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JBS (JBS)
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JBS (JBS) AI Stock Analysis

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JBS

JBS

(NYSE:JBS)

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Neutral 69 (OpenAI - 4o)
Rating:69Neutral
Price Target:
$14.50
▲(14.26% Upside)
JBS's overall stock score is driven by strong earnings call highlights, including record revenue and strategic investments. However, financial performance is hindered by high leverage and cash flow challenges, and technical analysis indicates bearish momentum. Valuation suggests potential undervaluation, providing a balanced outlook.
Positive Factors
Revenue Growth
JBS's record revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.
Strategic Investments
Investments in new facilities enhance production capacity and efficiency, positioning JBS for sustained growth and competitive advantage.
Shareholder Returns
Strong shareholder returns reflect financial health and management's commitment to rewarding investors, bolstering long-term investor confidence.
Negative Factors
High Leverage
High leverage can increase financial risk, potentially impacting JBS's ability to invest in growth and manage economic downturns.
Cash Flow Challenges
Negative cash flow growth limits JBS's ability to fund operations and strategic initiatives, posing long-term financial sustainability risks.
Pressure on U.S. Beef Business
Challenges in the U.S. beef segment due to high cattle prices can strain margins, affecting JBS's profitability and market competitiveness.

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

JBS Business Overview & Revenue Model

Company DescriptionJBS S.A. is a Brazilian multinational company and one of the world's largest food processing companies, primarily engaged in the production of beef, chicken, and pork. Founded in 1953, JBS operates in multiple sectors including protein production, food processing, and retail distribution. The company offers a wide range of products including fresh, frozen, and processed meats, as well as value-added products like ready-to-eat meals and packaged foods. JBS has a significant global presence, with operations in North America, South America, Europe, and Australia, serving both consumers and food service markets.
How the Company Makes MoneyJBS generates revenue primarily through the sale of beef, chicken, and pork products, which contribute the majority of its earnings. The company operates through different segments, including beef, poultry, and pork, with each segment having its own supply chain management and distribution networks. Key revenue streams include wholesale meat sales to food retailers, restaurants, and food service companies, as well as exports to international markets. Additionally, JBS has invested in value-added products and branded offerings, which enhance margins. The company also benefits from strategic partnerships with suppliers and distributors, allowing it to optimize its production efficiencies and expand its market reach. Factors contributing to its earnings include fluctuations in commodity prices, demand for protein, and operational efficiencies across its global facilities.

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 shows solid revenue growth and profitability improvements, but faces challenges with high leverage and declining free cash flow. The company's strong return on equity is offset by a high debt-to-equity ratio and negative free cash flow growth.
Income Statement
75
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
68
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
60
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue460.30B416.95B363.82B383.97B362.50B270.20B
Gross Profit66.97B62.77B39.65B61.04B68.49B45.22B
EBITDA40.19B35.39B14.72B35.98B42.98B27.67B
Net Income12.21B9.62B-1.06B15.85B21.24B4.60B
Balance Sheet
Total Assets228.12B251.94B206.13B208.11B207.25B163.80B
Cash, Cash Equivalents and Short-Term Investments13.67B34.76B22.12B13.18B23.24B19.68B
Total Debt116.03B134.93B110.33B104.41B103.61B74.11B
Total Liabilities177.73B201.57B159.13B158.30B159.45B120.26B
Stockholders Equity45.88B44.78B43.35B46.34B44.12B40.12B
Cash Flow
Free Cash Flow7.59B15.47B4.01B2.11B11.86B17.80B
Operating Cash Flow16.56B23.56B11.50B13.33B21.48B23.78B
Investing Cash Flow-9.51B-7.73B-7.02B-13.12B-18.86B-7.83B
Financing Cash Flow-13.42B-7.30B5.01B-8.76B-844.50M-9.02B

JBS Technical Analysis

Technical Analysis Sentiment
Negative
Last Price12.69
Price Trends
50DMA
14.64
Negative
100DMA
14.24
Negative
200DMA
13.39
Negative
Market Momentum
MACD
-0.51
Negative
RSI
37.32
Neutral
STOCH
43.95
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JBS, the sentiment is Negative. The current price of 12.69 is below the 20-day moving average (MA) of 13.25, below the 50-day MA of 14.64, and below the 200-day MA of 13.39, indicating a bearish trend. The MACD of -0.51 indicates Negative momentum. The RSI at 37.32 is Neutral, neither overbought nor oversold. The STOCH value of 43.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
-1.19%78.79%
$8.90B7.3033.13%2.06%63.27%
$13.39B9.6617.67%0.02%288.18%
$13.11B17.379.46%4.89%0.65%-3.76%
$20.33B14.63-3.31%3.23%1.93%-12.26%
$29.89B-11.68%6.25%-3.83%-384.08%
$10.90B-21.32%4.25%2.54%-293.39%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JBS
JBS
12.90
1.44
12.57%
BRFS
BRF SA
3.38
-0.64
-15.92%
HRL
Hormel Foods
23.74
-5.71
-19.39%
SJM
JM Smucker
104.77
-4.59
-4.20%
PPC
Pilgrim's Pride
37.91
-2.83
-6.95%
KHC
Kraft Heinz
25.59
-7.35
-22.31%

JBS Corporate Events

JBS S.A. Releases Interim Financial Report for Mid-2025
Aug 14, 2025

On August 14, 2025, JBS S.A. released its unaudited condensed interim financial information for the periods ending June 30, 2025, and 2024. The report highlights the company’s financial position, including assets, liabilities, and equity, as well as its income and cash flow statements. This financial disclosure provides stakeholders with insights into JBS’s operational performance and financial health, which are crucial for assessing the company’s market positioning and strategic direction.

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: Oct 23, 2025