Pilgrim's Pride (PPC) AI Stock Analysis

• Market Cap: $11.96B
• Dividend Yield: N/A
• Average Volume (3M): 1.69M
• Price to Earnings (P/E): 11.0
• Beta (1Y): 0.40
• Revenue Growth: 2.93%
• EPS Growth: 237.51%
• Country: US
• Employees: 61,600
• Sector: Consumer Defensive
• Sector Strength: 86
• Industry: Packaged Foods
• EPS (TTM): 4.57
• Shares Outstanding: 237,362,200
• 10 Day Avg. Volume: 1,512,221
• 30 Day Avg. Volume: 1,688,136
• PEG Ratio: 0.05
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.65
• Price to Cash Flow (P/CF): 8.40
• P/FCF Ratio: 7.50
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $50.00
• Price Target Upside: -0.73% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

Pilgrim's Pride exhibits strong financial performance, with healthy growth in revenues and profitability, supported by solid operational efficiency. The stock's valuation and technical analysis indicate reasonable pricing, though market sentiment is cautious. Despite some operational challenges, the company's strategic initiatives and strong earnings position it well for future growth.

Positive Factors

Dividends

PPC announced a $1.5bn special dividend, signaling financial strength and a commitment to returning value to shareholders.

Geographic Expansion

PPC has plans for geographic expansion and business integration, which are expected to drive growth and enhance margins.

Negative Factors

Production Growth

US chicken margins may lag in future due to stronger production growth in shoulder periods.

Seasonality

Analyst sees near-term risk from seasonality and accelerating production indicators.

Pilgrim's Pride Business Overview & Revenue Model

Company Description

Pilgrim's Pride Corporation engages in the production, processing, marketing and distribution of fresh, frozen and value-added chicken, and pork products to retailers, distributors, and foodservice operators in the United States, the United Kingdom, Mexico, the Middle East, Asia, Continental Europe, and internationally. The company offers fresh products, including pre-marinated or non-marinated chicken, frozen whole chickens, breast fillets, mini breast fillets and prepackaged case-ready chicken, primary pork cuts, and pork and pork ribs; prepared products, which include portion-controlled breast fillets, tenderloins and strips, delicatessen products, salads, formed nuggets and patties, and bone-in chicken parts; processed sausages, bacon, slow cooked, smoked meat, gammon joints, as well as variety of meat products, pre-packed meats, sandwich and deli counter meats, pulled pork balls, meatballs, and coated foods. In addition, its exported products include whole chickens and chicken parts sold either refrigerated for distributors in the U.S. or frozen for distribution to export markets and primary pork cuts, hog heads and trotters frozen for distribution to export markets. The company offers its products under the Pilgrim's, Just BARE, Gold'n Pump, Gold Kist, County Pride, Pierce Chicken, Pilgrim's Mexico, County Post, Savoro, To-Ricos, Del Dia, Moy Park, O'Kane, Richmond, Fridge Raiders, and Denny brands. Pilgrim's Pride Corporation sells its products to the foodservice market principally consists of chain restaurants, food processors, broad-line distributors, and other institutions; and retail market, which comprise primarily grocery store chains, wholesale clubs, and other retail distributors. The company was founded in 1946 and is headquartered in Greeley, Colorado. Pilgrim's Pride Corporation operates as a subsidiary of JBS S.A.

How the Company Makes Money

Pilgrim's Pride makes money primarily through the production and sale of chicken products, which are distributed across several key channels. The company's revenue model is centered around its extensive operations in the retail and foodservice sectors, where it supplies fresh and prepared chicken to grocery stores, restaurants, and other foodservice providers. Additionally, Pilgrim's Pride benefits from international sales, exporting products to numerous countries, which diversifies its revenue streams. Significant partnerships with major retailers and foodservice chains enhance its market reach and contribute to its earnings. The company's strategic focus on efficiency, product quality, and customer satisfaction further bolsters its profitability.

Pilgrim's Pride Financial Statement Overview

Summary

Pilgrim's Pride has shown robust financial performance with strong revenue and profit margins, a solid equity base, and healthy cash flows. The company has effectively managed its leverage, enhancing financial stability. Continuous monitoring of liabilities is advised.

Income Statement

Pilgrim's Pride has demonstrated robust revenue growth and impressive profitability over recent years. The gross profit margin for the latest period is approximately 12.94%, and the net profit margin stands at 6.08%, both showing improvement. The revenue growth rate from the previous year is 2.97%, indicating steady growth. The EBIT and EBITDA margins are strong at 8.42%, reflecting efficient operations and cost management. Overall, the income statement reflects a positive trajectory in revenues and profitability.

