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IBA

Industrias Bachoco. de NYSE:IBA Stock Report

Last Price

US$44.58

Market Cap

US$2.2b

7D

12.3%

1Y

-2.2%

Updated

27 Jun, 2022

Data

Company Financials +
IBA fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance5/6
Financial Health6/6
Dividends4/6

IBA Stock Overview

Industrias Bachoco, S.A.B. de C.V., through its subsidiaries, operates as a poultry producer in Mexico and the United States.

Industrias Bachoco. de Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Industrias Bachoco. de
Historical stock prices
Current Share PriceUS$44.58
52 Week HighUS$48.11
52 Week LowUS$36.98
Beta0.77
1 Month Change-5.33%
3 Month Change-4.35%
1 Year Change-2.24%
3 Year Change-11.09%
5 Year Change-20.05%
Change since IPO152.04%

Recent News & Updates

May 02

Industrias Bachoco: Further Consolidation Could Push The Price Up

Vertically integrated business Industrias Bachoco claims to be one of the ten largest poultry producers globally. The company sells eggs, balanced feed, swine, and turkey among other valued-added products. Under normal circumstances, I believe that management will successfully move from bulk to packaged white eggs. In my view, if the company’s recent acquisitions are successful, and management undertakes more M&A operations, both the EBITDA margin and the sales growth will trend north.

Shareholder Returns

IBAUS FoodUS Market
7D12.3%5.2%6.3%
1Y-2.2%-1.4%-18.8%

Return vs Industry: IBA matched the US Food industry which returned -1.8% over the past year.

Return vs Market: IBA exceeded the US Market which returned -18.4% over the past year.

Price Volatility

Is IBA's price volatile compared to industry and market?
IBA volatility
IBA Average Weekly Movement3.7%
Food Industry Average Movement6.9%
Market Average Movement8.1%
10% most volatile stocks in US Market16.7%
10% least volatile stocks in US Market3.2%

Stable Share Price: IBA is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: IBA's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
195233,721Rodolfo Ramos Arvizuhttps://bachoco.com.mx

Industrias Bachoco, S.A.B. de C.V., through its subsidiaries, operates as a poultry producer in Mexico and the United States. The company operates in two segments, Poultry and Others. It is primarily involved in the breeding, processing, and marketing of chicken, eggs, swine, balanced animal feed, and other meat products.

Industrias Bachoco. de Fundamentals Summary

How do Industrias Bachoco. de's earnings and revenue compare to its market cap?
IBA fundamental statistics
Market CapMex$44.26b
Earnings (TTM)Mex$5.12b
Revenue (TTM)Mex$86.71b

8.6x

P/E Ratio

0.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
IBA income statement (TTM)
RevenueMex$86.71b
Cost of RevenueMex$72.46b
Gross ProfitMex$14.25b
Other ExpensesMex$9.13b
EarningsMex$5.12b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)102.54
Gross Margin16.44%
Net Profit Margin5.91%
Debt/Equity Ratio4.1%

How did IBA perform over the long term?

See historical performance and comparison

Dividends

1.9%

Current Dividend Yield

17%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is IBA undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for IBA?

Other financial metrics that can be useful for relative valuation.

IBA key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.3x
Enterprise Value/EBITDA3.4x
PEG Ratio1.8x

Price to Earnings Ratio vs Peers

How does IBA's PE Ratio compare to its peers?

IBA PE Ratio vs Peers
The above table shows the PE ratio for IBA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average55.6x
TWNK Hostess Brands
22.6x11.3%US$2.9b
TR Tootsie Roll Industries
36.9xn/aUS$2.4b
CALM Cal-Maine Foods
135.3x-22.4%US$2.5b
BGS B&G Foods
27.4x12.7%US$1.8b
IBA Industrias Bachoco. de
8.6x4.7%US$2.2b

Price-To-Earnings vs Peers: IBA is good value based on its Price-To-Earnings Ratio (8.6x) compared to the peer average (55.6x).


Price to Earnings Ratio vs Industry

How does IBA's PE Ratio compare vs other companies in the US Food Industry?

