Pilgrim's Pride (PPC) AI Stock Analysis

• Market Cap: $9.37B
• Dividend Yield: N/A
• Average Volume (3M): 1.12M
• Price to Earnings (P/E): 7.6
• Beta (1Y): 0.12
• 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: 1,219,974
• 30 Day Avg. Volume: 1,115,285
• 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: 1.32
• Enterprise Value/Revenue: 0.68
• Enterprise Value/Gross Profit: 5.00
• Enterprise Value/Ebitda: 5.59
• 1Y Price Target: $45.80
• Price Target Upside: 16.13% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5
• EPS Forecast (FY): 5.36
• Revenue Forecast (FY): $18.40B

• Rating: 73 Outperform
• Price Target: $43.00 ▲(9.03% 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

Revenue Growth

Consistent revenue growth across key markets indicates strong demand and effective market strategies, supporting long-term business expansion.

Operational Efficiency

Enhanced operational efficiency through technological upgrades supports margin sustainability and competitive positioning in the industry.

Cash Position

A strong cash position provides financial flexibility for strategic investments and resilience against market volatility.

Negative Factors

Decreased Margins

Decreasing margins indicate potential cost pressures and challenges in maintaining profitability, impacting long-term financial health.

European Market Challenges

Challenges in Europe, including regulatory pressures, may hinder growth and profitability in this key market segment.

Commodity Market Volatility

Volatility in commodity markets can lead to unpredictable costs and pricing pressures, affecting long-term profitability and planning.

Pilgrim's Pride Business Overview & Revenue Model

Company Description

Pilgrim's Pride Corporation (PPC) is one of the largest chicken producers in the United States, specializing in the processing and sale of fresh, frozen, and fully cooked chicken products. The company operates processing plants and distribution centers across North America and serves a diverse range of markets, including retail, foodservice, and international customers. Pilgrim's Pride focuses on high-quality poultry products, which include whole chickens, chicken parts, and value-added products, catering to both consumer and commercial needs.

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 exhibits 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. Continued focus on operational efficiency and cost management will be key to sustaining this positive trajectory.

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: 39.44
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• 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 39.44 is above the 20-day moving average (MA) of 38.85, above the 50-day MA of 38.15, and below the 200-day MA of 43.28, indicating a neutral trend. The MACD of 0.36 indicates Negative momentum. The RSI at 55.65 is Neutral, neither overbought nor oversold. The STOCH value of 61.49 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
BRFS	79 Outperform	―	―	―	―	-1.19%	78.79%
PPC	73 Outperform	$9.37B	7.64	31.76%	―	1.81%	24.67%
HRL	68 Neutral	$13.02B	27.25	6.02%	4.90%	1.55%	-40.81%
JBS	66 Neutral	$15.49B	9.54	24.20%	9.75%	―	119.48%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
CAG	52 Neutral	$8.30B	-84.31	-1.16%	7.87%	-5.82%	-119.70%
SJM	49 Neutral	$10.53B	-8.79	-17.44%	4.42%	-0.66%	-326.55%

Pilgrim's Pride Corporate Events

Pilgrim’s Pride Reports Q3 2025 Profit Decline

In its financial results for the third quarter ending September 28, 2025, Pilgrim’s Pride reported a year-over-year decrease in profitability, attributed to lower pricing and volume declines in certain markets. The company’s net revenue increased to $4,759.3 million from $4,585.0 million in the previous year, but net income slightly decreased to $343.1 million. The U.S. market saw a decrease in profitability due to lower pricing, while Europe and Mexico faced challenges from product mix and market prices. Despite operational improvements, the overall adjusted EBITDA margin decreased from 14.4% to 13.3%. The report also highlighted increased SG&A expenses due to legal settlements and defense costs, and a rise in net interest due to a lower cash balance following a $2 billion dividend payout.