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Pilgrim's Pride

Nasdaq:PPC
Snowflake Description

Good value with proven track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
PPC
Nasdaq
$4B
Market Cap
  1. Home
  2. US
  3. Food, Beverage & Tobacco
Company description

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. The last earnings update was 74 days ago. More info.


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PPC Share Price and Events
Price Volatility
PPC
Industry
5yr Volatility vs Market

PPC Value

 Is Pilgrim's Pride undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Pilgrim's Pride to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Pilgrim's Pride.

NasdaqGS:PPC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 6 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.6%
Perpetual Growth Rate 10-Year US Government Bond Rate 3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:PPC
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 3%
Equity Risk Premium S&P Global 7.1%
Food Unlevered Beta Simply Wall St/ S&P Global 0.54
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.537 (1 + (1- 21%) (63.7%))
0.807
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.81
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.95% + (0.807 * 7.05%)
8.64%

Discounted Cash Flow Calculation for NasdaqGS:PPC using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Pilgrim's Pride is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:PPC DCF 1st Stage: Next 5 year cash flow forecast
2019 2020 2021 2022 2023
Levered FCF (USD, Millions) 480.17 464.40 495.18 528.01 563.01
Source Analyst x3 Analyst x1 Est @ 6.63% Est @ 6.63% Est @ 6.63%
Present Value
Discounted (@ 8.64%)
441.98 393.47 386.19 379.04 372.03
Present value of next 5 years cash flows $1,972.72
NasdaqGS:PPC DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2023 × (1 + g) ÷ (Discount Rate – g)
= $563.01 × (1 + 2.95%) ÷ (8.64% – 2.95%)
$10,187.30
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= $10,187.30 ÷ (1 + 8.64%)5
$6,731.59
NasdaqGS:PPC Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= $1,972.72 + $6,731.59
$8,704.31
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $8,704.31 / 248.98
$34.96
NasdaqGS:PPC Discount to Share Price
Calculation Result
Value per share (USD) From above. $34.96
Current discount Discount to share price of $17.52
= -1 x ($17.52 - $34.96) / $34.96
49.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Pilgrim's Pride is available for.
Intrinsic value
50%
Share price is $17.52 vs Future cash flow value of $34.96
Current Discount Checks
For Pilgrim's Pride to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Pilgrim's Pride's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Pilgrim's Pride's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Pilgrim's Pride's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Pilgrim's Pride's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:PPC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-07-01) in USD $2.38
NasdaqGS:PPC Share Price ** NasdaqGS (2018-10-15) in USD $17.52
United States of America Food Industry PE Ratio Median Figure of 48 Publicly-Listed Food Companies 17.75x
United States of America Market PE Ratio Median Figure of 2,939 Publicly-Listed Companies 19.24x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Pilgrim's Pride.

NasdaqGS:PPC PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:PPC Share Price ÷ EPS (both in USD)

= 17.52 ÷ 2.38

7.35x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Pilgrim's Pride is good value based on earnings compared to the US Food industry average.
  • Pilgrim's Pride is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Pilgrim's Pride's expected growth come at a high price?
Raw Data
NasdaqGS:PPC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 7.35x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts
-1.3%per year
United States of America Food Industry PEG Ratio Median Figure of 33 Publicly-Listed Food Companies 1.28x
United States of America Market PEG Ratio Median Figure of 2,057 Publicly-Listed Companies 1.29x

*Line of best fit is calculated by linear regression .

NasdaqGS:PPC PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 7.35x ÷ -1.3%

-5.71x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Pilgrim's Pride earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Pilgrim's Pride's assets?
Raw Data
NasdaqGS:PPC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-07-01) in USD $8.21
NasdaqGS:PPC Share Price * NasdaqGS (2018-10-15) in USD $17.52
United States of America Food Industry PB Ratio Median Figure of 67 Publicly-Listed Food Companies 1.94x
United States of America Market PB Ratio Median Figure of 4,938 Publicly-Listed Companies 1.93x
NasdaqGS:PPC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:PPC Share Price ÷ Book Value per Share (both in USD)

= 17.52 ÷ 8.21

2.13x

* Primary Listing of Pilgrim's Pride.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Pilgrim's Pride is overvalued based on assets compared to the US Food industry average.
X
Value checks
We assess Pilgrim's Pride's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Food industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Food industry average (and greater than 0)? (1 check)
  5. Pilgrim's Pride has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

