PILGRIM'S PRIDE CORP (PPC) Stock Fundamental Analysis
NASDAQ:PPC - Nasdaq - US72147K1088 - Common Stock - Currency: USD
Overall PPC gets a fundamental rating of 7 out of 10. We evaluated PPC against 91 industry peers in the Food Products industry. PPC has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. PPC may be a bit undervalued, certainly considering the very reasonable score on growth This makes PPC very considerable for value and quality 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.
Each year in the past 5 years PPC has been profitable.
Each year in the past 5 years PPC had a positive operating cash flow.
1.2 Ratios
PPC's Return On Assets of 11.02% is amongst the best of the industry. PPC outperforms 93.41% of its industry peers.
Looking at the Return On Equity, with a value of 38.56%, PPC belongs to the top of the industry, outperforming 98.90% of the companies in the same industry.
The Return On Invested Capital of PPC (20.80%) is better than 97.80% of its industry peers.
PPC had an Average Return On Invested Capital over the past 3 years of 12.54%. This is significantly below the industry average of 28.10%.
The last Return On Invested Capital (20.80%) for PPC is above the 3 year average (12.54%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.02% | ||
| ROE | 38.56% | ||
| ROIC | 20.8% |
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
PPC has a Profit Margin of 6.72%. This is in the better half of the industry: PPC outperforms 76.92% of its industry peers.
In the last couple of years the Profit Margin of PPC has grown nicely.
PPC has a better Operating Margin (9.77%) than 72.53% of its industry peers.
PPC's Operating Margin has improved in the last couple of years.
The Gross Margin of PPC (13.81%) is worse than 60.44% of its industry peers.
In the last couple of years the Gross Margin of PPC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.77% | ||
| PM (TTM) | 6.72% | ||
| GM | 13.81% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), PPC is creating value.
Compared to 1 year ago, PPC has about the same amount of shares outstanding.
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
PPC has an Altman-Z score of 3.39. This indicates that PPC is financially healthy and has little risk of bankruptcy at the moment.
PPC's Altman-Z score of 3.39 is fine compared to the rest of the industry. PPC outperforms 72.53% of its industry peers.
The Debt to FCF ratio of PPC is 2.32, which is a good value as it means it would take PPC, 2.32 years of fcf income to pay off all of its debts.
PPC has a Debt to FCF ratio of 2.32. This is amongst the best in the industry. PPC outperforms 84.62% of its industry peers.
PPC has a Debt/Equity ratio of 1.02. This is a high value indicating a heavy dependency on external financing.
PPC has a worse Debt to Equity ratio (1.02) than 71.43% of its industry peers.
Even though the debt/equity ratio score it not favorable for PPC, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | 2.32 | ||
| Altman-Z | 3.39 |
ROIC/WACC2.6
WACC8%
2.3 Liquidity
A Current Ratio of 1.35 indicates that PPC should not have too much problems paying its short term obligations.
PPC has a Current ratio (1.35) which is comparable to the rest of the industry.
A Quick Ratio of 0.88 indicates that PPC may have some problems paying its short term obligations.
PPC has a Quick ratio (0.88) which is comparable to the rest of the industry.
PPC does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 0.88 |
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
Looking at the last year, PPC shows a small growth in Revenue. The Revenue has grown by 2.40% in the last year.
Measured over the past years, PPC shows a quite strong growth in Revenue. The Revenue has been growing by 9.40% on average per year.
EPS 1Y (TTM)150.42%
EPS 3Y33.46%
EPS 5Y27.16%
EPS Q2Q%70.13%
Revenue 1Y (TTM)2.4%
Revenue growth 3Y6.56%
Revenue growth 5Y9.4%
Sales Q2Q%2.32%
3.2 Future
The Earnings Per Share is expected to decrease by -4.02% on average over the next years.
PPC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.13% yearly.
EPS Next Y1.99%
EPS Next 2Y-6.27%
EPS Next 3Y-7.33%
EPS Next 5Y-4.02%
Revenue Next Year0.97%
Revenue Next 2Y0.91%
Revenue Next 3Y1.41%
Revenue Next 5Y1.13%
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
The Price/Earnings ratio is 7.39, which 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 90.11% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of PPC to the average of the S&P500 Index (27.51), we can say PPC is valued rather cheaply.
The Price/Forward Earnings ratio is 9.25, which indicates a very decent valuation of PPC.
PPC's Price/Forward Earnings ratio is rather cheap when compared to the industry. PPC is cheaper than 91.21% of the companies in the same industry.
