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Pilgrim's Pride
(NASDAQ:PPC)
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Rating:62Neutral
Price Target:
$30.00
▼(-11.53% Downside)
Action:Reiterated
Date:05/01/26
The score is driven by improving financial performance and an attractive low P/E, tempered by weak technicals (below key moving averages with negative MACD) and a cautious earnings-call backdrop where management reiterated guidance and highlighted liquidity, but results showed pronounced near-term margin and EBITDA compression.
Positive Factors
Vertical integration
Pilgrim’s vertical integration—feed mills, hatcheries, grow‑out and processing—provides durable control over supply, quality and some input cost levers. Over 2–6 months this reduces procurement risk, improves reliability and helps capture margin across the value chain versus pure commodity sellers.
Negative Factors
Sharp margin compression
A >40% YoY EBITDA decline and ~5.2pp margin compression highlight the business’s structural sensitivity to commodity values, plant downtime and cost shocks. Such pronounced earnings volatility can persist across quarters until supply balances or structural mix improvements materially offset commodity exposure.
Read all positive and negative factors
Positive Factors
Negative Factors
Vertical integration
Pilgrim’s vertical integration—feed mills, hatcheries, grow‑out and processing—provides durable control over supply, quality and some input cost levers. Over 2–6 months this reduces procurement risk, improves reliability and helps capture margin across the value chain versus pure commodity sellers.
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.
Data provided by:
The Fly
The FlyPilgrim's Pride (PPC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.50B
Dividend YieldN/A
Average Volume (3M)1.48M
Price to Earnings (P/E)7.3
Beta (1Y)0.02
Revenue Growth3.30%
EPS Growth-26.64%
CountryUS
Employees62,600
SectorConsumer Defensive
Sector Strength42
IndustryPackaged Foods
Share Statistics
EPS (TTM)3.74
Shares Outstanding237,921,940
10 Day Avg. Volume1,647,989
30 Day Avg. Volume1,484,432
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 Cap1.47
Enterprise Value/Revenue0.51
Enterprise Value/Gross Profit4.45
Enterprise Value/Ebitda5.10
Forecast
1Y Price Target
$38.17Price Target Upside12.55% Upside
Rating ConsensusHold
Number of Analyst Covering6
EPS Forecast (FY)3.29
Revenue Forecast (FY)$18.78B
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:Apr 29, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 29, 2026
Earnings Call Sentiment Negative
The call presented a mix of strategic progress and concerning near-term operating results. Positives include modest revenue growth, strong brand and prepared foods momentum (Just BARE), Europe’s EBITDA improvement, robust liquidity and a conservative leverage profile, and achievement of sustainability targets. However, these were overshadowed by a pronounced decline in adjusted EBITDA and margins (notably in the U.S. and Mexico), operational disruptions from plant conversions and weather, supply-driven commodity price weakness, and higher SG&A from legal and FX impacts. While management emphasized that investments will reduce volatility and improve long-term margin stability, the magnitude of the quarter‑over‑year profit decline and regional profitability compressions represent significant near-term challenges.Positive Updates
Stable to Slightly Higher Revenue
Net revenues of $4.53 billion in Q1 FY2026 versus $4.46 billion a year ago, an increase of ~1.6% year-over-year, showing top-line resilience despite commodity volatility.
Negative Updates
Sharp Decline in Adjusted EBITDA and Margins
Adjusted EBITDA fell to $308.1 million in Q1 from $533.2 million a year ago (down ~42.2% YoY). Adjusted EBITDA margin compressed to 6.8% from 12.0% last year (decline of 5.2 percentage points).
Read all updates
Q1-2026 Updates
Positive
Negative
Stable to Slightly Higher Revenue
Net revenues of $4.53 billion in Q1 FY2026 versus $4.46 billion a year ago, an increase of ~1.6% year-over-year, showing top-line resilience despite commodity volatility.