PPC Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-1.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Pilgrim's Pride expected to grow at an attractive rate?
  • Pilgrim's Pride's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 3%.
Growth vs Market Checks
  • Pilgrim's Pride's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.
  • Pilgrim's Pride's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:PPC Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:PPC Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts -1.3%
NasdaqGS:PPC Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 6 Analysts 1.3%
United States of America Food Industry Earnings Growth Rate Market Cap Weighted Average 3.6%
United States of America Food Industry Revenue Growth Rate Market Cap Weighted Average 2.1%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 15.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.6%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:PPC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:PPC Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-12-31 11,380 818 3
2019-12-31 11,188 799 493 6
2018-12-31 11,054 661 427 6
NasdaqGS:PPC Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-07-01 11,120 772 593
2018-04-01 11,035 736 720
2017-12-31 10,768 801 695
2017-09-24 10,396 879 631
2017-06-25 10,098 840 497
2017-03-26 10,395 676 416
2016-12-25 9,879 795 441
2016-09-25 9,468 672 433
2016-06-26 9,086 678 471
2016-03-27 8,090 866 560
2015-12-27 8,753 1,020 646
2015-09-27 8,330 1,121 750

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Pilgrim's Pride's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Pilgrim's Pride's revenue is expected to grow by 1.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:PPC Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below

All data from Pilgrim's Pride Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:PPC Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-12-31 2.12 2.12 2.12 1.00
2019-12-31 2.02 2.09 1.90 5.00
2018-12-31 1.72 2.01 1.45 5.00
NasdaqGS:PPC Past Financials Data
Date (Data in USD Millions) EPS *
2018-07-01 2.38
2018-04-01 2.89
2017-12-31 2.79
2017-09-24 2.53
2017-06-25 1.98
2017-03-26 1.65
2016-12-25 1.74
2016-09-25 1.70
2016-06-26 1.84
2016-03-27 2.18
2015-12-27 2.50
2015-09-27 2.89

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Pilgrim's Pride will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Pilgrim's Pride's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Pilgrim's Pride has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

PPC Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Pilgrim's Pride's growth in the last year to its industry (Food).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Pilgrim's Pride's year on year earnings growth rate has been positive over the past 5 years.
  • Pilgrim's Pride's 1-year earnings growth exceeds its 5-year average (17.3% vs 1.5%)
  • Pilgrim's Pride's earnings growth has not exceeded the US Food industry average in the past year (17.3% vs 29.2%).
Earnings and Revenue History
Pilgrim's Pride's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Pilgrim's Pride Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:PPC Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-07-01 11,119.63 592.98 361.36
2018-04-01 11,035.20 720.08 365.38
2017-12-31 10,767.86 694.58 369.91
2017-09-24 10,396.39 630.86 351.05
2017-06-25 10,097.79 496.84 338.79
2017-03-26 10,394.97 416.08 351.86
2016-12-25 9,878.56 440.53 310.83
2016-09-25 9,468.46 433.06 282.71
2016-06-26 9,085.71 471.47 259.39
2016-03-27 8,090.12 560.07 203.16
2015-12-27 8,752.67 645.91 231.84
2015-09-27 8,329.76 749.95 201.12
2015-06-28 8,485.28 868.88 193.13
2015-03-29 8,618.22 817.75 192.90
2014-12-28 8,583.37 711.65 188.59
2014-09-28 8,520.21 687.81 187.46
2014-06-29 8,394.98 592.75 186.63
2014-03-30 8,392.28 593.09 182.12
2013-12-29 8,411.15 549.56 180.92
2013-09-29 8,553.53 428.98 177.45
2013-06-30 8,479.19 310.99 175.44
2013-03-31 8,269.54 189.64 175.78
2012-12-30 8,121.38 174.23 177.04
2012-09-23 7,761.03 66.11 180.55
2012-06-24 7,583.77 -139.34 190.25
2012-03-25 7,532.00 -336.84 197.36
2011-12-25 7,535.70 -496.77 204.82

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Pilgrim's Pride has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Pilgrim's Pride used its assets more efficiently than the US Food industry average last year based on Return on Assets.
  • Pilgrim's Pride's use of capital has not improved over the past 3 years (Return on Capital Employed).
X
Past performance checks
We assess Pilgrim's Pride's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Food industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Pilgrim's Pride has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

PPC Health

 How is Pilgrim's Pride's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Pilgrim's Pride's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Pilgrim's Pride is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Pilgrim's Pride's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Pilgrim's Pride's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Pilgrim's Pride Company Filings, last reported 3 months ago.

