Smithfield Foods AI Stock Analysis
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Smithfield Foods (SFD) AI Stock Analysis
Smithfield Foods
(NASDAQ:SFD)
The score is driven primarily by solid financial performance (profitability rebound, manageable leverage, strong TTM cash generation) and attractive valuation (low P/E and high dividend yield). These positives are tempered by weak technicals (broadly below key moving averages with negative MACD) and a mixed earnings-call outlook that included reduced sales guidance and continued upstream uncertainty.
Smithfield Foods (SFD) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $7.56B
- Dividend Yield
- 6.51%
- Average Volume (3M)
- 1.98M
- Price to Earnings (P/E)
- 8.4
- Beta (1Y)
- 0.21
- Revenue Growth
- -1.57%
- EPS Growth
- 3.81%
- Country
- US
- Employees
- 33,500
- Sector
- General
- Sector Strength
- 55
- Industry
- Packaged Foods
Smithfield Foods Business Overview & Revenue Model
Company Description
Smithfield Foods, Inc., together with its subsidiaries, produces various packaged meats and fresh pork products in the United States and internationally. It operates through Packaged Meats, Fresh Pork, Hog Production, and Other segments. The Packaged...
How the Company Makes Money
Smithfield Foods makes money primarily by selling pork and pork-based products through an integrated supply chain that includes hog production, pork processing, and packaged meats. Key revenue streams typically include: (1) Fresh pork sales: revenue...
Smithfield Foods Earnings Call Summary
The call had a mixed sentiment. Packaged meats showed strong resilience through profit and margin expansion, market-share gains, e-commerce growth, brand innovation, the Nathan's Famous acquisition, and a strong balance sheet with substantial liquidity and cash flow. However, these positives were offset by significant declines in consolidated profit, fresh pork losses, lower hog production profit, compressed processing spreads, elevated costs, uncertain upstream market conditions, and a reduced full-year company outlook.
Q3-2026 Updates
Positive Updates
Negative Updates
Company Guidance
Smithfield updated total company sales guidance to “down low single digits” versus its prior expectation of “roughly flat”; full-year hog production guidance is “a loss of $25 million to a profit of $25 million,” Fresh Pork is “a loss of $50 million to breakeven,” packaged meats operating profit is $1.09 billion-$1.14 billion, and total company adjusted operating profit is $900 million-$1 billion, including a 53rd week of results. The company expects capital expenditures of $350 million-$375 million in 2026, excluding Sioux Falls, anticipates paying $1.25 per share in annual dividends, and expects the new agreement to reduce internally produced hogs by approximately 900,000. Nathan’s contributes approximately two months of earnings and is “somewhat de minimis” as the year closes; the duration of current upstream pressure is “really uncertain,” raising costs are expected to be “moderate next year, probably comparative to 2026,” and fresh pork is expected to “rebound before we end the year.”
Smithfield Foods Financial Statement Overview
Summary
Overall fundamentals are solid, supported by a strong rebound in profitability versus 2023, manageable leverage (improving from 2024), and strong TTM operating/free cash flow with reasonable earnings quality. The key offset is inconsistent revenue growth and periodic volatility in margins/cash conversion, which raises cyclicality risk.
Income Statement
72PositiveBalance Sheet
76PositiveCash Flow
70Positive| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 15.16B | 15.53B | 14.14B | 14.64B | 16.20B |
| Gross Profit | 1.91B | 2.09B | 1.90B | 889.00M | 1.50B |
| EBITDA | 1.50B | 1.64B | 1.47B | 374.00M | 1.57B |
| Net Income | 900.00M | 987.00M | 953.00M | 17.00M | 870.00M |
Balance Sheet | |||||
| Total Assets | 12.15B | 12.18B | 11.05B | 13.32B | 13.85B |
| Cash, Cash Equivalents and Short-Term Investments | 1.18B | 1.54B | 943.00M | 687.00M | 547.00M |
| Total Debt | 2.39B | 2.40B | 2.36B | 2.46B | 2.47B |
| Total Liabilities | 4.87B | 5.11B | 5.00B | 5.83B | 6.28B |
| Stockholders Equity | 7.01B | 6.80B | 5.83B | 7.24B | 7.37B |
Cash Flow | |||||
| Free Cash Flow | 927.00M | 718.00M | 787.00M | 633.00M | 179.00M |
| Operating Cash Flow | 1.30B | 1.06B | 1.14B | 1.03B | 517.00M |
| Investing Cash Flow | -412.00M | -309.00M | -469.00M | -322.00M | 193.00M |
| Financing Cash Flow | -486.00M | -164.00M | -464.00M | -533.00M | -477.00M |
Smithfield Foods Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SFD, the sentiment is Positive. The current price of 19.19 is above the 20-day moving average (MA) of 18.53, above the 50-day MA of 18.86, and below the 200-day MA of 23.03, indicating a neutral trend. The MACD of 0.07 indicates Negative momentum. The RSI at 56.38 is Neutral, neither overbought nor oversold. The STOCH value of 41.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SFD.
Smithfield Foods Risk Analysis
Smithfield Foods disclosed 55 risk factors in its most recent earnings report. Smithfield Foods reported the most risks in the "Finance & Corporate" category.
Latest Risks Added
0 New RisksSmithfield Foods Peers Comparison
Overall Rating
DAR76Outperform- SFD69Neutral
JBS59Neutral
HRL58Neutral
CAG48Neutral
PPC42Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| DAR | 76Outperform | $8.67B | 10.46 | 16.72% | ― | 15.79% | 687.52% |
| SFD | 69Neutral | $7.56B | 8.38 | 13.00% | 6.51% | -1.57% | 3.81% |
| JBS | 59Neutral | $13.03B | 17.08 | 11.74% | 8.22% | 109.44% | -56.29% |
| HRL | 58Neutral | $12.16B | 35.06 | 4.33% | 5.30% | 0.73% | -54.64% |
| Sector * | 55Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
| CAG | 48Neutral | $7.03B | -3.70 | -26.28% | 7.13% | -1.80% | -323.82% |
| PPC | 42Neutral | $6.70B | 20.83 | 8.53% | ― | -0.14% | -74.01% |
* General Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| SFD | Smithfield Foods, Inc. | 19.19 | -0.88 | -4.40% | |
| CAG | Conagra Brands | 14.73 | -1.27 | -7.97% | |
| DAR | Darling Ingredients | 55.99 | 21.56 | 62.62% | |
| HRL | Hormel Foods Corp | 22.09 | 0.98 | 4.65% | |
| PPC | Pilgrim's Pride Corp | 28.12 | -9.10 | -24.45% | |
| JBS | Jbs N.V. | 12.16 | -0.67 | -5.23% |
Smithfield Foods Corporate Events
Smithfield Foods Secures New $600 Million Loan Facility
PositiveOn October 14, 2026, Smithfield Foods entered into a $600 million senior unsecured delayed draw term loan facility arranged by Bank of America and other lenders, available in a single draw until December 23, 2026 and maturing three years after fundin...
Smithfield Foods Updates Q3 Outlook, Highlights Segment Divergence
NeutralSmithfield Foods issued an update to its third-quarter 2026 outlook on September 8, 2026, highlighting divergent trends across its business segments. The company reaffirmed strong performance in Packaged Meats, underpinned by branded share gains, exp...
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.
Date of analysis: Oct 27, 2026