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Pilgrim's Pride
(NASDAQ:PPC)
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Rating:65Neutral
Price Target:
$31.00
▼(-4.41% Downside)
Action:Reiterated
Date:09/23/26
PPC’s score is supported most by solid financial capability (profitability, balance sheet strength, and healthy free cash flow) and a reasonable P/E valuation. The score is held back primarily by weak technical momentum (trading below key moving averages) and earnings-call pressure from a sharp YoY decline in adjusted EBITDA/margins and notable one-time charges; corporate actions are positive strategically but introduce deal/financing and uncertainty around the JBS proposal.
Positive Factors
Strong cash generation
Healthy operating and free cash flow gives Pilgrim’s Pride resources to fund capital projects, support acquisitions, and reduce debt without relying entirely on external financing. Stronger cash generation also improves resilience across poultry cycles and supports sustained investment in prepared foods.
Negative Factors
Broad margin deterioration
The steep EBITDA and margin decline shows that earnings power remains vulnerable despite continued revenue scale and cash generation. Persistent margin compression would reduce funds available for investment and debt reduction, making operating improvements and recovery in regional profitability important over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Healthy operating and free cash flow gives Pilgrim’s Pride resources to fund capital projects, support acquisitions, and reduce debt without relying entirely on external financing. Stronger cash generation also improves resilience across poultry cycles and supports sustained investment in prepared foods.
Read all positive factors
Pilgrim's Pride Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down sales across countries and regions, showing where demand and pricing power are coming from (U.S., Mexico, export markets, etc.). Reveals concentration risk, growth opportunities in particular markets, and sensitivity to local factors like currency moves, trade rules, or disease outbreaks that can sharply affect prices and volumes.
Breaks down sales across countries and regions, showing where demand and pricing power are coming from (U.S., Mexico, export markets, etc.). Reveals concentration risk, growth opportunities in particular markets, and sensitivity to local factors like currency moves, trade rules, or disease outbreaks that can sharply affect prices and volumes.
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The Fly
The FlyPilgrim's Pride (PPC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.79B
Dividend Yield17.8%
Average Volume (3M)1.35M
Price to Earnings (P/E)12.8
Beta (1Y)<0.01
Revenue Growth1.42%
EPS Growth-55.97%
CountryUS
Employees63,000
SectorConsumer Defensive
Sector Strength42
IndustryPackaged Foods
Share Statistics
EPS (TTM)2.30
Shares Outstanding238,108,520
10 Day Avg. Volume1,164,554
30 Day Avg. Volume1,346,686
Financial Highlights & Ratios
PEG Ratio-19.98
Price to Book (P/B)2.57
Price to Sales (P/S)0.51
P/FCF Ratio14.30
Enterprise Value/Market Cap1.41
Enterprise Value/Revenue0.52
Enterprise Value/Gross Profit5.39
Enterprise Value/Ebitda6.67
Forecast
1Y Price Target
$33.33Price Target Upside2.79% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)2.27
Revenue Forecast (FY)$18.52B
Pilgrim's Pride Business Overview & Revenue Model
Company Description
Pilgrim's Pride Corporation (PPC) is a prominent entity in the agricultural and food processing sectors, specializing in the comprehensive lifecycle of poultry and pork products. The company handles everything from initial production and processin...
How the Company Makes Money
Pilgrim’s Pride makes money primarily by selling poultry and value-added chicken products to a mix of customer channels, with revenue largely determined by sales volume (pounds sold), product mix (commodity versus value-added), and pricing conditi...
