Pilgrim's Pride (PPC)
NASDAQ:PPC
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Pilgrim's Pride
(NASDAQ:PPC)
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Rating:74Outperform
Price Target:
$40.00
▲(11.14% Upside)
Action:ReiteratedDate:02/13/26
The score is driven primarily by improved financial performance and a materially stronger balance sheet, supported by an undemanding P/E valuation. Technicals are moderately positive with the stock trading above key moving averages. The latest earnings call tempers the outlook due to Q4 margin compression, Mexico weakness, litigation charges, and higher 2026 capex, which increase near-term volatility risk.
Positive Factors
Strengthened Balance Sheet
A sharply de-levered capital structure provides durable financial flexibility: lower interest burdens, stronger covenant headroom, and capacity to fund growth or absorb shocks. This materially reduces solvency risk and improves resilience across protein cycles for many quarters to come.
Negative Factors
Margin Volatility
Historic swings in margins reflect exposure to volatile commodity input prices, product mix shifts and cutout value moves. Such volatility can compress multi-period earnings visibility and make free cash flows cyclical, limiting predictability of returns and capital allocation.
Read all positive and negative factors
Positive Factors
Negative Factors
Strengthened Balance Sheet
A sharply de-levered capital structure provides durable financial flexibility: lower interest burdens, stronger covenant headroom, and capacity to fund growth or absorb shocks. This materially reduces solvency risk and improves resilience across protein cycles for many quarters to come.
Read all positive factors
Pilgrim's Pride (PPC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.55B
Dividend YieldN/A
Average Volume (3M)947.43K
Price to Earnings (P/E)8.7
Beta (1Y)0.18
Revenue Growth1.81%
EPS Growth24.67%
CountryUS
Employees62,600
SectorConsumer Defensive
Sector Strength42
IndustryPackaged Foods
Share Statistics
EPS (TTM)0.62
Shares Outstanding237,547,440
10 Day Avg. Volume1,013,800
30 Day Avg. Volume947,428
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 Cap1.32
Enterprise Value/Revenue0.61
Enterprise Value/Gross Profit4.78
Enterprise Value/Ebitda5.31
Forecast
1Y Price Target
$41.00Price Target Upside13.92% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)4
Revenue Forecast (FY)$18.78B
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 Kingdo...
How the Company Makes Money
Pilgrim’s Pride makes money by producing and selling poultry products across multiple channels and product formats. Its revenue model is primarily volume- and price-driven: the company processes chicken and sells finished products to (1) retail cu...
Pilgrim's Pride Key Performance Indicators (KPIs)
Pilgrim's Pride Earnings Call Summary
Earnings Call Date:Feb 11, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 29, 2026
Earnings Call Sentiment Neutral
Mixed but resilient: the company delivered full-year revenue and adjusted EBITDA growth, strengthened European results, accelerated branded prepared foods (notably Just BARE), and maintains a strong balance sheet and liquidity position. However, Q4 margin compression, severe short-term weakness in Mexico, sizable litigation charges, and commodity/capacity headwinds create notable near-term earnings pressure and increased investment needs. Management emphasizes operational improvements and growth investments to mitigate volatility.Positive Updates
Fiscal 2025 Revenue and Adjusted EBITDA Growth
Net revenues increased to $18.5B in fiscal 2025 (up 3.5% vs FY2024) and adjusted EBITDA rose to ~$2.27B (management cited a ~2.5% YoY increase), with adjusted EBITDA margin remaining above 12% for a second consecutive year.
Negative Updates
Q4 Margin and Adjusted EBITDA Compression
Q4 adjusted EBITDA declined to $415.1M from $525.7M a year ago (≈-21% YoY) and Q4 adjusted EBITDA margin fell to 9.2% from 12.0% in the prior-year quarter (≈-280 basis points), reflecting commodity pricing headwinds and mix impacts.
Read all updates
Q4-2025 Updates
Positive
Negative
Fiscal 2025 Revenue and Adjusted EBITDA Growth
Net revenues increased to $18.5B in fiscal 2025 (up 3.5% vs FY2024) and adjusted EBITDA rose to ~$2.27B (management cited a ~2.5% YoY increase), with adjusted EBITDA margin remaining above 12% for a second consecutive year.
