PILGRIM'S PRIDE CORP (PPC) Stock Fundamental Analysis
NASDAQ:PPC - Nasdaq - US72147K1088 - Common Stock - Currency: USD
Taking everything into account, PPC scores 7 out of 10 in our fundamental rating. PPC was compared to 89 industry peers in the Food Products industry. PPC scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 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 and quality investing.
1. Profitability
1.1 Basic Checks
PPC had positive earnings in the past year.
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 has a better Return On Assets (10.20%) than 92.13% of its industry peers.
Looking at the Return On Equity, with a value of 25.63%, PPC belongs to the top of the industry, outperforming 94.38% of the companies in the same industry.
PPC has a better Return On Invested Capital (16.32%) than 95.51% of its industry peers.
PPC had an Average Return On Invested Capital over the past 3 years of 12.54%. This is above the industry average of 9.00%.
The 3 year average ROIC (12.54%) for PPC is below the current ROIC(16.32%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.2% | ||
| ROE | 25.63% | ||
| ROIC | 16.32% |
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 6.08%, PPC is doing good in the industry, outperforming 76.40% of the companies in the same industry.
PPC's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 8.95%, PPC is doing good in the industry, outperforming 73.03% of the companies in the same industry.
PPC's Operating Margin has improved in the last couple of years.
PPC's Gross Margin of 12.94% is on the low side compared to the rest of the industry. PPC is outperformed by 62.92% of its industry peers.
PPC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.95% | ||
| PM (TTM) | 6.08% | ||
| GM | 12.94% |
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.
PPC has about the same amout of shares outstanding than it did 1 year ago.
PPC has less shares outstanding than it did 5 years ago.
PPC has a better debt/assets ratio than last year.
2.2 Solvency
PPC has an Altman-Z score of 4.09. This indicates that PPC is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of PPC (4.09) is better than 79.78% of its industry peers.
PPC has a debt to FCF ratio of 2.12. This is a good value and a sign of high solvency as PPC would need 2.12 years to pay back of all of its debts.
The Debt to FCF ratio of PPC (2.12) is better than 80.90% of its industry peers.
PPC has a Debt/Equity ratio of 0.76. This is a neutral value indicating PPC is somewhat dependend on debt financing.
PPC's Debt to Equity ratio of 0.76 is on the low side compared to the rest of the industry. PPC is outperformed by 64.04% of its industry peers.
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 | 2.12 | ||
| Altman-Z | 4.09 |
ROIC/WACC2.04
WACC7.98%
2.3 Liquidity
A Current Ratio of 2.01 indicates that PPC has no problem at all paying its short term obligations.
PPC has a Current ratio of 2.01. This is in the better half of the industry: PPC outperforms 61.80% of its industry peers.
PPC has a Quick Ratio of 1.31. 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 1.31. This is in the better half of the industry: PPC outperforms 73.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.01 | ||
| Quick Ratio | 1.31 |
3. Growth
3.1 Past
PPC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 150.42%, which is quite impressive.
The Earnings Per Share has been growing by 27.16% on average over the past years. This is a very strong growth
The Revenue has been growing slightly by 2.97% 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)150.42%
EPS 3Y33.46%
EPS 5Y27.16%
EPS Q2Q%70.13%
Revenue 1Y (TTM)2.97%
Revenue growth 3Y6.56%
Revenue growth 5Y9.4%
Sales Q2Q%2.32%
3.2 Future
PPC is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -5.10% yearly.
PPC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.13% yearly.
EPS Next Y-3.91%
EPS Next 2Y-8.22%
EPS Next 3Y-10.4%
EPS Next 5Y-5.1%
Revenue Next Year0.26%
Revenue Next 2Y0.82%
Revenue Next 3Y1.51%
Revenue Next 5Y1.13%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
PPC is valuated reasonably with a Price/Earnings ratio of 9.16.
Based on the Price/Earnings ratio, PPC is valued cheaper than 87.64% of the companies in the same industry.
PPC is valuated cheaply when we compare the Price/Earnings ratio to 28.88, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 11.96, the valuation of PPC can be described as reasonable.
Based on the Price/Forward Earnings ratio, PPC is valued cheaper than 80.90% of the companies in the same industry.
PPC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.20, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.16 | ||
| Fwd PE | 11.96 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PPC is valued cheaply inside the industry as 80.90% 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 83.15% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.56 | ||
| EV/EBITDA | 6.94 |
4.3 Compensation for Growth
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 -10.40% in the coming years.
PEG (NY)N/A
PEG (5Y)0.34
EPS Next 2Y-8.22%
EPS Next 3Y-10.4%
5. Dividend
5.1 Amount
PPC has a Yearly Dividend Yield of 11.54%, which is a nice return.
