Pilgrim's Pride Corp (PPC, Financial) has recently seen a notable uptick in its stock performance, with a market capitalization now standing at $7.2 billion. The current price of PPC's stock is $30.43, reflecting a 1.12% gain over the past week and an impressive 11.00% gain over the past three months. When compared to the GF Value of $30.63, the stock is currently deemed to be Fairly Valued, a shift from its previous status of Modestly Undervalued when the GF Value was at $29.27. This change in valuation indicates a positive adjustment in the market's perception of the stock's intrinsic value.
Overview of Pilgrim's Pride Corp
Pilgrim's Pride Corp, a key player in the Consumer Packaged Goods industry, stands as the second-largest poultry producer in the U.S., with significant operations in the U.K. and Mexico. The company's diverse product range primarily includes fresh chicken in the U.S. and Mexican markets, while in the U.K. and Europe, prepared chicken and pork are the mainstays, following the acquisition of Tulip in 2019. Pilgrim's Pride sells its products to a variety of customers, including chain restaurants, food processors, distributors, and retail chains. The majority shareholder, JBS, owns over 80% of the outstanding shares, highlighting the company's strong backing and potential for strategic maneuvers.
Assessing Profitability
Pilgrim's Pride Corp boasts a Profitability Rank of 8/10, indicating a high level of profitability relative to its peers. The company's operating margin stands at 1.94%, which is more competitive than 34.6% of 1,870 companies in the same industry. Additionally, PPC's Return on Equity (ROE) is 1.09%, surpassing 30.11% of its industry counterparts. The Return on Assets (ROA) at 0.34% and Return on Invested Capital (ROIC) at 2.02% further demonstrate the company's ability to generate profits relative to its assets and invested capital. Notably, Pilgrim's Pride has maintained profitability for the past 10 years, a testament to its consistent performance and business resilience.
Growth Trajectory of Pilgrim's Pride
The company's Growth Rank is also impressive at 8/10. Pilgrim's Pride has experienced a 16.70% 3-Year Revenue Growth Rate per Share, outperforming 76.48% of 1,722 companies in the industry. The 5-Year Revenue Growth Rate per Share is 10.90%, better than 73.71% of 1,556 companies. Looking ahead, the Total Revenue Growth Rate is estimated at 2.46% for the next 3 to 5 years, which is more favorable than 37.55% of the industry. The 3-Year EPS without NRI Growth Rate is a robust 27.30%, and the 5-Year EPS without NRI Growth Rate is 6.10%. The future EPS Growth Rate is projected at 2.50%, indicating a steady, albeit more modest, growth trajectory.
Notable Shareholders
Among the notable shareholders of Pilgrim's Pride, Jim Simons (Trades, Portfolio) leads with 471,113 shares, representing a 0.2% share percentage. Following him is Steven Cohen (Trades, Portfolio) with 247,523 shares, holding a 0.1% stake, and Ray Dalio (Trades, Portfolio) with 70,900 shares, accounting for 0.03% of the company's shares. These prominent investors' involvement provides an additional layer of confidence in the company's prospects.
Competitive Landscape
In comparison to its competitors, Pilgrim's Pride holds its ground with a market cap of $7.2 billion. Darling Ingredients Inc (DAR, Financial) has a slightly lower market cap of $6.82 billion, while BellRing Brands Inc (BRBR, Financial) is slightly ahead at $7.32 billion. Post Holdings Inc (POST, Financial) trails with a market cap of $6.43 billion. This positioning within the industry underscores Pilgrim's Pride's solid market presence and competitive stance.
Conclusion
In summary, Pilgrim's Pride Corp's recent stock performance reflects a company that is both profitable and growing. With a market cap of $7.2 billion and a stock price that has gained 11.00% over the past three months, the company is well-positioned within the Consumer Packaged Goods industry. Its strong Profitability and Growth Ranks, coupled with the backing of significant shareholders, suggest a stable future. When compared to its competitors, Pilgrim's Pride maintains a competitive edge, and its current valuation indicates that the stock is fairly priced. Investors may find Pilgrim's Pride an attractive option for their portfolios, considering its consistent profitability, growth prospects, and solid market position.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
