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 90 industry peers in the Food Products industry. PPC scores excellent on profitability, 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.
PPC had a positive operating cash flow in the past year.
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
With an excellent Return On Assets value of 11.02%, PPC belongs to the best of the industry, outperforming 92.22% of the companies in the same industry.
PPC's Return On Equity of 38.56% is amongst the best of the industry. PPC outperforms 97.78% of its industry peers.
PPC has a better Return On Invested Capital (20.80%) than 97.78% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PPC is above the industry average of 8.67%.
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
With a decent Profit Margin value of 6.72%, 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 (9.77%) is better than 73.33% of its industry peers.
In the last couple of years the Operating Margin of PPC has grown nicely.
PPC has a worse Gross Margin (13.81%) than 61.11% of its industry peers.
PPC's Gross Margin has improved in the last couple of years.
| 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.
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
PPC has an Altman-Z score of 3.50. This indicates that PPC is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.50, PPC is doing good in the industry, outperforming 74.44% of the companies in the same industry.
PPC has a debt to FCF ratio of 2.32. This is a good value and a sign of high solvency as PPC would need 2.32 years to pay back of all of its debts.
The Debt to FCF ratio of PPC (2.32) is better than 80.00% of its industry peers.
A Debt/Equity ratio of 1.02 is on the high side and indicates that PPC has dependencies on debt financing.
The Debt to Equity ratio of PPC (1.02) is worse than 75.56% 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 | 1.02 | ||
| Debt/FCF | 2.32 | ||
| Altman-Z | 3.5 |
ROIC/WACC2.56
WACC8.14%
2.3 Liquidity
PPC has a Current Ratio of 1.35. 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 1.35, PPC is in line with its industry, outperforming 44.44% 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.
Looking at the Quick ratio, with a value of 0.88, PPC is in line with its industry, outperforming 45.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 150.42% 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
PPC shows a small growth in Revenue. In the last year, the Revenue has grown by 2.40%.
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)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
PPC is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -5.10% yearly.
Based on estimates for the next years, PPC will show a small growth in Revenue. The Revenue will grow by 1.13% on average per year.
EPS Next Y0.6%
EPS Next 2Y-5.92%
EPS Next 3Y-9.71%
EPS Next 5Y-5.1%
Revenue Next Year1.14%
Revenue Next 2Y1.14%
Revenue Next 3Y1.62%
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 8.57, which indicates a very decent valuation of PPC.
PPC's Price/Earnings ratio is rather cheap when compared to the industry. PPC is cheaper than 91.11% of the companies in the same industry.
PPC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.60.
The Price/Forward Earnings ratio is 10.65, which indicates a very decent valuation of PPC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PPC indicates a rather cheap valuation: PPC is cheaper than 86.67% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.43, PPC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.57 | ||
| Fwd PE | 10.65 |
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 84.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.79 | ||
| EV/EBITDA | 6.07 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of PPC may justify a higher PE ratio.
PPC's earnings are expected to decrease with -9.71% in the coming years. This may justify a cheaper valuation.
PEG (NY)14.38
PEG (5Y)0.32
EPS Next 2Y-5.92%
EPS Next 3Y-9.71%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 12.95%, PPC is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.58, PPC pays a better dividend. On top of this PPC pays more dividend than 97.78% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, PPC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.95% |
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-5.92%
EPS Next 3Y-9.71%
NASDAQ:PPC (5/21/2025, 12:47:03 PM)
51.1
-0.11 (-0.21%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners21.1%
Inst Owner Change-8.46%
Ins Owners0.05%
Ins Owner Change0%
Market Cap12.13B
Analysts69.23
Price Target50.43 (-1.31%)
Short Float %15.67%
Short Ratio4.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.95% |
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)-2.73%
PT rev (3m)7.02%
EPS NQ rev (1m)2.73%
EPS NQ rev (3m)17.4%
EPS NY rev (1m)4.69%
EPS NY rev (3m)20.48%
Revenue NQ rev (1m)1.76%
Revenue NQ rev (3m)-0.3%
Revenue NY rev (1m)0.9%
Revenue NY rev (3m)-0.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.57 | ||
| Fwd PE | 10.65 | ||
| P/S | 0.67 | ||
| P/FCF | 8.79 | ||
| P/OCF | 6.57 | ||
| P/B | 3.87 | ||
| P/tB | 11.65 | ||
| EV/EBITDA | 6.07 |
EPS(TTM)5.96
EY11.66%
EPS(NY)4.8
Fwd EY9.39%
FCF(TTM)5.81
FCFY11.38%
OCF(TTM)7.78
OCFY15.22%
SpS75.75
BVpS13.2
TBVpS4.39
PEG (NY)14.38
PEG (5Y)0.32
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 | 3.5 |
F-Score6
WACC8.14%
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)150.42%
EPS 3Y33.46%
EPS 5Y27.16%
EPS Q2Q%70.13%
EPS Next Y0.6%
EPS Next 2Y-5.92%
EPS Next 3Y-9.71%
EPS Next 5Y-5.1%
Revenue 1Y (TTM)2.4%
Revenue growth 3Y6.56%
Revenue growth 5Y9.4%
Sales Q2Q%2.32%
Revenue Next Year1.14%
Revenue Next 2Y1.14%
Revenue Next 3Y1.62%
Revenue Next 5Y1.13%
EBIT growth 1Y121.66%
EBIT growth 3Y94.62%
EBIT growth 5Y18.28%
EBIT Next Year24.24%
EBIT Next 3Y1.35%
EBIT Next 5Y-0.13%
FCF growth 1Y638.91%
FCF growth 3YN/A
FCF growth 5Y36.59%
OCF growth 1Y556.55%
OCF growth 3Y82.68%
OCF growth 5Y24.46%