BRF SA (BRFS) AI Stock Analysis

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BRF SA

(NYSE:BRFS)

Rating:73Outperform

Price Target:

$4.00

▲(4.44%Upside)

BRF SA's overall stock score reflects strong financial performance and positive earnings call sentiments, which are the most significant factors. The technical analysis presents some caution with mixed signals, and the valuation is reasonable, supporting a favorable outlook for the stock.

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

Market Cap

$6.44B

Dividend Yield2.36%

Average Volume (3M)4.28M

Price to Earnings (P/E)9.2

Beta (1Y)0.48

Revenue Growth3.82%

EPS GrowthN/A

CountryUS

Employees100,000

SectorConsumer Cyclical

Sector Strength66

IndustryPackaged Foods

Share Statistics

EPS (TTM)0.09

Shares Outstanding1,082,473,300

10 Day Avg. Volume3,373,361

30 Day Avg. Volume4,282,077

Financial Highlights & Ratios

PEG Ratio0.18

Price to Book (P/B)1.23

Price to Sales (P/S)0.00

P/FCF Ratio12.05

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$3.50

Price Target Upside-8.62% Downside

Rating ConsensusHold

Number of Analyst Covering1

BRF SA Business Overview & Revenue Model

Company DescriptionBRF S.A. is a leading global food company based in Brazil, primarily engaged in the production and sale of fresh and frozen protein products. The company's core offerings include poultry, pork, and beef, as well as processed foods such as margarine, pasta, and ready-to-eat meals. Operating in both domestic and international markets, BRF S.A. is recognized for its strong brand portfolio and commitment to quality and sustainability in the food industry.

How the Company Makes MoneyBRF 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 Earnings Call Summary

Earnings Call Date:May 15, 2025

(Q1-2025)

% Change Since: 6.69%|

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 exhibits strong financial performance with improvements in revenue growth, profitability, and cash flow generation. The company has managed leverage effectively, but there is room for improvement in return on equity.

Income Statement

Positive

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

Positive

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

Very Positive

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.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
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
	EBIT
7.27B	6.63B	487.66M	484.11M	3.01B	2.85B
	EBITDA
12.41B	9.13B	4.13B	3.42B	4.85B	5.55B
	Net Income Common Stockholders
3.83B	3.21B	-2.03B	-3.09B	419.45M	1.52B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
12.98B	12.06B	9.71B	8.55B	7.88B	7.89B
	Total Assets
62.89B	62.68B	57.27B	57.85B	55.90B	49.66B
	Total Debt
24.05B	24.73B	23.82B	26.56B	27.94B	24.94B
	Net Debt
12.00B	13.57B	14.55B	18.43B	20.41B	17.36B
	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

Positive

Last Price3.83

Price Trends

50DMA

3.60

Positive

100DMA

3.53

Positive

200DMA

3.91

Negative

Market Momentum

MACD

0.02

Negative

RSI

61.51

Neutral

STOCH

79.40

Neutral

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 3.83 is above the 20-day moving average (MA) of 3.61, above the 50-day MA of 3.60, and below the 200-day MA of 3.91, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 61.51 is Neutral, neither overbought nor oversold. The STOCH value of 79.40 is Neutral, 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

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
PPC	80 Outperform	$10.76B	8.94	36.53%	―	2.35%	145.82%
BRFS	73 Outperform	$6.44B	9.16	23.47%	2.36%	3.82%	―
HRL	72 Outperform	$17.13B	22.91	9.39%	3.67%	-1.01%	-2.93%
POST	71 Outperform	$6.18B	20.02	9.15%	―	1.48%	9.36%
CAG	67 Neutral	$10.71B	32.84	3.67%	6.25%	-3.15%	-65.38%
Sector *	63 Neutral	$6.96B	11.51	2.80%	3.85%	2.70%	-24.43%
SJM	60 Neutral	$10.05B	22.22	-17.87%	3.86%	7.07%	-181.54%

* Consumer Cyclical Sector Average

Performance Comparison

BRFS

BRF SA

3.81

0.40

11.73%

CAG

Conagra Brands

22.37

-4.90

-17.97%

HRL

Hormel Foods

30.93

1.55

5.28%

SJM

JM Smucker

95.87

-10.07

-9.51%

PPC

Pilgrim's Pride

45.11

14.09

45.42%

POST

Post Holdings

110.99

9.31

9.16%

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.