JBS (Z98) AI Stock Analysis

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JBS

(XETRA:Z98)

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Positive Factors

Global multi-protein diversificationJBS’s global presence across beef, poultry, pork and prepared foods diversifies earnings sources across regions, customers and protein cycles. Strong beef and chicken demand, combined with broad distribution capabilities, supports resilience and helps the company redirect volumes when a market weakens.

Negative Factors

High leverage limits financial flexibilityJBS’s historically high leverage leaves the company more exposed to cyclical earnings weakness and elevated interest costs. The recent increase to 3.54x net leverage reduces flexibility for acquisitions, growth investment and shareholder returns until cash generation improves and debt is reduced.

JBS (Z98) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 27.62B
Dividend Yield: 7.48%
Average Volume (3M): 495
Price to Earnings (P/E): 17.2
Beta (1Y): 0.15
Revenue Growth: 107.59%
EPS Growth: -57.82%
Country: Germany
Employees: 283,000
Sector: Consumer Defensive
Sector Strength: 62
Industry: Packaged Foods

JBS Business Overview & Revenue Model

Company Description

JBS NV is a food company that engages in the sale of beef, pork, lamb meat and poultry products. It offers its products to supermarkets, club stores, other retail distributors, and foodservice companies. The company was founded on October 9, 2019 and...

JBS Earnings Call Summary

Earnings Call Date:Nov 09, 2026(Q3-2026)|% Change Since:-4.68%|Next Earnings Date:Mar 31, 2027

Earnings Call SentimentNeutral

The call was mixed but cautiously constructive. The quarter faced meaningful challenges from U.S. pork oversupply and weaker demand, poultry cost and margin pressure, sharply lower China exports, negative free cash flow, higher leverage, and working-capital consumption. Offsetting these issues were the return of U.S. beef to positive EBITDA, expected sequential improvement in U.S. beef and Seara, strong beef and chicken demand, progress in Brazil, the strategically positioned Flora acquisition, substantial liquidity, and planned capital expenditure reductions. Management expressed confidence in improving conditions, but also acknowledged that recovery will vary by protein and geography and that further work remains.

Positive Updates

U.S. Beef Returned to Positive EBITDA

U.S. beef returned to positive Adjusted EBITDA under U.S. GAAP in the third quarter after two challenging years. Management attributed the improvement to better market conditions and operational changes, including unified management of fed beef, regional beef, and case-ready operations, with increased focus on yields, productivity, maintenance, reliability, and cost discipline.

Negative Updates

Challenging Market Conditions Weighed on the Quarter

Management said the third quarter was marked by challenging market conditions across several businesses, changing international trade flows, pressure on poultry margins, and a global oversupply of pork.

Company Guidance

Management said Q4 could be stronger than, should be stronger than Q3 for U.S. beef, with 2027 expected to be a market that operates in the low single digits, with maybe actually even a positive surprise depending on how things develop, while operational efficiencies and sales synergies could contribute around or even above 2 percentage points into next year; U.S. pork is expected to remain tough at least through the first half of next year, with a good chance of a better second half of next year; Mexican cattle imports are expected at approximately 1 million head per year; Seara is expected to have a higher margin than the third quarter; 2027 capital expenditures are expected to decrease by around $500 million, and if U.S. beef turns around and EBITDA ends up between $5.5 billion or $6 billion, leverage would be below 3x; the company also expects $5.5 billion in 2026 cash flow breakeven EBITDA, driven by $2.1 billion in capital expenditures, working capital expected consumption of $550 million, legal settlements of $100 million, biological assets of $850 million, interest expenses of $1.4 billion, leasing expense at $500 million, and an effective tax rate of 25%.

JBS Risk Analysis

JBS disclosed 49 risk factors in its most recent earnings report. JBS reported the most risks in the "Finance & Corporate" category.

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

Latest Risks Added

0 New Risks

JBS Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

DE:Z98 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SFD	69Neutral	$7.58B	8.36	13.00%	6.53%	-1.57%	3.81%
Sector *	62Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
HRL	58Neutral	$12.22B	34.84	4.33%	5.33%	0.73%	-54.64%
KHC	58Neutral	$28.70B	-8.31	-8.91%	6.59%	-1.53%	21.36%
CPB	50Neutral	$6.74B	16.65	10.18%	6.36%	-4.96%	-33.88%
CAG	46Neutral	$7.25B	-3.73	-26.28%	7.08%	-1.80%	-323.82%

* Consumer Defensive Sector Average

Performance Comparison

DE:Z98 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:Z98	Jbs N.V.	11.01	0.83	8.14%
CPB	Campbell Soup Company	22.31	-7.10	-24.14%
CAG	Conagra Brands	14.83	-1.48	-9.09%
HRL	Hormel Foods Corp	21.95	0.50	2.33%
KHC	Kraft Heinz Co	24.27	1.01	4.36%
SFD	Smithfield Foods, Inc.	19.14	-1.54	-7.47%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.

JBS AI Stock Analysis