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IBA

Industrias Bachoco. deNYSE:IBA Stock Report

Last Price

US$41.65

Market Cap

US$2.1b

7D

-3.7%

1Y

-1.7%

Updated

25 Jan, 2022

Data

Company Financials +
IBA fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance5/6
Financial Health6/6
Dividends3/6

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

Tyson Foods

NYSE:TSN

US$32.9b

BRF

BOVESPA:BRFS3

R$18.3b

Marfrig Global Foods

BOVESPA:MRFG3

R$15.4b

Price History & Performance

Summary of all time highs, changes and price drops for Industrias Bachoco. de
Historical stock prices
Current Share PriceUS$41.65
52 Week HighUS$47.80
52 Week LowUS$38.30
Beta0.80
1 Month Change-1.03%
3 Month Change-2.88%
1 Year Change-1.67%
3 Year Change-9.88%
5 Year Change-10.31%
Change since IPO135.44%

Recent News & Updates

Jan 18
Is Industrias Bachoco, S.A.B. de C.V. (NYSE:IBA) Trading At A 23% Discount?

Is Industrias Bachoco, S.A.B. de C.V. (NYSE:IBA) Trading At A 23% Discount?

Today we will run through one way of estimating the intrinsic value of Industrias Bachoco, S.A.B. de C.V. ( NYSE:IBA...

Jan 06

Industrias Bachoco Is A Very Interesting Opportunity

IBA dedicates to poultry production and commercialization in Mexico and the US, slowly growing into a multi-protein company (chicken, swine, etc.). The company has grown revenues at 6% and earnings at 9% for the last ten years. Although it competes in a commoditized market, it has maintained its net profit margin above 5%. IBA has $900 million in cash but waits patiently for a down cycle in the industry to invest it. IBA's management seems very conservative and frank about possibilities of expansion.

Dec 28
Industrias Bachoco. de (NYSE:IBA) Hasn't Managed To Accelerate Its Returns

Industrias Bachoco. de (NYSE:IBA) Hasn't Managed To Accelerate Its Returns

To find a multi-bagger stock, what are the underlying trends we should look for in a business? Firstly, we'd want to...

Dec 11
Does Industrias Bachoco. de (NYSE:IBA) Have A Healthy Balance Sheet?

Does Industrias Bachoco. de (NYSE:IBA) Have A Healthy Balance Sheet?

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Shareholder Returns

IBAUS FoodUS Market
7D-3.7%-2.4%-5.8%
1Y-1.7%9.6%4.2%

Return vs Industry: IBA underperformed the US Food industry which returned 9.6% over the past year.

Return vs Market: IBA underperformed the US Market which returned 4.2% over the past year.

Price Volatility

Is IBA's price volatile compared to industry and market?
IBA volatility
IBA Average Weekly Movement2.8%
Food Industry Average Movement5.2%
Market Average Movement6.7%
10% most volatile stocks in US Market15.5%
10% least volatile stocks in US Market2.4%

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

Volatility Over Time: IBA's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
195230,031Rodolfo 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. It operates in two segments, Poultry and Others. The company 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$42.93b
Earnings (TTM)Mex$5.40b
Revenue (TTM)Mex$78.78b

8.0x

P/E Ratio

0.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
IBA income statement (TTM)
RevenueMex$78.78b
Cost of RevenueMex$64.13b
Gross ProfitMex$14.65b
ExpensesMex$9.25b
EarningsMex$5.40b

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Feb 03, 2022

Earnings per share (EPS)107.99
Gross Margin18.60%
Net Profit Margin6.85%
Debt/Equity Ratio3.9%

How did IBA perform over the long term?

See historical performance and comparison

Dividends

2.0%

Current Dividend Yield

16%

Payout Ratio

Valuation

Is Industrias Bachoco. de 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: IBA ($41.65) is trading below our estimate of fair value ($86.91)

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


Price To Earnings Ratio

PE vs Industry: IBA is good value based on its PE Ratio (8x) compared to the US Food industry average (21.6x).

PE vs Market: IBA is good value based on its PE Ratio (8x) compared to the US market (16.5x).


Price to Earnings Growth Ratio

PEG Ratio: IBA's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: IBA is good value based on its PB Ratio (0.9x) compared to the US Food industry average (2.2x).


Future Growth

How is Industrias Bachoco. de forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

-1.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IBA's earnings are forecast to decline over the next 3 years (-1.5% per year).

Earnings vs Market: IBA's earnings are forecast to decline over the next 3 years (-1.5% per year).

High Growth Earnings: IBA's earnings are forecast to decline over the next 3 years.

Revenue vs Market: IBA's revenue (3% per year) is forecast to grow slower than the US market (9.1% per year).

High Growth Revenue: IBA's revenue (3% 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%).


Past Performance

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

0.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IBA has high quality earnings.

Growing Profit Margin: IBA's current net profit margins (6.9%) are higher than last year (4.8%).


Past Earnings Growth Analysis

Earnings Trend: IBA's earnings have grown by 0.8% per year over the past 5 years.

Accelerating Growth: IBA's earnings growth over the past year (69.7%) exceeds its 5-year average (0.8% per year).

Earnings vs Industry: IBA earnings growth over the past year (69.7%) exceeded the Food industry 18.7%.


Return on Equity

High ROE: IBA's Return on Equity (11.1%) is considered low.


Financial Health

How is Industrias Bachoco. de's financial position?


Financial Position Analysis

Short Term Liabilities: IBA's short term assets (MX$36.1B) exceed its short term liabilities (MX$10.4B).

Long Term Liabilities: IBA's short term assets (MX$36.1B) exceed its long term liabilities (MX$5.2B).


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 13.3% to 3.9% over the past 5 years.

Debt Coverage: IBA's debt is well covered by operating cash flow (365.3%).

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


Balance Sheet


Dividend

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

1.98%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: IBA's dividend (1.98%) is higher than the bottom 25% of dividend payers in the US market (1.36%).

High Dividend: IBA's dividend (1.98%) is low compared to the top 25% of dividend payers in the US market (3.57%).


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.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (15.8%), IBA's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of IBA'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?

9.6yrs

Average management tenure


CEO

Rodolfo Ramos Arvizu (64 yo)

11.17yrs

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 (9.6 years average tenure).


Board Members

Experienced Board: IBA's board of directors are seasoned and experienced ( 22.5 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$2.081b
  • Shares outstanding: 49.97m
  • Website: https://bachoco.com.mx

Number of Employees


Location

  • Industrias Bachoco, S.A.B. de C.V.
  • Avenida Tecnologico 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 Analysis2022/01/25 06:25
End of Day Share Price2022/01/24 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.