JBS SA (JBSAY) AI Stock Analysis

70 Followers

Top Page

JBS SA

(OTC:JBSAY)

80Outperform

JBS SA demonstrates strong technical and valuation metrics, signaling potential growth and value for investors. The positive earnings call reinforces confidence, with record revenues and improved debt management. However, financial performance shows mixed results with concerns about profitability and cash flow, which slightly temper the overall score.

JBS SA (JBSAY) vs. S&P 500 (SPY)

Market Cap

$15.30B

Dividend Yield7.2%

Average Volume (3M)114.25K

Price to Earnings (P/E)8.8

Beta (1Y)0.35

Revenue Growth5.91%

EPS GrowthN/A

CountryUS

Employees270,000

SectorConsumer Defensive

Sector Strength93

IndustryPackaged Foods

Share Statistics

EPS (TTM)1.59

Shares Outstanding1,109,058,200

10 Day Avg. Volume107,950

30 Day Avg. Volume114,255

Financial Highlights & Ratios

PEG Ratio0.02

Price to Book (P/B)N/A

Price to Sales (P/S)0.34

Price to Cash Flow (P/CF)N/A

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$15.00

Price Target Upside5.63% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering1

JBS SA Business Overview & Revenue Model

Company DescriptionJBS SA is a global leader in the food industry, primarily engaged in the processing and sale of animal protein. The company operates in several sectors, including beef, pork, poultry, and lamb, as well as offering a variety of value-added and convenience food products. With a presence in over 150 countries, JBS SA is one of the largest meat processing companies in the world, known for its brands such as Swift, Pilgrim's Pride, and Seara.

How the Company Makes MoneyJBS SA generates revenue primarily through the processing, packaging, and sale of fresh and frozen meats, including beef, pork, and poultry. The company operates a vertically integrated business model, controlling various stages of production from livestock breeding to processing and distribution. Key revenue streams include the sale of fresh and frozen meat products to retail and food service channels, as well as value-added and convenience food products under various brand names. Additionally, JBS SA benefits from significant international operations, allowing it to tap into diverse markets and reduce its exposure to regional economic fluctuations. Strategic acquisitions and partnerships have also played a crucial role in expanding its product offerings and market reach.

JBS SA Financial Statement Overview

Summary

JBS SA shows a mixed financial health profile. Operational margins suggest efficiency, but profitability is under pressure. The high leverage on the balance sheet could pose risks, although there is a reasonable level of equity. Cash flow generation needs improvement to ensure long-term sustainability.

Income Statement

Positive

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.

Balance Sheet

Positive

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.

Cash Flow

Neutral

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.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
77.18B	363.82B	374.85B	350.70B	270.20B
	Gross Profit
11.59B	39.65B	59.48B	66.18B	45.22B
	EBIT
4.38B	5.26B	24.58B	32.18B	13.35B
	EBITDA
6.55B	3.62B	35.01B	41.39B	20.82B
	Net Income Common Stockholders
1.77B	-1.06B	15.85B	21.24B	4.60B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.61B	22.12B	13.18B	23.24B	19.68B
	Total Assets
40.69B	206.64B	208.11B	207.25B	163.80B
	Total Debt
19.95B	104.87B	102.62B	100.92B	68.30B
	Net Debt
14.33B	82.69B	89.44B	77.68B	48.62B
	Total Liabilities
32.55B	159.52B	158.30B	159.45B	120.26B
	Stockholders Equity
7.09B	43.35B	46.34B	44.12B	40.12B
Cash Flow		Free Cash Flow
2.74B	4.21B	2.06B	11.80B	17.75B
	Operating Cash Flow
4.23B	11.54B	13.33B	21.48B	23.78B
	Investing Cash Flow
-1.42B	-7.09B	-13.12B	-18.86B	-7.83B
	Financing Cash Flow
-1.41B	5.01B	-8.76B	-844.50M	-9.02B

JBS SA Technical Analysis

Technical Analysis Sentiment

Positive

Last Price14.20

Price Trends

50DMA

12.26

Positive

100DMA

12.17

Positive

200DMA

11.77

Positive

Market Momentum

MACD

0.84

Negative

RSI

67.33

Neutral

STOCH

78.04

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JBSAY, the sentiment is Positive. The current price of 14.2 is above the 20-day moving average (MA) of 13.51, above the 50-day MA of 12.26, and above the 200-day MA of 11.77, indicating a bullish trend. The MACD of 0.84 indicates Negative momentum. The RSI at 67.33 is Neutral, neither overbought nor oversold. The STOCH value of 78.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JBSAY.

