Pilgrim's Pride Corporation (PPC)
Consumer Defensive · NMS · US
Fundamentals
Valuation and ratings
Pilgrim's Pride Corporation trades at USD29.01, close to the USD31.70 our discounted cash flow model puts on the business. On this measure the market and the model broadly agree, so the interesting question is which of them is wrong.
Our moat model scores it 37 out of 100, which is little in the way of a moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 7.6 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Pilgrim's Pride Corporation
Pilgrim's Pride Corporation produces, processes, markets, and distributes fresh, frozen, and value-added chicken and pork products to retailers, distributors, and foodservice operators in the United States, Europe, and Mexico. The company offers fresh products, including refrigerated whole or cut-up chicken, selected chicken parts that are either marinated or non-marinated, primary pork cuts, added value pork, pork ribs, and lamb products; and prepared products, which include fully cooked, ready-to-cook and individually frozen chicken parts, strips, nuggets and patties, processed sausages, bacon, smoked meat, gammon joints, pre-packed meats, sandwich and deli counter meats, and meat balls and coated foods. It also provides plant-based protein, ready-to-eat meals, multi-protein frozen food, vegetarian food, and desserts. In addition, its exported products include whole chickens and chicken parts for distributors in the U.S. or frozen for distribution to export markets and primary pork cuts, hog heads, and trotters frozen for distribution. The company offers its products under the Pilgrim's, Just BARE, Gold'n Pump, Gold Kist, County Pride, Pierce Chicken, Pilgrim's Mexico, To-Ricos, Del Dia, Moy Park, Matteson's, Richmond, Fridge Raiders, and Denny brands. It serves chain restaurants, food processors, broad-line distributors, and other institutions; and retail market, such as 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 N.V.
PPC passes 1 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Smart money ownership
10 of the funds we track reported a position in their latest SEC 13F filing. Largest first:
- D. E. Shaw, D. E. Shaw & Co., Inc.$135.14M · 0.1% of book
- Cliff Asness, AQR CAPITAL MANAGEMENT LLC$101.47M · 0.1% of book
- Joel Greenblatt, Gotham Asset Management, LLC$36.92M · 0.1% of book
- Renaissance Technologies, RENAISSANCE TECHNOLOGIES LLC$34.25M · 0.1% of book
- Arrowstreet Capital, ARROWSTREET CAPITAL, LIMITED PARTNERSHIP$21.38M · 0.0% of book
A word of warning on reading these figures: a 13F reports the market value of a holding, so a fund that traded nothing at all still appears to have sold when the price fell. We found 102 companies where the standard reading gives the opposite answer. Only the share count is honest.
Common questions
Is Pilgrim's Pride Corporation (PPC) undervalued?
Against our discounted cash flow estimate of USD31.70, PPC at USD29.01 is 9% below fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
Which funds own PPC?
10 of the institutions we track reported a position in PPC in their most recent SEC 13F filing. A 13F is filed up to 45 days after quarter end, so it tells you what a fund held then, not what it holds now.
What is PPC's P/E ratio?
PPC trades at 7.6 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
The full research page for PPC, with financial statements, ownership detail, peer comparison and alerts, is free inside the app.
Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.