Smithfield Foods (SFD) AI Stock Analysis

• Market Cap: $10.00B
• Dividend Yield: 2.94%
• Average Volume (3M): 844.92K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.46
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 36,500
• Sector: Consumer Defensive
• Sector Strength: 50
• Industry: Agricultural Farm Products
• EPS (TTM): 0.55
• Shares Outstanding: 393,112,700
• 10 Day Avg. Volume: 882,364
• 30 Day Avg. Volume: 844,918
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.08
• Enterprise Value/Revenue: 0.94
• Enterprise Value/Gross Profit: 6.89
• Enterprise Value/Ebitda: 9.36
• 1Y Price Target: $29.50
• Price Target Upside: 15.64% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 71 Outperform
• Price Target: $28.00 ▲(9.76% Upside)

Smithfield Foods' overall score is driven by strong earnings performance and positive technical indicators. The company's ability to improve profitability and raise guidance despite external challenges is a key strength. However, declining revenue and valuation uncertainties slightly temper the outlook.

Positive Factors

Earnings

Smithfield Foods Inc reported strong first-quarter earnings, with EPS significantly exceeding consensus expectations due to profit upside across all three segments.

Hog Production

Hog production is expected to perform significantly better than last year driven by higher hog prices and lower grain prices.

Outlook

Smithfield Foods expects total company sales to increase in the low- to mid-single-digit range, providing a stable outlook for investors.

Negative Factors

Margin Pressure

Continued pressure on margins from higher raw material costs is expected in Packaged Meats.

Stock Performance

Stock weakness is driven by elevated expectations and the overhang from a potential secondary offering.

Tariff Risk

The current China tariff rate could potentially lead to declines in hog and pork prices, presenting a risk to the company.

Smithfield Foods Business Overview & Revenue Model

Company Description

Smithfield Foods, Inc. is a leading global food company and the world's largest pork processor and hog producer. Headquartered in Smithfield, Virginia, the company operates in the food processing industry, focusing on producing a wide range of fresh pork and packaged meat products. Smithfield Foods is known for its commitment to quality, innovation, and sustainability, providing products under various brands that cater to both retail and food service sectors.

How the Company Makes Money

Smithfield Foods makes money primarily through the sale of its pork and packaged meat products. The company's revenue streams include fresh pork, which involves the processing and sale of pork cuts and by-products, and packaged meats, which encompass branded and private label processed products such as bacon, ham, and sausages. These products are sold through retail channels, including supermarkets and grocery stores, and through food service providers. Smithfield Foods leverages its extensive supply chain, from hog production to processing and distribution, to optimize efficiency and reduce costs. Additionally, the company benefits from strategic partnerships and exports, expanding its market reach and enhancing profitability.

Smithfield Foods Financial Statement Overview

Summary

Smithfield Foods showed resilience with improved profitability and strong cash flows despite a decline in revenue. The balance sheet is solid with manageable leverage, but the reduction in total assets and potential revenue impact are concerns. Continued focus on efficiency is crucial.

Income Statement

Smithfield Foods demonstrated a recovery in profitability over the past year, with an impressive increase in gross profit and EBIT margins from a challenging previous year. The gross profit margin improved significantly to 13.42%. However, revenue has seen a decline from $16.2 billion in 2022 to $14.14 billion in 2024, indicating a negative growth trend. The net profit margin also improved to 6.74%, highlighting better cost management. Overall, the company is showing stabilization after a turbulent year, but declining revenue is a concern.

Balance Sheet

The balance sheet of Smithfield Foods is solid with a moderate debt-to-equity ratio of 0.40, indicating manageable leverage levels. The equity ratio stands at 52.78%, suggesting a strong equity base relative to total assets. Return on equity (ROE) improved to 16.33%, reflecting enhanced profitability and efficient use of equity. The company's financial stability is evident, but the reduction in total assets over the years is noteworthy.

Cash Flow

Smithfield Foods shows robust cash flow metrics with an improvement in free cash flow and operating cash flow. The operating cash flow to net income ratio is 1.19, indicating healthy cash generation relative to reported earnings. Free cash flow has grown, but the free cash flow to net income ratio of 0.83 suggests room for improvement in cash conversion. Overall, cash flow management appears strong, but potential for better efficiency exists.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	11.53B	14.14B	14.64B	16.20B
Gross Profit	1.57B	1.85B	1.09B	1.65B
EBITDA	1.15B	1.36B	604.00M	1.20B
Net Income	616.00M	953.00M	17.00M	870.00M
Balance Sheet
Total Assets	11.19B	11.05B	13.32B	13.85B
Cash, Cash Equivalents and Short-Term Investments	928.00M	943.00M	687.00M	547.00M
Total Debt	2.66B	2.36B	2.46B	2.47B
Total Liabilities	4.88B	5.00B	5.83B	6.28B
Stockholders Equity	6.30B	5.83B	7.24B	7.37B
Cash Flow
Free Cash Flow	551.00M	787.00M	681.00M	179.00M
Operating Cash Flow	791.00M	1.14B	1.03B	517.00M
Investing Cash Flow	-151.00M	-469.00M	-322.00M	193.00M
Financing Cash Flow	-31.00M	-464.00M	-533.00M	-477.00M

Smithfield Foods Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CALM	84 Outperform	$5.61B	4.63	55.96%	7.17%	83.19%	339.22%
ADM	77 Outperform	$30.10B	27.57	4.93%	3.27%	-6.70%	-54.38%
BG	77 Outperform	$16.85B	8.41	13.20%	3.39%	-8.87%	13.21%
FDP	76 Outperform	$1.74B	11.57	7.49%	3.18%	1.41%	―
SFD	71 Outperform	$10.00B	―		2.94%	―	―
TSN	71 Outperform	$19.80B	25.23	4.31%	3.54%	1.99%	―
Sector *	63 Neutral	$20.41B	14.67	-2.93%	3.10%	2.04%	-6.12%

Smithfield Foods Corporate Events

Smithfield Foods Amends Credit Agreements for Liquidity

On July 22, 2025, Smithfield Foods, Inc. and its subsidiaries amended and restated their credit and receivables agreements, removing the monetization component of their financial facility. This decision was made due to the company’s strong liquidity position, rendering the monetization component unnecessary, and was executed without incurring any early termination penalties or material exit costs.

Smithfield Foods Elects Directors at Annual Meeting

On June 3, 2025, Smithfield Foods held its Annual Meeting of Shareholders where all three director nominees were elected to the Board of Directors. Shareholders also ratified the appointment of Ernst & Young LLP as the independent registered public accounting firm for 2025, approved executive compensation for 2024, and decided on an annual advisory vote on executive compensation.