NasdaqGS:PPC Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-07-01 2,054.42 2,689.95 640.84
2018-04-01 2,033.77 2,823.59 580.81
2017-12-31 1,855.66 2,739.41 581.51
2017-09-24 1,710.24 2,610.39 401.79
2017-06-25 1,210.10 1,444.36 303.94
2017-03-26 979.35 1,347.09 30.76
2016-12-25 2,086.13 1,475.41 292.54
2016-09-25 916.81 1,004.93 85.99
2016-06-26 818.69 1,118.07 41.05
2016-03-27 1,371.19 1,008.07 574.89
2015-12-27 1,261.81 1,014.32 439.64
2015-09-27 1,242.67 1,006.37 396.72
2015-06-28 1,159.95 1,001.20 574.19
2015-03-29 909.07 1,151.28 478.04
2014-12-28 2,196.80 4.24 576.14
2014-09-28 2,030.79 503.18 868.60
2014-06-29 1,774.50 503.15 527.41
2014-03-30 1,585.99 708.34 551.98
2013-12-29 1,492.60 912.23 605.11
2013-09-29 1,353.57 913.41 330.32
2013-06-30 1,191.42 913.38 78.23
2013-03-31 974.18 1,143.46 43.56
2012-12-30 909.00 1,164.76 68.18
2012-09-23 892.72 1,247.26 55.03
2012-06-24 854.74 1,296.75 49.38
2012-03-25 796.98 1,266.41 47.73
2011-12-25 558.43 1,506.57 41.77
  • Pilgrim's Pride's level of debt (130.9%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (76.4% vs 130.9% today).
  • Debt is well covered by operating cash flow (28.7%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 6.4x coverage).
X
Financial health checks
We assess Pilgrim's Pride's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Pilgrim's Pride has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

PPC Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Pilgrim's Pride dividends.
If you bought $2,000 of Pilgrim's Pride shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Pilgrim's Pride's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Pilgrim's Pride's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:PPC Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
United States of America Food Industry Average Dividend Yield Market Cap Weighted Average of 34 Stocks 3%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1971 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:PPC Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2020-12-31 0.00 1.00
2019-12-31 0.00 2.00
2018-12-31 0.00 2.00
NasdaqGS:PPC Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2018-02-16 0.000 0.000
2017-02-09 2.750 10.536
2017-02-08 2.750 14.008
2016-10-27 2.750 14.535
2016-10-26 2.750 13.181
2016-04-27 2.750 11.741
2010-07-30 0.000 0.000
2010-05-07 0.000 0.000
2010-05-06 0.000 0.000
2010-02-04 0.000 0.000
2009-12-29 0.000 0.000

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Pilgrim's Pride has not reported any payouts.
  • Unable to verify if Pilgrim's Pride's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Pilgrim's Pride's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Pilgrim's Pride has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Pilgrim's Pride's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Pilgrim's Pride's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Pilgrim's Pride afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Pilgrim's Pride has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

PPC Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Bill Lovette, image provided by Google.
Bill Lovette
COMPENSATION $3,901,065
AGE 58
TENURE AS CEO 7.8 years
CEO Bio

Mr. William W. Lovette, also known as Bill, has been the Chief Executive Officer and President of Pilgrim's Pride Corporation since January 3, 2011. Mr. Lovette served as the President and Chief Operating Officer of Case Foods, Inc. from october 2008 to December 2010. He has more than 29 years of industry leadership experience. He spent 25 years with Tyson Foods in various roles in senior management, which included President of its International Business Unit since 1999. He served as Senior Group Vice President of Poultry and Prepared Foods of Tyson Foods Inc. from August 2005 to October 10, 2007. Mr. Lovette served as Group Vice President of Food Service for Tyson Foods Inc. since 2001. He served as Vice President, Operations of Tyson Foods Inc. since 1995 and served as its Vice President, Distribution since 1992. He served as President of Foodservice Group Tyson Foods Inc. since April 29, 2000. Mr. Lovette has been a Director of Pilgrim's Pride Corporation since February 21, 2011. Mr. Lovette served as a Director of Tyson de Mexico, Cobb-Vantress, Inc. and EFS Network, Inc. He holds a B.S. degree from Texas A&M University. He also graduated in Harvard Business School's Advanced Management Program.

