Pilgrim's Pride (PPC) AI Stock Analysis

• Market Cap: $9.05B
• Dividend Yield: N/A
• Average Volume (3M): 1.85M
• Price to Earnings (P/E): 7.4
• Beta (1Y): 0.19
• Revenue Growth: 1.81%
• EPS Growth: 24.67%
• Country: US
• Employees: 62,600
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 1.52
• Shares Outstanding: 237,547,440
• 10 Day Avg. Volume: 1,892,738
• 30 Day Avg. Volume: 1,854,683
• PEG Ratio: 0.04
• Price to Book (P/B): 2.54
• Price to Sales (P/S): 0.60
• P/FCF Ratio: 7.11
• Enterprise Value/Market Cap: 1.37
• Enterprise Value/Revenue: 0.68
• Enterprise Value/Gross Profit: 5.00
• Enterprise Value/Ebitda: 5.94
• 1Y Price Target: $44.25
• Price Target Upside: 16.14% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 72 Outperform
• Price Target: $42.00 ▲(10.24% Upside)

Pilgrim's Pride's strong financial performance and undervaluation are significant positives, but technical indicators suggest a bearish trend. The earnings call highlighted growth and operational improvements, but also noted challenges in Europe and margin pressures. These factors combined result in a moderately positive outlook.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, reinforcing Pilgrim's Pride's competitive position.

Financial Stability

Low leverage and strong liquidity provide financial flexibility, enabling strategic investments and resilience against economic fluctuations.

Prepared Foods Expansion

Investment in Prepared Foods supports long-term growth by expanding capacity and capitalizing on consumer trends towards convenience foods.

Negative Factors

Legal Expenses

Significant legal expenses can impact profitability and cash flow, diverting resources from growth initiatives and affecting financial performance.

Mexico Margin Decline

Declining margins in Mexico due to FX headwinds and disease challenges may affect overall profitability and require strategic adjustments.

Production Constraints

Production issues can limit the ability to meet demand, potentially affecting sales growth and market share if not addressed promptly.

Pilgrim's Pride Business Overview & Revenue Model

Company Description

Pilgrim's Pride Corporation (PPC) is one of the largest poultry producers in the United States, primarily engaged in the production, processing, and distribution of chicken products. The company operates in the meat processing sector, providing a wide range of products including fresh and frozen chicken, prepared foods, and value-added products. Pilgrim's Pride serves various markets, including retail, foodservice, and export customers, and is known for its commitment to quality and sustainability in poultry production.

How the Company Makes Money

Pilgrim's Pride generates revenue primarily through the sale of poultry products, including whole chickens, chicken parts, and processed chicken items. The company benefits from economies of scale due to its large production capacity and extensive distribution network. Key revenue streams include sales to grocery stores, restaurants, and food wholesalers. Additionally, Pilgrim's Pride engages in export activities, selling products to international markets. The company also invests in value-added products, which command higher prices and margins. Strategic partnerships with retailers and foodservice providers further enhance its market presence and contribute to consistent revenue growth. Factors such as fluctuating feed costs, consumer demand trends, and regulatory changes also play significant roles in its overall earnings.

Pilgrim's Pride Financial Statement Overview

Summary

Pilgrim's Pride exhibits strong financial health with robust revenue growth, improved profitability, and effective cash flow management. The significant reduction in leverage enhances financial stability, while high return on equity underscores strong shareholder returns. Continued focus on operational efficiency and cost management will be key to sustaining this positive trajectory.

Income Statement

Pilgrim's Pride has demonstrated strong revenue growth with a TTM (Trailing-Twelve-Months) increase of 95.9%, indicating robust demand and market presence. The gross profit margin improved to 13.53%, reflecting efficient cost management. Net profit margin also increased to 6.70%, showcasing enhanced profitability. However, the EBIT margin slightly decreased, suggesting potential cost pressures or increased operational expenses.

Balance Sheet

The company has significantly reduced its debt-to-equity ratio to 0.05 in the TTM, indicating a strong deleveraging effort and improved financial stability. Return on equity is impressive at 33.58%, reflecting high profitability relative to shareholder equity. The equity ratio stands at 35.57%, suggesting a solid equity base, though there is room for improvement in asset financing.

Cash Flow

Free cash flow growth is strong at 15.47%, indicating effective cash generation and operational efficiency. The operating cash flow to net income ratio of 0.53 suggests a healthy conversion of income to cash. The free cash flow to net income ratio of 0.89 further supports the company's ability to generate cash relative to its earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	18.35B	17.88B	17.36B	17.47B	14.78B	12.09B
Gross Profit	2.48B	2.31B	1.12B	1.81B	1.37B	838.20M
EBITDA	2.09B	2.01B	987.39M	1.58B	619.01M	625.05M
Net Income	1.23B	1.09B	321.57M	745.93M	31.00M	94.76M
Balance Sheet
Total Assets	9.95B	10.65B	9.81B	9.26B	8.91B	7.47B
Cash, Cash Equivalents and Short-Term Investments	612.58M	2.05B	697.75M	400.99M	427.66M	547.62M
Total Debt	3.29B	3.47B	3.61B	3.53B	3.57B	2.57B
Total Liabilities	6.40B	6.40B	6.47B	6.40B	6.32B	4.90B
Stockholders Equity	3.54B	4.24B	3.33B	2.84B	2.58B	2.56B
Cash Flow
Free Cash Flow	1.27B	1.51B	134.06M	182.75M	-55.21M	369.49M
Operating Cash Flow	1.43B	1.99B	677.88M	669.86M	326.46M	724.25M
Investing Cash Flow	-590.58M	-460.80M	-503.35M	-445.25M	-1.32B	-327.00M
Financing Cash Flow	-2.11B	-150.91M	116.73M	-232.01M	901.31M	-136.71M

