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 84 days ago.
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
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
Amount off the current price
is available for.
Share price is
vs Future cash flow value of
Current Discount Checks
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, but not 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
is considered below, and whether this is a fair price.
Price based on past earnings
Pilgrim's Pride's earnings available for a low price, and how does
this compare to other companies in the same industry?
Pilgrim's Pride's earnings are expected to grow significantly at over 20% yearly.
Pilgrim's Pride's revenue is expected to grow by 2.3% 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.
Pilgrim's Pride's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
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.
has a total score of
1/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
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.
TENURE AS CEO
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 from 1978 to 1982. He also graduated in Harvard Business School's Advanced Management Program.
Bill's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Bill's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the
management team in years:
The average tenure for the Pilgrim's Pride management team is over 5 years, this suggests they are a seasoned and experienced team.
Principal Accounting Officer
Chief Financial Officer
Senior Vice President of Technical Services
Director of Investor Relations
Head of Marketing
Eduardo de Noronha
Head of Human Resources & Performance Management
Head of Global Live Support
Head of Food Safety & Quality Assurance
Head of Commodity Risk Management & Feed Ingredient Purchasing
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the Pilgrim's Pride board of directors is about average.
Should You Worry About Pilgrim's Pride Corporation's (NASDAQ:PPC) CEO Pay Cheque?
In 2011 Bill Lovette was appointed CEO of Pilgrim's Pride Corporation (NASDAQ:PPC). … First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Bill Lovette's Compensation Compare With Similar Sized Companies?
Have Insiders Been Selling Pilgrim's Pride Corporation (NASDAQ:PPC) Shares?
So before you buy or sell Pilgrim's Pride Corporation (NASDAQ:PPC), you may well want to know whether insiders have been buying or selling. … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … The Last 12 Months Of Insider Transactions At Pilgrim's Pride.
An Intrinsic Calculation For Pilgrim's Pride Corporation (NASDAQ:PPC) Shows It's 42.62% Undervalued
by taking the expected future cash flows and discounting them to their present value. … discounted cash flows (DCF). … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model
Here's How P/E Ratios Can Help Us Understand Pilgrim's Pride Corporation (NASDAQ:PPC)
To keep it practical, we'll show how Pilgrim's Pride Corporation's (NASDAQ:PPC) P/E ratio could help you assess the value on offer. … Based on the last twelve months, Pilgrim's Pride's P/E ratio is 11.63. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
Can Pilgrim's Pride Corporation's (NASDAQ:PPC) ROE Continue To Surpass The Industry Average?
By way of learning-by-doing, we'll look at ROE to gain a better understanding Pilgrim's Pride Corporation (NASDAQ:PPC). … That means that for every $1 worth of shareholders' equity, it generated $0.19 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity
What Should You Know About Pilgrim's Pride Corporation's (NASDAQ:PPC) Return On Capital?
Your equity share is granted in return for the capital provided to the business to operate, and in order for an investment to be successful the business has to create earnings from the funds that make up this capital. … Therefore, looking at how efficiently Pilgrim's Pride is able to use capital to create earnings will help us understand your potential return. … Investors use many different metrics but the analysis below focuses on return on capital employed (ROCE).
Is Pilgrim's Pride Corporation (NASDAQ:PPC) Overpaying Its CEO?
This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … How Does Bill Lovette's Compensation Compare With Similar Sized Companies. … Our data indicates that Pilgrim's Pride Corporation is worth US$4.5b, and total annual CEO compensation is US$4m.
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
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
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
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.
Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.