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Jbs N.V. (JBS)
:JBS
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JBS
(NYSE:JBS)
Rating:69Neutral
Price Target:
$15.00
▲(7.68% Upside)
Positive Factors
Growth Opportunities
JBS's diversified model across proteins and geographies, along with organic and inorganic growth opportunities, presents a strong case for future expansion.
Market Strategy
Leveraging US-listed equity to expand the US value-added/branded portfolio is seen as a strategic move that aligns with growth ambitions and supports a higher valuation.
Negative Factors
Potential Selling Pressure
Concerns over BNDES newsflow as a potential seller have contributed to recent underperformance.
Recent Underperformance
Recent stock weakness is attributed to technical factors such as BDR sell-off and index/passive outflows.
JBS (JBS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$15.44B
Dividend Yield0.02%
Average Volume (3M)4.30M
Price to Earnings (P/E)14.2
Beta (1Y)0.14
Revenue GrowthN/A
EPS Growth476.80%
CountryUS
Employees280,000
SectorConsumer Defensive
Sector Strength65
IndustryPackaged Foods
Share Statistics
EPS (TTM)0.47
Shares Outstanding814,216,000
10 Day Avg. Volume3,363,804
30 Day Avg. Volume4,304,199
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)0.00
Price to Sales (P/S)0.03
P/FCF Ratio0.00
Enterprise Value/Market Cap2.15
Enterprise Value/Revenue0.10
Enterprise Value/Gross Profit0.27
Enterprise Value/Ebitda1.80
Forecast
1Y Price Target
$20.90Price Target Upside50.04% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering11
JBS Business Overview & Revenue Model
Company DescriptionJBS is a global leader in the food industry, primarily engaged in the processing of beef, pork, lamb, and chicken. The company operates across multiple sectors including fresh and processed food products, leather production, and biodiesel operations. With a significant presence in countries like Brazil, the United States, and Australia, JBS provides a wide array of food solutions to consumers, retailers, and the foodservice industry worldwide.
How the Company Makes MoneyJBS makes money through its diversified portfolio of food and related products. The company's primary revenue stream comes from the processing and sale of fresh and processed meats, including beef, pork, lamb, and poultry, which are distributed to retailers, wholesalers, and foodservice operators worldwide. Additionally, JBS generates revenue through its value-added products such as ready-to-eat meals and convenience foods. The company also capitalizes on by-products such as leather, which is utilized in the automotive and fashion industries, and biodiesel production, which is derived from animal fats. Strategic partnerships and acquisitions further bolster JBS's revenue by expanding its market reach and product offerings.
JBS Earnings Call Summary
Earnings Call Date:May 13, 2025
(Q1-2025)
| % Change Since: -3.60%|
Next Earnings Date:Aug 13, 2025
Earnings Call Sentiment Neutral
JBS delivered a strong first quarter performance with record results and significant achievements in poultry and pork segments. However, challenges in the U.S. beef market and negative cash flow due to external factors and trade disruptions present concerns. The company's strategic steps for international expansion and debt management provide a positive outlook.Q1-2025 Updates
Positive Updates
Record First Quarter Results
JBS reported one of the strongest first quarter results in its history with net sales rising 8.5% in U.S. dollars and net profit jumping 50.5%.
Strong Performance in Poultry and Pork Segments
Seara and Pilgrim's delivered a record first quarter EBITDA margin of 19.8% and 14.8%, respectively, driven by solid demand and strategic management.
Successful Debt Management
Net debt was reduced by $1.1 billion compared to the previous year, with an average debt maturity of approximately 12 years and an average cost of 5.4%.
Continued International Expansion
JBS advanced its dual listing of shares in both Brazil and the United States, enhancing international visibility and attracting new investors.
Negative Updates
Negative Cash Flow
Operating cash flow reported a negative result of $285 million, while free cash flow was negative by $970 million, impacted by higher tax payments and increased working capital.
Challenges in U.S. Beef Market
The U.S. beef segment faced ongoing margin pressure due to challenging cattle cycles and export headwinds, impacting profitability.
Impact of Tariffs and Trade on U.S. Exports
Tariff-related disruptions particularly affected the beef and pork exports to China, with an estimated margin impact of 1 to 1.5 percentage points for the beef segment.
