Pilgrim's Pride Corporation

Pilgrim's Pride Corporation

PPCยทNASDAQ

$27.58

-4.2%
Consumer DefensivePackaged Foods

Pilgrim's Pride Corporation engages in the production, processing, marketing and distribution of fresh, frozen and value-added chicken, and pork products to retailers, distributors, and foodservice operators in the United States, the United Kingdom, Mexico, the Middle East, Asia, Continental Europe, and internationally. The company offers fresh products, including pre-marinated or non-marinated chicken, frozen whole chickens, breast fillets, mini breast fillets and prepackaged case-ready chicken, primary pork cuts, and pork and pork ribs; prepared products, which include portion-controlled breast fillets, tenderloins and strips, delicatessen products, salads, formed nuggets and patties, and bone-in chicken parts; processed sausages, bacon, slow cooked, smoked meat, gammon joints, as well as variety of meat products, pre-packed meats, sandwich and deli counter meats, pulled pork balls, meatballs, and coated foods. In addition, its exported products include whole chickens and chicken parts sold either refrigerated for distributors in the U.S. or frozen for distribution to export markets and primary pork cuts, hog heads and trotters frozen for distribution to export markets. The company offers its products under the Pilgrim's, Just BARE, Gold'n Pump, Gold Kist, County Pride, Pierce Chicken, Pilgrim's Mexico, County Post, Savoro, To-Ricos, Del Dia, Moy Park, O'Kane, Richmond, Fridge Raiders, and Denny brands. Pilgrim's Pride Corporation sells its products to the foodservice market principally consists of chain restaurants, food processors, broad-line distributors, and other institutions; and retail market, which comprise primarily grocery store chains, wholesale clubs, and other retail distributors. The company was founded in 1946 and is headquartered in Greeley, Colorado. Pilgrim's Pride Corporation operates as a subsidiary of JBS S.A.

At a Glance

Live Snapshot
Market Cap$6.56B
EPS4.5600
P/E Ratio6.05
Earnings Date07/29/2026

Intrinsic Alpha Methodology

Thesis Lenses

Signal ยท Driver ยท Risk

Signal

High confidence

Valuation multiple is compressed (P/E 6.0).

Valuation inputs: P/E 6.0, earnings yield +16.5%, momentum -4.2%.

If multiples stay elevated while momentum fades, downside repricing risk rises.

Driver

High confidence

Return profile is strong (ROE +29.4%, ROIC +15.5%).

Profitability stack: net margin +5.9%, ROE +29.4%, ROIC +15.5%.

Quality deterioration often appears in margins before it shows up in headline EPS.

Risk

High confidence

Risk profile is balanced but has notable pressure points to monitor.

Risk factors: liabilities/assets +64.3%, momentum -4.2%, net margin +5.9%.

Higher leverage with weak momentum and thin margins can amplify drawdown severity.

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Pilgrim's Pride Corporation Market vs Earnings Trajectory

PPC ยท NASDAQ

Loading price and EPS data...

Pilgrim's Pride Corporation

Pilgrim's Pride Corporation Fair Value Envelope

PPC ยท NASDAQ

Our analysis suggests that PPC has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $27.58, this represents a potential HIDDEN relative to our calculated worth for Pilgrim's Pride Corporation.

Intrinsic Value
Current Price: $27.58
3Y+47.0%
5Y+1069.0%
10Y+162.0%
3Y+6.0%
5Y+53.0%
10Y+87.0%
3Y+45.0%
5Y+1042.0%
10Y+125.0%
3Y+105.0%
5Y+89.0%
10Y+82.0%
3Y+261.0%
5Y+79.0%
10Y+37.0%
3Y+12.0%
5Y+38.0%
10Y+106.0%
Pilgrim's Pride Corporation

Pilgrim's Pride Corporation Profit Bridge

PPC ยท NASDAQ
Revenue18.50B
Cost of Goods Sold (16.14B)
Gross Profit2.36B
Operating Expenses (744.60M)
Operating Income1.61B
Interest Expense (161.39M)
Other Income/Expense-111.40M
Pretax Income1.50B
Income Tax (418.79M)
Net Income1.08B
Net Income
1.08B

Profitability Analysis

Gross Margin

12.7%

Thin margins leave little room for error. Cost management and pricing strategy are critical.

Operating Margin

8.7%

Acceptable margins but limited operational leverage. Operating expense control is important.

Net Profit Margin

5.9%

Moderate profitability with room for improvement. Monitor interest expenses and tax efficiency.

Effective Tax Rate

27.9%

Higher tax burden may reflect limited tax optimization or operations in high-tax jurisdictions.

Profitability Insight

Efficient profit conversion: Minimal margin compression from gross to net indicates lean operations and favorable tax/interest environment.

