Pilgrim's Pride (PPC) AI Stock Analysis

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Pilgrim's Pride

(NASDAQ:PPC)

76Outperform

Pilgrim's Pride's stock is rated positively due to its strong financial performance and favorable valuation metrics. The recent earnings call confirmed growth in key markets, despite some operational challenges. Technical indicators suggest cautious sentiment, but the stock's valuation and dividend declaration offer a compelling case for investment.

Positive Factors

Dividends

PPC announced a $1.5bn special dividend, signaling financial strength and a commitment to returning value to shareholders.

Growth Strategy

PPC has plans for geographic expansion and business integration, which are expected to drive growth and enhance margins.

Negative Factors

Margin Risks

US chicken margins may lag in future due to stronger production growth in shoulder periods.

Seasonality Risks

Analyst sees near-term risk from seasonality and accelerating production indicators.

Pilgrim's Pride (PPC) vs. S&P 500 (SPY)

Market Cap

$10.94B

Dividend YieldN/A

Average Volume (3M)1.46M

Price to Earnings (P/E)9.2

Beta (1Y)0.29

Revenue Growth2.35%

EPS Growth145.82%

CountryUS

Employees62,600

SectorConsumer Defensive

Sector Strength81

IndustryPackaged Foods

Share Statistics

EPS (TTM)1.31

Shares Outstanding237,123,060

10 Day Avg. Volume1,582,994

30 Day Avg. Volume1,460,917

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.00

Price to Cash Flow (P/CF)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap1.29

Enterprise Value/RevenueN/A

Enterprise Value/Gross Profit6.10

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$51.25

Price Target Upside8.88% Upside

Rating ConsensusHold

Number of Analyst Covering4

Pilgrim's Pride Business Overview & Revenue Model

Company DescriptionPilgrim's Pride Corporation (PPC) is a leading global provider of fresh, fully-cooked, and value-added chicken products. As a prominent player in the food industry, the company operates across various sectors, including retail, foodservice, and international markets. Pilgrim's Pride is known for its commitment to high-quality poultry products and has a diverse portfolio that caters to customer needs worldwide.

How the Company Makes MoneyPilgrim's Pride makes money primarily through the production and sale of chicken products, which are distributed across several key channels. The company's revenue model is centered around its extensive operations in the retail and foodservice sectors, where it supplies fresh and prepared chicken to grocery stores, restaurants, and other foodservice providers. Additionally, Pilgrim's Pride benefits from international sales, exporting products to numerous countries, which diversifies its revenue streams. Significant partnerships with major retailers and foodservice chains enhance its market reach and contribute to its earnings. The company's strategic focus on efficiency, product quality, and customer satisfaction further bolsters its profitability.

Pilgrim's Pride Financial Statement Overview

Summary

Pilgrim's Pride demonstrates a strong financial position with significant revenue growth, improved profit margins, and robust cash flow generation capabilities. The balance sheet shows low leverage, though reliance on liabilities for asset financing could be a concern.

Income Statement

Very Positive

Pilgrim's Pride has shown strong revenue growth with a 49% increase over five years, reaching $17.98B in TTM. The Gross Profit Margin improved significantly to 13.81% in TTM, indicating enhanced operational efficiency. Net Profit Margin also increased to 6.72% in TTM, showcasing robust profitability. The EBIT Margin and EBITDA Margin are healthy, at 9.24% and 11.35% respectively, reflecting solid earnings performance.

Balance Sheet

Positive

The company's balance sheet is stable, with a Debt-to-Equity Ratio of 0.06 in TTM, significantly reduced from prior years, indicating low leverage. The Return on Equity (ROE) improved to 38.56%, reflecting strong shareholder returns. However, the Equity Ratio is at a moderate 28.57%, suggesting potential reliance on liabilities for asset financing.