Pilgrim's Pride Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 28, 2026
Earnings Call Sentiment Negative
The call conveyed meaningful operational progress — particularly in Prepared Foods, brand momentum (Just Bare), completed and on-track capital projects, and a strong liquidity position — but was dominated by significant near-term financial headwinds: notably a steep YoY decline in adjusted EBITDA and margins, substantial one-time legal and impairment charges, and regional profitability pressures (especially Mexico and U.S. commodity exposure). The company emphasized strategic actions to reduce portfolio volatility and improve margins over time, but the scale of the quarter-to-quarter profit deterioration and one-time costs create a materially negative near-term financial picture.Positive Updates
Net Revenues and Adjusted EBITDA (Quarter)
Net revenues of $4.63 billion in Q2 2026 (down ~2.7% YoY from $4.76B). Adjusted EBITDA of $360.0 million, demonstrating ongoing cash generation despite margin pressure.
Negative Updates
Sharp Decline in Adjusted EBITDA and Margins YoY
Adjusted EBITDA fell to $360.0 million in Q2 2026 from $686.9 million a year ago (down ~47.6%); adjusted EBITDA margin compressed to 7.8% from 14.4% (decline of 6.6 percentage points).
Read all updates
Q2-2026 Updates
Positive
Negative
Net Revenues and Adjusted EBITDA (Quarter)
Net revenues of $4.63 billion in Q2 2026 (down ~2.7% YoY from $4.76B). Adjusted EBITDA of $360.0 million, demonstrating ongoing cash generation despite margin pressure.
Read all positive updates
Company Guidance
The company reiterated a number of near‑ and full‑year financial and operational targets: full‑year capital expenditures are maintained at approximately $900 million (Q2 CapEx $230 million; year‑to‑date $465 million), with the CFO noting second‑half spend will be roughly in line with the first half; full‑year effective tax rate is expected to approximate 25% (Q2 ETR 39.3%; YTD 25.3%); full‑year net interest expense (excluding early extinguishment of debt) is forecast at roughly $115–$120 million (Q2 GAAP net interest $46.1 million; ex‑loss $28.5 million); liquidity at quarter end was nearly $1.6 billion of cash and available credit, net debt was under $2.5 billion with leverage of 1.43x LTM adjusted EBITDA, and the company completed a $250 million tender of 2033 bonds; USDA supply guidance cited on the call anticipated U.S. ready‑to‑cook production growth moderating to about 2.5% in H2 and a roughly 3.3% full‑year increase, with overall net protein availability up ~2.2% year‑over‑year; longer‑dated project timing noted Walker County commissioning in H2 2027.Pilgrim's Pride Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
78
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 18.44B | 18.50B | 17.88B | 17.36B | 17.47B | 14.78B |
| Gross Profit | 1.77B | 2.36B | 2.31B | 1.12B | 1.81B | 1.37B |
| EBITDA | 1.43B | 2.12B | 2.01B | 987.39M | 1.58B | 619.01M |
| Net Income | 545.61M | 1.08B | 1.09B | 321.57M | 745.93M | 31.00M |
Balance Sheet | ||||||
| Total Assets | 10.03B | 10.34B | 10.65B | 9.81B | 9.26B | 8.91B |
| Cash, Cash Equivalents and Short-Term Investments | 398.30M | 640.24M | 2.05B | 697.75M | 400.99M | 427.66M |
| Total Debt | 3.05B | 3.35B | 3.47B | 3.61B | 3.53B | 3.57B |
| Total Liabilities | 6.27B | 6.65B | 6.40B | 6.47B | 6.40B | 6.32B |
| Stockholders Equity | 3.75B | 3.68B | 4.24B | 3.33B | 2.84B | 2.58B |
Cash Flow | ||||||
| Free Cash Flow | 304.42M | 660.58M | 1.51B | 134.06M | 182.75M | -55.21M |
| Operating Cash Flow | 1.22B | 1.37B | 1.99B | 677.88M | 669.86M | 326.46M |
| Investing Cash Flow | -907.03M | -705.51M | -460.80M | -503.35M | -445.25M | -1.32B |
| Financing Cash Flow | -778.92M | -2.11B | -150.91M | 116.73M | -232.01M | 901.31M |
Pilgrim's Pride Technical Analysis
Negative
32.43
Price Trends
29.22
Negative
28.83
Negative
32.97
Negative
Market Momentum
-0.05
Negative
48.90
Neutral
52.63
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PPC, the sentiment is Negative. The current price of 32.43 is above the 20-day moving average (MA) of 28.07, above the 50-day MA of 29.22, and below the 200-day MA of 32.97, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 48.90 is Neutral, neither overbought nor oversold. The STOCH value of 52.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PPC.