Compared to an average industry Dividend Yield of 4.33, PPC pays a better dividend. On top of this PPC pays more dividend than 98.88% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.45, PPC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.54% |
5.2 History
PPC does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DP0%
EPS Next 2Y-8.22%
EPS Next 3Y-10.4%
54.58
+0.6 (+1.11%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners21.1%
Inst Owner Change0.15%
Ins Owners0.05%
Ins Owner Change0%
Market Cap12.96B
Analysts70
Price Target51.85 (-5%)
Short Float %16.49%
Short Ratio4.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.54% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)17.51%
Min EPS beat(2)16.95%
Max EPS beat(2)18.08%
EPS beat(4)4
Avg EPS beat(4)20.49%
Min EPS beat(4)16.95%
Max EPS beat(4)27.43%
EPS beat(8)8
Avg EPS beat(8)34.29%
EPS beat(12)11
Avg EPS beat(12)-174.8%
EPS beat(16)14
Avg EPS beat(16)-129.14%
Revenue beat(2)0
Avg Revenue beat(2)-4.14%
Min Revenue beat(2)-5.67%
Max Revenue beat(2)-2.61%
Revenue beat(4)0
Avg Revenue beat(4)-3.39%
Min Revenue beat(4)-5.67%
Max Revenue beat(4)-2.33%
Revenue beat(8)3
Avg Revenue beat(8)-1.68%
Revenue beat(12)6
Avg Revenue beat(12)-0.4%
Revenue beat(16)10
Avg Revenue beat(16)0.76%
PT rev (1m)4.17%
PT rev (3m)10.03%
EPS NQ rev (1m)0%
EPS NQ rev (3m)29.53%
EPS NY rev (1m)2.41%
EPS NY rev (3m)18.5%
Revenue NQ rev (1m)0.15%
Revenue NQ rev (3m)-0.39%
Revenue NY rev (1m)0.6%
Revenue NY rev (3m)-1.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.16 | ||
| Fwd PE | 11.96 | ||
| P/S | 0.72 | ||
| P/FCF | 8.56 | ||
| P/OCF | 6.51 | ||
| P/B | 3.06 | ||
| P/tB | 5.9 | ||
| EV/EBITDA | 6.94 |
EPS(TTM)5.96
EY10.92%
EPS(NY)4.57
Fwd EY8.36%
FCF(TTM)6.38
FCFY11.69%
OCF(TTM)8.38
OCFY15.36%
SpS75.32
BVpS17.86
TBVpS9.24
PEG (NY)N/A
PEG (5Y)0.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.2% | ||
| ROE | 25.63% | ||
| ROCE | 19.75% | ||
| ROIC | 16.32% | ||
| ROICexc | 21.85% | ||
| ROICexgc | 33.02% | ||
| OM | 8.95% | ||
| PM (TTM) | 6.08% | ||
| GM | 12.94% | ||
| FCFM | 8.47% |
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%
ROICexcg growth 3Y91.19%
ROICexcg 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-Score7
Asset Turnover1.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 2.12 | ||
| Debt/EBITDA | 1.58 | ||
| Cap/Depr | 109.81% | ||
| Cap/Sales | 2.66% | ||
| Interest Coverage | 8.79 | ||
| Cash Conversion | 97.89% | ||
| Profit Quality | 139.35% | ||
| Current Ratio | 2.01 | ||
| Quick Ratio | 1.31 | ||
| Altman-Z | 4.09 |
F-Score7
WACC7.98%
ROIC/WACC2.04
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)150.42%
EPS 3Y33.46%
EPS 5Y27.16%
EPS Q2Q%70.13%
EPS Next Y-3.91%
EPS Next 2Y-8.22%
EPS Next 3Y-10.4%
EPS Next 5Y-5.1%
Revenue 1Y (TTM)2.97%
Revenue growth 3Y6.56%
Revenue growth 5Y9.4%
Sales Q2Q%2.32%
Revenue Next Year0.26%
Revenue Next 2Y0.82%
Revenue Next 3Y1.51%
Revenue Next 5Y1.13%
EBIT growth 1Y182.28%
EBIT growth 3Y94.62%
EBIT growth 5Y18.28%
EBIT Next Year24.24%
EBIT Next 3Y1.35%
EBIT Next 5Y-0.13%
FCF growth 1Y1029.32%
FCF growth 3YN/A
FCF growth 5Y36.59%
OCF growth 1Y193.58%
OCF growth 3Y82.68%
OCF growth 5Y24.46%