JBS SA Risk Analysis

JBS SA disclosed 49 risk factors in its most recent earnings report. JBS SA 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 SA Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JBSAY	80 Outperform	$15.30B	8.83	21.86%	7.20%	5.91%	―
PPC	76 Outperform	$11.85B	10.94	28.70%	―	2.93%	237.51%
BRFS	72 Outperform	$5.50B	9.10	21.60%	2.67%	5.85%	―
HRL	71 Outperform	$16.90B	22.31	9.54%	3.70%	-1.84%	-5.14%
CAG	70 Outperform	$12.74B	39.04	3.67%	5.25%	-3.15%	-65.38%
GIS	66 Neutral	$32.64B	13.09	27.37%	4.01%	-2.62%	4.27%
Sector *	62 Neutral	$20.19B	14.01	-16.14%	3.22%	1.15%	3.41%

* Consumer Defensive Sector Average

Performance Comparison

JBSAY

JBS SA

14.20

5.96

72.33%

BRFS

BRF SA

3.15

-0.24

-7.08%

CAG

Conagra Brands

25.99

-3.81

-12.79%

GIS

General Mills

58.63

-9.62

-14.10%

HRL

Hormel Foods

30.04

-4.02

-11.80%

PPC

Pilgrim's Pride

49.47

18.18

58.10%

JBS SA Earnings Call Summary

Earnings Call Date: Mar 25, 2025 | % Change Since: 0.07% | Next Earnings Date: May 13, 2025

Earnings Call Sentiment Positive

The earnings call highlighted JBS's strong revenue growth, robust performance in several segments, and effective debt management. However, challenges in the U.S. beef market and weather impacts in Australia were noted. Overall, the positive aspects significantly outweigh the negative, reflecting a strong financial position and strategic achievements.

Highlights

Record Net Revenue

JBS achieved a record net revenue of $77.2 billion for 2024, reflecting a 6% growth compared to 2023.

Strong EBITDA Performance

The company reported an EBITDA of $7 billion with a consolidated margin of 9.3%, showcasing strong operational management.

Seara's Robust Recovery

Seara posted a strong recovery with a 19.8% margin in Q4, driven by commercial and operational improvements.

U.S. Pork Segment Success

JBS U.S. Pork delivered a consistent performance, closing Q4 with a 13.5% margin, an increase of nearly 7 percentage points compared to 2023.

Pilgrim's Historic Performance

Pilgrim's recorded the best performance in its history, with margins growing from 9.8% to 14.7% in Q4.

Debt and Financial Management

JBS's leverage ratio fell from 4.42 times to 1.89 times EBITDA between Q4 2023 and Q4 2024. The company issued bonds at the lowest spread over U.S. treasury for a Brazilian corporate issuance.

Dividend Distribution

In 2024, JBS distributed $815 million in dividends, with an additional $380 million in January 2025.

Lowlights

U.S. Beef Market Challenges

Despite outperforming 2023, the U.S. beef segment faced headwinds due to the region's current cattle cycle.

Weather Impact on Australian Operations

Operational disruptions due to weather in Australia affected Salmon unit performance, though beef operations remained strong.

High Corn Prices in Brazil

Brazil faced the highest corn prices globally, impacting the cost structure, although the situation is expected to be temporary.

Company Guidance

In the fourth quarter of 2024, JBS S.A. achieved a record net revenue of $20 billion and an adjusted EBITDA of $1.8 billion, with a margin of 9.2%. For the full year, net revenue reached $77.2 billion, marking a 6% growth from 2023, while net income totaled $1.8 billion. The company's EBITDA for 2024 was $7 billion, resulting in a consolidated margin of 9.3%. JBS's leverage ratio significantly improved, dropping from 4.42 times to 1.89 times EBITDA in U.S. dollars between Q4 2023 and Q4 2024. The strong performance was driven by various segments, including JBS U.S. Pork, which closed Q4 with a 13.5% margin, and Pilgrim's Pride, which saw its margin rise from 9.8% to 14.7% in the same period. The company also announced a $1.75 billion bond issuance and repaid $850 million in bonds due in 2030, capitalizing on a favorable market environment. JBS distributed $815 million in dividends in October 2024 and an additional $380 million in January 2025, proposing a further $773 million distribution pending shareholder approval. The company continues to focus on global diversification, innovation, and operational excellence to drive sustainable growth and shareholder value.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.