Smithfield Foods Inc. Common Stock (SFD)

FairStock Score: 76/100 — HIGH CONVICTION

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look at Smithfield as a meat processor with scale but not a wide moat. It sells packaged meats and fresh pork to retail and foodservice, and its size helps, yet pork is cyclical and commodity-like. The numbers show a business that has swung hard. In fiscal Q2 2026, the quarter ended 2026-06-28, revenue was $3.7B and net income was $238.0M, or $0.60 per diluted share. A year earlier, in fiscal Q2 2025, the quarter ended 2025-06-29, revenue was $3.8B but net income was only $188.0M, or $0.48 per diluted share. For FY2025, ended 2025-12-28, revenue was $15.5B and net income was $987.0M, or $2.51 per diluted share, a big rebound from FY2023, ended 2023-12-31, when net income was just $17.0M. At the 2026-10-13 close of $18.22, FairStock calculates a P/E of 6.77, P/B of 1.02, FCF yield of 11.2%, EV/EBITDA of 4.82, PEG of 0.11, and a Graham Number of $32.81, implying 44.47% margin of safety. The stated dividend yield is 6.30%. Cash flow is real: trailing free cash flow was $807.0M. But FairStock's Piotroski F-Score is 4/9 and Altman Z-Score is 2.08, so the balance sheet is not clearly fortress-like despite D/E of 0.33. ROE is 15.45% but ROCE is 7.31%. The Lynch category is STALWART—steady growth, with profit 12.2% a year over five years. I see cheapness, cyclical recovery, and a fat dividend; I also see commodity risk and uneven financial quality.

In plain English: Smithfield Foods makes packaged meats like bacon, sausage, hot dogs and deli meat, plus fresh pork. The business looks solidly profitable and produces plenty of cash, and it pays a large dividend. At the recent price near $18, the stock looks cheap compared with its profits and accounting value, but some safety checks are only so-so and the shares are near their 52-week low.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-28) · fiscal Q1 2026 10-Q (period ended 2026-03-29) · fiscal Q3 2025 10-Q (period ended 2025-09-28) · fiscal Q2 2025 10-Q (period ended 2025-06-29) · FY2025 10-K (period ended 2025-12-28) · FY2024 10-K (period ended 2024-12-29) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer