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WH Group Limited (WHGLY)
OTHER OTC:WHGLY
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WH Group
(OTC:WHGLY)
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Rating:76Outperform
Price Target:
$23.50
▲(6.38% Upside)
WH Group's strong financial performance and attractive valuation are the primary drivers of its overall score. The technical analysis indicates potential overbought conditions, which poses a risk but does not overshadow the company's solid financial health and appealing valuation.
WH Group (WHGLY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$14.20B
Dividend Yield7.08%
Average Volume (3M)8.71K
Price to Earnings (P/E)8.8
Beta (1Y)-0.07
Revenue Growth5.46%
EPS Growth62.39%
CountryUS
Employees102,000
SectorConsumer Defensive
Sector Strength42
IndustryPackaged Foods
Share Statistics
EPS (TTM)1.23
Shares Outstanding641,511,000
10 Day Avg. Volume0
30 Day Avg. Volume8,715
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.04
Enterprise Value/Revenue0.57
Enterprise Value/Gross Profit2.75
Enterprise Value/Ebitda4.67
Forecast
1Y Price Target
$23.50Price Target Upside6.38% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
WH Group Business Overview & Revenue Model
Company DescriptionWH Group Limited, an investment holding company, engages in the production, wholesale, and retail sale of meat products in China, the United States, Mexico, and Europe. The company operates through Packaged Meats, Pork, and Others segments. It is also involved in the slaughtering, wholesale, and retail sale of fresh and frozen pork; and hog farming activities. In addition, the company engages in the manufacture and sale of packaging materials; provision of logistics services; operation of a chain of retail food stores; production of flavoring ingredients and natural casings; and sale of biological pharmaceutical materials. Further, it is involved in the livestock breeding and slaughtering; and finance and property development activities. The company was formerly known as Shuanghui International Holdings Limited and changed its name to WH Group Limited in January 2014. The company was founded in 1958 and is headquartered in Kowloon, Hong Kong.
How the Company Makes MoneyWH Group generates revenue primarily through the sale of pork and processed meat products. Its revenue model is diversified across various segments including fresh pork, packaged meats, and processed foods. The company benefits from economies of scale due to its extensive supply chain and production capabilities. Key revenue streams include wholesale and retail sales of meat products, with a significant portion derived from both domestic and international markets. WH Group also engages in strategic partnerships and joint ventures that enhance its market reach and operational efficiency. Factors contributing to its earnings include consumer demand for protein, effective cost management, and innovation in product offerings to meet changing dietary preferences.
WH Group Earnings Call Summary
Earnings Call Date:Aug 12, 2025
(Q3-2024)
| % Change Since: |
Next Earnings Date:Oct 28, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant profit improvements across various regions, especially in North America and Europe, driven by strategic initiatives and operational efficiencies. However, these gains were offset by challenges such as declining sales volumes and volatility in hog prices, particularly in China. Despite these issues, the company's focus on cost management and strategic positioning suggests a cautiously optimistic outlook.Q3-2024 Updates
Positive Updates
EBITDA and Profit Surge
EBITDA increased by 38.9% to $2.25 billion, and operating profit increased by 71% to $1.79 billion. Profit attributable to owners rose by 90% to $1.0 billion.
North America Profit Turnaround
North America's operating profit was $841 million, a 589% increase, with packaged meats profit up 11.6% and pork business turning a substantial loss into a profit.
Strong European Performance
European operating profit increased by 64.2%, with packaged meats and pork business profits increasing by 50% and 64%, respectively.
Packaged Meats Strategy Success
The U.S. packaged meats business saw improvements in per metric ton profit, driven by a 3% increase in average selling price and improved product mix.
Negative Updates
Decline in Sales Volume
Total packaged meats sold decreased by 4.4%, and pork sold volume decreased by 7.6%. Total revenue decreased by 3.2% to USD 18.8 billion.
China's Pork Business Struggles
China's pork business operating profit was $41 million, a year-over-year decline of 30.5%.
Hog Price Volatility
Hog prices in China increased by 9.7%, while in Europe they fell by 8.1%. The company expects continued volatility in hog prices.
Volume Decline in Packaged Meats
Despite profit improvements, the company faces challenges with volume declines in both China and the U.S. due to weak consumer demand.