Pilgrim's Pride Risk Analysis
Pilgrim's Pride disclosed 26 risk factors in its most recent earnings report. Pilgrim's Pride reported the most risks in the "Legal & Regulatory" 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
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $7.19B | 6.79 | 15.60% | 6.50% | 4.17% | 16.27% | |
65 Neutral | $6.79B | 12.80 | 14.85% | 17.80% | 1.42% | -55.97% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
61 Neutral | $11.20B | 32.30 | 4.33% | 5.75% | 0.73% | -54.64% | |
58 Neutral | $13.81B | 17.32 | 17.67% | 7.75% | 334.15% | -18.31% | |
55 Neutral | $3.40B | 13.15 | 8.69% | ― | 6.20% | -7.36% | |
47 Neutral | $6.70B | -3.64 | -26.28% | 7.27% | -1.80% | -323.82% |
* Consumer Defensive Sector Average
PPC
Pilgrim's Pride
28.53
-8.93
-23.84%
CAG
Conagra Brands
14.03
-3.11
-18.16%
HRL
Hormel Foods
20.35
-2.35
-10.36%
POST
Post Holdings
77.42
-29.22
-27.40%
JBS
JBS
12.90
0.79
6.53%
SFD
Smithfield Foods
18.27
-2.78
-13.20%
Pilgrim's Pride Corporate Events
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Pilgrim’s Pride Issues Euro Notes to Fund Walkers Acquisition
Positive
Sep 23, 2026
On September 23, 2026, Pilgrim’s Pride Corporation and its wholly owned subsidiary Pilgrim’s Europe Finance PLC completed a private placement of €500 million in 4.750% unsecured senior notes due January 23, 2034, sold to qualifie...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Pilgrim’s Pride Prices €500 Million Senior Notes Offering
Positive
Sep 9, 2026
On September 9, 2026, Pilgrim’s Pride Corporation and its wholly owned subsidiary Pilgrim’s Europe Finance PLC priced a private offering of €500 million in 4.750% senior notes due 2034, with closing expected on September 23, 2026...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Pilgrim’s Pride Debt Offering Fuels Walkers Acquisition Plan
Positive
Sep 4, 2026
On Sept. 4, 2026, Pilgrim’s Pride Corporation and its U.K.-based subsidiary Pilgrim’s Europe Finance plc launched a private offering of up to €500 million in senior notes, limited to qualified institutional buyers and certain non...
Business Operations and StrategyM&A Transactions
Pilgrim’s Pride Evaluates Takeover Proposal From JBS N.V.
Positive
Aug 20, 2026
On August 18, 2026, Pilgrim’s Pride’s board of directors received an unsolicited proposal from its majority shareholder JBS N.V. to acquire all remaining outstanding common shares that JBS does not already own. The offer is structured ...
Business Operations and StrategyM&A Transactions
Pilgrim’s Pride to Acquire Walker’s Deli & Sausage
Positive
Aug 17, 2026
On August 14, 2026, Pilgrim’s Pride, through subsidiary Onix Investments UK Limited, agreed to acquire Walker’s Deli Sausage Company from Samworth Brothers for about £141.5 million in cash, on a debt-free, cash-free basis. Walker...
Business Operations and StrategyFinancial Disclosures
Pilgrim’s Pride Q2 Results Reveal Margin Pressures
Negative
Jul 30, 2026
Pilgrim’s Pride Corporation reported financial results for the second quarter ended June 28, 2026, showing net revenue of $4.63 billion, down from $4.76 billion a year earlier, and a sharp drop in net income to $13.2 million from $356 millio...
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.