JBS N.V. Class A Common Shares (JBS)

FairStock Score: 69/100 — STEADY

Key Financials

Strengths

• Generates $255 million in annual free cash flow (1.4% yield on market cap)
• High return on equity of 25.3% demonstrating efficient capital deployment
• Attractive 7.7% dividend yield providing steady income returns
• Established organization with 2,83,000 employees providing operational scale

Concerns

• High leverage at 2.52x debt-to-equity increases financial risk and interest expense burden
• Weak Piotroski F-Score of 0/9 suggests deteriorating financial quality across multiple dimensions

AI Analysis

JBS N.V. Class A Common Shares is a mid-cap consumer defensive company valued at $18.3 billion. The business generates $86.2 billion in annual revenue with a 2.5% net margin and $255 million in free cash flow. From a quality standpoint, JBS shows weak Piotroski F-Score of 0/9 signaling deteriorating fundamentals and strong 25% ROE. On valuation, the stock is deeply undervalued on a P/E basis at 8.9x, with a modest 8% margin of safety vs Graham Number. Growth dynamics show revenue growing at 5.1% and profit growth of -6.0%. The 7.7% dividend yield adds an income component for patient holders. Our composite FairStock Score of 69/100 reflects above-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

The market underappreciates JBS's consistent 25% ROE at just 9x earnings—a re-rating toward sector peers could unlock 30-50% upside. With $255 million in annual free cash flow (1.4% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Elevated leverage at 2.5x D/E means rising interest rates or revenue weakness could strain debt covenants and force asset sales at distressed prices. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer