PILGRIM'S PRIDE CORP (PPC)
US72147K1088 - Common Stock
We assign a fundamental rating of 4 out of 10 to PPC. PPC was compared to 92 industry peers in the Food Products industry. Both the profitability and the financial health of PPC get a neutral evaluation. Nothing too spectacular is happening here. PPC is not valued too expensively and it also shows a decent growth rate.
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.
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 (3.28%) than 60.44% of its industry peers.
The Return On Equity of PPC (9.65%) is better than 63.74% of its industry peers.
PPC's Return On Invested Capital of 6.24% is fine compared to the rest of the industry. PPC outperforms 71.43% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PPC is in line with the industry average of 7.56%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.28% | ||
| ROE | 9.65% | ||
| ROIC | 6.24% |
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
The Profit Margin of PPC (1.85%) is comparable to the rest of the industry.
PPC's Profit Margin has declined in the last couple of years.
PPC has a Operating Margin (3.26%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of PPC has declined.
Looking at the Gross Margin, with a value of 6.44%, PPC is doing worse than 74.73% of the companies in the same industry.
PPC's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.26% | ||
| PM (TTM) | 1.85% | ||
| GM | 6.44% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so PPC is still creating some 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
Compared to 1 year ago, PPC has an improved debt to assets ratio.
2.2 Solvency
PPC has an Altman-Z score of 3.25. This indicates that PPC is financially healthy and has little risk of bankruptcy at the moment.
PPC's Altman-Z score of 3.25 is fine compared to the rest of the industry. PPC outperforms 75.82% of its industry peers.
The Debt to FCF ratio of PPC is 24.93, which is on the high side as it means it would take PPC, 24.93 years of fcf income to pay off all of its debts.
PPC has a Debt to FCF ratio (24.93) which is in line with its industry peers.
A Debt/Equity ratio of 1.00 is on the high side and indicates that PPC has dependencies on debt financing.
PPC has a Debt to Equity ratio of 1.00. This is in the lower half of the industry: PPC underperforms 70.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 24.93 | ||
| Altman-Z | 3.25 |
ROIC/WACC0.82
WACC7.59%
2.3 Liquidity
PPC has a Current Ratio of 1.68. This is a normal value and indicates that PPC is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of PPC (1.68) is better than 60.44% of its industry peers.
A Quick Ratio of 0.89 indicates that PPC may have some problems paying its short term obligations.
PPC has a Quick ratio of 0.89. This is comparable to the rest of the industry: PPC outperforms 46.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.68 | ||
| Quick Ratio | 0.89 |
3. Growth
3.1 Past
The earnings per share for PPC have decreased strongly by -49.10% in the last year.
PPC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.44% yearly.
Looking at the last year, PPC shows a decrease in Revenue. The Revenue has decreased by -0.61% 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)-49.1%
EPS 3Y11.47%
EPS 5Y4.44%
EPS growth Q2Q220.41%
Revenue 1Y (TTM)-0.61%
Revenue growth 3Y12.82%
Revenue growth 5Y9.68%
Revenue growth Q2Q9.71%
3.2 Future
Based on estimates for the next years, PPC will show a very strong growth in Earnings Per Share. The EPS will grow by 21.77% on average per year.
Based on estimates for the next years, PPC will show a decrease in Revenue. The Revenue will decrease by -1.68% on average per year.
EPS Next Y73.11%
EPS Next 2Y36.95%
EPS Next 3Y24.77%
EPS Next 5Y21.77%
Revenue Next Year4.69%
Revenue Next 2Y3.4%
Revenue Next 3Y2.69%
Revenue Next 5Y-1.68%
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 accelerating.
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 rather expensively with a Price/Earnings ratio of 21.18.
Based on the Price/Earnings ratio, PPC is valued a bit cheaper than 65.93% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 24.95, PPC is valued at the same level.
The Price/Forward Earnings ratio is 12.24, which indicates a correct valuation of PPC.
PPC's Price/Forward Earnings ratio is rather cheap when compared to the industry. PPC is cheaper than 86.81% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.40. PPC is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.18 | ||
| Fwd PE | 12.24 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PPC indicates a somewhat cheap valuation: PPC is cheaper than 67.03% of the companies listed in the same industry.
PPC's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 63.27 | ||
| EV/EBITDA | 11.32 |
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.
PPC's earnings are expected to grow with 24.77% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.29
PEG (5Y)4.77
EPS Next 2Y36.95%
EPS Next 3Y24.77%
5. Dividend
5.1 Amount
PPC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
PILGRIM'S PRIDE CORP
NASDAQ:PPC (4/23/2024, 2:46:37 PM)
35.8
-0.19 (-0.53%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap8.48B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Div Incr Years
Div Non Decr Years
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Surprises & Revisions
EPS beat(2)
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EPS NQ rev (1m)
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Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.18 | ||
| Fwd PE | 12.24 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.29
PEG (5Y)4.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.28% | ||
| ROE | 9.65% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 3.26% | ||
| PM (TTM) | 1.85% | ||
| GM | 6.44% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.68 | ||
| Quick Ratio | 0.89 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-49.1%
EPS 3Y11.47%
EPS 5Y
EPS growth Q2Q
EPS Next Y73.11%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-0.61%
Revenue growth 3Y12.82%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y