Balance Sheet

The balance sheet shows a healthy equity ratio of 39.81%, indicating a strong equity position relative to total assets. The debt-to-equity ratio has significantly improved to 0.05, suggesting low leverage, which reduces financial risk. Return on Equity (ROE) is 25.63%, a positive indicator of profitability relative to shareholder investment. Overall, the balance sheet indicates solid financial stability, although continuous monitoring of liabilities is advised.

Cash Flow

The cash flow statements reveal a strong operating cash flow to net income ratio of 1.83, indicating effective cash generation from operations. The free cash flow growth rate has seen substantial improvement, and the free cash flow to net income ratio is 1.83, showcasing efficient capital expenditure management. The cash flow position is robust, supporting both operational and strategic initiatives.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
17.88B	17.36B	17.47B	14.78B	12.09B
	Gross Profit
2.31B	1.12B	1.81B	1.37B	838.20M
	EBIT
1.51B	522.29M	1.18B	211.16M	245.46M
	EBITDA
2.01B	987.39M	1.64B	597.79M	582.69M
	Net Income Common Stockholders
1.09B	321.57M	745.93M	31.00M	94.76M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.05B	731.22M	400.99M	427.66M	547.62M
	Total Assets
10.65B	9.81B	9.26B	8.91B	7.47B
	Total Debt
196.80M	3.61B	3.42B	3.49B	2.57B
	Net Debt
-1.85B	2.92B	3.02B	3.06B	2.02B
	Total Liabilities
6.40B	6.47B	6.40B	6.32B	4.90B
	Stockholders Equity
4.24B	3.33B	2.84B	2.58B	2.56B
Cash Flow		Free Cash Flow
1.99B	134.06M	182.75M	-55.21M	369.49M
	Operating Cash Flow
1.99B	677.88M	669.86M	326.46M	724.25M
	Investing Cash Flow
-460.80M	-503.35M	-445.25M	-1.32B	-327.00M
	Financing Cash Flow
-150.91M	116.73M	-232.01M	901.31M	-136.71M

Pilgrim's Pride Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 50.37
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PPC, the sentiment is Positive. The current price of 50.37 is above the 20-day moving average (MA) of 46.96, above the 50-day MA of 46.32, and above the 200-day MA of 41.68, indicating a bullish trend. The MACD of 0.68 indicates Negative momentum. The RSI at 64.77 is Neutral, neither overbought nor oversold. The STOCH value of 90.96 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PPC.

Pilgrim's Pride Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PPC	76 Outperform	$11.96B	11.03	28.70%	―	2.93%	237.51%
BRFS	74 Outperform	$5.32B	8.74	21.60%	2.78%	5.85%	―
HRL	71 Outperform	$16.52B	21.81	9.54%	3.88%	-1.84%	-5.14%
CAG	70 Outperform	$12.41B	38.03	3.67%	5.60%	-3.15%	-65.38%
BRBR	64 Neutral	$9.00B	32.84	-190.65%	―	21.00%	72.21%
Sector *	62 Neutral	$20.34B	13.97	-16.14%	3.32%	1.30%	5.01%
SJM	61 Neutral	$12.25B	22.22	-3.55%	3.90%	7.07%	-181.54%

Pilgrim's Pride Corporate Events

Pilgrim’s Pride Declares $6.30 Dividend Per Share

On March 13, 2025, Pilgrim’s Pride Corporation’s Board of Directors declared a dividend of $6.30 per share, payable to stockholders on April 3, 2025. The announcement, made on March 14, 2025, reflects the company’s commitment to returning value to its shareholders, potentially enhancing its market position and stakeholder confidence.

Pilgrim’s Pride Reports Strong Q4 2024 Financial Results

On February 13, 2025, Pilgrim’s Pride Corporation reported its financial results for the fourth quarter ended December 29, 2024, showing significant improvements across its operations. The company experienced increased net revenue and operating income driven by higher U.S. commodity market pricing, cost efficiencies, and growth with key customers, despite higher SG&A expenses due to legal settlements and compensation costs. Broiler placements and egg sets increased year-over-year, while industry cold storage supplies continued to lag behind previous years, indicating supply chain adjustments. The results suggest a strong positioning for Pilgrim’s Pride in its industry, with implications for continued operational efficiency and market growth.