Cash Flow

Positive

Pilgrim's Pride's free cash flow growth is strong, with a TTM figure of $1.48B. The Operating Cash Flow to Net Income Ratio is 1.53, indicating efficient cash conversion. The Free Cash Flow to Net Income Ratio is 1.22, demonstrating effective cash flow management and ability to support operations and investments.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
17.88B	17.36B	17.47B	14.78B	12.09B
	Gross Profit
2.31B	1.12B	1.81B	1.37B	838.20M
	EBIT
1.51B	522.29M	1.18B	211.16M	245.46M
	EBITDA
2.01B	987.39M	1.64B	597.79M	582.69M
	Net Income Common Stockholders
1.09B	321.57M	745.93M	31.00M	94.76M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.05B	731.22M	400.99M	427.66M	547.62M
	Total Assets
10.65B	9.81B	9.26B	8.91B	7.47B
	Total Debt
3.47B	3.61B	3.42B	3.49B	2.57B
	Net Debt
1.43B	2.92B	3.02B	3.06B	2.02B
	Total Liabilities
6.40B	6.47B	6.40B	6.32B	4.90B
	Stockholders Equity
4.24B	3.33B	2.84B	2.58B	2.56B
Cash Flow		Free Cash Flow
1.51B	134.06M	182.75M	-55.21M	369.49M
	Operating Cash Flow
1.99B	677.88M	669.86M	326.46M	724.25M
	Investing Cash Flow
-460.80M	-503.35M	-445.25M	-1.32B	-327.00M
	Financing Cash Flow
-150.91M	116.73M	-232.01M	901.31M	-136.71M

Pilgrim's Pride Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price47.07

Price Trends

50DMA

48.91

Negative

100DMA

45.89

Positive

200DMA

43.48

Positive

Market Momentum

MACD

-0.74

Positive

RSI

39.13

Neutral

STOCH

17.94

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PPC, the sentiment is Neutral. The current price of 47.07 is below the 20-day moving average (MA) of 51.28, below the 50-day MA of 48.91, and above the 200-day MA of 43.48, indicating a neutral trend. The MACD of -0.74 indicates Positive momentum. The RSI at 39.13 is Neutral, neither overbought nor oversold. The STOCH value of 17.94 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PPC.

Pilgrim's Pride Risk Analysis

Pilgrim's Pride disclosed 25 risk factors in its most recent earnings report. Pilgrim's Pride reported the most risks in the “Production” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Pilgrim's Pride Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PPC	76 Outperform	$10.94B	9.22	36.53%	―	2.35%	145.82%
BRFS	73 Outperform	$5.94B	10.34	21.60%	2.59%	5.85%	―
HRL	69 Neutral	$16.03B	21.20	9.54%	3.92%	-1.84%	-5.14%
CAG	68 Neutral	$11.15B	34.40	3.67%	6.06%	-3.15%	-65.38%
BRBR	66 Neutral	$8.15B	29.68	-190.65%	―	18.91%	49.43%
Sector *	64 Neutral	$8.79B	14.77	5.05%	174.29%	3.63%	3.48%
SJM	59 Neutral	$12.08B	22.22	-3.55%	3.85%	7.07%	-181.54%

* Consumer Defensive Sector Average

Performance Comparison

PPC

Pilgrim's Pride

47.07

13.59

40.59%

BRFS

BRF SA

3.38

-0.08

-2.31%

CAG

Conagra Brands

23.09

-6.30

-21.44%

HRL

Hormel Foods

29.21

-5.03

-14.69%

SJM

JM Smucker

111.54

-0.16

-0.14%

BRBR

BellRing Brands

60.76

1.15

1.93%

Pilgrim's Pride Earnings Call Summary

Earnings Call Date:Apr 30, 2025

(Q1-2025)

% Change Since: -13.76%|

Next Earnings Date:Jul 23, 2025

Earnings Call Sentiment Positive

The earnings call reflected a positive sentiment with strong growth in revenue, EBITDA, and market expansion in the U.S., Europe, and Mexico. However, challenges remain in export markets, production efficiency, and SG&A costs.

Q1-2025 Updates

Positive Updates

Increased Revenue and EBITDA

Net revenues for Q1 2025 were $4.5 billion, a 2.3% increase over the same quarter last year. Adjusted EBITDA was $533 million, up 62% compared to Q1 2024.

Expansion in Prepared Foods

Prepared foods grew over 20% compared to the prior year with increased distribution across retail and food services. Sales of Just BARE and Pilgrim's collectively rose over 50%.

Strong U.S. Market Performance

U.S. sales and adjusted EBITDA increased compared to the prior year. U.S. net revenues were $2.74 billion, a 6.2% increase from last year.

European Business Growth

Adjusted EBITDA margins in Europe improved to 8.1% from 6.4% last year due to integration and optimization efforts.

Expansion in Mexico

Sales to key customers in Mexico increased by 11%. The branded portfolio grew by 15% in Fresh and 9% in Prepared.

Negative Updates

Challenges in Export Markets

Winter weather port disruptions in January, potential port strikes, and increased domestic demand for dark meat reduced export volumes. The relationship with China remains in transition, affecting exports.

Mortality and Hatchability Issues

Increased mortality and reduced hatchability continue to challenge broiler production, requiring record high hatcher utilization.

