Skip to Content

Pilgrims Pride Corp PPC

Morningstar Rating
$36.44 +0.73 (2.04%)
View Full Chart
Unlock our analysis with Morningstar Investor

Company Report

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

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.

Price vs Fair Value

PPC is trading at a 215% premium.
Price
$36.44
Fair Value
$34.00
Uncertainty
High
1-Star Price
$75.79
5-Star Price
$36.30
Economic Moat
Slz
Capital Allocation
Mytbssk

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.

Is it the right time to buy, sell, or hold?
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if PPC is a good fit for your portfolio.

News

Trading Information

Previous Close Price
$35.71
Day Range
$35.5336.60
52-Week Range
$19.9639.00
Bid/Ask
$36.50 / $37.78
Market Cap
$8.63 Bil
Volume/Avg
679,369 / 743,436

Key Statistics

Price/Earnings (Normalized)
15.03
Price/Sales
0.48
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

Competitors

Valuation

Metric
PPC
00288
HRL
Price/Earnings (Normalized)
15.0318.1022.84
Price/Book Value
2.430.942.43
Price/Sales
0.480.351.57
Price/Cash Flow
8.345.7216.03
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
See how this stock stacks up to its competitors with Morningstar Investor

Packaged Foods Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
NSRGY
Nestle SA ADRWcmsbxvVgbn$273.3 Bil
KHC
The Kraft Heinz CoYnlyzsvQvbwx$43.5 Bil
DANOY
Danone SA ADRPlgzlslqJnntms$41.2 Bil
GIS
General Mills IncBvhnvqrfkjJqxfrpy$39.0 Bil
K
Kellanova CoBgpjmpnzkSmffdt$20.9 Bil
MKC
McCormick & Co Inc Registered Shs Non VtgLhbqcknBjsc$19.4 Bil
HRL
Hormel Foods CorpMxbzzvpscXkrcj$19.2 Bil
CAG
Conagra Brands IncJmgvdrtpFql$14.5 Bil
CPB
Campbell Soup CoGqfdwpqyVty$13.5 Bil
LW
Lamb Weston Holdings IncRnxrjbgGdctt$12.9 Bil

Sponsor Center