Smithfield Foods, Inc.

Smithfield Foods, Inc.

SFDยทNASDAQ

$25.70

-1.3%
Consumer DefensiveAgricultural Farm Products

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.

At a Glance

Live Snapshot
Market Cap$10.10B
EPS2.5100
P/E Ratio8.98
Earnings Date08/11/2026

Intrinsic Alpha Methodology

Thesis Lenses

Signal ยท Driver ยท Risk

Signal

High confidence

Valuation multiple is compressed (P/E 9.0).

Valuation inputs: P/E 9.0, earnings yield +11.1%, momentum -1.3%.

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

Driver

High confidence

Return profile is acceptable (ROE +14.5%, ROIC +9.6%).

Profitability stack: net margin +6.4%, ROE +14.5%, ROIC +9.6%.

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 +42.0%, momentum -1.3%, net margin +6.4%.

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

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Smithfield Foods, Inc. Market vs Earnings Trajectory

SFD ยท NASDAQ

Loading price and EPS data...

Smithfield Foods, Inc.

Smithfield Foods, Inc. Fair Value Envelope

SFD ยท NASDAQ

Our analysis suggests that SFD has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $25.7, this represents a potential HIDDEN relative to our calculated worth for Smithfield Foods, Inc..

Intrinsic Value
Current Price: $25.7
3Y+5710.0%
5Y+109.0%
10Y+13.0%
3Y+6.0%
5Y+3.0%
10Y+19.0%
3Y+5706.0%
5Y+109.0%
10Y+173.0%
3Y+105.0%
5Y+33.0%
10Y+72.0%
3Y+301.0%
5Y+70.0%
10Y+63.0%
3Y-12.0%
5Y+20.0%
10Y+58.0%
Smithfield Foods, Inc.

Smithfield Foods, Inc. Profit Bridge

SFD ยท NASDAQ
Revenue15.53B
Cost of Goods Sold (13.44B)
Gross Profit2.09B
Operating Expenses (797.00M)
Operating Income1.29B
Interest Expense (41.00M)
Other Income/Expense-10.00M
Pretax Income1.28B
Income Tax (283.00M)
Net Income987.00M
Net Income
987.00M

Profitability Analysis

Gross Margin

13.5%

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

Operating Margin

8.3%

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

Net Profit Margin

6.4%

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

Effective Tax Rate

22.1%

Moderate tax rate typical for most corporations. Represents standard tax burden on profits.

Profitability Insight

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

13.45%
Gross Profit Margin
3Y+122.0%
5Y+28.0%
10Y+14.0%
8.32%
Operating Profit Margin
3Y-2275.0%
5Y+140.0%
10Y+51.0%
6.35%
Net Profit Margin
3Y+5374.0%
5Y+102.0%
10Y+130.0%
14.51%
Return on Equity
3Y+6081.0%
5Y-
10Y+36.0%
8.11%
Return on Assets
3Y+6247.0%
5Y-
10Y+67.0%
9.58%
Return on Invested Capital
3Y-2561.0%
5Y-
10Y+24.0%
SFD

Smithfield Foods, Inc. Cash Conversion Engine

SFD ยท NASDAQ
Net Income987.00M
Depreciation & Amortization332.00M
Stock-Based Compensation9.00M
Change in Working Capital-339.00M
Others-24.00M
Capital Expenditures-341.00M
Free Cash Flow718.00M

Cash Flow Quality Analysis

FCF Conversion Rate

72.7%

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

CapEx Intensity

32.2%

Moderate capital requirements typical of many stable businesses. Healthy balance between reinvestment and cash generation.

FCF Growth Trend

-8.8%

Declining FCF warrants attention. Investigate whether due to temporary factors or fundamental deterioration.

Working Capital Impact

-$339.00M

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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Smithfield Foods, Inc. Funding & Solvency Profile

SFD ยท NASDAQ
Cash & Cash Equivalents1.39B
Net Receivables1.07B
Inventory2.35B
Other Current Assets232.00M
Total Current Assets5 B
Property, Plant & Equipment3.58B
Goodwill & Intangible Assets2.88B
Long-Term Investments209.00M
Other Non-Current Assets297.00M
Total Non-Current Assets4 B
Total Assets
12.00B

Financial Health Analysis

Current Ratio

2.41x

Excellent liquidity position. The company can easily cover its short-term obligations with substantial cushion.

Debt-to-Equity Ratio

0.67x

Balanced capital structure with moderate leverage. Equity exceeds debt, suggesting healthy financial stability.

Working Capital

3 B

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

Asset Composition

42% Current

Balanced asset mix between current and non-current assets, typical of many stable businesses.

Financial Health Insight

Strong financial foundation: Excellent liquidity combined with conservative leverage suggests the company is well-positioned to weather economic uncertainties and fund growth opportunities.

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Smithfield Foods, Inc. Street Expectations Map

SFD ยท NASDAQ

Wall Street analysts project that SFD stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 32.00, with estimates ranging from a low of 32.00 to a high of 32.00.

Lowest Target
32.00
24.51%
Consensus Target
32.00
24.51%
Highest Target
32.00
24.51%

The consensus 1-year price target stands at 32.00, with estimates ranging from a low of 32.00 to a high of 32.00.

Analyst Consensus Analysis

Upside Potential

+24.5%

Strong upside potential. Consensus indicates attractive return opportunity with favorable risk-reward profile.

Analyst Agreement

0.0% spread

High analyst agreement. Narrow target range indicates strong consensus on valuation, suggesting clear investment thesis and predictable outlook.

Analyst Conviction

Very High

Strong buy conviction: High upside with tight consensus suggests compelling investment opportunity backed by analyst confidence.

Market Sentiment Insight

Rare opportunity: Exceptional upside potential with strong analyst consensus creates a compelling setup. The combination of significant price target premium and tight agreement suggests high-conviction undervaluation that may attract institutional capital.

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Smithfield Foods, Inc. Insider Positioning

SFD ยท NASDAQ

During the last 12 months, insiders have purchased $42.75M and sold $522.23M worth of SFD shares, resulting in $479.48M of net selling activity.

3 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

3-6 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

6-9 Months

Bought

1.8M

42.65M

Sold

22.5M

522.23M

Net Activity

-479.6M

-$479.58M

9-12 Months

Bought

4.3K

101.35K

Sold

0

0.00

Net Activity

+101K

+$101K

Top Buyers

1
WL

Wan Long

Director

1.8M sharesโ€ข1 transactions

$41.85M

2
OD

Owens Donovan

Officer: President, U.S. Fresh Pork

12.0K sharesโ€ข1 transactions

$279K

3
HHS

He Hank Shenghua

Director

10.0K sharesโ€ข1 transactions

$233K

4
WKD

Watts Keller D.

Officer: Chief Business Officer

8.1K sharesโ€ข2 transactions

$190K

5
SD

Sutton Doug

Officer: Chief Manufacturing Officer

3.9K sharesโ€ข1 transactions

$91K

Top Sellers

1
WGL

Wh Group Ltd

10 Percent Owner

22.5M sharesโ€ข1 transactions

$522.23M

Insider Activity Analysis

Net Insider Sentiment

Bearish

Strong bearish signal with $479.48M net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.

Buy/Sell Ratio

0.08:1

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

Insider Participation

High Buying

5 insider buyers vs. 1 sellers. Broad-based buying across management team suggests widespread confidence.

0.00%
Dividend Yield
-100%
3Y-100.0%
5Y-
10Y-
ย 

sfd Dividend History

SFD
10Y CAGR +2%
Latest $0.312
Annual $1.375
5 year growth trend
Last Period: +0%