4.36
Fwd EY11.81%
FCF(TTM)3.49
FCFY9.45%
OCF(TTM)6.02
OCFY16.28%
SpS77.25
BVpS14.91
TBVpS5.81
PEG (NY)13.31
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 | 3.72 |
F-Score6
WACC7.61%
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.