Read all positive updates
Company Guidance
Management reiterated full-year guidance of $900–$950 million in CapEx, an approximate full-year effective tax rate of ~25% and anticipated full-year net interest expense of $105–$115 million (post the $250M tender), while highlighting a strong liquidity position of ~$1.75 billion in cash and available credit, net debt of $2.55 billion and leverage of 1.25x LTM adjusted EBITDA (below their 2–3x target); they also emphasized disciplined cash flow, working-capital management and continued investment in growth projects. On industry supply, USDA data cited Q1 ready‑to‑cook production +3.4% YoY, egg sets +1.1%, chick placements +1.7%, and an expectation of ~2% chicken production growth for 2026 (with Q2 growth around 2.5%), net protein availability +1.6% YoY, corn stocks >2.0 billion bushels and soybean ending stocks ~350 million bushels (+7% YoY).Pilgrim's Pride Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
70
Positive
Cash Flow
62
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 18.57B | 18.50B | 17.88B | 17.36B | 17.47B | 14.78B |
| Gross Profit | 2.15B | 2.36B | 2.31B | 1.12B | 1.81B | 1.37B |
| EBITDA | 1.87B | 2.12B | 2.01B | 987.39M | 1.58B | 619.01M |
| Net Income | 887.75M | 1.08B | 1.09B | 321.57M | 745.93M | 31.00M |
Balance Sheet | ||||||
| Total Assets | 10.20B | 10.34B | 10.65B | 9.81B | 9.26B | 8.91B |
| Cash, Cash Equivalents and Short-Term Investments | 542.41M | 640.24M | 2.05B | 697.75M | 400.99M | 427.66M |
| Total Debt | 3.35B | 3.35B | 3.47B | 3.61B | 3.53B | 3.57B |
| Total Liabilities | 6.47B | 6.65B | 6.40B | 6.47B | 6.40B | 6.32B |
| Stockholders Equity | 3.72B | 3.68B | 4.24B | 3.33B | 2.84B | 2.58B |
Cash Flow | ||||||
| Free Cash Flow | 538.00M | 660.58M | 1.51B | 134.06M | 182.75M | -55.21M |
| Operating Cash Flow | 1.39B | 1.37B | 1.99B | 677.88M | 669.86M | 326.46M |
| Investing Cash Flow | -844.60M | -705.51M | -460.80M | -503.35M | -445.25M | -1.32B |
| Financing Cash Flow | -2.11B | -2.11B | -150.91M | 116.73M | -232.01M | 901.31M |
Pilgrim's Pride Technical Analysis
Neutral
33.91
Price Trends
29.78
Negative
34.47
Negative
36.98
Negative
Market Momentum
-0.62
Positive
49.07
Neutral
31.77
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PPC, the sentiment is Neutral. The current price of 33.91 is above the 20-day moving average (MA) of 28.54, above the 50-day MA of 29.78, and below the 200-day MA of 36.98, indicating a neutral trend. The MACD of -0.62 indicates Positive momentum. The RSI at 49.07 is Neutral, neither overbought nor oversold. The STOCH value of 31.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
62 Neutral | $6.50B | 7.32 | 24.19% | ― | 3.30% | -26.64% | |
62 Neutral | $14.59B | 31.18 | 5.86% | 4.82% | 2.47% | -37.67% | |
62 Neutral | $12.33B | -88.95 | -2.44% | 4.45% | 3.72% | 88.76% | |
56 Neutral | $6.74B | -156.17 | -0.51% | 7.87% | -4.73% | -112.96% | |
49 Neutral | $13.06B | 12.10 | 20.90% | 9.72% | ― | 70.95% |
* Consumer Defensive Sector Average
PPC
Pilgrim's Pride
28.61
-14.39
-33.47%
CAG
Conagra Brands
14.08
-4.76
-25.26%
HRL
Hormel Foods
26.51
-2.30
-7.99%
SJM
JM Smucker
115.64
21.38
22.68%
JBS
JBS
12.22
-1.31
-9.66%
Pilgrim's Pride Corporate Events
Executive/Board ChangesShareholder Meetings
Pilgrim’s Pride Shareholders Back Board, Reject ESG Proposals
Positive
May 1, 2026
On April 29, 2026, Pilgrim’s Pride stockholders held their annual meeting and elected all eight JBS-affiliated directors and both equity directors to the board, reaffirming the company’s existing governance structure. Investors also ap...
Business Operations and StrategyFinancial Disclosures
Pilgrim’s Pride Q1 2026 Results Show Profitability Pressure
Negative
Apr 30, 2026
Pilgrim’s Pride reported financial results for the first quarter ended March 29, 2026, showing net revenue of $4.53 billion, up slightly year over year, but a sharp decline in profitability, with gross profit, operating income, net 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.