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JBS (JBS)
NYSE:JBS
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JBS
(NYSE:JBS)
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Rating:68Neutral
Price Target:
$16.00
▲(20.75% Upside)
JBS's overall score is driven by strong earnings call performance and fair valuation. Financial performance is solid but hindered by high leverage and cash flow challenges. Technical analysis indicates bearish momentum, which slightly dampens the overall score.
Positive Factors
Revenue Growth
Consistent revenue growth reflects JBS's expanding market reach and effective product strategies, supporting long-term business stability.
Strategic Investments
Strategic investments in new facilities enhance production capacity and market presence, fostering future growth and competitive advantage.
Shareholder Returns
Strong shareholder returns indicate robust financial health and management's commitment to enhancing shareholder value over the long term.
Negative Factors
High Leverage
High leverage can increase financial risk and limit flexibility, potentially impacting long-term stability if not managed effectively.
Cash Flow Challenges
Declining free cash flow may constrain JBS's ability to invest in growth opportunities and manage debt, affecting future financial resilience.
U.S. Beef Business Pressure
Challenges in the U.S. beef segment could impact profitability and require strategic adjustments to maintain competitive positioning.
JBS (JBS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$14.32B
Dividend Yield0.02%
Average Volume (3M)6.09M
Price to Earnings (P/E)10.3
Beta (1Y)0.14
Revenue GrowthN/A
EPS Growth288.18%
CountryUS
Employees280,000
SectorConsumer Defensive
Sector Strength42
IndustryPackaged Foods
Share Statistics
EPS (TTM)0.52
Shares Outstanding814,216,000
10 Day Avg. Volume6,146,809
30 Day Avg. Volume6,087,569
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)0.69
Price to Sales (P/S)0.07
P/FCF Ratio1.99
Enterprise Value/Market Cap2.41
Enterprise Value/Revenue0.08
Enterprise Value/Gross Profit0.52
Enterprise Value/Ebitda0.86
Forecast
1Y Price Target
$20.85Price Target Upside57.36% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
JBS Business Overview & Revenue Model
Company DescriptionJBS N.V., together with its subsidiaries, operates as a protein and food company worldwide. The company offers beef, pork, chicken, poultry, fish, and lamb products; cooked frozen meat; plant based products; and other food products. It also sells leather, leather, hygiene and cleaning products, collagen, metal packaging, biodiesel, and others, as well as wet blue leather, semi-finished, and finished leather products. In addition, the company is involved in beef processing, such as slaughtering, refrigerating, industrializing, and production of canned beef by-products, as well as fish processing; leather production, processing, and commercialization; production and commercialization of steel cans, plastic resin, soap base for production, soap bar, biodiesel, glycerin, olein, oily acid, collagen, and wrapper derived from cattle tripe; industrial waste management; cold storage; and purchase and sale of soybeans, tallow, palm oil, caustic soda, and stearin. Further, it engages in chicken and pork processing, including raising, slaughtering, and processing of broiler chickens and hogs; production and commercialization of beef and food products; production of pet food and concentrates; electric power production, cogeneration, and commercialization; operates distribution centers and harbors; and provides transportation services and dog biscuits. Additionally, it produces beef jerky; offers cattle fattening and warehousing services; operates logistics; and trades in by products from processing. The company was founded in 1953 and is based in Amstelveen, Netherlands.
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 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
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.75
Positive
Balance Sheet
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.68
Positive
Cash Flow
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.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 460.30B | 416.95B | 363.82B | 383.97B | 362.50B | 270.20B |
| Gross Profit | 66.97B | 62.77B | 39.65B | 61.04B | 68.49B | 45.22B |
| EBITDA | 40.19B | 35.39B | 14.72B | 35.98B | 42.98B | 27.67B |
| Net Income | 12.21B | 9.62B | -1.06B | 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 | 7.59B | 15.47B | 4.01B | 2.11B | 11.86B | 17.80B |
| Operating Cash Flow | 16.56B | 23.56B | 11.50B | 13.33B | 21.48B | 23.78B |
| Investing Cash Flow | -9.51B | -7.73B | -7.02B | -13.12B | -18.86B | -7.83B |
| Financing Cash Flow | -13.42B | -7.30B | 5.01B | -8.76B | -844.50M | -9.02B |
JBS Technical Analysis
Negative
13.25
Price Trends
14.97
Negative
14.44
Negative
13.29
Negative
Market Momentum
-0.36
Positive
23.53
Positive
2.47
Positive
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 13.25 is below the 20-day moving average (MA) of 15.04, below the 50-day MA of 14.97, and below the 200-day MA of 13.29, indicating a bearish trend. The MACD of -0.36 indicates Positive momentum. The RSI at 23.53 is Positive, neither overbought nor oversold. The STOCH value of 2.47 is Positive, 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
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $5.36B | 8.77 | 21.17% | 14.34% | -1.19% | 78.79% | |
79 Outperform | $9.15B | 7.42 | 33.13% | ― | 2.06% | 63.27% | |
68 Neutral | $14.32B | 10.33 | 17.67% | 0.02% | ― | 288.18% | |
63 Neutral | $13.37B | 17.72 | 9.46% | 4.80% | 0.65% | -3.76% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
56 Neutral | $29.91B | 12.81 | -11.68% | 6.29% | -3.83% | -384.08% | |
50 Neutral | $11.42B | 22.22 | -21.32% | 4.05% | 2.54% | -293.39% |
* Consumer Defensive Sector Average
JBS
JBS
13.25
2.69
25.47%
BRFS
BRF SA
3.38
-0.31
-8.40%
HRL
Hormel Foods
24.00
-5.83
-19.54%
SJM
JM Smucker
108.14
-4.51
-4.00%
PPC
Pilgrim's Pride
38.56
-0.08
-0.21%
KHC
Kraft Heinz
25.42
-7.40
-22.55%
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.