JBS (JBS) AI Stock Analysis

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JBS

(NYSE:JBS)

Rating:73Outperform

Price Target:

$17.00

▲(2.84% Upside)

JBS's overall stock score is driven by strong earnings call performance and solid technical indicators. Financial performance is stable but impacted by high leverage and cash flow challenges. Valuation is fair, though the low dividend yield may deter some investors. The positive sentiment from strategic investments and shareholder returns bolsters the score.

Positive Factors

Financial Disclosure

JBS has improved its financial disclosure by providing EBIT/EBITDA under US GAAP and statements in USD, enhancing comparability with US peers like Tyson Foods.

Growth Strategy

JBS's steady growth through mergers and acquisitions, with a solid track record and a financial capacity of US$10bn, supports its positive outlook.

Valuation

JBS is valued at 6.1x EV/EBITDA in 2026 under US GAAP, which is lower than Tyson's 7.9x, indicating a potentially attractive investment opportunity.

Negative Factors

Recent Underperformance

Recent underperformance is attributed to technical factors such as BDR sell-off, index/passive outflows, and BNDES newsflow as a potential seller.

Stock Liquidity

The company is giving extra attention to stock liquidity and index composition, which is seen as a positive move.

US Beef Margins

US beef margins are expected to remain pressured at least until the end of 2026, affecting JBS's performance in this segment.

JBS (JBS) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$16.87B

Dividend Yield0.01%

Average Volume (3M)4.61M

Price to Earnings (P/E)12.1

Beta (1Y)0.17

Revenue GrowthN/A

EPS Growth280.98%

CountryUS

Employees280,000

SectorConsumer Defensive

Sector Strength46

IndustryPackaged Foods

Share Statistics

EPS (TTM)0.50

Shares Outstanding814,216,000

10 Day Avg. Volume7,238,949

30 Day Avg. Volume4,607,471

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap2.09

Enterprise Value/Revenue0.07

Enterprise Value/Gross Profit0.47

Enterprise Value/Ebitda0.81

Forecast

1Y Price Target

$20.80

Price Target Upside25.83% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering10

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:Aug 14, 2025

(Q2-2025)

% Change Since: |

Next Earnings Date:Nov 13, 2025

Earnings Call Sentiment Positive

The earnings call highlighted JBS's significant achievements, such as record revenue, strong performance in Australia and Pilgrim's Pride, and strategic investments in U.S. facilities. However, challenges in the U.S. beef business, trade restrictions affecting the pork segment, and the impact of avian flu on Seara were noted. Despite these challenges, the overall sentiment is bolstered by the company's strategic moves and shareholder returns.

Q2-2025 Updates

Positive Updates

Record-Breaking Revenue and Growth

Net sales reached a record of USD 21 billion, marking a 9% increase year-over-year, with an adjusted EBITDA of $1.8 billion and a margin of 8.4%.

Pilgrim's Pride Record Performance

Pilgrim's achieved the highest EBITDA in its history, supported by lower grain costs and resilient U.S. demand, with a record adjusted EBITDA of $687 million.

Seara's Strong EBITDA Margin

Seara delivered an EBITDA margin of 18.1%, despite the outbreak of avian influenza in Brazil, driven by a disciplined commercial strategy and strong focus on innovation.

Successful Dual Listing

JBS completed its dual listing on the New York Stock Exchange, enhancing global visibility and broadening its investor base.

Shareholder Returns

JBS returned $1.2 billion in dividends and announced a $400 million share repurchase program.

Investment in U.S. Facilities

Significant investments in U.S. facilities, including $135 million for a fresh sausage facility in Iowa and $400 million for a new prepared foods facility in Georgia.

Strong Performance in Australia

JBS Australia reported a 20% revenue growth, with an EBITDA margin reaching 12.7% due to higher volumes of beef exports and operational efficiency gains.

Negative Updates

Pressure on U.S. Beef Business

The U.S. beef business faced pressure from an unfavorable cattle cycle, with live cattle prices at record highs, impacting profitability.

Trade Restrictions Affect Pork Business

The pork business was affected by short-term trade restrictions, impacting margins, although a return to normal levels is expected.

Avian Flu Impact on Seara

The outbreak of avian influenza in Brazil led to temporary market closures, impacting Seara's EBITDA by approximately 5% in June.

Cash Flow Challenges

Free cash flow was impacted by a $1.1 billion difference compared to the previous year, mainly due to higher capital expenditures and increased finished goods inventories.

