Pilgrim's Pride (PPC) AI Stock Analysis

• Market Cap: $10.30B
• Dividend Yield: N/A
• Average Volume (3M): 717.32K
• Price to Earnings (P/E): 8.4
• Beta (1Y): 0.11
• Revenue Growth: 1.81%
• EPS Growth: 24.67%
• Country: US
• Employees: 62,600
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 1.52
• Shares Outstanding: 237,547,440
• 10 Day Avg. Volume: 692,920
• 30 Day Avg. Volume: 717,315
• PEG Ratio: 0.04
• Price to Book (P/B): 2.54
• Price to Sales (P/S): 0.60
• P/FCF Ratio: 7.11
• Enterprise Value/Market Cap: 1.26
• Enterprise Value/Revenue: 0.71
• Enterprise Value/Gross Profit: 5.23
• Enterprise Value/Ebitda: 5.85
• 1Y Price Target: $47.67
• Price Target Upside: 9.91% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: $48.00 ▲(10.68% Upside)

Pilgrim's Pride demonstrates strong financial performance and attractive valuation, which are significant strengths. However, technical indicators suggest a neutral trend, and recent earnings call and corporate events highlight challenges in certain markets and margin pressures. These factors collectively result in a moderate overall stock score.

Positive Factors

Robust Revenue Growth

Nearly doubling trailing‑12‑month revenue signals durable demand and successful market penetration across retail, foodservice and international channels. Such sustained top‑line expansion supports scale advantages, fixed‑cost absorption and long‑term investment in capacity and brands.

Strong Cash Generation

High free cash flow growth and strong conversion ratios indicate resilient cash conversion from operations. This underpins the company’s ability to fund capex, pay down debt, pursue M&A or return capital while withstanding commodity cycles, improving long‑term financial flexibility.

Low Leverage & High ROE

Very low leverage paired with a high ROE provides a durable financial cushion and efficient capital deployment. Low indebtedness reduces refinancing and interest risk during commodity swings, enabling strategic investments and preserving credit capacity over multi‑quarter horizons.

Negative Factors

Margin Compression

Declining adjusted EBITDA and U.S. margins reflect structural pressure from commodity price swings and competitive pricing. Persistent margin erosion can limit reinvestment, reduce free cash flow resilience, and force ongoing efficiency initiatives that may cap long‑term profitability.

Geographic & Trade Risks

Regional headwinds and trade disputes in Europe create structural uncertainty for export volumes, pricing and product mix. Ongoing regulatory or trade actions can depress margins and require resource reallocation across geographies, hindering consistent international growth.

Higher SG&A and Cash Outflows

Significant one‑time cash outlays and elevated SG&A reduce financial flexibility and raise interest expense, creating a structural drag if recurring. Reduced liquidity from large payouts limits the company’s buffer versus commodity volatility and may constrain strategic spending.

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 products, which include fresh, frozen, and prepared chicken items. The company's revenue model is built on a combination of direct sales to retailers, foodservice operators, and distributors, with a significant portion of its income derived from contracts with large grocery chains and foodservice companies. Key revenue streams include wholesale chicken sales, retail branded products, and private label offerings. Additionally, Pilgrim's Pride benefits from strategic partnerships with suppliers and distributors, enhancing its market reach and operational efficiency. The company's ability to manage costs effectively, including feed and production expenses, also plays a critical role in its profitability.

Pilgrim's Pride Financial Statement Overview

Summary

Pilgrim's Pride shows strong financial health with robust revenue growth, improved profitability, and effective cash flow management. The significant reduction in leverage enhances financial stability, while high return on equity underscores strong shareholder returns. However, slight decreases in EBIT margin and challenges in certain markets indicate areas for improvement.

Income Statement

Pilgrim's Pride has demonstrated strong revenue growth with a TTM (Trailing-Twelve-Months) increase of 95.9%, indicating robust demand and market presence. The gross profit margin improved to 13.53%, reflecting efficient cost management. Net profit margin also increased to 6.70%, showcasing enhanced profitability. However, the EBIT margin slightly decreased, suggesting potential cost pressures or increased operational expenses.

Balance Sheet

The company has significantly reduced its debt-to-equity ratio to 0.05 in the TTM, indicating a strong deleveraging effort and improved financial stability. Return on equity is impressive at 33.58%, reflecting high profitability relative to shareholder equity. The equity ratio stands at 35.57%, suggesting a solid equity base, though there is room for improvement in asset financing.

Cash Flow

Free cash flow growth is strong at 15.47%, indicating effective cash generation and operational efficiency. The operating cash flow to net income ratio of 0.53 suggests a healthy conversion of income to cash. The free cash flow to net income ratio of 0.89 further supports the company's ability to generate cash relative to its earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	18.35B	17.88B	17.36B	17.47B	14.78B	12.09B
Gross Profit	2.48B	2.31B	1.12B	1.81B	1.37B	838.20M
EBITDA	2.22B	2.01B	987.39M	1.58B	619.01M	625.05M
Net Income	1.23B	1.09B	321.57M	745.93M	31.00M	94.76M
Balance Sheet
Total Assets	9.95B	10.65B	9.81B	9.26B	8.91B	7.47B
Cash, Cash Equivalents and Short-Term Investments	612.58M	2.05B	697.75M	400.99M	427.66M	547.62M
Total Debt	3.29B	3.47B	3.61B	3.53B	3.57B	2.57B
Total Liabilities	6.40B	6.40B	6.47B	6.40B	6.32B	4.90B
Stockholders Equity	3.54B	4.24B	3.33B	2.84B	2.58B	2.56B
Cash Flow
Free Cash Flow	829.42M	1.51B	134.06M	182.75M	-55.21M	369.49M
Operating Cash Flow	1.43B	1.99B	677.88M	669.86M	326.46M	724.25M
Investing Cash Flow	-590.58M	-460.80M	-503.35M	-445.25M	-1.32B	-327.00M
Financing Cash Flow	-2.11B	-150.91M	116.73M	-232.01M	901.31M	-136.71M

Pilgrim's Pride Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 43.37
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 43.37 is above the 20-day moving average (MA) of 40.97, above the 50-day MA of 39.73, and above the 200-day MA of 42.61, indicating a bullish trend. The MACD of 1.08 indicates Negative momentum. The RSI at 69.22 is Neutral, neither overbought nor oversold. The STOCH value of 78.60 is Neutral, 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	73 Outperform	$10.30B	8.40	31.76%	―	1.81%	24.67%
HRL	68 Neutral	$13.54B	28.33	6.02%	4.82%	1.55%	-40.81%
JBS	66 Neutral	$16.83B	10.36	24.20%	9.72%	―	119.48%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
CAG	52 Neutral	$8.85B	-89.94	-1.16%	7.87%	-5.82%	-119.70%
SJM	49 Neutral	$11.19B	-9.34	-17.44%	4.45%	-0.66%	-326.55%