Pilgrim's Pride (PPC) AI Stock Analysis

• Market Cap: $10.40B
• Dividend Yield: N/A
• Average Volume (3M): 853.86K
• Price to Earnings (P/E): 9.4
• Beta (1Y): 0.13
• Revenue Growth: 1.81%
• EPS Growth: 24.67%
• Country: US
• Employees: 62,600
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 0.62
• Shares Outstanding: 237,547,440
• 10 Day Avg. Volume: 997,210
• 30 Day Avg. Volume: 853,861
• PEG Ratio: -19.98
• Price to Book (P/B): 2.57
• Price to Sales (P/S): 0.51
• P/FCF Ratio: 14.30
• Enterprise Value/Market Cap: 1.26
• Enterprise Value/Revenue: 0.71
• Enterprise Value/Gross Profit: 5.56
• Enterprise Value/Ebitda: 6.18
• 1Y Price Target: $46.50
• Price Target Upside: 9.54% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): 4.13
• Revenue Forecast (FY): $18.51B

• Rating: 74 Outperform
• Price Target: $48.00 ▲(13.07% Upside)

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

Balance sheet deleveraging

The sharp reduction in debt and near-zero debt-to-equity by 2025 materially lowers financial risk, freeing cash flow for investment or shocks. Durable capital flexibility supports multi-year capex, dividend or M&A optionality and reduces interest sensitivity across cycles.

Prepared foods / brand momentum (Just BARE)

Accelerating branded prepared foods diversifies revenue away from commodity chicken and generally carries higher margins and repeat retail demand. Sustained brand share gains improve pricing power, reduce revenue cyclicality, and enhance long-term profitability and shelf presence.

Improved cash generation

Consistent positive operating and free cash flow in recent years strengthens self-funding ability for capex and debt service. This improved cash conversion supports strategic investments and resilience through protein-cycle swings, even if prior years showed higher volatility.

Negative Factors

Margin volatility and Q4 compression

Large quarter-to-quarter margin swings highlight exposure to commodity pricing, product mix and cutout value cycles; persistent margin volatility undermines earnings predictability and makes multi-year planning and stable return expectations more difficult for investors and management.

Mexico profitability weakness

Structural import competition and weaker live market fundamentals in Mexico reduce regional margins and capacity utilization. As a material geographic market, sustained weakness there can erode consolidated profitability and limit the benefits of global operational improvements.

Higher near-term capital intensity

A sizable step-up in capex increases cash needs and execution risk over multiple years. Even with strong liquidity, larger investment programs can compress free cash flow, require disciplined funding, and expose results to timing risks if returns or project efficiencies lag expectations.

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

Strong recent-cycle improvement: revenue accelerated into 2025 with a meaningful margin rebound (net margin ~5.9% in 2025 vs ~1.9% in 2023; gross margin ~12.7% vs ~6.4%). Balance-sheet leverage improved sharply by 2025 (debt-to-equity ~0.05x), reducing financial risk. Offsetting factor is historical volatility in margins and free cash flow (negative FCF in 2021 and weaker 2022–2023).

Income Statement

Revenue has grown steadily over the cycle, with a sharp acceleration in 2025 (annual revenue up strongly versus 2024). Profitability also improved meaningfully from the weaker 2023 backdrop: net margin rebounded to ~5.9% in 2025 from ~1.9% in 2023, and gross margin nearly doubled from ~6.4% (2023) to ~12.7% (2025). Offsetting these positives, margins have been volatile across years (notably 2021–2023), which is typical for the category but still raises earnings stability risk.

Balance Sheet

Leverage improved dramatically by 2025, with total debt falling to ~$0.2B and debt-to-equity dropping to ~0.05x (from ~0.82x in 2024 and >1.0x in 2021–2023), signaling a much stronger capital structure. Equity remains sizable (~$3.7B), and returns on equity are strong in 2024–2025 (~26%–29%), consistent with improved profitability. The main watch item is the sharp year-over-year debt change (2024 to 2025), which suggests a major paydown or reclassification and can make trend comparisons less smooth.

Cash Flow

Cash generation strengthened substantially in 2024–2025, with operating cash flow at ~$2.0B in 2024 and ~$1.37B in 2025, and free cash flow positive and sizable (including a very large jump in 2025 versus 2024 per the provided growth figure). Free cash flow tracked earnings well in 2024 (about 76% of net income) and was exceptionally strong relative to earnings in 2025 (about 100%). The weaker point is consistency: free cash flow was negative in 2021 and much lower in 2022–2023, indicating higher cash-flow volatility through the cycle.

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

• Technical Analysis Sentiment: Positive
• Last Price: 42.45
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 42.45 is below the 20-day moving average (MA) of 42.99, above the 50-day MA of 40.94, and above the 200-day MA of 42.15, indicating a bullish trend. The MACD of 0.69 indicates Positive momentum. The RSI at 61.29 is Neutral, neither overbought nor oversold. The STOCH value of 74.39 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	74 Outperform	$10.40B	9.35	27.33%	―	1.81%	24.67%
HRL	68 Neutral	$13.47B	28.18	6.02%	4.82%	1.55%	-40.81%
JBS	66 Neutral	$17.11B	10.53	24.20%	9.72%	―	119.48%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
CAG	58 Neutral	$8.99B	-90.82	-1.16%	7.87%	-5.82%	-119.70%
SJM	58 Neutral	$11.49B	-9.76	-17.44%	4.45%	-0.66%	-326.55%

Pilgrim's Pride Corporate Events

Pilgrim’s Pride Reports Q4 Revenue Growth Amid Margin Pressure

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 and net income all declined year over year and EPS fell to $0.37 from $0.99. Adjusted EBITDA margin contracted to 9.2% from 12.0% as U.S. commodity pricing weighed on its Big Bird business despite growth with key retail and foodservice customers, Europe delivered continued profit improvement through cost and efficiency gains, and Mexico saw profitability weaken amid increased imports, while industry data indicated modestly higher broiler placements, slight growth in egg sets and cold storage inventories that were just above prior-year levels but still below the five-year average.

Selling, general and administrative expenses were lower than in the prior-year quarter due mainly to reduced legal settlements and defense costs, but higher net interest expense reflected lower interest income after dividends paid in 2025 reduced cash balances. Sector-wide supply indicators showed declining pullet placements and a smaller broiler layer flock offset by slightly higher eggs per hundred hens and hatchability, along with a mixed cold storage profile in which total chicken inventories rose modestly, breast meat and whole bird stocks increased, but wings, dark meat and paws inventories declined, underscoring an evolving supply-demand balance that will influence pricing and margins across Pilgrim’s Pride’s key product categories.

The most recent analyst rating on (PPC) stock is a Hold with a $45.00 price target. To see the full list of analyst forecasts on Pilgrim’s Pride stock, see the PPC Stock Forecast page.