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Pilgrims Pride Corp PPC

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Stock XNAS Rating as of
$36.36 +0.41 (1.14%)
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Company Report

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Pilgrim’s Pride Earnings: Already Pricing Recovery, Shares Fall After Hours Despite Profit Growth

Kristoffer Inton

No-moat Pilgrim’s Pride delivered strong first-quarter results amid favorable chicken market conditions. Net sales were nearly $4.4 billion, almost 5% higher than a year ago. Profitability was even better, with adjusted EBITDA of $372 million, nearly 1.5 times that of the year-ago quarter. This resulted in a 490-basis-point adjusted EBITDA margin expansion to 8.5%, buoyed by lower feed costs.

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Price vs Fair Value

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PPC is trading at a 16% premium.
Price
$35.95
Fair Value
$45.00
Uncertainty
High
1-Star Price
$58.21
5-Star Price
$22.90
Economic Moat
Xyzp
Capital Allocation
Qvvdwgvsd

Bulls Say, Bears Say

Bulls

As the second-largest producer, Pilgrim's should benefit from US health trends that favor chicken consumption in lieu of beef and pork.

Bears

Food is a competitive space, and Pilgrim’s Pride's undifferentiated commodity portfolio lacks brand power and faces constant price competition.

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News

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Trading Information

Previous Close Price
$35.95
Day Range
$36.03–36.74
52-Week Range
$19.96–36.74
Bid/Ask
$36.35 / $36.39
Market Cap
$8.61 Bil
Volume/Avg
571,126 / 723,222

Key Statistics

Price/Earnings (Normalized)
15.13
Price/Sales
0.49
Dividend Yield (Trailing)
—
Dividend Yield (Forward)
—
Total Yield
—

Company Profile

Pilgrim’s Pride is the second-largest poultry producer in the US (58% of 2023 sales), the UK (30% including other European sales), and Mexico (12%). Its UK and European arm also includes pork operations from the 2019 acquisition of Tulip. Pilgrim's sells to chain restaurants, food processors, food distributors, and retail chains. most of its US and Mexican sales come from fresh chicken, while prepared chicken and pork constitute most of its UK and European sales. JBS owns more than 80% of Pilgrim’s Pride's outstanding shares, though it failed to acquire the remaining stake in 2021 after a special board committee deemed JBS’ offer undervalued Pilgrim’s Pride.
Sector
Consumer Defensive
Industry
Packaged Foods
Stock Style Box
Small Core
Total Number of Employees
61,200
Website
https://www.pilgrims.com

Competitors

Valuation

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Metric
PPC
00288
HRL
Price/Earnings (Normalized)
 15.1318.4323.16
Price/Book Value
 2.450.962.46
Price/Sales
 0.490.361.59
Price/Cash Flow
 8.405.8216.26
Price/Earnings
PPC
00288
HRL

Financial Strength

Metric
PPC
00288
HRL
Quick Ratio
 0.910.650.77
Current Ratio
 1.831.641.49
Interest Coverage
 3.7510.3414.54
Quick Ratio
PPC
00288
HRL

Profitability

Metric
PPC
00288
HRL
Return on Assets (Normalized)
 5.65%5.54%6.23%
Return on Equity (Normalized)
 17.36%11.52%10.82%
Return on Invested Capital (Normalized)
 9.83%8.31%7.92%
Return on Assets
PPC
00288
HRL
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