Pilgrim's Pride (PPC) AI Stock Analysis

• Market Cap: $11.35B
• Dividend Yield: N/A
• Average Volume (3M): 1.15M
• Price to Earnings (P/E): 9.4
• Beta (1Y): 0.22
• Revenue Growth: 2.35%
• EPS Growth: 145.82%
• Country: US
• Employees: 62,600
• Sector: Consumer Defensive
• Sector Strength: 55
• Industry: Packaged Foods
• EPS (TTM): 1.31
• Shares Outstanding: 237,123,060
• 10 Day Avg. Volume: 1,160,284
• 30 Day Avg. Volume: 1,153,650
• PEG Ratio: 0.84
• Price to Book (P/B): 3.60
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.18
• Enterprise Value/Market Cap: 1.12
• Enterprise Value/Revenue: 0.39
• Enterprise Value/Gross Profit: 8.64
• Enterprise Value/Ebitda: 2.72
• 1Y Price Target: $50.25
• Price Target Upside: 5.46% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 76 Outperform
• Price Target: $52.00 ▲(9.13%Upside)

The stock's overall score is driven by strong financial performance and positive earnings call outcomes. While the stock appears undervalued, technical analysis suggests neutral market sentiment. Strategic growth and operational efficiencies enhance the outlook, despite challenges in export markets and cost management.

Positive Factors

Dividends

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

Growth Strategy

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

Negative Factors

Margin Risks

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

Seasonality Risks

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 generates revenue primarily through the sale of its poultry and pork products. The company's revenue streams are diversified across multiple channels, including retail sales to grocery chains, wholesale distribution to foodservice providers, and direct sales to restaurants and other culinary institutions. Pilgrim's Pride also engages in strategic partnerships and contracts with major retailers and foodservice companies, which help secure consistent demand and pricing stability. Additionally, the company benefits from its vertically integrated operations, which allow for greater control over production costs and supply chain efficiencies, thereby enhancing its profitability.

Pilgrim's Pride Financial Statement Overview

Summary

Pilgrim's Pride demonstrates strong financial performance with significant revenue and profit growth, improving margins, and efficient cash flow management. The company has reduced leverage and improved shareholder returns, although maintaining balance sheet strength is essential.

Income Statement

Pilgrim's Pride has shown strong revenue growth with a 49% increase over five years, reaching $17.98B in TTM. The Gross Profit Margin improved significantly to 13.81% in TTM, indicating enhanced operational efficiency. Net Profit Margin also increased to 6.72% in TTM, showcasing robust profitability. The EBIT Margin and EBITDA Margin are healthy, at 9.24% and 11.35% respectively, reflecting solid earnings performance.

Balance Sheet

The company's balance sheet is stable, with a Debt-to-Equity Ratio of 0.06 in TTM, significantly reduced from prior years, indicating low leverage. The Return on Equity (ROE) improved to 38.56%, reflecting strong shareholder returns. However, the Equity Ratio is at a moderate 28.57%, suggesting potential reliance on liabilities for asset financing.

Cash Flow

Pilgrim's Pride's free cash flow growth is strong, with a TTM figure of $1.48B. The Operating Cash Flow to Net Income Ratio is 1.53, indicating efficient cash conversion. The Free Cash Flow to Net Income Ratio is 1.22, demonstrating effective cash flow management and ability to support operations and investments.

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
EBITDA	2.01B	987.39M	1.58B	619.01M	625.05M
Net Income	1.09B	321.57M	745.93M	31.00M	94.76M
Balance Sheet
Total Assets	10.65B	9.81B	9.26B	8.91B	7.47B
Cash, Cash Equivalents and Short-Term Investments	2.05B	697.75M	400.99M	427.66M	547.62M
Total Debt	3.47B	3.61B	3.53B	3.57B	2.57B
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	1.51B	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: 47.65
• 50DMA: Positive
• 100DMA: Negative
• 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 47.65 is above the 20-day moving average (MA) of 45.76, above the 50-day MA of 46.69, and above the 200-day MA of 45.58, indicating a bullish trend. The MACD of 0.31 indicates Negative momentum. The RSI at 59.63 is Neutral, neither overbought nor oversold. The STOCH value of 84.15 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
BRFS	78 Outperform	$6.27B	9.00	23.47%	2.33%	3.82%	―
PPC	76 Outperform	$11.35B	9.43	36.53%	―	2.35%	145.82%
BRBR	72 Outperform	$6.95B	25.54	-190.65%	―	18.91%	49.43%
CAG	70 Outperform	$9.17B	7.99	13.27%	7.29%	-3.64%	231.77%
HRL	65 Neutral	$16.08B	21.51	9.39%	3.94%	-1.01%	-2.93%
Sector *	65 Neutral	$26.91B	15.40	-4.43%	2.85%	1.05%	4.97%
SJM	56 Neutral	$11.60B	22.22	-17.87%	3.97%	6.69%	-261.87%

Pilgrim's Pride Corporate Events

Pilgrim’s Pride Stockholders Approve Key Proposals at Meeting

On April 30, 2025, Pilgrim’s Pride Corporation held its Annual Meeting where stockholders approved several key proposals, including the election of ten directors to the Board, an advisory vote on executive compensation, the ratification of KPMG LLP as the independent registered public accounting firm for the fiscal year ending December 28, 2025, and the approval of the Amended and Restated 2019 Long Term Incentive Plan. These decisions are expected to impact the company’s governance and financial oversight, aligning executive compensation with shareholder interests and ensuring continuity in financial auditing.

Pilgrim’s Pride Reports Strong Q1 2025 Financial Results

In its financial results for the first quarter ended March 30, 2025, Pilgrim’s Pride Corporation reported a significant year-over-year increase in net revenue and gross profit, driven by higher commodity market pricing and operational efficiencies. The company experienced growth in the U.S. and Europe, although profitability in Mexico declined due to foreign currency impacts. The results reflect improved operating income and adjusted EBITDA, with notable increases in the Big Bird business and key customer growth. However, the company faced higher SG&A expenses due to legal and incentive compensation costs, and the broiler layer flock decreased by 2.3% year-over-year.