CEO Compensation
  • Bill's compensation has increased by more than 20% in the past year.
Management Team Tenure

Average tenure and age of the Pilgrim's Pride management team in years:

7.8
Average Tenure
52.5
Average Age
  • The average tenure for the Pilgrim's Pride management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Bill Lovette

TITLE
President
COMPENSATION
$4M
AGE
58
TENURE
7.8 yrs

Fabio Sandri

TITLE
Principal Accounting Officer
COMPENSATION
$1M
AGE
46

Flavio Malnarcic

TITLE
Chief Financial Officer
TENURE
0.4 yrs

James Miner

TITLE
Senior Vice President of Technical Services
AGE
88
TENURE
24.5 yrs

Dunham Winoto

TITLE
Director of Investor Relations

Laston Charriez

TITLE
Head of Marketing
TENURE
1.2 yrs

Eduardo de Noronha

TITLE
Head of Human Resources & Performance Management
AGE
47
TENURE
4.4 yrs

Randy Stroud

TITLE
Head of Global Live Support
TENURE
11.8 yrs

Kendra Waldbusser

TITLE
Head of Food Safety & Quality Assurance
TENURE
8.6 yrs

Joe Waldbusser

TITLE
Head of Commodity Risk Management & Feed Ingredient Purchasing
Board of Directors Tenure

Average tenure and age of the Pilgrim's Pride board of directors in years:

7
Average Tenure
59.5
Average Age
  • The tenure for the Pilgrim's Pride board of directors is about average.
Board of Directors

Gilberto Tomazoni

TITLE
Chairman of the Board
AGE
59
TENURE
5.3 yrs

Bill Lovette

TITLE
President
COMPENSATION
$4M
AGE
58
TENURE
7.7 yrs

Michael Cooper

TITLE
Director
COMPENSATION
$287K
AGE
68
TENURE
8.8 yrs

Charles Macaluso

TITLE
Director
COMPENSATION
$251K
AGE
74
TENURE
8.8 yrs

Wallim de Vasconcellos

TITLE
Director
COMPENSATION
$217K
AGE
60
TENURE
8.8 yrs

David Bell

TITLE
Director
COMPENSATION
$232K
AGE
70
TENURE
6.3 yrs

André De Souza

TITLE
Director
AGE
49
TENURE
4 yrs

Denilson Molina

TITLE
Director
AGE
50
TENURE
1.3 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Pilgrim's Pride insiders in the past 3 months, but not in substantial volumes.
Recent Insider Transactions
Announced Type Name Entity Start End Shares Value (USD)
10. Aug 18 Buy Michael Cooper Individual 09. Aug 18 09. Aug 18 2,500 $43,405.29
28. Feb 18 Sell William Lovette Individual 27. Feb 18 27. Feb 18 -100,000 $-2,535,600.00
X
Management checks
We assess Pilgrim's Pride's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Pilgrim's Pride has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

PPC News

External News
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Simply Wall St News

Does The Hype Around Pilgrim's Pride Corporation's (NASDAQ:PPC) Growth Justify Its August Share Price?

Growth expectations for Pilgrim's Pride Corporation (NASDAQ:PPC) are high, but many investors are starting to ask whether its last close at $18.12 can still be rationalized by the future potential. … Check out our latest analysis for Pilgrim's Pride? … Analysts are predicting good growth prospects for Pilgrim's Pride over the next couple of years

Simply Wall St -

Is There An Opportunity With Pilgrim's Pride Corporation's (NASDAQ:PPC) 46.4% Undervaluation?

I am going to run you through how I calculated the intrinsic value of Pilgrim's Pride Corporation (NASDAQ:PPC). … by taking the expected future cash flows and discounting them to today's value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model

Simply Wall St -

Does Pilgrim's Pride Corporation's (NASDAQ:PPC) PE Ratio Warrant A Buy?

Pilgrim's Pride Corporation (NASDAQ:PPC) is trading with a trailing P/E of 6.2x, which is lower than the industry average of 18.6x. … Although some investors may jump to the conclusion that this is a great buying opportunity, understanding the assumptions behind the P/E ratio might change your mind. … I will explain what the P/E ratio is as well as what you should look out for when using it

Simply Wall St -

Pilgrim's Pride Corporation (NASDAQ:PPC): What Are Investors Earning On Their Capital?

and want to begin learning the link between Pilgrim's Pride Corporation (NASDAQ:PPC)’s return fundamentals and stock market performance. … To understand Pilgrim's Pride’s capital returns we will look at a useful metric called return on capital employed. … Pilgrim's Pride's Return On Capital Employed

