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BRF SA (BRFS)
NYSE:BRFS

BRF SA (BRFS) AI Stock Analysis

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BRF SA

(NYSE:BRFS)

Rating:77Outperform
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 (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 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 Earnings Call Summary

Earnings Call Date:May 15, 2025
(Q1-2025)
|
% Change Since: 0.28%|
Next Earnings Date:Aug 14, 2025
Earnings Call Sentiment Positive
The earnings call reflected a positive sentiment overall, with strong financial performance, significant efficiency gains, and successful international expansion. Despite concerns about avian flu affecting exports, the company demonstrated resilience and proactive management strategies.
Q1-2025 Updates
Positive Updates
Record Profit and Revenue Growth
BRF reported a profit of BRL1.2 billion, twice as much as the same period last year, and net revenue reached BRL15.5 billion, a 16% increase compared to the first quarter of 2024.
EBITDA Achieves New High
EBITDA was BRL2.8 billion, the best result in BRF's history for a first quarter, representing a 30% increase over the previous year.
Lowest Leverage in History
BRF achieved the lowest leverage in its history at 0.54 times EBITDA in the last 12 months.
Successful BRF+ Program
The BRF+ program delivered BRL305 million in efficiency gains, contributing to continuous improvements across the organization.
Expansion in International Markets
BRF secured 12 new export approvals in the quarter, bringing the total to 187 since 2022, and continued its global expansion with acquisitions in China and Saudi Arabia.
Employee Engagement Improvement
BRF's employee satisfaction score increased by 4 percentage points compared to 2024, reaching 89%.
Negative Updates
Challenges with Avian Flu
Concerns about avian flu led to temporary market closures, including China, impacting export dynamics and requiring regionalization efforts.
Company Guidance
In the first quarter of 2025, BRF demonstrated robust financial performance, reporting a net profit of BRL1.2 billion, which was double the amount from the same period in 2024. The company achieved a net revenue of BRL15.5 billion, marking a 16% increase year-over-year. BRF's EBITDA reached a record BRL2.8 billion, reflecting a 30% increase compared to the previous year. The company also generated a free cash flow of approximately BRL1.3 billion, and its leverage ratio improved to 0.54 times EBITDA over the last 12 months, the lowest in the company's history. The gross profit margin stood at 26.3%, with a gross profit exceeding BRL4 billion. BRF's operational efficiency was further enhanced by the BRF+ program, which delivered BRL305 million in efficiency gains. The company also continued to expand its market presence, securing 12 new export permits in the quarter and maintaining leadership in several international markets.

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
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 Revenue63.51B61.38B53.62B53.81B48.34B39.47B
Gross Profit16.66B15.84B8.83B8.13B10.17B9.47B
EBITDA12.41B9.13B4.13B3.42B4.85B5.55B
Net Income3.83B3.21B-2.03B-3.09B419.45M1.52B
Balance Sheet
Total Assets62.89B62.68B57.27B57.85B55.90B49.66B
Cash, Cash Equivalents and Short-Term Investments12.98B12.06B9.71B8.55B7.88B7.89B
Total Debt24.05B24.73B23.82B26.56B27.94B24.94B
Total Liabilities45.51B46.18B41.63B46.03B47.08B40.85B
Stockholders Equity16.04B15.09B14.92B11.27B8.46B8.59B
Cash Flow
Free Cash Flow9.60B8.51B1.52B194.92M2.19B3.52B
Operating Cash Flow12.23B10.78B3.94B1.88B3.92B4.42B
Investing Cash Flow-4.35B-3.50B-2.11B-3.26B-3.55B-1.43B
Financing Cash Flow-6.50B-6.73B-861.84M2.26B-572.48M-587.04M

BRF SA Technical Analysis

Technical Analysis Sentiment
Negative
Last Price3.60
Price Trends
50DMA
3.67
Negative
100DMA
3.52
Positive
200DMA
3.85
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
48.04
Neutral
STOCH
20.33
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 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 (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
PPPPC
80
Outperform
$10.57B8.8636.53%2.35%145.82%
77
Outperform
$6.11B8.4523.47%2.48%3.82%
69
Neutral
$6.06B19.679.15%1.48%9.36%
HRHRL
68
Neutral
$16.76B22.419.39%3.83%-1.01%-2.93%
CACAG
67
Neutral
$9.74B29.853.67%6.84%-3.15%-65.38%
66
Neutral
£1.85B11.466.20%3.04%0.61%-17.57%
SJSJM
47
Neutral
$10.19B22.22-17.87%4.52%6.69%-261.87%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BRFS
BRF SA
3.60
-0.44
-10.89%
CAG
Conagra Brands
21.05
-5.66
-21.19%
HRL
Hormel Foods
30.70
1.58
5.43%
SJM
JM Smucker
102.95
-2.01
-1.92%
PPC
Pilgrim's Pride
45.49
11.23
32.78%
POST
Post Holdings
111.53
7.17
6.87%
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: Jun 26, 2025