Smithfield Foods (SFD) AI Stock Analysis

• Market Cap: $9.26B
• Dividend Yield: 12.74%
• Average Volume (3M): 487.43K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.46
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 36,500
• Sector: Consumer Defensive
• Sector Strength: 64
• Industry: Agricultural Farm Products
• EPS (TTM): 0.58
• Shares Outstanding: 393,112,700
• 10 Day Avg. Volume: 457,676
• 30 Day Avg. Volume: 487,432
• PEG Ratio: 0.11
• Price to Book (P/B): 1.05
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 43.37
• Enterprise Value/Market Cap: 1.05
• Enterprise Value/Revenue: 0.32
• Enterprise Value/Gross Profit: 9.28
• Enterprise Value/Ebitda: 3.95
• 1Y Price Target: $27.75
• Price Target Upside: 39.38% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 72 Outperform
• Price Target: ―

Smithfield Foods' overall stock score of 72 reflects a balanced outlook. Strengths include improved profitability and strong technical momentum. However, concerns such as declining revenue and external challenges like tariffs pose risks. Continued focus on growth strategies and operational efficiencies will be key to sustaining performance.

Positive Factors

Earnings

Smithfield Foods Inc reported strong first-quarter earnings, with EPS significantly exceeding consensus expectations due to profit upside across all three segments.

Industry Performance

The significant improvements in hog production industry profitability should more than offset pressures in fresh pork and packaged meats.

Market Positioning

Smithfield Foods is a vertically integrated protein company, which provides unique positioning in the market.

Negative Factors

Full-Year Outlook

The full-year guide was disappointing given the midpoint came in below many Street expectations, reflecting prudence given tariff risk and consumer uncertainty.

Supply Chain Volatility

Smithfield Foods' exposure to the more cyclical upstream part of the supply chain drives increased volatility in earnings and cash flow.

Tariffs

The current China tariff rate could potentially lead to declines in hog and pork prices, presenting a risk to the company.

Smithfield Foods Business Overview & Revenue Model

Company Description

Smithfield Foods, Inc. manufactures and markets packaged meats and fresh pork in the United States and internationally. Its Packaged Meats segment processes fresh meat into various packaged meats products, including bacon, sausage, hot dogs, deli and lunch meats, dry sausage products, ham products, ready-to-eat products, and prepared foods, such as pre-cooked entrees, bacon, and sausage to retail and foodservice customers in the United States. This segment markets its packaged meats products under the Smithfield, Eckrich, Nathan's Famous, Farmland, Armour, Farmer John, Kretschmar, Krakus, John Morrell, Cook's, Gwaltney, Carando, Margherita, Curly's, and Smithfield Culinary brands, as well as under private labels. The company's Fresh Pork segment process live hogs into a variety of primal, sub-primal, and offal products, such as bellies, butts, hams, loins, picnics, and ribs. This segment sells its fresh pork products to retail, foodservice and industrial customers, as well as to export markets, including China, Mexico, Japan, South Korea, and Canada. Its Hog Production segment produces and raises its hogs on various company-owned farms and farms that are owned and operated by third-party contract farmers in the United States and Mexico. The Hog Production segment also sells grains to external customers. The company's bioscience operations use raw materials from hogs that process to manufacture heparin products, including an active pharmaceutical ingredient that mitigates the risk of blood clots. The company was founded in 1936 and is based in Smithfield, Virginia. Smithfield Foods, Inc. is a subsidiary of SFDS UK Holdings Limited.

How the Company Makes Money

Smithfield Foods generates revenue primarily through the sale of fresh pork and packaged meat products. The company operates in two main segments: the Pork segment, which involves the production and sale of fresh meat products, and the Packaged Meats segment, which includes branded and private-label packaged products. Key revenue streams include sales to retailers, foodservice providers, and export markets. Smithfield Foods capitalizes on its vertically integrated supply chain, from hog farming to processing and packaging, to ensure efficiency and quality control. Significant partnerships with retailers and distributors, along with a strong brand portfolio, contribute to the company's earnings. Additionally, Smithfield Foods engages in strategic acquisitions to expand its market presence and product offerings.

Smithfield Foods Financial Statement Overview

Summary

Smithfield Foods shows resilience with improved profitability and strong cash flows, maintaining a stable financial position. However, declining revenue is a concern that could impact future growth. Continued focus on reversing revenue decline while maintaining cost efficiencies is crucial.

Income Statement

Smithfield Foods demonstrated a recovery in profitability over the past year, with an impressive increase in gross profit and EBIT margins from a challenging previous year. The gross profit margin improved significantly to 13.42%. However, revenue has seen a decline from $16.2 billion in 2022 to $14.14 billion in 2024, indicating a negative growth trend. The net profit margin also improved to 6.74%, highlighting better cost management. Overall, the company is showing stabilization after a turbulent year, but declining revenue is a concern.

Balance Sheet

The balance sheet of Smithfield Foods is solid with a moderate debt-to-equity ratio of 0.40, indicating manageable leverage levels. The equity ratio stands at 52.78%, suggesting a strong equity base relative to total assets. Return on equity (ROE) improved to 16.33%, reflecting enhanced profitability and efficient use of equity. The company's financial stability is evident, but the reduction in total assets over the years is noteworthy.

Cash Flow

Smithfield Foods shows robust cash flow metrics with an improvement in free cash flow and operating cash flow. The operating cash flow to net income ratio is 1.19, indicating healthy cash generation relative to reported earnings. Free cash flow has grown, but the free cash flow to net income ratio of 0.83 suggests room for improvement in cash conversion. Overall, cash flow management appears strong, but potential for better efficiency exists.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022
Income Statement		Total Revenue
7.72B	14.14B	14.64B	16.20B
	Gross Profit
1.04B	2.02B	889.00M	1.50B
	EBIT
656.00M	1.12B	-56.00M	1.12B
	EBITDA
814.00M	1.46B	374.00M	1.57B
	Net Income Common Stockholders
428.00M	953.00M	17.00M	870.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
928.00M	943.00M	687.00M	547.00M
	Total Assets
11.15B	11.05B	13.32B	13.85B
	Total Debt
2.33B	2.36B	2.46B	2.47B
	Net Debt
1.41B	1.42B	1.78B	1.92B
	Total Liabilities
4.68B	5.00B	5.83B	6.28B
	Stockholders Equity
6.22B	5.83B	7.24B	7.37B
Cash Flow		Free Cash Flow
356.00M	787.00M	681.00M	179.00M
	Operating Cash Flow
517.00M	1.14B	1.03B	517.00M
	Investing Cash Flow
-78.00M	-469.00M	-322.00M	193.00M
	Financing Cash Flow
205.00M	-464.00M	-533.00M	-477.00M

Smithfield Foods Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SFD	72 Outperform	$9.26B	―		12.74%	―	―
Sector *	65 Neutral	$8.81B	15.01	4.71%	3.72%	3.60%	-2.89%
SW	63 Neutral	$21.85B	34.36	4.25%	4.10%	―	―

Smithfield Foods Corporate Events

Smithfield Foods Elects Directors at Annual Meeting

On June 3, 2025, Smithfield Foods held its Annual Meeting of Shareholders where all three director nominees were elected to the Board of Directors. Shareholders also ratified the appointment of Ernst & Young LLP as the independent registered public accounting firm for 2025, approved executive compensation for 2024, and decided on an annual advisory vote on executive compensation.

The most recent analyst rating on (SFD) stock is a Buy with a $28.00 price target. To see the full list of analyst forecasts on Smithfield Foods stock, see the SFD Stock Forecast page.