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Pilgrim's Pride
(NASDAQ:PPC)
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Rating:69Neutral
Price Target:
$31.00
▲(8.09% Upside)
Action:Downgraded
Date:08/04/26
The score is driven mainly by solid underlying financial strength (profitability, cash flow, and improving leverage) and a reasonable valuation (P/E ~11.9). Offsetting these positives are weak technicals (price below key moving averages) and a mixed earnings call featuring significant near-term margin/EBITDA compression and one-time charges, which reduce confidence in the near-term earnings trajectory.
Positive Factors
Vertical integration & diversified channels
Pilgrim’s Pride controls breeding, hatcheries, feed mills and processing and sells across retail, foodservice and industrial channels. That integration secures supply, improves cost control and food-safety oversight, and lets the company capture margin and smooth demand swings over time.
Negative Factors
Revenue volatility & cyclicality
A sharply negative TTM top-line and a history of multi-year cyclicality reduce earnings visibility and planning reliability. Structural exposure to flock placements, seasonal production and commodity demand means revenue can swing materially and pressure margins for extended periods.
Read all positive and negative factors
Positive Factors
Negative Factors
Vertical integration & diversified channels
Pilgrim’s Pride controls breeding, hatcheries, feed mills and processing and sells across retail, foodservice and industrial channels. That integration secures supply, improves cost control and food-safety oversight, and lets the company capture margin and smooth demand swings over time.
Read all positive factors
Pilgrim's Pride Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down sales across countries and regions, showing where demand and pricing power are coming from (U.S., Mexico, export markets, etc.). Reveals concentration risk, growth opportunities in particular markets, and sensitivity to local factors like currency moves, trade rules, or disease outbreaks that can sharply affect prices and volumes.
Breaks down sales across countries and regions, showing where demand and pricing power are coming from (U.S., Mexico, export markets, etc.). Reveals concentration risk, growth opportunities in particular markets, and sensitivity to local factors like currency moves, trade rules, or disease outbreaks that can sharply affect prices and volumes.
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The Fly
The FlyPilgrim's Pride (PPC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.51B
Dividend YieldN/A
Average Volume (3M)1.56M
Price to Earnings (P/E)11.9
Beta (1Y)0.01
Revenue Growth1.42%
EPS Growth-55.97%
CountryUS
Employees63,000
SectorConsumer Defensive
Sector Strength42
IndustryPackaged Foods
Share Statistics
EPS (TTM)2.30
Shares Outstanding238,108,520
10 Day Avg. Volume1,566,751
30 Day Avg. Volume1,563,483
Financial Highlights & Ratios
PEG Ratio-19.98
Price to Book (P/B)2.57
Price to Sales (P/S)0.51
P/FCF Ratio14.30
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$34.30Price Target Upside19.60% Upside
Rating ConsensusHold
Number of Analyst Covering5
EPS Forecast (FY)2.79
Revenue Forecast (FY)$18.60B
Pilgrim's Pride Business Overview & Revenue Model
Company Description
Pilgrim's Pride Corporation (PPC) is a prominent entity in the agricultural and food processing sectors, specializing in the comprehensive lifecycle of poultry and pork products. The company handles everything from initial production and processin...
How the Company Makes Money
Pilgrim's Pride makes money primarily by selling chicken and chicken-based food products through multiple channels, with revenue recognized from the sale of products to customers in retail, foodservice, and prepared-food/industrial end markets.
K...
Pilgrim's Pride Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 28, 2026
Earnings Call Sentiment Negative
The call conveyed meaningful operational progress — particularly in Prepared Foods, brand momentum (Just Bare), completed and on-track capital projects, and a strong liquidity position — but was dominated by significant near-term financial headwinds: notably a steep YoY decline in adjusted EBITDA and margins, substantial one-time legal and impairment charges, and regional profitability pressures (especially Mexico and U.S. commodity exposure). The company emphasized strategic actions to reduce portfolio volatility and improve margins over time, but the scale of the quarter-to-quarter profit deterioration and one-time costs create a materially negative near-term financial picture.Positive Updates
Net Revenues and Adjusted EBITDA (Quarter)
Net revenues of $4.63 billion in Q2 2026 (down ~2.7% YoY from $4.76B). Adjusted EBITDA of $360.0 million, demonstrating ongoing cash generation despite margin pressure.
Negative Updates
Sharp Decline in Adjusted EBITDA and Margins YoY
Adjusted EBITDA fell to $360.0 million in Q2 2026 from $686.9 million a year ago (down ~47.6%); adjusted EBITDA margin compressed to 7.8% from 14.4% (decline of 6.6 percentage points).
Read all updates
Q2-2026 Updates
Positive
Negative
Net Revenues and Adjusted EBITDA (Quarter)
Net revenues of $4.63 billion in Q2 2026 (down ~2.7% YoY from $4.76B). Adjusted EBITDA of $360.0 million, demonstrating ongoing cash generation despite margin pressure.