Mexico Currency Impact

The increase in the exchange rate between the peso and the dollar negatively impacted Mexico's costs, resulting in a $8.5 million FX impact.

SG&A Costs

SG&A in the quarter was higher year-over-year, primarily due to an increase in legal settlement and defense costs and increased incentive compensation costs.

Company Guidance

During the first quarter of 2025, Pilgrim's Pride reported net revenues of $4.5 billion, marking a 2.3% increase from the prior year. The company achieved an adjusted EBITDA of $533 million, up 62% from Q1 2024, with an adjusted EBITDA margin of 12%, compared to 8.5% previously. In the U.S., adjusted EBITDA margins rose to 14.3% from 9.4% last year, reflecting improved sales and operational efficiencies. European operations saw adjusted EBITDA margins improve to 8.1% from 6.4%, attributed to business integration and manufacturing optimization. In Mexico, despite a slight decline in adjusted EBITDA margins to 8.4% from 9.2% due to currency impacts, the business showed sequential improvement. The company continues to focus on strategic growth, with planned investments in expanding its production capacity and enhancing its product offerings, while maintaining strong liquidity with over $1.6 billion in total cash and available credit.

Pilgrim's Pride Corporate Events

Executive/Board ChangesShareholder Meetings

Pilgrim’s Pride Stockholders Approve Key Proposals at Meeting

Neutral

May 1, 2025

On April 30, 2025, Pilgrim’s Pride Corporation held its Annual Meeting where stockholders approved several key proposals, including the election of ten directors to the Board, an advisory vote on executive compensation, the ratification of KPMG LLP as the independent registered public accounting firm for the fiscal year ending December 28, 2025, and the approval of the Amended and Restated 2019 Long Term Incentive Plan. These decisions are expected to impact the company’s governance and financial oversight, aligning executive compensation with shareholder interests and ensuring continuity in financial auditing.

Spark’s Take on PPC Stock

According to Spark, TipRanks’ AI Analyst, PPC is a Outperform.

Pilgrim’s Pride is well-positioned with strong financial performance, positive technical momentum, and reasonable valuation. The strategic initiatives and operational efficiencies highlighted in the earnings call support a positive outlook, although overbought technical indicators and specific operational challenges warrant caution.

To see Spark’s full report on PPC stock, click here.

Business Operations and StrategyFinancial Disclosures

Pilgrim’s Pride Reports Strong Q1 2025 Financial Results

Positive

May 1, 2025

In its financial results for the first quarter ended March 30, 2025, Pilgrim’s Pride Corporation reported a significant year-over-year increase in net revenue and gross profit, driven by higher commodity market pricing and operational efficiencies. The company experienced growth in the U.S. and Europe, although profitability in Mexico declined due to foreign currency impacts. The results reflect improved operating income and adjusted EBITDA, with notable increases in the Big Bird business and key customer growth. However, the company faced higher SG&A expenses due to legal and incentive compensation costs, and the broiler layer flock decreased by 2.3% year-over-year.

Spark’s Take on PPC Stock

According to Spark, TipRanks’ AI Analyst, PPC is a Outperform.

Pilgrim’s Pride exhibits strong financial performance, with healthy growth in revenues and profitability, supported by solid operational efficiency. The stock’s valuation and technical analysis indicate reasonable pricing, though market sentiment is cautious. Despite some operational challenges, the company’s strategic initiatives and strong earnings position it well for future growth.

To see Spark’s full report on PPC stock, click here.

Dividends

Pilgrim’s Pride Declares $6.30 Dividend Per Share

Positive

Mar 14, 2025

On March 13, 2025, Pilgrim’s Pride Corporation’s Board of Directors declared a dividend of $6.30 per share, payable to stockholders on April 3, 2025. The announcement, made on March 14, 2025, reflects the company’s commitment to returning value to its shareholders, potentially enhancing its market position and stakeholder confidence.

Business Operations and StrategyFinancial Disclosures

Pilgrim’s Pride Reports Strong Q4 2024 Financial Results

Positive

Feb 13, 2025

On February 13, 2025, Pilgrim’s Pride Corporation reported its financial results for the fourth quarter ended December 29, 2024, showing significant improvements across its operations. The company experienced increased net revenue and operating income driven by higher U.S. commodity market pricing, cost efficiencies, and growth with key customers, despite higher SG&A expenses due to legal settlements and compensation costs. Broiler placements and egg sets increased year-over-year, while industry cold storage supplies continued to lag behind previous years, indicating supply chain adjustments. The results suggest a strong positioning for Pilgrim’s Pride in its industry, with implications for continued operational efficiency and market growth.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.