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BRF SA (BRFS)
NYSE:BRFS
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BRF SA (BRFS) AI Stock Analysis

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BRFS

BRF SA

(NYSE:BRFS)

Rating:78Outperform
Price Target:
$4.00
▲(4.71% Upside)
BRF SA's overall stock score is driven by its strong financial performance and positive earnings call sentiment. The company's strategic initiatives and record-breaking financial metrics outweigh the technical analysis, which shows neutral indicators. The low P/E ratio and decent dividend yield further support the stock's attractiveness.

BRF SA (BRFS) vs. SPDR S&P 500 ETF (SPY)

BRF SA Business Overview & Revenue Model

Company DescriptionBRF 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 MoneyBRF SA generates revenue primarily through the sale of its meat products, which include chicken, pork, and processed foods. The company has multiple revenue streams, including direct sales to retailers, food service providers, and export markets. A significant portion of its income comes from international sales, particularly in markets such as the Middle East and Asia. Additionally, BRF engages in strategic partnerships and collaborations with distributors and retailers to enhance its market reach and improve product distribution. Factors contributing to its earnings include economies of scale in production, a strong brand portfolio, and a focus on innovation in product development.

BRF SA Earnings Call Summary

Earnings Call Date:Aug 14, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 13, 2025
Earnings Call Sentiment Positive
BRF reported a strong first half with record low leverage and significant revenue growth, particularly in Brazil and the international market. Despite challenges posed by avian flu and market conditions in Turkey, the company demonstrated resilience and strategic adaptability. The overall sentiment is positive due to the outweighing highlights over the lowlights.
Q2-2025 Updates
Positive Updates
Best First Half in BRF's History
Reported the best first half with an EBITDA of BRL 5.3 billion and net income of BRL 1.9 billion, despite adverse conditions.
Record Low Leverage
Achieved the lowest leverage in BRF's history at 0.43x LTM EBITDA.
Strong Domestic Performance
Brazil reported an 18% increase in revenue with a gross margin highest since 2015, driven by processed products and strategic partnerships.
International Market Resilience
Maintained healthy margins despite avian flu, with an EBITDA margin of 17.3% in the international segment.
ESG and Efficiency Achievements
Recognized for climate change initiatives and reported BRL 208 million in efficiency gains through BRF+ program.
Negative Updates
Challenges from Avian Flu
Faced restrictions on poultry exports to key markets like China and Europe due to avian flu.
Negative Margin in Turkey
Banvit reported a negative EBITDA margin due to excess poultry supply and market conditions in Turkey.
Company Guidance
The guidance provided in the call for BRF's second quarter of 2025 was notably optimistic, highlighting several key financial metrics and strategic initiatives. BRF reported a record-breaking first half of the year with an EBITDA of BRL 5.3 billion and a net income of BRL 1.9 billion, demonstrating the company's operational excellence and financial discipline. Net revenue for the quarter reached BRL 15.4 billion, a 3% increase compared to the same period in 2024. The company achieved a gross profit of BRL 4.2 billion, with a profitability margin of 26.9%, marking a 7% increase from the previous year. BRF also reported the lowest leverage in its history at 0.43x LTM EBITDA. In terms of market performance, the company saw a robust EBITDA margin of 16.4% in Brazil and 17.3% in the international market, despite challenges such as avian influenza affecting poultry exports. The company emphasized its strategic focus on market diversification, value-added product expansion, and maintaining operational efficiency through its BRF+ program, which contributed BRL 208 million in gains. Looking forward, BRF expects to continue leveraging its strong commercial execution and strategic partnerships to drive sustainable growth and value creation.

