PILGRIM'S PRIDE CORP (PPC) Stock Fundamental Analysis
NASDAQ:PPC - US72147K1088 - Common Stock
44.93 USD
+0.32 (+0.72%)
44.93 USD
0 (0%)
Overall PPC gets a fundamental rating of 7 out of 10. We evaluated PPC against 90 industry peers in the Food Products industry. PPC has an excellent profitability rating, 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! This makes PPC very considerable for value 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.
PPC had positive earnings in each of the past 5 years.
Each year in the past 5 years PPC had a positive operating cash flow.
1.2 Ratios
The Return On Assets of PPC (12.23%) is better than 96.67% of its industry peers.
With an excellent Return On Equity value of 33.10%, PPC belongs to the best of the industry, outperforming 97.78% of the companies in the same industry.
With an excellent Return On Invested Capital value of 19.77%, PPC belongs to the best of the industry, outperforming 96.67% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for PPC is significantly below the industry average of 27.81%.
The last Return On Invested Capital (19.77%) for PPC is above the 3 year average (12.54%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.23% | ||
| ROE | 33.1% | ||
| ROIC | 19.77% |
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 6.81%, PPC is doing good in the industry, outperforming 78.89% of the companies in the same industry.
PPC's Profit Margin has improved in the last couple of years.
The Operating Margin of PPC (9.87%) is better than 72.22% of its industry peers.
In the last couple of years the Operating Margin of PPC has grown nicely.
Looking at the Gross Margin, with a value of 13.79%, PPC is doing worse than 60.00% of the companies in the same industry.
PPC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.87% | ||
| PM (TTM) | 6.81% | ||
| GM | 13.79% |
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.
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
An Altman-Z score of 3.89 indicates that PPC is not in any danger for bankruptcy at the moment.
PPC has a better Altman-Z score (3.89) than 80.00% of its industry peers.
PPC has a debt to FCF ratio of 2.83. This is a good value and a sign of high solvency as PPC would need 2.83 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.83, PPC belongs to the top of the industry, outperforming 82.22% of the companies in the same industry.
A Debt/Equity ratio of 0.83 indicates that PPC is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.83, PPC is not doing good in the industry: 64.44% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 2.83 | ||
| Altman-Z | 3.89 |
ROIC/WACC2.51
WACC7.89%
2.3 Liquidity
PPC has a Current Ratio of 1.63. 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 1.63, PPC is in line with its industry, outperforming 56.67% of the companies in the same industry.
A Quick Ratio of 0.88 indicates that PPC may have some problems paying its short term obligations.
PPC has a Quick ratio of 0.88. This is comparable to the rest of the industry: PPC outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.63 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 65.93% over the past year.
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 2.06% 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)65.93%
EPS 3Y33.46%
EPS 5Y27.16%
EPS Q2Q%1.8%
Revenue 1Y (TTM)2.06%
Revenue growth 3Y6.56%
Revenue growth 5Y9.4%
Sales Q2Q%4.34%
3.2 Future
Based on estimates for the next years, PPC will show a decrease in Earnings Per Share. The EPS will decrease by -4.42% on average per year.
The Revenue is expected to grow by 1.59% on average over the next years.
EPS Next Y1.16%
EPS Next 2Y-6.83%
EPS Next 3Y-8.28%
EPS Next 5Y-4.42%
Revenue Next Year1.55%
Revenue Next 2Y1.13%
Revenue Next 3Y1.68%
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.
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
Based on the Price/Earnings ratio of 7.50, the valuation of PPC can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of PPC indicates a rather cheap valuation: PPC is cheaper than 91.11% of the companies listed in the same industry.
PPC is valuated cheaply when we compare the Price/Earnings ratio to 27.14, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 9.55, the valuation of PPC can be described as reasonable.
PPC's Price/Forward Earnings ratio is rather cheap when compared to the industry. PPC is cheaper than 92.22% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.80. PPC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.5 | ||
| Fwd PE | 9.55 |
4.2 Price Multiples
84.44% 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 86.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.7 | ||
| EV/EBITDA | 5.76 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PPC has an outstanding profitability rating, which may justify a higher PE ratio.
PPC's earnings are expected to decrease with -8.28% in the coming years. This may justify a cheaper valuation.
