BRF SA (BRFS) AI Stock Analysis

• Market Cap: $5.50B
• Dividend Yield: 2.67%
• Average Volume (3M): 1.95M
• Price to Earnings (P/E): 9.1
• Beta (1Y): 0.45
• Revenue Growth: 5.85%
• EPS Growth: N/A
• Country: US
• Employees: 100,000
• Sector: Consumer Cyclical
• Sector Strength: 61
• Industry: Packaged Foods
• EPS (TTM): 0.36
• Shares Outstanding: 1,082,473,300
• 10 Day Avg. Volume: 1,588,657
• 30 Day Avg. Volume: 1,951,869
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.33
• Price to Cash Flow (P/CF): N/A
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $4.98
• Price Target Upside: 51.83% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

BRF SA's strong financial performance, highlighted by record-breaking EBITDA and improved leverage, underpins a robust stock score. Technical indicators suggest a cautious market sentiment, while valuation metrics indicate reasonable pricing. The positive earnings call outlook further supports potential growth, though attention to cost pressures and international market variability is necessary.

BRF SA Business Overview & Revenue Model

Company Description

BRF S.A. focuses on raising, producing, and slaughtering poultry and pork for processing, production, and sale of fresh meat, processed products, pasta, margarine, and other products. The company's product portfolio comprises meat products, including frozen whole and cut chicken, frozen pork, and beef; processed food products, such as marinated, frozen, whole and cut chicken, roosters, turkey meat, sausages, ham products, bologna, frankfurters, salamis, bacon, cold meats, other smoked products, chicken sausages, chicken hot dogs, and chicken bologna; and frozen processed meats comprising hamburgers, steaks, breaded meat products, kibbeh, and meatballs. It also produces and sells frozen prepared entrees, such as pastas and pizzas, including lasagna, macaroni, sandwiches, cheese breads, and other ready-to-eat meals; pies and pastries comprising chicken and heart-of-palm pies, sauces, and toppings; frozen desserts; plant-based products, such as nuggets, pies, vegetables, and hamburgers; and soy meal, refined soy flour, and animal feed, as well as sell frozen French fries, margarine, butter, and cream cheese. The company primarily sells its products under the Sadia, Perdigão, Qualy, Chester, Kidelli, Perdix, Biofresh, Gran Plus, and Banvit brands. It serves supermarkets, wholesalers, retail stores, food services, restaurants, and other institutional buyers. The company is also involved in the provision of consultancy, marketing, and logistics services; commercialization of electric energy; and import, industrialization, and commercialization of products. BRF S.A. operates primarily in Brazil, the Americas, Europe, the Middle East, Africa, Asia, and internationally. The company was formerly known as BRF-Brasil Foods S.A. and changed its name to BRF S.A. in April 2013. BRF S.A. was founded in 1934 and is headquartered in Itajaí, Brazil.

How the Company Makes Money

BRF S.A. generates revenue through the sale of its diverse range of protein and processed food products. The company's key revenue streams include fresh and frozen poultry, pork, and beef products, which are sold to retail, foodservice, and industrial customers worldwide. In addition to its protein offerings, BRF also earns income from its processed food segment, which includes branded products like margarine, pasta, and ready-to-eat meals. The company's earnings are further supported by its strategic partnerships and extensive distribution network that enhance market access and operational efficiency. BRF's focus on innovation, quality, and sustainability also plays a crucial role in maintaining its competitive edge and driving revenue growth.

BRF SA Financial Statement Overview

Summary

BRF SA exhibits strong financial performance with notable improvements in revenue growth and profitability. The company has effectively managed its leverage and improved its cash flow generation. However, continued focus is needed on improving return on equity and maintaining leverage ratios for long-term stability.

Income Statement

BRF SA shows strong revenue growth, with a significant increase in total revenue from the previous year. The gross profit margin has improved, indicating better cost management. The net profit margin has turned positive, reflecting enhanced profitability. The EBIT and EBITDA margins have also improved, showcasing increased operational efficiency.

Balance Sheet

The balance sheet shows improvement in the debt-to-equity ratio, which has decreased, indicating better leverage management. However, the return on equity, although positive, still reflects room for growth. The equity ratio has improved, reflecting a stronger capital base.

Cash Flow

Operating cash flow has significantly increased, leading to a strong free cash flow growth. The ratio of operating cash flow to net income is favorable, indicating efficient cash generation from operations. The free cash flow to net income ratio also highlights strong cash flow relative to earnings.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
61.38B	53.62B	53.81B	48.34B	39.47B
	Gross Profit
15.84B	8.83B	8.13B	10.17B	9.47B
	EBIT
6.63B	487.66M	484.11M	3.01B	2.85B
	EBITDA
9.13B	4.13B	3.42B	4.85B	5.55B
	Net Income Common Stockholders
3.21B	-2.03B	-3.09B	419.45M	1.52B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
12.06B	9.71B	8.55B	7.88B	7.89B
	Total Assets
62.68B	57.27B	57.85B	55.90B	49.66B
	Total Debt
24.73B	23.82B	26.56B	27.94B	24.94B
	Net Debt
13.57B	14.55B	18.43B	20.41B	17.36B
	Total Liabilities
46.18B	41.63B	46.03B	47.08B	40.85B
	Stockholders Equity
15.09B	14.92B	11.27B	8.46B	8.59B
Cash Flow		Free Cash Flow
8.51B	1.52B	194.92M	2.19B	3.52B
	Operating Cash Flow
10.78B	3.94B	1.88B	3.92B	4.42B
	Investing Cash Flow
-3.50B	-2.11B	-3.26B	-3.55B	-1.43B
	Financing Cash Flow
-6.73B	-861.84M	2.26B	-572.48M	-587.04M

BRF SA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.28
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BRFS, the sentiment is Negative. The current price of 3.28 is below the 20-day moving average (MA) of 3.37, below the 50-day MA of 3.43, and below the 200-day MA of 3.97, indicating a bearish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 57.38 is Neutral, neither overbought nor oversold. The STOCH value of 53.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BRFS.

BRF SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PPC	76 Outperform	$11.85B	10.94	28.70%	―	2.93%	237.51%
POST	75 Outperform	$6.64B	19.76	10.01%	―	7.32%	34.44%
BRFS	72 Outperform	$5.50B	9.10	21.60%	2.67%	5.85%	―
HRL	71 Outperform	$17.29B	22.82	9.54%	3.70%	-1.84%	-5.14%
CAG	70 Outperform	$12.74B	39.04	3.67%	5.25%	-3.15%	-65.38%
SJM	61 Neutral	$12.25B	22.22	-3.55%	3.73%	7.07%	-181.54%
Sector *	59 Neutral	$11.22B	10.13	-1.22%	3.96%	1.32%	-18.57%