BRF SA Financial Statement Overview

Summary
BRF SA exhibits solid financial health characterized by strong revenue and profit growth, efficient cost management, and robust cash flows. The improved profitability and stable leverage position the company well within the packaged foods industry, though moderate debt levels warrant ongoing monitoring.
Income Statement
82
Very Positive
BRF SA shows strong revenue growth with a 3.5% increase in TTM. The gross profit margin is robust at 26.2%, indicating effective cost management. The net profit margin improved significantly, reaching 6.0% in the TTM, showcasing enhanced profitability. EBIT and EBITDA margins are healthy at 11.5% and 19.5%, respectively, reflecting strong core earnings performance.
Balance Sheet
75
Positive
BRF SA maintains a balanced financial structure with a debt-to-equity ratio of 1.50 in the TTM, suggesting moderate leverage. Return on equity improved to 23.9%, driven by higher net income, indicating efficient use of equity. The equity ratio stands at 25.5%, reflecting a stable capital structure.
Cash Flow
78
Positive
The company's free cash flow grew by 12.8% in the TTM, demonstrating strong cash generation. Operating cash flow to net income ratio is high at 3.2, suggesting efficient operations. The free cash flow to net income ratio is 2.5, indicating effective cash usage and ability to cover profits.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue63.95B61.38B53.62B53.81B48.34B39.47B
Gross Profit16.83B15.84B8.83B8.13B10.17B9.47B
EBITDA12.22B9.13B4.13B3.42B4.85B5.55B
Net Income3.59B3.21B-2.03B-3.09B419.45M1.52B
Balance Sheet
Total Assets64.29B62.68B57.27B57.85B55.90B49.66B
Cash, Cash Equivalents and Short-Term Investments15.09B12.06B9.71B8.55B7.88B7.89B
Total Debt24.86B24.73B23.82B26.56B27.94B24.94B
Total Liabilities46.19B46.18B41.63B46.03B47.08B40.85B
Stockholders Equity16.85B15.09B14.92B11.27B8.46B8.59B
Cash Flow
Free Cash Flow9.61B8.51B1.52B194.92M2.19B3.52B
Operating Cash Flow12.78B10.78B3.94B1.88B3.92B4.42B
Investing Cash Flow-3.85B-3.50B-2.11B-3.26B-3.55B-1.43B
Financing Cash Flow-6.42B-6.73B-861.84M2.26B-572.48M-587.04M

BRF SA Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3.82
Price Trends
50DMA
3.68
Positive
100DMA
3.66
Positive
200DMA
3.73
Positive
Market Momentum
MACD
0.02
Negative
RSI
61.03
Neutral
STOCH
80.29
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BRFS, the sentiment is Positive. The current price of 3.82 is above the 20-day moving average (MA) of 3.60, above the 50-day MA of 3.68, and above the 200-day MA of 3.73, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 61.03 is Neutral, neither overbought nor oversold. The STOCH value of 80.29 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BRFS.

BRF SA Risk Analysis

BRF SA disclosed 64 risk factors in its most recent earnings report. BRF SA reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks
1.
General labor shortages, our inability to recruit or retain workers for our industrial plants and increased competition with other businesses for workers may negatively affect our results of operations. Q4, 2022

BRF SA Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$10.56B8.5633.13%2.06%63.27%
78
Outperform
$6.33B9.9121.17%2.29%-1.19%78.79%
77
Outperform
$6.15B19.379.23%0.80%10.43%
72
Outperform
$9.13B7.9613.27%7.32%-3.64%231.77%
63
Neutral
$20.44B14.73-2.94%3.07%2.04%-6.12%
56
Neutral
$13.99B18.559.46%4.53%0.65%-3.76%
55
Neutral
$11.79B22.22-21.32%3.93%2.54%-293.39%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BRFS
BRF SA
3.82
-0.44
-10.33%
CAG
Conagra Brands
19.13
-10.98
-36.47%
HRL
Hormel Foods
25.44
-6.46
-20.25%
SJM
JM Smucker
110.51
-3.61
-3.16%
PPC
Pilgrim's Pride
44.45
5.64
14.53%
POST
Post Holdings
113.15
-3.77
-3.22%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 25, 2025