Read all positive updates
Company Guidance
The company reiterated a number of near‑ and full‑year financial and operational targets: full‑year capital expenditures are maintained at approximately $900 million (Q2 CapEx $230 million; year‑to‑date $465 million), with the CFO noting second‑half spend will be roughly in line with the first half; full‑year effective tax rate is expected to approximate 25% (Q2 ETR 39.3%; YTD 25.3%); full‑year net interest expense (excluding early extinguishment of debt) is forecast at roughly $115–$120 million (Q2 GAAP net interest $46.1 million; ex‑loss $28.5 million); liquidity at quarter end was nearly $1.6 billion of cash and available credit, net debt was under $2.5 billion with leverage of 1.43x LTM adjusted EBITDA, and the company completed a $250 million tender of 2033 bonds; USDA supply guidance cited on the call anticipated U.S. ready‑to‑cook production growth moderating to about 2.5% in H2 and a roughly 3.3% full‑year increase, with overall net protein availability up ~2.2% year‑over‑year; longer‑dated project timing noted Walker County commissioning in H2 2027.Pilgrim's Pride Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
78
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 18.44B | 18.50B | 17.88B | 17.36B | 17.47B | 14.78B |
| Gross Profit | 1.77B | 2.36B | 2.31B | 1.12B | 1.81B | 1.37B |
| EBITDA | 1.30B | 2.12B | 2.01B | 987.39M | 1.58B | 619.01M |
| Net Income | 545.61M | 1.08B | 1.09B | 321.57M | 745.93M | 31.00M |
Balance Sheet | ||||||
| Total Assets | 10.03B | 10.34B | 10.65B | 9.81B | 9.26B | 8.91B |
| Cash, Cash Equivalents and Short-Term Investments | 398.30M | 640.24M | 2.05B | 697.75M | 400.99M | 427.66M |
| Total Debt | 3.05B | 3.35B | 3.47B | 3.61B | 3.53B | 3.57B |
| Total Liabilities | 6.27B | 6.65B | 6.40B | 6.47B | 6.40B | 6.32B |
| Stockholders Equity | 3.75B | 3.68B | 4.24B | 3.33B | 2.84B | 2.58B |
Cash Flow | ||||||
| Free Cash Flow | 210.46M | 660.58M | 1.51B | 134.06M | 182.75M | -55.21M |
| Operating Cash Flow | 1.36B | 1.37B | 1.99B | 677.88M | 669.86M | 326.46M |
| Investing Cash Flow | -1.14B | -705.51M | -460.80M | -503.35M | -445.25M | -1.32B |
| Financing Cash Flow | -779.07M | -2.11B | -150.91M | 116.73M | -232.01M | 901.31M |
Pilgrim's Pride Technical Analysis
Negative
28.68
Price Trends
28.53
Negative
30.97
Negative
35.42
Negative
Market Momentum
-0.15
Positive
40.03
Neutral
9.64
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PPC, the sentiment is Negative. The current price of 28.68 is above the 20-day moving average (MA) of 28.48, above the 50-day MA of 28.53, and below the 200-day MA of 35.42, indicating a bearish trend. The MACD of -0.15 indicates Positive momentum. The RSI at 40.03 is Neutral, neither overbought nor oversold. The STOCH value of 9.64 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PPC.
Pilgrim's Pride Risk Analysis
Pilgrim's Pride disclosed 26 risk factors in its most recent earnings report. Pilgrim's Pride reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Pilgrim's Pride Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $6.51B | 11.90 | 14.85% | ― | 1.42% | -55.97% | |
65 Neutral | $13.76B | 29.42 | 5.86% | 4.61% | 2.47% | -37.67% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
62 Neutral | $12.75B | -91.74 | -2.44% | 3.72% | 3.72% | 88.76% | |
58 Neutral | $6.94B | -3.63 | -24.31% | 9.48% | -2.85% | -265.99% | |
49 Neutral | $14.98B | 13.63 | 20.90% | 8.14% | ― | 70.95% |
* Consumer Defensive Sector Average
PPC
Pilgrim's Pride
26.96
-19.85
-42.40%
CAG
Conagra Brands
15.00
-2.42
-13.90%
HRL
Hormel Foods
25.34
-1.55
-5.76%
SJM
JM Smucker
119.17
13.97
13.28%
JBS
JBS
13.61
0.72
5.61%
Pilgrim's Pride Corporate Events
Business Operations and StrategyFinancial Disclosures
Pilgrim’s Pride Q2 Results Reveal Margin Pressures
Negative
Jul 30, 2026
Pilgrim’s Pride Corporation reported financial results for the second quarter ended June 28, 2026, showing net revenue of $4.63 billion, down from $4.76 billion a year earlier, and a sharp drop in net income to $13.2 million from $356 millio...
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.