12.75%
Gross Profit Margin
-1%
3Y+23.0%
5Y+84.0%
10Y+14.0%
8.72%
Operating Profit Margin
4%
3Y+30.0%
5Y+330.0%
10Y+9.0%
5.85%
Net Profit Margin
-4%
3Y+37.0%
5Y+647.0%
10Y+20.0%
29.41%
Return on Equity
15%
3Y+12.0%
5Y+696.0%
10Y+27.0%
10.46%
Return on Assets
3%
3Y+30.0%
5Y+725.0%
10Y+9.0%
15.49%
Return on Invested Capital
9%
3Y+23.0%
5Y+505.0%
10Y+14.0%
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Pilgrim's Pride Corporation Cash Conversion Engine

PPC ยท NASDAQ
Net Income1.08B
Depreciation & Amortization456.16M
Stock-Based Compensation29.35M
Change in Working Capital-219.51M
Others12.27M
Capital Expenditures-711.07M
Free Cash Flow660.58M

Cash Flow Quality Analysis

FCF Conversion Rate

61.0%

Moderate conversion rate. Some gap between earnings and cash flow may warrant investigation into working capital or non-cash items.

CapEx Intensity

51.8%

Capital-intensive operations require significant reinvestment. Monitor whether CapEx is maintenance or growth-oriented.

FCF Growth Trend

-56.4%

Significant FCF decline raises concerns. Urgent review needed of operational performance and capital allocation.

Working Capital Impact

-$219.51M

Moderate working capital outflow. Typical for growing businesses, but ensure it's supporting revenue growth, not inefficiency.

Cash Flow Quality Insight

Working capital strain: Significant cash tied up in operations. Monitor receivables collection, inventory turns, and payment terms to optimize cash conversion cycle.

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Pilgrim's Pride Corporation Funding & Solvency Profile

PPC ยท NASDAQ
Cash & Cash Equivalents542.41M
Net Receivables1.18B
Inventory2.03B
Other Current Assets271.43M
Total Current Assets4 B
Property, Plant & Equipment3.89B
Goodwill & Intangible Assets2.13B
Long-Term Investments0.00
Other Non-Current Assets125.48M
Total Non-Current Assets4 B
Total Assets
10.20B

Financial Health Analysis

Current Ratio

1.48x

Acceptable liquidity, but monitor closely. Current assets just barely cover current liabilities.

Debt-to-Equity Ratio

1.73x

Elevated leverage. Debt exceeds equity, which amplifies both gains and risks. Monitor debt servicing ability.

Working Capital

1 B

Strong working capital position provides significant operational flexibility and financial cushion.

Asset Composition

39% Current

Capital-intensive business with significant long-term investments in property, equipment, or intangibles.

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Pilgrim's Pride Corporation Street Expectations Map

PPC ยท NASDAQ

Wall Street analysts project that PPC stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 42.00, with estimates ranging from a low of 30.00 to a high of 56.00.

Lowest Target
30.00
8.77%
Consensus Target
42.00
52.28%
Highest Target
56.00
103.05%

The consensus 1-year price target stands at 42.00, with estimates ranging from a low of 30.00 to a high of 56.00.

Analyst Consensus Analysis

Upside Potential

+52.3%

Substantial upside potential. Analysts see significant value gap, suggesting the stock may be materially undervalued at current levels.

Analyst Agreement

61.9% spread

High uncertainty. Very wide target spread indicates significant disagreement among analystsโ€”major valuation uncertainty or transformation underway.

Analyst Conviction

Low

High uncertainty: Wide dispersion indicates analysts struggle to agree on valuationโ€”proceed with caution and independent analysis.

Market Sentiment Insight

High risk, high reward: Substantial upside potential exists, but wide analyst disagreement signals execution risk or unclear catalysts. Thorough due diligence essential before committing capital.

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Pilgrim's Pride Corporation Insider Positioning

PPC ยท NASDAQ

During the last 12 months, insiders have sold $3.51M worth of PPC shares, with no buying activity reported.

3 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

3-6 Months

Bought

0

0.00

Sold

7.0K

303.01K

Net Activity

-303K

-$303K

6-9 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

9-12 Months

Bought

0

0.00

Sold

70.0K

3.21M

Net Activity

-3.2M

-$3.21M

Top Buyers

No buying activity

Top Sellers

1
SF

Sandri Fabio

Officer: President And Ceo

70.0K sharesโ€ข1 transactions

$3.21M

2
GMR

Galvanoni Matthew R

Officer: Chief Financial Officer

7.0K sharesโ€ข1 transactions

$303K

Insider Activity Analysis

Net Insider Sentiment

Bearish

Strong bearish signal with $3.51M net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.

Buy/Sell Ratio

0.00:1

Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.

Insider Participation

High Selling

2 insider sellers vs. 0 buyers. Widespread selling across multiple insiders may signal concerns.

0.00%
Dividend Yield
3Y-
5Y-
10Y-100.0%
ย 

ppc Dividend History

PPC
10Y CAGR +64%
Latest $2.1
Annual $8.4
5 year growth trend
Last Period: 67%