PILGRIM'S PRIDE CORP (PPC) Stock Fundamental Analysis
USA - NASDAQ:PPC - US72147K1088 - Common Stock
37.79 USD
-1.02 (-2.63%)
37.65 USD
-0.14 (-0.37%)
PPC gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 87 industry peers in the Food Products industry. While PPC belongs to the best of the industry regarding profitability, 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! With these ratings, PPC could be worth investigating further 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.
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
With an excellent Return On Assets value of 12.23%, PPC belongs to the best of the industry, outperforming 96.55% of the companies in the same industry.
The Return On Equity of PPC (33.10%) is better than 97.70% of its industry peers.
The Return On Invested Capital of PPC (19.77%) is better than 96.55% 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 28.34%.
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 78.16% of its industry peers.
In the last couple of years the Profit Margin of PPC has grown nicely.
The Operating Margin of PPC (9.87%) is better than 72.41% of its industry peers.
PPC's Operating Margin has improved in the last couple of years.
PPC has a Gross Margin (13.79%) which is in line with 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
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 3.74. This indicates that PPC is financially healthy and has little risk of bankruptcy at the moment.
PPC has a Altman-Z score of 3.74. This is in the better half of the industry: PPC outperforms 77.01% of its industry peers.
The Debt to FCF ratio of PPC is 2.83, which is a good value as it means it would take PPC, 2.83 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.83, PPC belongs to the top of the industry, outperforming 81.61% of the companies in the same industry.
A Debt/Equity ratio of 0.83 indicates that PPC is somewhat dependend on debt financing.
PPC's Debt to Equity ratio of 0.83 is on the low side compared to the rest of the industry. PPC is outperformed by 65.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 2.83 | ||
| Altman-Z | 3.74 |
ROIC/WACC2.6
WACC7.6%
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.
The Current ratio of PPC (1.63) 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.
With a Quick ratio value of 0.88, PPC perfoms like the industry average, outperforming 49.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.63 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 65.93% over the past year.
Measured over the past years, PPC shows a very strong growth in Earnings Per Share. The EPS has been growing by 27.16% on average per year.
The Revenue has been growing slightly by 2.06% in the past 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)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
PPC is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -4.42% yearly.
PPC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.59% yearly.
EPS Next Y2.09%
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.
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
PPC is valuated cheaply with a Price/Earnings ratio of 6.31.
Compared to the rest of the industry, the Price/Earnings ratio of PPC indicates a rather cheap valuation: PPC is cheaper than 91.95% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.35. PPC is valued rather cheaply when compared to this.
PPC is valuated reasonably with a Price/Forward Earnings ratio of 8.03.
Based on the Price/Forward Earnings ratio, PPC is valued cheaply inside the industry as 96.55% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.86. PPC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.31 | ||
| Fwd PE | 8.03 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PPC is valued cheaply inside the industry as 85.06% of the companies are valued more expensively.
87.36% 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 | 8.16 | ||
| EV/EBITDA | 5.03 |
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)3.02
PEG (5Y)0.23
EPS Next 2Y-6.83%
EPS Next 3Y-8.28%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 21.64%, PPC is a good candidate for dividend investing.
PPC's Dividend Yield is rather good when compared to the industry average which is at 5.05. 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 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 21.64% |
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
DPN/A
EPS Next 2Y-6.83%
EPS Next 3Y-8.28%
37.79
-1.02 (-2.63%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners21.29%
Inst Owner Change-0.05%
Ins Owners0.07%
Ins Owner Change-0.03%
Market Cap8.98B
Analysts69.23
Price Target49.99 (32.28%)
Short Float %23.07%
Short Ratio6.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 21.64% |
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)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.71%
EPS NY rev (1m)0.92%
EPS NY rev (3m)0.1%
Revenue NQ rev (1m)0.32%
Revenue NQ rev (3m)-0.53%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.31 | ||
| Fwd PE | 8.03 | ||
| P/S | 0.49 | ||
| P/FCF | 8.16 | ||
| P/OCF | 5.53 | ||
| P/B | 2.4 | ||
| P/tB | 5.88 | ||
| EV/EBITDA | 5.03 |
EPS(TTM)5.99
EY15.85%
EPS(NY)4.7
Fwd EY12.45%
FCF(TTM)4.63
FCFY12.26%
OCF(TTM)6.83
OCFY18.07%
SpS76.52
BVpS15.73
TBVpS6.43
PEG (NY)3.02
PEG (5Y)0.23
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 | 3.74 |
F-Score7
WACC7.6%
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)65.93%
EPS 3Y33.46%
EPS 5Y27.16%
EPS Q2Q%1.8%
EPS Next Y2.09%
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 Year31.68%
EBIT Next 3Y3.3%
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%