BRF SA (BRFS) AI Stock Analysis

• Market Cap: $6.11B
• Dividend Yield: 2.48%
• Average Volume (3M): 5.17M
• Price to Earnings (P/E): 8.4
• Beta (1Y): 0.45
• Revenue Growth: 3.82%
• EPS Growth: N/A
• Country: US
• Employees: 100,000
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Packaged Foods
• EPS (TTM): 0.12
• Shares Outstanding: 1,082,473,300
• 10 Day Avg. Volume: 5,519,307
• 30 Day Avg. Volume: 5,168,538
• PEG Ratio: <0.01
• Price to Book (P/B): 0.78
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 45.10
• 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: $3.50
• Price Target Upside: -2.78% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 77 Outperform
• Price Target: $4.00 ▲(11.11%Upside)

BRF SA's strong financial performance and positive earnings call sentiment are the primary contributors to the score, highlighting robust revenue and profit growth. The stock's valuation is appealing due to its low P/E ratio and solid dividend yield. Technical analysis indicates a neutral trading position, which slightly tempers the overall score.

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 production and sale of its extensive range of food products. The company operates across various segments, with a significant portion of its income derived from the sale of fresh and frozen poultry, pork, and other meat products to both domestic and international markets. BRF benefits from its global reach, exporting to over 140 countries, which diversifies its revenue streams and mitigates regional risks. The company also earns through value-added processed foods, which include prepared meals, margarine, and other consumer goods. Strategic partnerships and distribution agreements enhance BRF's market access and bolster its financial performance, while its vertically integrated supply chain allows for cost efficiencies and quality control, further supporting its profitability.

BRF SA Financial Statement Overview

Summary

BRF SA demonstrates strong financial health with robust revenue and profit growth, effective cost management, and solid cash flow generation. However, moderate debt levels require ongoing monitoring.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	63.51B	61.38B	53.62B	53.81B	48.34B	39.47B
Gross Profit	16.66B	15.84B	8.83B	8.13B	10.17B	9.47B
EBITDA	12.41B	9.13B	4.13B	3.42B	4.85B	5.55B
Net Income	3.83B	3.21B	-2.03B	-3.09B	419.45M	1.52B
Balance Sheet
Total Assets	62.89B	62.68B	57.27B	57.85B	55.90B	49.66B
Cash, Cash Equivalents and Short-Term Investments	12.98B	12.06B	9.71B	8.55B	7.88B	7.89B
Total Debt	24.05B	24.73B	23.82B	26.56B	27.94B	24.94B
Total Liabilities	45.51B	46.18B	41.63B	46.03B	47.08B	40.85B
Stockholders Equity	16.04B	15.09B	14.92B	11.27B	8.46B	8.59B
Cash Flow
Free Cash Flow	9.60B	8.51B	1.52B	194.92M	2.19B	3.52B
Operating Cash Flow	12.23B	10.78B	3.94B	1.88B	3.92B	4.42B
Investing Cash Flow	-4.35B	-3.50B	-2.11B	-3.26B	-3.55B	-1.43B
Financing Cash Flow	-6.50B	-6.73B	-861.84M	2.26B	-572.48M	-587.04M

BRF SA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.60
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• 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 3.6 is below the 20-day moving average (MA) of 3.67, below the 50-day MA of 3.67, and below the 200-day MA of 3.85, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 48.04 is Neutral, neither overbought nor oversold. The STOCH value of 20.33 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	80 Outperform	$10.57B	8.86	36.53%	―	2.35%	145.82%
BRFS	77 Outperform	$6.11B	8.45	23.47%	2.48%	3.82%	―
POST	69 Neutral	$6.06B	19.67	9.15%	―	1.48%	9.36%
HRL	68 Neutral	$16.76B	22.41	9.39%	3.83%	-1.01%	-2.93%
CAG	67 Neutral	$9.74B	29.85	3.67%	6.84%	-3.15%	-65.38%
Sector *	66 Neutral	£1.85B	11.46	6.20%	3.04%	0.61%	-17.57%
SJM	47 Neutral	$10.19B	22.22	-17.87%	4.52%	6.69%	-261.87%