Pilgrim's Pride Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 38.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 38.1 is above the 20-day moving average (MA) of 37.95, below the 50-day MA of 40.84, and below the 200-day MA of 43.99, indicating a neutral trend. The MACD of -0.80 indicates Negative momentum. The RSI at 41.24 is Neutral, neither overbought nor oversold. The STOCH value of 69.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PPC.

Pilgrim's Pride Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BRFS	―	―	―	―	―	-1.19%	78.79%
PPC	―	$9.05B	7.38	31.76%	―	1.81%	24.67%
JBS	―	$13.94B	10.06	17.67%	0.02%	―	288.18%
CAG	―	$8.22B	9.69	9.65%	8.14%	-4.11%	72.17%
HRL	―	$11.87B	15.74	9.46%	5.37%	0.65%	-3.76%
Sector *	―	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
SJM	―	$11.05B	―	-21.32%	4.25%	2.54%	-293.39%

Pilgrim's Pride Corporate Events

Pilgrim’s Pride Reports Strong Q3 2025 Financial Results

Pilgrim’s Pride Corporation, a leading global food company, operates in the poultry industry, focusing on the production and distribution of fresh and prepared foods across multiple regions including the U.S., Europe, and Mexico.

Pilgrim’s Pride Reports Q3 2025 Profit Decline

In its financial results for the third quarter ending September 28, 2025, Pilgrim’s Pride reported a year-over-year decrease in profitability, attributed to lower pricing and volume declines in certain markets. The company’s net revenue increased to $4,759.3 million from $4,585.0 million in the previous year, but net income slightly decreased to $343.1 million. The U.S. market saw a decrease in profitability due to lower pricing, while Europe and Mexico faced challenges from product mix and market prices. Despite operational improvements, the overall adjusted EBITDA margin decreased from 14.4% to 13.3%. The report also highlighted increased SG&A expenses due to legal settlements and defense costs, and a rise in net interest due to a lower cash balance following a $2 billion dividend payout.

The most recent analyst rating on (PPC) stock is a Buy with a $42.00 price target. To see the full list of analyst forecasts on Pilgrim’s Pride stock, see the PPC Stock Forecast page.

Pilgrim’s Pride Earnings Call Highlights Growth and Challenges

The recent earnings call for Pilgrim’s Pride Corp presented an optimistic outlook, highlighting robust revenue growth and strategic investments. Despite facing some challenges, the company showcased strong performance in key segments, notably in Europe and Mexico. The announcement of a substantial special dividend further emphasized Pilgrim’s Pride’s solid financial position.

Pilgrim’s Pride Reports Strong Q2 2025 Results

Pilgrim’s Pride Corporation, a leading global food company specializing in poultry production, has reported its financial results for the second quarter of 2025, highlighting significant growth and strategic initiatives across its operations in the U.S., Europe, and Mexico.

Pilgrim’s Pride Announces Special Dividend Amid Strong Q2 Results

On July 30, 2025, Pilgrim’s Pride announced a special dividend of $2.10 per share, totaling approximately $500 million, to be paid to shareholders on August 20, 2025. The company reported strong second-quarter 2025 results, with net sales of $4.8 billion and an operating income of $512.3 million. The U.S. business saw growth in sales and profitability, driven by demand for fresh and prepared foods, while European and Mexican operations also showed positive performance. The company plans to build a new prepared foods plant in Georgia to support growth in higher-margin branded products, creating over 630 jobs and boosting U.S. Prepared Foods sales by over 40%.

The most recent analyst rating on (PPC) stock is a Hold with a $56.00 price target. To see the full list of analyst forecasts on Pilgrim’s Pride stock, see the PPC Stock Forecast page.

Pilgrim’s Pride Reports Q2 2025 Financial Results

Pilgrim’s Pride Corporation reported its financial results for the second quarter ended June 29, 2025, showing a year-over-year increase in net revenue and operating income, driven by higher commodity market pricing and growth with key customers. The U.S. segment benefited from increased sales, while Europe saw profit improvements due to cost reduction strategies. However, Mexico’s profitability declined due to foreign currency impacts. The company also noted changes in inventory levels and pricing trends in the industry, with total chicken inventories up 1.8% year-over-year but below the five-year average.

The most recent analyst rating on (PPC) stock is a Hold with a $56.00 price target. To see the full list of analyst forecasts on Pilgrim’s Pride stock, see the PPC Stock Forecast page.