Company Guidance
During the WH Group's Q3 2024 earnings call, management provided detailed guidance on various financial metrics, highlighting significant improvements despite some revenue declines. Total revenue for the first nine months of 2024 was USD 18.8 billion, a year-over-year decrease of 3.2%, while the EBITDA increased by 38.9% to USD 2.25 billion. Operating profit soared by 71% to USD 1.79 billion, and profit attributable to owners of the company rose by 90% to USD 1.0 billion, resulting in a basic EPS of USD 8.43. Packaged meats, accounting for 52.5% of revenue and 93.8% of operating profit, remained the core business driver. Geographically, North America contributed 52.5% of the revenue and 46.9% of the operating profit, while China and Europe accounted for 33% and 14.5% of revenue, respectively. Hog prices in China increased, affecting supply, whereas in the U.S., improved hog production was noted with a rebound in prices and reduced feed costs. The company aims to continue optimizing business structures, leveraging industrialization, and enhancing cost management to sustain growth.WH Group Financial Statement Overview
Summary
WH Group displays strong financial health with solid profitability, a stable balance sheet, and robust cash flow generation. The company shows resilience and adaptability in the packaged foods industry.Income Statement
WH Group shows a solid gross profit margin and stable net profit margin over the years. The company experienced a revenue decline in 2023 but demonstrated strong recovery in 2024 with a significant increase in EBIT and EBITDA margins, indicating improving operational efficiency.82
Very Positive
Balance Sheet
The balance sheet reflects a stable financial position with a moderate debt-to-equity ratio and a healthy equity ratio. There is a consistent improvement in stockholders' equity, showing good financial management and a solid asset base.78
Positive
Cash Flow
Cash flow analysis reveals strong operating cash flow relative to net income, indicating effective cash generation capability. The free cash flow growth is robust, supported by efficient capital expenditure management, enhancing the company's liquidity position.85
Very Positive
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 25.94B | 26.24B | 28.14B | 27.29B | 25.59B |
| Gross Profit | 5.37B | 3.46B | 5.18B | 4.54B | 3.85B |
| EBITDA | 3.16B | 2.00B | 3.10B | 2.25B | 1.57B |
| Net Income | 1.61B | 629.00M | 1.37B | 1.07B | 828.00M |
Balance Sheet | |||||
| Total Assets | 19.84B | 19.18B | 19.86B | 19.41B | 18.71B |
| Cash, Cash Equivalents and Short-Term Investments | 2.54B | 1.71B | 1.54B | 1.79B | 2.48B |
| Total Debt | 3.72B | 3.72B | 3.90B | 4.50B | 3.16B |
| Total Liabilities | 8.48B | 8.60B | 9.44B | 9.72B | 7.73B |
| Stockholders Equity | 10.66B | 9.83B | 9.60B | 8.75B | 10.01B |
Cash Flow | |||||
| Free Cash Flow | 1.81B | 805.00M | 826.00M | 1.04B | 1.80B |
| Operating Cash Flow | 2.52B | 1.62B | 1.80B | 1.96B | 2.36B |
| Investing Cash Flow | -612.00M | -663.00M | -350.00M | -409.00M | -963.00M |
| Financing Cash Flow | -984.00M | -1.18B | -1.54B | -1.57B | -479.00M |
WH Group Technical Analysis
Positive
22.09
Price Trends
20.52
Positive
19.12
Positive
17.03
Positive
Market Momentum
0.61
Negative
62.25
Neutral
72.48
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WHGLY, the sentiment is Positive. The current price of 22.09 is above the 20-day moving average (MA) of 21.59, above the 50-day MA of 20.52, and above the 200-day MA of 17.03, indicating a bullish trend. The MACD of 0.61 indicates Negative momentum. The RSI at 62.25 is Neutral, neither overbought nor oversold. The STOCH value of 72.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WHGLY.
WH Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | 10.05B | 7.97 | 33.10% | ― | 2.06% | 63.27% | |
76 Outperform | $14.20B | 8.77 | 15.44% | 7.08% | 5.46% | 62.39% | |
73 Outperform | 16.46B | 11.88 | 26.62% | 0.01% | 0.00% | 288.18% | |
69 Neutral | 9.82B | 16.41 | 15.42% | 4.59% | 6.40% | 6.17% | |
63 Neutral | 13.69B | 18.15 | 9.33% | 4.62% | 0.65% | -3.76% | |
52 Neutral | 11.22B | -7.78 | -24.63% | 4.07% | 2.54% | -293.39% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% |
* Consumer Defensive Sector Average
Performance Comparison
WHGLY
WH Group
22.09
8.32
60.42%
CPB
Campbell Soup
33.57
-15.31
-31.32%
HRL
Hormel Foods
24.96
-5.97
-19.30%
SJM
JM Smucker
106.68
-7.98
-6.96%
PPC
Pilgrim's Pride
41.39
4.75
12.96%
JBS
JBS
15.52
4.47
40.45%
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.