NasdaqGS:PPC

Stock Analysis Report

Executive Summary

Pilgrim's Pride Corporation produces, processes, markets, and distributes fresh, frozen, and value-added chicken and pork products in the United States, the United Kingdom, Mexico, France, Puerto Rico, the Netherlands, rest of Europe, the Middle East, Asia, and internationally.


Snowflake Analysis

Undervalued with proven track record.


Similar Companies

Share Price & News

How has Pilgrim's Pride's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PPC's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

3.9%

PPC

4.1%

US Food

2.4%

US Market


1 Year Return

-17.5%

PPC

-2.6%

US Food

-10.0%

US Market

Return vs Industry: PPC underperformed the US Food industry which returned -3.8% over the past year.

Return vs Market: PPC underperformed the US Market which returned -13.3% over the past year.


Shareholder returns

PPCIndustryMarket
7 Day3.9%4.1%2.4%
30 Day-8.3%-4.3%-11.0%
90 Day-40.1%-10.7%-19.4%
1 Year-17.5%-17.5%-0.1%-2.6%-8.1%-10.0%
3 Year-19.2%-19.2%-9.1%-16.5%17.3%9.6%
5 Year-16.6%-25.4%25.2%10.5%36.1%21.1%

Price Volatility Vs. Market

How volatile is Pilgrim's Pride's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Pilgrim's Pride undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PPC ($18.23) is trading below our estimate of fair value ($82.18)

Significantly Below Fair Value: PPC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: PPC is good value based on its PE Ratio (10x) compared to the Food industry average (19.8x).

PE vs Market: PPC is good value based on its PE Ratio (10x) compared to the US market (12.5x).


Price to Earnings Growth Ratio

PEG Ratio: PPC is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: PPC is overvalued based on its PB Ratio (1.8x) compared to the US Food industry average (1.7x).


Next Steps

Future Growth

How is Pilgrim's Pride forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

15.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PPC's forecast earnings growth (15.1% per year) is above the savings rate (1.7%).

Earnings vs Market: PPC's earnings (15.1% per year) are forecast to grow faster than the US market (13.4% per year).

High Growth Earnings: PPC's earnings are forecast to grow, but not significantly.

Revenue vs Market: PPC's revenue (4.9% per year) is forecast to grow slower than the US market (7% per year).

High Growth Revenue: PPC's revenue (4.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PPC's Return on Equity is forecast to be high in 3 years time (24.1%)


Next Steps

Past Performance

How has Pilgrim's Pride performed over the past 5 years?

-15.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PPC has high quality earnings.

Growing Profit Margin: PPC's current net profit margins (4%) are higher than last year (2.3%).


Past Earnings Growth Analysis

Earnings Trend: PPC's earnings have declined by -15.9% per year over the past 5 years.

Accelerating Growth: PPC's earnings growth over the past year (82.7%) exceeds its 5-year average (-15.9% per year).

Earnings vs Industry: PPC earnings growth over the past year (82.7%) exceeded the Food industry 0.5%.


Return on Equity

High ROE: PPC's Return on Equity (18%) is considered low.


Next Steps

Financial Health

How is Pilgrim's Pride's financial position?


Financial Position Analysis

Short Term Liabilities: PPC's short term assets ($2.6B) exceed its short term liabilities ($1.6B).

Long Term Liabilities: PPC's short term assets ($2.6B) do not cover its long term liabilities ($2.9B).


Debt to Equity History and Analysis

Debt Level: PPC's debt to equity ratio (90.7%) is considered high.

Reducing Debt: PPC's debt to equity ratio has increased from 1.3% to 90.7% over the past 5 years.

Debt Coverage: PPC's debt is well covered by operating cash flow (29%).

Interest Coverage: PPC's interest payments on its debt are well covered by EBIT (5.8x coverage).


Balance Sheet


Next Steps

Dividend

What is Pilgrim's Pride's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate PPC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate PPC's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if PPC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if PPC's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: PPC is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of PPC's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.1yrs

Average management tenure


CEO

Jayson Penn (50yo)

1.08s

Tenure

US$4,669,283

Compensation

Mr. Jayson J. Penn has been President and Chief Executive Officer of Pilgrim’s Pride Corporation since March 22, 2019. Mr. Penn served as President of Pilgrim's USA at Pilgrim's Pride Corp. since March 201 ...


