PILGRIM'S PRIDE CORP (PPC) Stock Fundamental Analysis
NASDAQ:PPC - Nasdaq - US72147K1088 - Common Stock - Currency: USD
PPC gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals 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 is valued quite cheap, while showing a decent growth score. This is a good combination! With these ratings, PPC could be worth investigating further for value and quality investing!.
1. Profitability
1.1 Basic Checks
In the past year PPC was profitable.
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
Looking at the Return On Assets, with a value of 11.02%, PPC belongs to the top of the industry, outperforming 93.41% of the companies in the same industry.
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.
PPC has a better Return On Invested Capital (20.80%) than 97.80% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PPC is significantly below the industry average of 28.18%.
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 78.02% of its industry peers.
PPC's Profit Margin has improved in the last couple of years.
PPC's Operating Margin of 9.77% is fine compared to the rest of the industry. PPC outperforms 72.53% of its industry peers.
PPC's Operating Margin has improved in the last couple of years.
PPC's Gross Margin of 13.81% is on the low side compared to the rest of the industry. PPC is outperformed by 61.54% 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.
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 3.46. This indicates that PPC is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.46, PPC is in the better half of the industry, outperforming 74.73% 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.
With an excellent Debt to FCF ratio value of 2.32, PPC belongs to the best of the industry, outperforming 83.52% of the companies in the same industry.
PPC has a Debt/Equity ratio of 1.02. This is a high value indicating a heavy dependency on external financing.
PPC's Debt to Equity ratio of 1.02 is on the low side compared to the rest of the industry. PPC is outperformed by 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 | 3.46 |
ROIC/WACC2.63
WACC7.92%
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.
The Current ratio of PPC (1.35) 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.
The current and quick ratio evaluation for PPC is rather negative, while it does have 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
The Earnings Per Share has grown by an impressive 65.93% over the past year.
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 2.97%.
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)2.97%
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 -4.02% on average per year.
The Revenue is expected to grow by 1.13% on average over the next years.
EPS Next Y1.99%
EPS Next 2Y-6.27%
EPS Next 3Y-7.33%
EPS Next 5Y-4.02%
Revenue Next Year0.74%
Revenue Next 2Y0.86%
Revenue Next 3Y1.41%
Revenue Next 5Y1.13%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
Based on the Price/Earnings ratio of 8.17, the valuation of PPC can be described as reasonable.
89.01% of the companies in the same industry are more expensive than PPC, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.03, PPC is valued rather cheaply.
PPC is valuated reasonably with a Price/Forward Earnings ratio of 10.28.
Based on the Price/Forward Earnings ratio, PPC is valued cheaply inside the industry as 86.81% of the companies are valued more expensively.
PPC is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.28, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.17 | ||
| Fwd PE | 10.28 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PPC is valued cheaply inside the industry as 82.42% of the companies are valued more expensively.
87.91% of the companies in the same industry are more expensive than PPC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.41 | ||
| EV/EBITDA | 5.82 |
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.
A cheap valuation may be justified as PPC's earnings are expected to decrease with -7.33% in the coming years.
PEG (NY)4.12
PEG (5Y)0.3
EPS Next 2Y-6.27%
EPS Next 3Y-7.33%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 12.85%, PPC is a good candidate for dividend investing.
PPC's Dividend Yield is rather good when compared to the industry average which is at 4.73. PPC pays more dividend than 97.80% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, PPC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.85% |
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
DP0%
EPS Next 2Y-6.27%
EPS Next 3Y-7.33%
48.96
-0.05 (-0.1%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners19.42%
Inst Owner Change0.71%
Ins Owners0.07%
Ins Owner Change-0.03%
Market Cap11.61B
Analysts68.57
Price Target49.74 (1.59%)
Short Float %20.07%
Short Ratio6.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.85% |
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)-0.51%
PT rev (3m)-4.07%
EPS NQ rev (1m)-1.25%
EPS NQ rev (3m)19.02%
EPS NY rev (1m)-0.25%
EPS NY rev (3m)6.14%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)3.11%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.17 | ||
| Fwd PE | 10.28 | ||
| P/S | 0.65 | ||
| P/FCF | 8.41 | ||
| P/OCF | 6.29 | ||
| P/B | 3.71 | ||
| P/tB | 11.15 | ||
| EV/EBITDA | 5.82 |
EPS(TTM)5.99
EY12.23%
EPS(NY)4.76
Fwd EY9.73%
FCF(TTM)5.82
FCFY11.89%
OCF(TTM)7.79
OCFY15.9%
SpS75.82
BVpS13.21
TBVpS4.39
PEG (NY)4.12
PEG (5Y)0.3
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 | 3.46 |
F-Score6
WACC7.92%
ROIC/WACC2.63
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 Y1.99%
EPS Next 2Y-6.27%
EPS Next 3Y-7.33%
EPS Next 5Y-4.02%
Revenue 1Y (TTM)2.97%
Revenue growth 3Y6.56%
Revenue growth 5Y9.4%
Sales Q2Q%4.34%
Revenue Next Year0.74%
Revenue Next 2Y0.86%
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%