PPC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.58.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.39 | ||
| Fwd PE | 9.25 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PPC is valued cheaply inside the industry as 83.52% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, PPC is valued cheaply inside the industry as 90.11% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.57 | ||
| EV/EBITDA | 5.4 |
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.
A cheap valuation may be justified as PPC's earnings are expected to decrease with -7.33% in the coming years.
PEG (NY)3.72
PEG (5Y)0.27
EPS Next 2Y-6.27%
EPS Next 3Y-7.33%
5. Dividend
5.1 Amount
PPC has a Yearly Dividend Yield of 13.98%, which is a nice return.
PPC's Dividend Yield is rather good when compared to the industry average which is at 4.72. PPC pays more dividend than 97.80% of the companies in the same industry.
PPC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.98% |
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
DP0%
EPS Next 2Y-6.27%
EPS Next 3Y-7.33%
44.03
-1.03 (-2.29%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners19.42%
Inst Owner Change0%
Ins Owners0.07%
Ins Owner Change-0.03%
Market Cap10.44B
Analysts68.57
Price Target50 (13.56%)
Short Float %19.27%
Short Ratio6.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.98% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)7.6%
Min EPS beat(2)-2.87%
Max EPS beat(2)18.08%
EPS beat(4)3
Avg EPS beat(4)14.9%
Min EPS beat(4)-2.87%
Max EPS beat(4)27.43%
EPS beat(8)7
Avg EPS beat(8)25.81%
EPS beat(12)10
Avg EPS beat(12)-181.78%
EPS beat(16)13
Avg EPS beat(16)-130.54%
Revenue beat(2)0
Avg Revenue beat(2)-3.63%
Min Revenue beat(2)-5.67%
Max Revenue beat(2)-1.59%
Revenue beat(4)0
Avg Revenue beat(4)-3.05%
Min Revenue beat(4)-5.67%
Max Revenue beat(4)-1.59%
Revenue beat(8)2
Avg Revenue beat(8)-1.98%
Revenue beat(12)5
Avg Revenue beat(12)-0.8%
Revenue beat(16)9
Avg Revenue beat(16)0.65%
PT rev (1m)-0.87%
PT rev (3m)-3.58%
EPS NQ rev (1m)0.47%
EPS NQ rev (3m)0.47%
EPS NY rev (1m)1.38%
EPS NY rev (3m)8.7%
Revenue NQ rev (1m)0.19%
Revenue NQ rev (3m)1.54%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.39 | ||
| Fwd PE | 9.25 | ||
| P/S | 0.58 | ||
| P/FCF | 7.57 | ||
| P/OCF | 5.66 | ||
| P/B | 3.33 | ||
| P/tB | 10.03 | ||
| EV/EBITDA | 5.4 |
EPS(TTM)5.96
EY13.54%
EPS(NY)4.76
Fwd EY10.81%
FCF(TTM)5.82
FCFY13.22%
OCF(TTM)7.79
OCFY17.68%
SpS75.82
BVpS13.21
TBVpS4.39
PEG (NY)3.72
PEG (5Y)0.27
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.02% | ||
| ROE | 38.56% | ||
| ROCE | 25.18% | ||
| ROIC | 20.8% | ||
| ROICexc | 29.56% | ||
| ROICexgc | 51.52% | ||
| OM | 9.77% | ||
| PM (TTM) | 6.72% | ||
| GM | 13.81% | ||
| FCFM | 7.68% |
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-Score6
Asset Turnover1.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | 2.32 | ||
| Debt/EBITDA | 1.46 | ||
| Cap/Depr | 107.18% | ||
| Cap/Sales | 2.59% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 84.27% | ||
| Profit Quality | 114.23% | ||
| Current Ratio | 1.35 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z | 3.39 |
F-Score6
WACC8%
ROIC/WACC2.6
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 Y1.99%
EPS Next 2Y-6.27%
EPS Next 3Y-7.33%
EPS Next 5Y-4.02%
Revenue 1Y (TTM)2.4%
Revenue growth 3Y6.56%
Revenue growth 5Y9.4%
Sales Q2Q%2.32%
Revenue Next Year0.97%
Revenue Next 2Y0.91%
Revenue Next 3Y1.41%
Revenue Next 5Y1.13%
EBIT growth 1Y121.66%
EBIT growth 3Y94.62%
EBIT growth 5Y18.28%
EBIT Next Year25.79%
EBIT Next 3Y0.13%
EBIT Next 5Y-0.26%
FCF growth 1Y638.91%
FCF growth 3YN/A
FCF growth 5Y36.59%
OCF growth 1Y556.55%
OCF growth 3Y82.68%
OCF growth 5Y24.46%