CEO Compensation Analysis

Compensation vs Market: Jayson's total compensation ($USD4.67M) is about average for companies of similar size in the US market ($USD5.69M).

Compensation vs Earnings: Insufficient data to compare Jayson's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Jayson Penn
CEO & President1.08yrsUS$4.67m0.089% $4.1m
Fabio Sandri
Chief Financial Officer8.83yrsUS$3.72m0.13% $6.2m
William Lovette
Strategic Advisor1.08yrsUS$7.78m0.18% $8.3m
James Miner
Senior Vice President of Technical Services26yrsno datano data
Dunham Winoto
Director of Investor Relationsno datano datano data
Laston Charriez
Head of Marketing2.67yrsno datano data
Eduardo de Noronha
Head of Human Resources & Performance Management5.92yrsno datano data
Kendra Waldbusser
Head of Food Safety & Quality Assurance10.08yrsno datano data
Joe Waldbusser
Head of Commodity Risk Management & Feed Ingredient Purchasingno datano datano data
Charles von der Heyde
President of Pilgrim's De Mexico8.25yrsno datano data

7.1yrs

Average Tenure

50yo

Average Age

Experienced Management: PPC's management team is seasoned and experienced (7.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Charles Macaluso
Independent Director10.33yrsUS$210.00k0.0020% $92.4k
Gilberto Tomazoni
Chairman of the Board6.75yrsno datano data
Michael Cooper
Independent Director10.33yrsUS$225.00k0.0020% $92.4k
Farha Aslam Ford
Independent Director0.92yrUS$153.33kno data
Wallim de Vasconcellos
Independent Director10.33yrsUS$210.00k0.0020% $92.4k
Denilson Molina
Director2.83yrsno datano data
André De Souza
Director5.5yrsno datano data
Vincent Trius
Director0.92yrno datano data
Arquimedes Celis
Independent Director0.92yrUS$153.33kno data

5.5yrs

Average Tenure

61yo

Average Age

Experienced Board: PPC's board of directors are considered experienced (5.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: PPC insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Pilgrim's Pride Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Pilgrim's Pride Corporation
  • Ticker: PPC
  • Exchange: NasdaqGS
  • Founded: 1946
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: US$4.596b
  • Shares outstanding: 249.22m
  • Website: https://www.pilgrims.com

Number of Employees


Location

  • Pilgrim's Pride Corporation
  • 1770 Promontory Circle
  • Greeley
  • Colorado
  • 80634-9038
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PPCNasdaqGS (Nasdaq Global Select)YesNew Common StockUSUSDDec 2009
6PPDB (Deutsche Boerse AG)YesNew Common StockDEEURDec 2009

Biography

Pilgrim's Pride Corporation produces, processes, markets, and distributes fresh, frozen, and value-added chicken and pork products in the United States, the United Kingdom, Mexico, France, Puerto Rico, the Netherlands, rest of Europe, the Middle East, Asia, and internationally. The company offers fresh chicken and pork products, including pre-marinated or non-marinated refrigerated (nonfrozen) whole or cut-up chickens; frozen whole chickens; breast fillets; pork cuts; added value pork and pork ribs; mini breast fillets; and prepackaged case-ready chickens, such as whole chickens and chicken parts. It also provides prepared chicken products comprising portion-controlled breast fillets, tenderloins and strips, delicatessen products, salads, formed nuggets and patties, and bone-in chicken parts. The company offers its products under the Pilgrim’s, Just BARE, Gold’n Pump, Gold Kist, County Pride Chicken, Pierce Chicken, Pilgrim’s Mexico, County Post, Savoro, To-Ricos, Del Dia, Moy Park, and O’Kane brands. Pilgrim's Pride Corporation sells its products to the foodservice market that includes chain restaurants, food processors, broad-line distributors, and other institutions; and retail market, which comprises primarily grocery store chains, wholesale clubs, and other retail distributors. The company was founded in 1946 and is headquartered in Greeley, Colorado. Pilgrim's Pride Corporation is a subsidiary of JBS S.A. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/08 05:02
End of Day Share Price2020/04/07 00:00
Earnings2019/12/29
Annual Earnings2019/12/29


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.