Seaboard (SEB) AI Stock Analysis

• Market Cap: $2.50B
• Dividend Yield: 0.34%
• Average Volume (3M): 1.76K
• Price to Earnings (P/E): 29.0
• Beta (1Y): 0.13
• Revenue Growth: -4.83%
• EPS Growth: -55.63%
• Country: US
• Employees: 14,000
• Sector: Industrials
• Sector Strength: 70
• Industry: Conglomerates
• EPS (TTM): 90.62
• Shares Outstanding: 971,055
• 10 Day Avg. Volume: 1,452
• 30 Day Avg. Volume: 1,756
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.29
• Price to Cash Flow (P/CF): 2.20
• P/FCF Ratio: 3.90
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Seaboard's overall stock score reflects its mixed financial performance, with strong balance sheet metrics but revenue volatility and profit margin inconsistencies. Technical analysis indicates bearish momentum, while the high P/E ratio and low dividend yield suggest valuation concerns. The company needs to address its growth and profitability challenges to improve its stock performance.

Seaboard Business Overview & Revenue Model

Company Description

Seaboard Corporation (SEB) is a diversified conglomerate with operations in various industries including agribusiness, energy, and maritime transportation. The company is engaged in pork production and processing, commodity merchandising, sugar production and processing, and power generation. Seaboard's core products and services are delivered through its multiple business segments, which include Pork, Commodity Trading and Milling, Marine, Sugar, and Power divisions.

How the Company Makes Money

Seaboard Corporation generates revenue through its diversified business operations across different sectors. The Pork segment, one of its primary revenue streams, involves the production and processing of pork products sold to retailers, food service operators, and further processors. The Commodity Trading and Milling segment handles the merchandising of agricultural commodities and the production of wheat flour and feed. Seaboard's Marine segment provides containerized shipping services, primarily in the Caribbean Basin, Central, and South America, contributing to its earnings. Additionally, the Sugar segment involves the cultivation of sugarcane and the production of sugar and alcohol in the Dominican Republic. The Power segment generates revenue by producing electricity for sale to government-owned distribution companies in the Dominican Republic. Strategic partnerships and investments across these sectors also play a crucial role in enhancing Seaboard's overall profitability.

Seaboard Financial Statement Overview

Summary

Seaboard displays a mixed financial performance. The income statement highlights revenue volatility and inconsistent profit margins, which could be concerning if not addressed. The balance sheet remains robust, with a strong equity base and improved debt metrics, providing financial stability. Cash flows are stable but show limited growth, indicating the need for enhanced cash management. Overall, while the company has a solid foundation, it faces challenges in achieving consistent growth and profitability.

Income Statement

Seaboard's revenue has seen fluctuations over the past years, with a decline from 2022 to 2023 and a further decline to 2024. The gross profit margin improved significantly in 2024 due to cost management, leading to a gross profit of $576 million on $9.1 billion in revenue. However, EBIT and net income margins have been inconsistent, with a notable loss in EBIT in 2023. The return to profitability in 2024 is a positive sign, but the overall trajectory shows volatility, which could indicate underlying operational challenges.

Balance Sheet

Seaboard's balance sheet is relatively strong with a high equity ratio, showing 61.7% in 2024, which indicates a strong equity base. The debt-to-equity ratio has improved significantly from 2023 to 2024, dropping from 0.36 to 0.09, showing effective debt management. However, the company's total assets have slightly decreased over time, which may limit future growth opportunities. Overall, the balance sheet reflects financial stability with good equity leverage.

Cash Flow

The company's cash flow statement shows consistent operating cash flow at $710 million in 2023 and 2024, indicating stable operational efficiency. However, the free cash flow remains modest, reflecting substantial capital expenditures. The free cash flow to net income ratio is healthy, indicating that the company generates enough cash to cover its net income. Despite this, the limited growth in free cash flow suggests a need for improved cash management strategies to enhance liquidity.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
9.10B	9.56B	11.24B	9.23B	7.13B
	Gross Profit
576.00M	316.00M	1.03B	818.00M	574.00M
	EBIT
156.00M	-87.00M	657.00M	458.00M	245.00M
	EBITDA
629.00M	448.00M	860.00M	831.00M	477.00M
	Net Income Common Stockholders
88.00M	226.00M	580.00M	570.00M	283.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.17B	1.03B	1.28B	1.49B	1.54B
	Total Assets
7.67B	7.57B	7.90B	7.50B	6.40B
	Total Debt
410.00M	1.67B	1.63B	1.76B	1.41B
	Net Debt
312.00M	1.62B	1.43B	1.69B	1.34B
	Total Liabilities
2.92B	2.93B	2.89B	3.07B	2.57B
	Stockholders Equity
4.73B	4.62B	5.00B	4.42B	3.82B
Cash Flow		Free Cash Flow
204.00M	204.00M	202.00M	-368.00M	32.00M
	Operating Cash Flow
710.00M	710.00M	676.00M	92.00M	291.00M
	Investing Cash Flow
-273.00M	-273.00M	-437.00M	-302.00M	-262.00M
	Financing Cash Flow
-581.00M	-581.00M	-116.00M	213.00M	-82.00M

Seaboard Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2578.03
• 50DMA: Negative
• 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 SEB, the sentiment is Negative. The current price of 2578.03 is below the 20-day moving average (MA) of 2610.68, below the 50-day MA of 2703.99, and below the 200-day MA of 2805.74, indicating a bearish trend. The MACD of -28.19 indicates Negative momentum. The RSI at 45.44 is Neutral, neither overbought nor oversold. The STOCH value of 64.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SEB.

Seaboard Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GFF	70 Outperform	$3.20B	13.69	93.05%	0.98%	-2.47%	249.49%
MDU	68 Neutral	$3.45B	12.42	10.51%	3.02%	-22.50%	-32.26%
CODI	63 Neutral	$1.28B	―	-4.98%	5.84%	6.77%	9.95%
Sector *	63 Neutral	$4.28B	11.33	5.43%	214.88%	4.12%	-8.65%
SEB	62 Neutral	$2.50B	29.00	1.88%	0.34%	-4.83%	-55.63%
IRS	56 Neutral	$1.10B	―	-30.83%	6.70%	-9.69%	-172.08%
SPLP	55 Neutral	$593.65M	2.78	25.02%	―	6.37%	86.42%