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WH Group Limited (WHGLY)
OTHER OTC:WHGLY
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WH Group
(OTC:WHGLY)
Rating:79Outperform
Price Target:
$21.50
▲(11.34%Upside)
WH Group (WHGLY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$12.34B
Dividend Yield21.44%
Average Volume (3M)2.40K
Price to Earnings (P/E)7.7
Beta (1Y)-0.04
Revenue Growth-2.31%
EPS Growth154.12%
CountryUS
Employees102,000
SectorIndustrials
Sector Strength83
IndustryPackaged Foods
Share Statistics
EPS (TTM)N/A
Shares Outstanding641,511,000
10 Day Avg. Volume0
30 Day Avg. Volume2,401
Financial Highlights & Ratios
PEG Ratio0.13
Price to Book (P/B)0.78
Price to Sales (P/S)0.00
P/FCF Ratio9.03
Enterprise Value/Market Cap12.29
Enterprise Value/Revenue1.16
Enterprise Value/Gross Profit21.39
Enterprise Value/Ebitda11.78
Forecast
1Y Price Target
$19.00Price Target Upside-1.61% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering1
WH Group Business Overview & Revenue Model
Company DescriptionWH Group (WHGLY) is a leading global food company and the largest pork producer in the world. The company operates primarily in three segments: packaged meats, fresh pork, and hog production. WH Group's core products include a wide range of pork products, such as sausages, bacon, and ham, along with fresh pork cuts. The company has a significant presence in China, the United States, and various international markets, leveraging its extensive supply chain and distribution networks to deliver high-quality meat products to consumers globally.
How the Company Makes MoneyWH Group generates revenue through its diversified operations in the meat industry. The primary revenue streams include the sale of packaged meats, fresh pork products, and live hogs. Packaged meats contribute significantly to the company's earnings, driven by strong consumer demand and brand recognition. Fresh pork sales are bolstered by WH Group's vertically integrated supply chain, which ensures efficient production and distribution. The hog production segment supports the company's upstream integration, providing a stable supply of livestock for processing. Strategic partnerships and acquisitions, such as the acquisition of Smithfield Foods, enhance the company's market reach and operational capabilities. WH Group's revenue is also influenced by factors like global pork consumption trends, supply chain efficiencies, and regulatory environments in the regions it operates.
WH Group Earnings Call Summary
Earnings Call Date:Apr 29, 2025
(Q3-2024)
| % Change Since: 14.80%|
Next Earnings Date:Aug 19, 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 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 | 38.21B | 25.94B | 26.24B | 28.14B | 27.29B | 25.59B |
| Gross Profit | 7.09B | 5.20B | 4.25B | 5.18B | 5.00B | 5.03B |
| EBITDA | 3.31B | 3.27B | 2.04B | 3.10B | 2.48B | 2.08B |
| Net Income | 1.16B | 1.61B | 629.00M | 1.37B | 1.07B | 828.00M |
Balance Sheet | ||||||
| Total Assets | 18.92B | 19.84B | 19.18B | 19.86B | 19.41B | 18.71B |
| Cash, Cash Equivalents and Short-Term Investments | 1.40B | 2.54B | 1.71B | 1.54B | 1.79B | 2.52B |
| Total Debt | 3.82B | 3.72B | 3.72B | 3.90B | 4.50B | 3.16B |
| Total Liabilities | 8.15B | 8.48B | 8.60B | 9.44B | 9.72B | 7.73B |
| Stockholders Equity | 10.06B | 10.66B | 9.83B | 9.60B | 8.75B | 10.01B |
Cash Flow | ||||||
| Free Cash Flow | 1.59B | 1.81B | 805.00M | 826.00M | 889.00M | 1.78B |
| Operating Cash Flow | 2.30B | 2.52B | 1.62B | 1.80B | 1.82B | 2.36B |
| Investing Cash Flow | -759.00M | -612.00M | -663.00M | -350.00M | -409.00M | -963.00M |
| Financing Cash Flow | -1.57B | -984.00M | -1.18B | -1.54B | -1.43B | -479.00M |
WH Group Technical Analysis
Positive
19.31
Price Trends
17.79
Positive
16.78
Positive
15.64
Positive
Market Momentum
0.39
Positive
65.40
Neutral
92.93
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 19.31 is above the 20-day moving average (MA) of 18.90, above the 50-day MA of 17.79, and above the 200-day MA of 15.64, indicating a bullish trend. The MACD of 0.39 indicates Positive momentum. The RSI at 65.40 is Neutral, neither overbought nor oversold. The STOCH value of 92.93 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
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $10.57B | 8.78 | 36.53% | ― | 2.35% | 145.82% | |
79 Outperform | $12.34B | 7.66 | 15.71% | 21.44% | -2.31% | 154.12% | |
77 Outperform | $6.09B | 8.52 | 23.47% | 2.46% | 3.82% | ― | |
68 Neutral | $16.41B | 21.95 | 9.39% | 3.83% | -1.01% | -2.93% | |
68 Neutral | $30.45B | 11.66 | 5.36% | 6.20% | -4.25% | -4.04% | |
65 Neutral | $10.56B | 15.49 | 5.57% | 1.96% | 2.71% | -26.29% | |
63 Neutral | $27.58B | 12.36 | 24.57% | 4.76% | -1.87% | -5.16% |
* Industrials Sector Average
Performance Comparison
WHGLY
WH Group
19.31
7.42
62.41%
BRFS
BRF SA
3.53
-0.45
-11.31%
GIS
General Mills
50.52
-10.40
-17.07%
HRL
Hormel Foods
30.47
1.16
3.96%
PPC
Pilgrim's Pride
44.56
10.68
31.52%
KHC
Kraft Heinz
25.61
-4.64
-15.34%
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.