PEG (NY)6.49
PEG (5Y)0.28
EPS Next 2Y-6.83%
EPS Next 3Y-8.28%
5. Dividend
5.1 Amount
PPC has a Yearly Dividend Yield of 18.20%, which is a nice return.
PPC's Dividend Yield is rather good when compared to the industry average which is at 4.61. 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 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 18.2% |
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-6.83%
EPS Next 3Y-8.28%
44.93
+0.32 (+0.72%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners19.54%
Inst Owner Change11.2%
Ins Owners0.07%
Ins Owner Change-0.03%
Market Cap10.67B
Analysts68.57
Price Target49.99 (11.26%)
Short Float %22.61%
Short Ratio7.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 18.2% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.91%
Min EPS beat(2)-2.87%
Max EPS beat(2)6.7%
EPS beat(4)3
Avg EPS beat(4)9.71%
Min EPS beat(4)-2.87%
Max EPS beat(4)18.08%
EPS beat(8)7
Avg EPS beat(8)21.23%
EPS beat(12)10
Avg EPS beat(12)-184.07%
EPS beat(16)13
Avg EPS beat(16)-131.25%
Revenue beat(2)1
Avg Revenue beat(2)0.08%
Min Revenue beat(2)-1.59%
Max Revenue beat(2)1.74%
Revenue beat(4)1
Avg Revenue beat(4)-2.03%
Min Revenue beat(4)-5.67%
Max Revenue beat(4)1.74%
Revenue beat(8)3
Avg Revenue beat(8)-1.49%
Revenue beat(12)5
Avg Revenue beat(12)-1.19%
Revenue beat(16)9
Avg Revenue beat(16)0.18%
PT rev (1m)0.51%
PT rev (3m)-0.87%
EPS NQ rev (1m)-2.35%
EPS NQ rev (3m)1.26%
EPS NY rev (1m)-0.81%
EPS NY rev (3m)0.56%
Revenue NQ rev (1m)0.49%
Revenue NQ rev (3m)2.11%
Revenue NY rev (1m)0.57%
Revenue NY rev (3m)0.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.5 | ||
| Fwd PE | 9.55 | ||
| P/S | 0.59 | ||
| P/FCF | 9.7 | ||
| P/OCF | 6.58 | ||
| P/B | 2.86 | ||
| P/tB | 6.99 | ||
| EV/EBITDA | 5.76 |
EPS(TTM)5.99
EY13.33%
EPS(NY)4.7
Fwd EY10.47%
FCF(TTM)4.63
FCFY10.31%
OCF(TTM)6.83
OCFY15.2%
SpS76.52
BVpS15.73
TBVpS6.43
PEG (NY)6.49
PEG (5Y)0.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.23% | ||
| ROE | 33.1% | ||
| ROCE | 23.92% | ||
| ROIC | 19.77% | ||
| ROICexc | 22.29% | ||
| ROICexgc | 33.38% | ||
| OM | 9.87% | ||
| PM (TTM) | 6.81% | ||
| GM | 13.79% | ||
| FCFM | 6.05% |
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 Turnover1.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 2.83 | ||
| Debt/EBITDA | 1.39 | ||
| Cap/Depr | 118.59% | ||
| Cap/Sales | 2.87% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 72.62% | ||
| Profit Quality | 88.94% | ||
| Current Ratio | 1.63 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z | 3.89 |
F-Score7
WACC7.89%
ROIC/WACC2.51
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)65.93%
EPS 3Y33.46%
EPS 5Y27.16%
EPS Q2Q%1.8%
EPS Next Y1.16%
EPS Next 2Y-6.83%
EPS Next 3Y-8.28%
EPS Next 5Y-4.42%
Revenue 1Y (TTM)2.06%
Revenue growth 3Y6.56%
Revenue growth 5Y9.4%
Sales Q2Q%4.34%
Revenue Next Year1.55%
Revenue Next 2Y1.13%
Revenue Next 3Y1.68%
Revenue Next 5Y1.59%
EBIT growth 1Y57.44%
EBIT growth 3Y94.62%
EBIT growth 5Y18.28%
EBIT Next Year29.56%
EBIT Next 3Y0.68%
EBIT Next 5Y0.11%
FCF growth 1Y559.36%
FCF growth 3YN/A
FCF growth 5Y36.59%
OCF growth 1Y380.07%
OCF growth 3Y82.68%
OCF growth 5Y24.46%