PILGRIM'S PRIDE CORP (PPC) Stock Fundamental Analysis
USA - NASDAQ:PPC - US72147K1088 - Common Stock
40.69 USD
-0.7 (-1.69%)
40.95 USD
+0.26 (+0.64%)
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 has an excellent profitability rating, but there are some minor concerns on its financial health. PPC may be a bit undervalued, certainly considering the very reasonable score on growth 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.
In the past 5 years PPC always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 12.23%, PPC belongs to the top of the industry, outperforming 96.63% of the companies in the same industry.
PPC has a better Return On Equity (33.10%) than 97.75% of its industry peers.
PPC has a Return On Invested Capital of 19.77%. This is amongst the best in the industry. PPC outperforms 96.63% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PPC is significantly below the industry average of 28.31%.
The 3 year average ROIC (12.54%) for PPC is below the current ROIC(19.77%), indicating increased profibility in the last year.
| 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
The Profit Margin of PPC (6.81%) is better than 78.65% of its industry peers.
In the last couple of years the Profit Margin of PPC has grown nicely.
PPC has a better Operating Margin (9.87%) than 71.91% of its industry peers.
PPC's Operating Margin has improved in the last couple of years.
The Gross Margin of PPC (13.79%) is worse than 60.67% of its industry peers.
In the last couple of years the Gross Margin of PPC has grown nicely.
| 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
PPC has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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 3.82. This indicates that PPC is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of PPC (3.82) is better than 76.40% 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.
With an excellent Debt to FCF ratio value of 2.83, PPC belongs to the best of the industry, outperforming 80.90% of the companies in the same industry.
A Debt/Equity ratio of 0.83 indicates that PPC is somewhat dependend on debt financing.
The Debt to Equity ratio of PPC (0.83) is worse than 62.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 2.83 | ||
| Altman-Z | 3.82 |
ROIC/WACC2.56
WACC7.72%
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.
With a Current ratio value of 1.63, PPC perfoms like the industry average, outperforming 55.06% 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's Quick ratio of 0.88 is in line compared to the rest of the industry. PPC outperforms 49.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.63 | ||
| 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 65.93%, which is quite impressive.
PPC shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 27.16% yearly.
PPC shows a small growth in Revenue. In the last year, the Revenue has grown by 2.06%.
PPC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.40% yearly.
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
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 Y1.16%
EPS Next 2Y-6.83%
EPS Next 3Y-8.28%
EPS Next 5Y-4.42%
Revenue Next Year1.72%
Revenue Next 2Y1.2%
Revenue Next 3Y1.72%
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
The Price/Earnings ratio is 6.79, which indicates a rather cheap valuation of PPC.
PPC's Price/Earnings ratio is rather cheap when compared to the industry. PPC is cheaper than 93.26% of the companies in the same industry.
When comparing the Price/Earnings ratio of PPC to the average of the S&P500 Index (27.38), we can say PPC is valued rather cheaply.
A Price/Forward Earnings ratio of 8.65 indicates a reasonable valuation of PPC.
Based on the Price/Forward Earnings ratio, PPC is valued cheaply inside the industry as 93.26% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of PPC to the average of the S&P500 Index (22.86), we can say PPC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.79 | ||
| Fwd PE | 8.65 |
4.2 Price Multiples
PPC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. PPC is cheaper than 83.15% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, PPC is valued cheaply inside the industry as 86.52% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.78 | ||
| EV/EBITDA | 5.41 |
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)5.88
PEG (5Y)0.25
EPS Next 2Y-6.83%
EPS Next 3Y-8.28%
5. Dividend
5.1 Amount
PPC has a Yearly Dividend Yield of 20.64%, which is a nice return.
PPC's Dividend Yield is rather good when compared to the industry average which is at 5.08. 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 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 20.64% |
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
DPN/A
EPS Next 2Y-6.83%
EPS Next 3Y-8.28%
40.69
-0.7 (-1.69%)
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 Cap9.67B
Analysts68.57
Price Target49.99 (22.86%)
Short Float %22.88%
Short Ratio7.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 20.64% |
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)1.03%
PT rev (3m)-0.87%
EPS NQ rev (1m)1.03%
EPS NQ rev (3m)-4.08%
EPS NY rev (1m)-0.81%
EPS NY rev (3m)0.56%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.09%
Revenue NY rev (1m)0.97%
Revenue NY rev (3m)0.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.79 | ||
| Fwd PE | 8.65 | ||
| P/S | 0.53 | ||
| P/FCF | 8.78 | ||
| P/OCF | 5.96 | ||
| P/B | 2.59 | ||
| P/tB | 6.33 | ||
| EV/EBITDA | 5.41 |
EPS(TTM)5.99
EY14.72%
EPS(NY)4.7
Fwd EY11.56%
FCF(TTM)4.63
FCFY11.38%
OCF(TTM)6.83
OCFY16.79%
SpS76.52
BVpS15.73
TBVpS6.43
PEG (NY)5.88
PEG (5Y)0.25
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 | 3.82 |
F-Score7
WACC7.72%
ROIC/WACC2.56
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 Year1.72%
Revenue Next 2Y1.2%
Revenue Next 3Y1.72%
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%