Price-To-Earnings vs Industry: IBA is good value based on its Price-To-Earnings Ratio (8.6x) compared to the US Food industry average (17.8x)


Price to Earnings Ratio vs Fair Ratio

What is IBA's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

IBA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio8.6x
Fair PE Ratio18.4x

Price-To-Earnings vs Fair Ratio: IBA is good value based on its Price-To-Earnings Ratio (8.6x) compared to the estimated Fair Price-To-Earnings Ratio (18.4x).


Share Price vs Fair Value

What is the Fair Price of IBA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: IBA ($44.58) is trading below our estimate of fair value ($90.85)

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


Price to Earnings Growth Ratio

PEG Ratio: IBA is poor value based on its PEG Ratio (1.8x)


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Future Growth

How is Industrias Bachoco. de forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


4.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IBA's forecast earnings growth (4.7% per year) is above the savings rate (1.9%).

Earnings vs Market: IBA's earnings (4.7% per year) are forecast to grow slower than the US market (13.9% per year).

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

Revenue vs Market: IBA's revenue (1% per year) is forecast to grow slower than the US market (8.4% per year).

High Growth Revenue: IBA's revenue (1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: IBA's Return on Equity is forecast to be low in 3 years time (9.8%).


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Past Performance

How has Industrias Bachoco. de performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


2.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: IBA has high quality earnings.

Growing Profit Margin: IBA's current net profit margins (5.9%) are higher than last year (5.3%).


Past Earnings Growth Analysis

Earnings Trend: IBA's earnings have grown by 2% per year over the past 5 years.

Accelerating Growth: IBA's earnings growth over the past year (32.4%) exceeds its 5-year average (2% per year).

Earnings vs Industry: IBA earnings growth over the past year (32.4%) exceeded the Food industry 13.1%.


Return on Equity

High ROE: IBA's Return on Equity (9.9%) is considered low.


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Financial Health

How is Industrias Bachoco. de's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: IBA's short term assets (MX$36.7B) exceed its short term liabilities (MX$10.9B).

Long Term Liabilities: IBA's short term assets (MX$36.7B) exceed its long term liabilities (MX$5.1B).


Debt to Equity History and Analysis

Debt Level: IBA has more cash than its total debt.

Reducing Debt: IBA's debt to equity ratio has reduced from 12.2% to 4.1% over the past 5 years.

Debt Coverage: IBA's debt is well covered by operating cash flow (319.6%).

Interest Coverage: IBA earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


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Dividend

What is Industrias Bachoco. de current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


1.92%

Current Dividend Yield

Upcoming Dividend Payment

TodayJun 28 2022Ex Dividend DateJul 11 2022Dividend Pay DateJan 01 197019184 days from Ex DividendBuy in the next 12 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: IBA's dividend (1.92%) is higher than the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: IBA's dividend (1.92%) is low compared to the top 25% of dividend payers in the US market (4.23%).


Stability and Growth of Payments

Stable Dividend: IBA's dividend payments have been volatile in the past 10 years.

Growing Dividend: IBA's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (16.6%), IBA's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (30.6%), IBA's dividend payments are well covered by cash flows.


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Management

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

10.0yrs

Average management tenure


CEO

Rodolfo Ramos Arvizu (64 yo)

11.58yrs

Tenure

Mr. Rodolfo Ramos Arvizu has been the Chief Executive Officer of Industrias Bachoco S.A.B. de C.V. since October 2010. Mr. Ramos Arvizu served as Director as well as Director of Production of Industrias Ba...


Leadership Team

Experienced Management: IBA's management team is seasoned and experienced (10 years average tenure).


Board Members

Experienced Board: IBA's board of directors are seasoned and experienced ( 22.9 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

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


Top Shareholders

Company Information

Industrias Bachoco, S.A.B. de C.V.'s employee growth, exchange listings and data sources


Key Information

  • Name: Industrias Bachoco, S.A.B. de C.V.
  • Ticker: IBA
  • Exchange: NYSE
  • Founded: 1952
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Implied Market Cap: US$2.227b
  • Shares outstanding: 49.95m
  • Website: https://bachoco.com.mx

Number of Employees


Location

  • Industrias Bachoco, S.A.B. de C.V.
  • Avenida TecnolOgico No. 401
  • Ciudad Industrial
  • Celaya
  • Guanajuato
  • 38010
  • Mexico

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/27 00:00
End of Day Share Price2022/06/27 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.