Simply Wall St -

How Pilgrim's Pride Corporation (NASDAQ:PPC) Delivered A Better ROE Than Its Industry

and want to begin learning the link between Pilgrim's Pride Corporation (NASDAQ:PPC)’s return fundamentals and stock market performance. … Pilgrim's Pride Corporation (NASDAQ:PPC) outperformed the packaged foods and meats industry on the basis of its ROE – producing a higher 35.38% relative to the peer average of 11.96% over the past 12 months. … Sustainability can be gauged by a company’s financial leverage – the more debt it has, the higher ROE is pumped up in the short term, at the expense of long term interest payment burden

Simply Wall St -

Best-In-Class Undervalued Stocks

PPC's shares are currently trading at -59% below its actual worth of $48.07, at a price of US$19.65, according to my discounted cash flow model. … Also, PPC’s PE ratio stands at around 6.79x while its Food peer level trades at, 19.46x meaning that relative to its peers, you can buy PPC’s shares at a cheaper price. … AMAT's shares are currently hovering at around -34% under its real value of $72.3, at the market price of US$47.96, based on its expected future cash flows.

Simply Wall St -

Should You Buy Pilgrim's Pride Corporation (NASDAQ:PPC)?

Pilgrim's Pride Corporation (NASDAQ:PPC), a food company based in United States, saw significant share price volatility over the past couple of months on the NasdaqGS, rising to the highs of $25.93 and falling to the lows of $20.33. … Great news for investors – Pilgrim's Pride is still trading at a fairly cheap price. … With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price.

Simply Wall St -

How Does Pilgrim's Pride Corporation's (NASDAQ:PPC) Earnings Growth Stack Up Against Industry Performance?

Below, I will examine Pilgrim's Pride Corporation's (NASDAQ:PPC) track record on a high level, to give you some insight into how the company has been performing against its long term trend and its industry peers. … For Pilgrim's Pride, its most recent trailing-twelve-month earnings is US$720.08M, which compared to the previous year's figure, has climbed up by a significant 70.87%. … This shows that any uplift the industry is gaining from, Pilgrim's Pride is able to amplify this to its advantage.What does this mean?

Simply Wall St -

Best NasdaqGS Stocks At A Great Price

In terms of relative valuation, PPC’s PE ratio is around 7.51x while its Food peer level trades at, 18.75x meaning that relative to its comparable company group, we can invest in PPC at a lower price. … What’s even more appeal is that LDL’s PE ratio is currently around 14.12x against its its Machinery peer level of, 23.14x implying that relative to its comparable company group, LDL’s shares can be purchased for a lower price. … Additionally, INVA’s PE ratio stands at 10.57x against its its Pharmaceuticals peer level of, 22.7x implying that relative to its comparable company group, INVA’s shares can be purchased for a lower price.

Simply Wall St -

Does Pilgrim's Pride Corporation's (NASDAQ:PPC) PE Ratio Warrant A Buy?

It compares a stock’s price per share to the stock’s earnings per share. … Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for PPC Price per share = $23.88 Earnings per share = $2.792 ∴ Price-Earnings Ratio = $23.88 ÷ $2.792 = 8.6x The P/E ratio isn’t a metric you view in isolation and only becomes useful when you compare it against other similar companies. … For example, if you are inadvertently comparing lower risk firms with PPC, then PPC’s P/E would naturally be lower than its peers, since investors would value those with lower risk with a higher price.

Simply Wall St -

PPC Company Info

Map
Description

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. The company offers fresh chicken products, including pre-marinated or non-marinated refrigerated (nonfrozen) whole or cut-up chicken; and prepackaged case-ready chicken, 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 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. It also exports its products the Middle East, Asia, the Commonwealth of Independent States, and other countries, as well as France, Puerto Rico, and the Netherlands. The company was founded in 1946 and is headquartered in Greeley, Colorado. Pilgrim's Pride Corporation is a subsidiary of JBS S.A.

Details
Name: Pilgrim's Pride Corporation
PPC
Exchange: NasdaqGS
Founded: 1946
$4,222,711,976
248,980,659
Website: http://www.pilgrims.com
Address: Pilgrim's Pride Corporation
1770 Promontory Circle,
Greeley,
Colorado, 80634,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS PPC New Common Stock Nasdaq Global Select US USD 29. Dec 2009
DB 6PP New Common Stock Deutsche Boerse AG DE EUR 29. Dec 2009
Number of employees
Current staff
Staff numbers
51,600
Pilgrim's Pride employees.
Industry
Packaged Foods and Meats
Food, Beverage & Tobacco
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2018/10/15 21:25
End of day share price update: 2018/10/15 00:00
Last estimates confirmation: 2018/10/09
Last earnings filing: 2018/08/02
Last earnings reported: 2018/07/01
Last annual earnings reported: 2017/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.