BRF SA (BRFS) AI Stock Analysis

• Market Cap: $5.89B
• Dividend Yield: 2.49%
• Average Volume (3M): 3.45M
• Price to Earnings (P/E): 8.4
• Beta (1Y): 0.59
• Revenue Growth: 3.82%
• EPS Growth: N/A
• Country: US
• Employees: 100,000
• Sector: Consumer Defensive
• Sector Strength: 69
• Industry: Packaged Foods
• EPS (TTM): 0.12
• Shares Outstanding: 1,082,473,300
• 10 Day Avg. Volume: 2,110,015
• 30 Day Avg. Volume: 3,446,812
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.30
• Enterprise Value/Revenue: 0.12
• Enterprise Value/Gross Profit: 0.46
• Enterprise Value/Ebitda: 0.62
• 1Y Price Target: $3.75
• Price Target Upside: 6.23% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 76 Outperform
• Price Target: $4.00 ▲(13.31% Upside)

BRF SA's strong financial performance and positive earnings call are the most significant factors contributing to its solid stock score. Despite some technical weaknesses, the company's robust profitability, efficient operations, and attractive valuation provide a strong investment case. The successful implementation of strategic initiatives and international expansion further bolster its prospects, though ongoing monitoring of avian flu impacts is advised.

BRF SA Business Overview & Revenue Model

Company Description

BRF SA (BRFS) is a Brazilian multinational food company, one of the largest food producers in the world, specializing in the processing and export of poultry, pork, and processed foods. It operates in the meat and food sector, providing a wide range of products including fresh, frozen, and processed meats, as well as value-added products such as ready-to-eat meals. BRF's operations are supported by a robust supply chain and distribution network, serving both domestic and international markets across various regions, including North America, Europe, and Asia.

How the Company Makes Money

BRF 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 Financial Statement Overview

Summary

BRF SA exhibits solid financial health with strong revenue and profit growth, effective cost management, and robust cash flows. Despite moderate debt levels, the company has improved profitability and maintains a stable capital structure, positioning it well in the industry.

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	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
EBITDA	9.13B	4.13B	3.42B	4.85B	5.55B
Net Income	3.21B	-2.03B	-3.09B	419.45M	1.52B
Balance Sheet
Total Assets	62.68B	57.27B	57.85B	55.90B	49.66B
Cash, Cash Equivalents and Short-Term Investments	12.06B	9.71B	8.55B	7.88B	7.89B
Total Debt	24.73B	23.82B	26.56B	27.94B	24.94B
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: 3.53
• 50DMA: Negative
• 100DMA: Negative
• 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 3.53 is below the 20-day moving average (MA) of 3.66, below the 50-day MA of 3.69, and below the 200-day MA of 3.77, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 44.08 is Neutral, neither overbought nor oversold. The STOCH value of 25.64 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	$11.97B	9.70	33.13%	―	2.06%	63.27%
BRFS	76 Outperform	$5.89B	8.42	23.47%	2.49%	3.82%	―
POST	73 Outperform	$5.80B	18.29	9.23%	―	0.80%	10.43%
CAG	70 Outperform	$9.19B	8.01	13.27%	7.27%	-3.64%	231.77%
HRL	65 Neutral	$15.81B	21.15	9.39%	4.03%	-1.01%	-2.93%
Sector *	63 Neutral	$21.00B	13.77	-6.24%	3.09%	3.49%	-6.25%
SJM	56 Neutral	$11.83B	22.22	-17.87%	3.88%	6.69%	-261.87%