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WH Group Limited (WHGLY)
OTHER OTC:WHGLY
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WH Group
(OTC:WHGLY)
Select Model
Select Model
Rating:74Outperform
Price Target:
$24.50
▲(7.22% Upside)
WH Group's strong financial performance is the primary driver of its stock score, supported by robust cash flow and improving profitability. The stock's attractive valuation further enhances its appeal, although technical indicators suggest caution due to overbought conditions.
Positive Factors
Cash Generation Ability
Strong cash generation supports liquidity and provides flexibility for strategic investments, debt reduction, and shareholder returns.
Market Position
As a global leader, WH Group benefits from scale and brand recognition, enhancing its competitive position and market reach.
Profitability
Improving profitability indicates effective cost management and operational efficiency, contributing to long-term financial health.
Negative Factors
Revenue Decline
A revenue decline can signal challenges in market demand or competitive pressures, potentially impacting future growth prospects.
Debt Levels
While manageable, moderate debt levels can limit financial flexibility, especially if interest rates rise or cash flows fluctuate.
Industry Volatility
The meat processing industry can be volatile due to supply chain disruptions and regulatory changes, impacting stability.
WH Group (WHGLY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$14.38B
Dividend Yield6.74%
Average Volume (3M)807.00
Price to Earnings (P/E)8.9
Beta (1Y)-0.10
Revenue Growth6.51%
EPS Growth63.18%
CountryUS
Employees102,000
SectorConsumer Defensive
Sector Strength42
IndustryPackaged Foods
Share Statistics
EPS (TTM)N/A
Shares Outstanding641,511,000
10 Day Avg. Volume0
30 Day Avg. Volume807
Financial Highlights & Ratios
PEG Ratio0.04
Price to Book (P/B)0.93
Price to Sales (P/S)0.38
P/FCF Ratio5.45
Enterprise Value/Market Cap0.00
Enterprise Value/Revenue0.00
Enterprise Value/Gross Profit0.00
Enterprise Value/Ebitda0.00
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 products, which includes fresh pork, processed meats, and ready-to-eat meals. The company has a vertically integrated supply chain, allowing it to control costs and quality from breeding to processing. Key revenue streams include wholesale and retail sales of pork products to supermarkets, restaurants, and food service companies. Additionally, WH Group benefits from international trade, exporting its products to various markets worldwide. The company has established significant partnerships with distributors and retailers, enhancing its market reach. Factors contributing to its earnings include economies of scale, strong brand recognition, and a commitment to food safety and quality, which help maintain consumer trust and drive sales.
WH Group Earnings Call Summary
Earnings Call Date:Oct 29, 2024
(Q3-2024)
| % Change Since: |
Next Earnings Date:Mar 31, 2026
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 across all verticals with improving profitability, a stable balance sheet, and robust cash flow generation. The company is well-positioned in the packaged foods industry, exhibiting resilience and adaptability to market fluctuations.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 | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 27.04B | 25.94B | 26.24B | 28.14B | 27.29B | 25.59B |
| Gross Profit | 5.22B | 5.20B | 3.46B | 5.18B | 4.54B | 3.85B |
| EBITDA | 3.03B | 3.16B | 2.00B | 3.10B | 2.51B | 2.09B |
| Net Income | 1.62B | 1.61B | 629.00M | 1.37B | 1.07B | 828.00M |
Balance Sheet | ||||||
| Total Assets | 20.85B | 19.84B | 19.18B | 19.86B | 19.41B | 18.71B |
| Cash, Cash Equivalents and Short-Term Investments | 2.98B | 2.54B | 1.71B | 1.82B | 1.79B | 2.48B |
| Total Debt | 4.35B | 3.72B | 3.72B | 3.90B | 4.50B | 3.16B |
| Total Liabilities | 8.79B | 8.48B | 8.60B | 9.44B | 9.72B | 7.73B |
| Stockholders Equity | 10.93B | 10.66B | 9.83B | 9.60B | 8.75B | 10.01B |
Cash Flow | ||||||
| Free Cash Flow | 1.95B | 1.81B | 805.00M | 826.00M | 1.04B | 1.80B |
| Operating Cash Flow | 2.60B | 2.52B | 1.62B | 1.80B | 1.96B | 2.36B |
| Investing Cash Flow | -1.05B | -612.00M | -663.00M | -350.00M | -409.00M | -963.00M |
| Financing Cash Flow | -397.82M | -984.00M | -1.18B | -1.54B | -1.57B | -479.00M |
WH Group Technical Analysis
Positive
22.85
Price Trends
20.51
Positive
20.41
Positive
18.53
Positive
Market Momentum
0.34
Negative
63.67
Neutral
99.33
Negative
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 22.85 is above the 20-day moving average (MA) of 21.67, above the 50-day MA of 20.51, and above the 200-day MA of 18.53, indicating a bullish trend. The MACD of 0.34 indicates Negative momentum. The RSI at 63.67 is Neutral, neither overbought nor oversold. The STOCH value of 99.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WHGLY.
WH Group Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $14.38B | 8.87 | 15.44% | 6.74% | 6.51% | 63.18% | |
73 Outperform | $9.49B | 7.68 | 31.76% | ― | 1.81% | 24.67% | |
68 Neutral | $13.23B | 27.69 | 6.02% | 4.82% | 1.55% | -40.81% | |
66 Neutral | $15.39B | 9.47 | 24.20% | 9.94% | ― | 119.48% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
60 Neutral | $8.57B | 14.87 | 14.82% | 5.43% | 2.71% | 4.90% | |
49 Neutral | $10.84B | -9.06 | -17.44% | 4.29% | -0.66% | -326.55% |
* Consumer Defensive Sector Average
WHGLY
WH Group
22.85
8.56
59.90%
CPB
Campbell Soup
28.27
-12.46
-30.59%
HRL
Hormel Foods
24.00
-7.03
-22.66%
SJM
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101.68
-6.69
-6.17%
PPC
Pilgrim's Pride
39.64
-3.72
-8.58%
JBS
JBS
14.40
2.40
20.00%
WH Group Corporate Events
WH Group Reports Strong Revenue Growth in 2025
Oct 29, 2025
WH Group Limited is a leading global pork company involved in hog farming, slaughtering, and the production and sale of packaged meats, operating primarily in China, North America, and Europe.
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.