NasdaqGS:PPC

Stock Analysis Report

Executive Summary

Pilgrim's Pride Corporation engages in the production, processing, marketing, and distribution of fresh, frozen, and value-added chicken products in the United States, the United Kingdom, Europe, and Mexico.

Snowflake

Fundamentals

Good value with moderate growth potential.


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


Market Performance


7 Day Return

-6.5%

PPC

-1.3%

US Food

0.4%

US Market


1 Year Return

61.2%

PPC

-0.2%

US Food

6.9%

US Market

Return vs Industry: PPC exceeded the US Food industry which returned -0.2% over the past year.

Return vs Market: PPC exceeded the US Market which returned 6.9% over the past year.


Shareholder returns

PPCIndustryMarket
7 Day-6.5%-1.3%0.4%
30 Day-7.6%-3.3%-1.2%
90 Day9.3%-1.6%-0.4%
1 Year61.2%61.2%2.8%-0.2%9.3%6.9%
3 Year39.0%39.0%-1.9%-10.5%45.8%36.4%
5 Year42.2%7.5%43.7%26.6%62.9%45.1%

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

Undervalued: PPC ($28.67) is trading below our estimate of fair value ($74.97)

Significantly Undervalued: PPC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: PPC is poor value based on its PE Ratio (25.9x) compared to the Food industry average (25.4x).

PE vs Market: PPC is poor value based on its PE Ratio (25.9x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

Low PEG Ratio: PPC is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: PPC is good value based on its PB Ratio (1.7x) compared to the US Food industry average (2.1x).


Next Steps

Future Growth

How is Pilgrim's Pride forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

42.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PPC's forecast earnings growth (42.7% per year) is above the savings rate (2.7%).

Earnings vs Market: PPC's earnings (42.7% per year) are forecast to grow faster than the US market (14.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: PPC's revenue (1.9% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: PPC's revenue (1.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if PPC's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

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

-14.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: PPC's earnings have declined by -14.5% per year over the past 5 years.

Accelerating Growth: PPC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: PPC had negative earnings growth (-53.6%) over the past year, making it difficult to compare to the Food industry average (-22.7%).


Return on Equity

High ROE: PPC's Return on Equity (12.1%) is considered low.


Return on Assets

ROA vs Industry: PPC has a higher Return on Assets than the Food industry average last year.


Return on Capital Employed

ROCE Improving: PPC's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Pilgrim's Pride's financial position?


Financial Position Analysis

Short Term Liabilities: PPC's short term assets ($2.5B) exceeds its short term liabilities ($1.4B)

Long Term Liabilities: PPC's short term assets (2.5B) do not cover its long term liabilities (2.9B)


Debt to Equity History and Analysis

Debt Level: PPC's debt to equity ratio (101.8%) is considered high

Reducing Debt: PPC's debt to equity ratio has increased from 28.2% to 101.8% over the past 5 years.

Debt Coverage: PPC's debt is well covered by operating cash flow (25.5%).

Interest Coverage: PPC's interest payments on its debt are well covered by EBIT (4.2x coverage).


Balance Sheet

Inventory Level: PPC has a high level of physical assets or inventory.

Debt Coverage by Assets: PPC's debt is covered by short term assets (assets are 1.070580x debt).


Next Steps

Dividend

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

1.42%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Years1.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

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.

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

What is the CEO of Pilgrim's Pride's salary, the management and board of directors tenure and is there insider trading?

6.6yrs

Average management tenure


CEO

Jayson Penn (50yo)

0.6yrs

Tenure

0

Mr. Jayson 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 2018 u ...


Management Age and Tenure

6.6yrs

Average Tenure

50yo

Average Age

Experienced Management: PPC's management team is seasoned and experienced (6.6 years average tenure).


Board Age and Tenure

5.0yrs

Average Tenure

61yo

Average Age

Experienced Board: PPC's board of directors are considered experienced (5 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$2,111,96208 Aug 19
Fabio Sandri
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares74,710
Max PriceUS$28.27
SellUS$1,448,82508 Aug 19
Jayson Penn
EntityIndividual
Role
Chief Executive Officer
CEO & President
Shares51,222
Max PriceUS$28.29
SellUS$1,754,42820 Feb 19
William Lovette
EntityIndividual
Role
Other Professional
Strategic Advisor
Shares86,425
Max PriceUS$20.30

Ownership Breakdown


Management Team

  • Bill Lovette (59yo)

    Strategic Advisor

    • Tenure: 0.6yrs
    • Compensation: US$7.41m
  • James Miner (89yo)

    Senior Vice President of Technical Services

    • Tenure: 25.5yrs
  • Charles von der Heyde

    President of Pilgrim's De Mexico

    • Tenure: 7.8yrs
  • Dunham Winoto

    Director of Investor Relations

    • Tenure: 0yrs
  • Eduardo de Noronha (48yo)

    Head of Human Resources & Performance Management

    • Tenure: 5.4yrs
  • Fabio Sandri (47yo)

    Chief Financial Officer

    • Tenure: 8.3yrs
    • Compensation: US$4.59m
  • Kendra Waldbusser

    Head of Food Safety & Quality Assurance

    • Tenure: 9.6yrs
  • Jayson Penn (50yo)

    CEO & President

    • Tenure: 0.6yrs
  • Joe Waldbusser

    Head of Commodity Risk Management & Feed Ingredient Purchasing

    • Tenure: 0yrs
  • Laston Charriez

    Head of Marketing

    • Tenure: 2.2yrs

Board Members

  • Charles Macaluso (75yo)

    Director

    • Tenure: 9.8yrs
    • Compensation: US$210.00k
  • Gilberto Tomazoni (60yo)

    Chairman of the Board

    • Tenure: 6.3yrs
  • Michael Cooper (69yo)

    Director

    • Tenure: 9.8yrs
    • Compensation: US$225.00k
  • Farha Aslam Ford (50yo)

    Director

    • Tenure: 0.4yrs
  • Wallim de Vasconcellos (61yo)

    Director

    • Tenure: 9.8yrs
    • Compensation: US$210.00k
  • Denilson Molina (51yo)

    Director

    • Tenure: 2.3yrs
  • André De Souza (50yo)

    Director

    • Tenure: 5yrs
  • Vincent Trius (61yo)

    Director

    • Tenure: 0.4yrs
  • Arquimedes Celis (65yo)

    Director

    • Tenure: 0.4yrs

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$7.148b
  • Shares outstanding: 249.31m
  • Website: https://www.pilgrims.com

Number of Employees


Location

  • Pilgrim's Pride Corporation
  • 1770 Promontory Circle
  • Greeley
  • Colorado
  • 80634
  • 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 engages in the production, processing, marketing, and distribution of fresh, frozen, and value-added chicken products in the United States, the United Kingdom, Europe, and Mexic ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 00:11
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/30


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.