Company Guidance

During the JBS second-quarter earnings call for 2025, significant guidance was provided on the company's strategic direction and financial performance. The company announced a record net sales figure of $21 billion, marking a 9% year-over-year increase. Adjusted EBITDA reached $1.8 billion with a margin of 8.4%, while net profit stood at $528 million. A noteworthy aspect of the call was the emphasis on strategic investments, including a $135 million fresh sausage facility in Iowa and a $400 million prepared foods facility in Georgia. The company also highlighted a $400 million share repurchase program and a commitment to returning value to shareholders, as evidenced by $1.2 billion in dividends paid in the quarter. JBS's net leverage was reported at 2.27x, aligning with long-term targets, despite ongoing pressures in some business units and a challenging macroeconomic environment. The call underscored the resilience of JBS's diversified global platform, particularly highlighting the performance of the poultry operation and Seara, which achieved an 18.1% EBITDA margin despite avian influenza challenges in Brazil.

JBS Financial Statement Overview

Summary

JBS demonstrates solid revenue growth and profitability improvements, but faces challenges with high leverage and declining free cash flow. While profitability metrics are strong, the company needs to address its cash flow and leverage to ensure long-term financial stability.

Income Statement

Positive

JBS has shown consistent revenue growth with a TTM growth rate of 3.66%. The gross profit margin is stable at 14.57%, though slightly lower than previous years. Net profit margin improved to 2.60% in the TTM, indicating better profitability management. However, the EBIT and EBITDA margins have slightly decreased, suggesting potential cost pressures.

Balance Sheet

Positive

The company's debt-to-equity ratio is high at 2.53, indicating significant leverage, which could pose risks if not managed well. Return on equity is strong at 29.93%, reflecting efficient use of equity. The equity ratio is moderate, suggesting a balanced asset structure.

Cash Flow

Neutral

Free cash flow growth is negative at -29.95%, raising concerns about cash generation. The operating cash flow to net income ratio is 0.34, indicating moderate cash conversion efficiency. The free cash flow to net income ratio is 0.47, showing some reliance on net income for cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	520.41B	477.06B	353.89B	383.97B	362.50B	270.20B
Gross Profit	75.82B	71.63B	38.67B	61.04B	68.49B	45.22B
EBITDA	43.39B	40.47B	17.58B	35.98B	42.98B	27.67B
Net Income	13.52B	10.92B	-965.15M	15.85B	21.24B	4.60B
Balance Sheet
Total Assets	228.12B	251.94B	206.13B	208.11B	207.25B	163.80B
Cash, Cash Equivalents and Short-Term Investments	13.67B	34.76B	22.12B	13.18B	23.24B	19.68B
Total Debt	116.03B	134.93B	110.33B	104.41B	103.61B	74.11B
Total Liabilities	177.73B	201.57B	159.13B	158.30B	159.45B	120.26B
Stockholders Equity	45.88B	44.78B	43.35B	46.34B	44.12B	40.12B
Cash Flow
Free Cash Flow	1.62B	2.50B	825.86M	398.54M	2.13B	3.43B
Operating Cash Flow	5.27B	3.81B	2.37B	2.52B	3.85B	4.58B
Investing Cash Flow	-7.10B	―	―	―	-19.60B	-1.51B
Financing Cash Flow	-11.84B	―	4.96B	―	-359.24M	-1.74B

JBS Technical Analysis

Technical Analysis Sentiment

Positive

Last Price16.53

Price Trends

50DMA

14.04

Positive

100DMA

14.17

Positive

200DMA

12.76

Positive

Market Momentum

MACD

0.59

Negative

RSI

77.58

Negative

STOCH

88.13

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 16.53 is above the 20-day moving average (MA) of 14.64, above the 50-day MA of 14.04, and above the 200-day MA of 12.76, indicating a bullish trend. The MACD of 0.59 indicates Negative momentum. The RSI at 77.58 is Negative, neither overbought nor oversold. The STOCH value of 88.13 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 (63)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PPC	79 Outperform	$10.60B	8.59	33.13%	―	2.06%	63.27%
BRFS	78 Outperform	$6.11B	9.47	21.17%	2.40%	-1.19%	78.79%
JBS	73 Outperform	$16.87B	12.14	17.67%	0.01%	―	280.98%
CAG	72 Outperform	$8.97B	7.98	13.27%	7.31%	-3.64%	231.77%
GIS	70 Outperform	$26.71B	12.04	24.57%	4.89%	-1.87%	-5.16%
HRL	63 Neutral	$15.81B	21.23	9.39%	3.97%	-1.01%	-2.93%
Sector *	63 Neutral	$20.46B	14.47	-3.60%	3.13%	2.63%	-6.18%

* Consumer Defensive Sector Average

Performance Comparison

JBS

16.53

5.30

47.20%

BRFS

BRF SA

3.68

-0.82

-18.22%

CAG

Conagra Brands

19.16

-10.12

-34.56%

GIS

General Mills

49.25

-19.27

-28.12%

HRL

Hormel Foods

29.02

-1.97

-6.36%

PPC

Pilgrim's Pride

44.93

5.53

14.04%

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: Aug 25, 2025