Read all positive updates
Company Guidance
The company provided forward-looking financial and operational guidance for 2026, including expected net interest expense of $115–$125 million, an anticipated effective tax rate of ~25%, and capital expenditures of $900–$950 million (including sustaining CapEx of ~$400 million per year); depreciation & amortization is forecast at ~$520 million and SG&A run-rate around $140 million per quarter. Balance sheet/liquidity metrics include net debt of ~$2.45 billion with leverage <1.1x LTM adjusted EBITDA and over $1.8 billion of cash/available credit, with no near-term maturities (bonds maturing 2031–2034; U.S. credit facilities to 2028). Operational expectations call for moderate broiler production growth of ~1% in 2026 (USDA: overall protein availability +1.5%), USDA January 2026 layer flock down 1.9% and pullet placements down 3.1%, and commodity outlooks (corn ending stocks ~2,200,000,000; soy ending stocks +3,000,000 bushels, +7% YoY; global wheat +41M MT). Management reiterated project timing (Big Bird conversion and Mexican projects on track to complete by April; Porvenir capacity doubling coming online in Q2; Georgia prepared foods work continuing into 2027) and said most restructuring charges are behind them.Pilgrim's Pride Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
86
Very Positive
Cash Flow
70
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 18.50B | 17.88B | 17.36B | 17.47B | 14.78B |
| Gross Profit | 2.36B | 2.31B | 1.12B | 1.81B | 1.37B |
| EBITDA | 2.12B | 2.01B | 987.39M | 1.58B | 619.01M |
| Net Income | 1.08B | 1.09B | 321.57M | 745.93M | 31.00M |
Balance Sheet | |||||
| Total Assets | 10.34B | 10.65B | 9.81B | 9.26B | 8.91B |
| Cash, Cash Equivalents and Short-Term Investments | 640.24M | 2.05B | 697.75M | 400.99M | 427.66M |
| Total Debt | 3.35B | 3.47B | 3.61B | 3.53B | 3.57B |
| Total Liabilities | 6.65B | 6.40B | 6.47B | 6.40B | 6.32B |
| Stockholders Equity | 3.68B | 4.24B | 3.33B | 2.84B | 2.58B |
Cash Flow | |||||
| Free Cash Flow | 660.58M | 1.51B | 134.06M | 182.75M | -55.21M |
| Operating Cash Flow | 1.37B | 1.99B | 677.88M | 669.86M | 326.46M |
| Investing Cash Flow | -705.51M | -460.80M | -503.35M | -445.25M | -1.32B |
| Financing Cash Flow | -2.11B | -150.91M | 116.73M | -232.01M | 901.31M |
Pilgrim's Pride Technical Analysis
Negative
35.99
Price Trends
39.84
Negative
39.61
Negative
40.94
Negative
Market Momentum
-0.87
Negative
39.39
Neutral
21.44
Neutral
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 35.99 is below the 20-day moving average (MA) of 36.37, below the 50-day MA of 39.84, and below the 200-day MA of 40.94, indicating a bearish trend. The MACD of -0.87 indicates Negative momentum. The RSI at 39.39 is Neutral, neither overbought nor oversold. The STOCH value of 21.44 is Neutral, 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 25 risk factors in its most recent earnings report. Pilgrim's Pride reported the most risks in the "Production" 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $8.55B | 8.73 | 30.72% | ― | 1.81% | 24.67% | |
69 Neutral | $19.68B | 7.60 | 31.09% | 9.72% | ― | 119.48% | |
68 Neutral | $11.63B | 18.81 | 6.13% | 4.82% | 1.55% | -40.81% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
61 Neutral | $10.00B | ― | -21.55% | 4.45% | -0.66% | -326.55% | |
54 Neutral | $7.44B | 11.30 | -0.51% | 7.87% | -5.82% | -119.70% |
* Consumer Defensive Sector Average
PPC
Pilgrim's Pride
35.99
-13.27
-26.94%
CAG
Conagra Brands
15.55
-8.15
-34.38%
HRL
Hormel Foods
21.13
-7.10
-25.16%
SJM
JM Smucker
92.47
-17.47
-15.89%
JBS
JBS
18.42
5.27
40.10%
Pilgrim's Pride Corporate Events
Business Operations and StrategyFinancial Disclosures
Pilgrim’s Pride Reports Q4 Revenue Growth Amid Margin Pressure
Negative
Feb 12, 2026
Pilgrim’s Pride reported financial results for the fourth quarter ended December 28, 2025, showing net revenue of $4.52 billion, up from $4.37 billion a year earlier, but with profitability under pressure as gross profit, operating income an...
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.