Company Guidance
During the first quarter of 2025, JBS experienced significant financial growth, with net sales increasing by 8.5% in U.S. dollars and net profit soaring by 50.5%. The company reported an EBITDA margin of 7.8%, with adjusted EBITDA reaching $1.5 billion. Notably, Seara and Pilgrim's achieved record first-quarter EBITDA margins of 19.8% and 14.8%, respectively. The U.S. Pork segment also demonstrated strong performance with an EBITDA margin of 12.4%. Despite typical cash consumption during this quarter, JBS maintained a leverage ratio of 1.99x EBITDA, a considerable improvement from 3.66x in the previous year. The company continues to focus on operational excellence and market expansion, with plans for a dual listing of its shares in Brazil and the United States to enhance international visibility and investor attraction.JBS Financial Statement Overview
Summary
JBS shows a mixed financial health profile. While operational margins indicate efficiency, profitability struggles due to high leverage and inconsistent revenue growth. Free cash flow volatility is a concern for long-term sustainability.Income Statement
The income statement shows a mixed performance. There is a positive gross profit margin, but the net profit margin is weak due to a drop in net income in the latest year. Revenue growth has been inconsistent, with a significant decline in 2024 compared to previous years. The EBIT and EBITDA margins indicate operational efficiency, yet profitability remains a concern.65
Positive
Balance Sheet
The balance sheet reveals a high debt-to-equity ratio, indicating substantial leverage, which could pose financial risk. However, the company maintains a reasonable equity ratio, demonstrating some balance in its asset financing. The return on equity has decreased, reflecting pressure on shareholder returns.70
Positive
Cash Flow
Cash flow analysis highlights challenges with free cash flow growth, which has been volatile. The operating cash flow to net income ratio suggests that a significant portion of net income is being converted into cash, but the free cash flow to net income ratio is less favorable, indicating pressure on free cash flow generation.60
Neutral
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 477.06B | 353.89B | 383.97B | 362.50B | 270.20B |
| Gross Profit | 71.63B | 38.67B | 61.04B | 68.49B | 45.22B |
| EBITDA | 40.47B | 17.58B | 35.98B | 42.98B | 27.67B |
| Net Income | 10.92B | -965.15M | 15.85B | 21.24B | 4.60B |
Balance Sheet | |||||
| Total Assets | 251.94B | 206.13B | 208.11B | 207.25B | 163.80B |
| Cash, Cash Equivalents and Short-Term Investments | 34.76B | 22.12B | 13.18B | 23.24B | 19.68B |
| Total Debt | 134.93B | 110.33B | 104.41B | 103.61B | 74.11B |
| Total Liabilities | 201.57B | 159.13B | 158.30B | 159.45B | 120.26B |
| Stockholders Equity | 44.78B | 43.35B | 46.34B | 44.12B | 40.12B |
Cash Flow | |||||
| Free Cash Flow | 16.93B | 4.21B | 2.11B | 12.31B | 3.43B |
| Operating Cash Flow | 26.14B | 11.54B | 13.65B | 22.29B | 4.58B |
| Investing Cash Flow | -8.76B | ― | -13.41B | -19.60B | -1.51B |
| Financing Cash Flow | -8.75B | 4.96B | -8.82B | -359.24M | -1.74B |
JBS Technical Analysis
Positive
13.93
Price Trends
13.84
Positive
13.85
Positive
12.47
Positive
Market Momentum
>-0.01
Negative
55.39
Neutral
80.72
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JBS, the sentiment is Positive. The current price of 13.93 is above the 20-day moving average (MA) of 13.42, above the 50-day MA of 13.84, and above the 200-day MA of 12.47, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 55.39 is Neutral, neither overbought nor oversold. The STOCH value of 80.72 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JBS.
JBS Risk Analysis
JBS disclosed 49 risk factors in its most recent earnings report. JBS 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 0 New Risks
JBS Peers Comparison
Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $11.63B | 9.49 | 33.13% | ― | 2.06% | 63.27% | |
76 Outperform | $5.91B | 8.28 | 23.47% | 2.50% | 3.82% | ― | |
70 Outperform | $8.98B | 7.83 | 13.27% | 7.56% | -3.64% | 231.77% | |
69 Neutral | $15.44B | 14.19 | 22.54% | 0.02% | ― | 476.80% | |
66 Neutral | £7.65B | 7.11 | 6.21% | 3.55% | 1.45% | 25.11% | |
65 Neutral | $15.56B | 20.81 | 9.39% | 4.10% | -1.01% | -2.93% | |
63 Neutral | $26.66B | 11.99 | 24.57% | 4.92% | -1.87% | -5.16% |
* Consumer Defensive Sector Average
Performance Comparison
JBS
JBS
13.92
3.98
40.04%
BRFS
BRF SA
3.46
-0.35
-9.19%
CAG
Conagra Brands
18.80
-9.78
-34.22%
GIS
General Mills
49.15
-17.14
-25.86%
HRL
Hormel Foods
28.30
-2.48
-8.06%
PPC
Pilgrim's Pride
48.96
9.60
24.39%
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.