Pilgrim's Pride Corporation Common Stock (PPC)

FairStock Score: 72/100 — STEADY

Key Financials

Strengths

• Generates $631 million in annual free cash flow (7.9% yield on market cap)
• High return on equity of 27.3% demonstrating efficient capital deployment
• FairStock composite score of 72/100 places it in the top tier across value, quality, and momentum factors
• Established organization with 63,000 employees providing operational scale

Concerns

• Altman Z-Score of 1.7 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Pilgrim's Pride Corporation Common Stock is a small-cap consumer defensive company valued at $8.0 billion. The business generates $18.5 billion in annual revenue with a 0.5% net margin and $631 million in free cash flow. From a quality standpoint, Pilgrim's shows distressed Altman Z-Score of 1.7 warrants caution and strong 27% ROE. On valuation, the stock is deeply undervalued on a P/E basis at 7.4x, with a modest 16% margin of safety vs Graham Number. Growth dynamics show revenue growing at 3.3% and profit growth of -62.7%. Our composite FairStock Score of 72/100 reflects above-average fundamentals overall. This combination of reasonable valuation, solid returns, and conservative leverage makes it worth a closer look for value-oriented portfolios.

Bull Case

The market underappreciates Pilgrim's's consistent 27% ROE at just 7x earnings—a re-rating toward sector peers could unlock 30-50% upside. With $631 million in annual free cash flow (7.9% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the consumer defensive space. 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