Download PDF

1. Company Snapshot

1.a. Company Description

Pilgrim's Pride Corporation engages in the production, processing, marketing and distribution of fresh, frozen and value-added chicken, and pork products to retailers, distributors, and foodservice operators in the United States, the United Kingdom, Mexico, the Middle East, Asia, Continental Europe, and internationally.The company offers fresh products, including pre-marinated or non-marinated chicken, frozen whole chickens, breast fillets, mini breast fillets and prepackaged case-ready chicken, primary pork cuts, and pork and pork ribs; prepared products, which include portion-controlled breast fillets, tenderloins and strips, delicatessen products, salads, formed nuggets and patties, and bone-in chicken parts; processed sausages, bacon, slow cooked, smoked meat, gammon joints, as well as variety of meat products, pre-packed meats, sandwich and deli counter meats, pulled pork balls, meatballs, and coated foods.In addition, its exported products include whole chickens and chicken parts sold either refrigerated for distributors in the U.S. or frozen for distribution to export markets and primary pork cuts, hog heads and trotters frozen for distribution to export markets.


The company offers its products under the Pilgrim's, Just BARE, Gold'n Pump, Gold Kist, County Pride, Pierce Chicken, Pilgrim's Mexico, County Post, Savoro, To-Ricos, Del Dia, Moy Park, O'Kane, Richmond, Fridge Raiders, and Denny brands.Pilgrim's Pride Corporation sells its products to the foodservice market principally consists of chain restaurants, food processors, broad-line distributors, and other institutions; and retail market, which comprise primarily 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 S.A.

Show Full description

1.b. Last Insights on PPC

Pilgrim's Pride Corporation faced several challenges over the past three months. The company's Q4 2025 earnings release revealed a decline in earnings, with EPS of $0.68 per share, missing estimates. Revenues rose 3.3% year-over-year, driven by strength in Europe and Prepared Foods. However, this was overshadowed by the earnings miss. Additionally, institutional investors reduced their stakes, with Assetmark Inc. trimming its position by 5.7% and Allspring Global Investments Holdings LLC cutting its stake by 56.3%. Analysts currently rate the stock as a "Hold" with a consensus target price.

1.c. Company Highlights

2. Pilgrim's Pride: Strong FY2025 Results with Margin Expansion

Pilgrim's Pride Corporation reported its Q4 and fiscal year 2025 results, with net revenues reaching $18,500,000,000 and adjusted EBITDA of $2,300,000,000, resulting in a 12.3% adjusted EBITDA margin. The company's EPS came in at $0.62, below analyst estimates of $0.78. The U.S. business maintained its margin profile through increasing sales volumes and delivering operational efficiency, with net revenues of $11,000,000,000 and adjusted EBITDA of $1,630,000,000, representing a 14.8% margin.

Publication Date: Feb -17

📋 Highlights
  • Record Adjusted EBITDA Margin: Pilgrim's Pride achieved a 12.3% adjusted EBITDA margin ($2.3B) on $18.5B in net revenues for fiscal 2025.
  • U.S. Segment Strength: U.S. business delivered 14.8% margin ($1.63B EBITDA) driven by $11B in net revenues and operational efficiency.
  • Europe EBITDA Growth: Adjusted EBITDA rose 11.4% to $453.1M in 2025, fueled by poultry sales growth and operating efficiencies.
  • Prepared Foods Surge: Prepared foods sales grew 18% YoY, with Just BARE gaining nearly 300 bps in market share.
  • Mexico Margin Decline: Mexico’s adjusted EBITDA margin fell to 8.8% ($186.7M) due to lower market pricing, down from 11.8% in 2024.

Regional Performance

In Europe, adjusted EBITDA improved 11.4% to $453,100,000 in 2025, driven by growth in poultry sales and operating efficiencies. Mexico's adjusted EBITDA was $186,700,000 for the full year, with an 8.8% margin, falling short of last year's 11.8% margin due to lower market pricing. The company's fresh portfolio increased volume compared to last year, with consumers seeking affordability offerings across retail and foodservice.

Growth Initiatives and Outlook

Pilgrim's Pride is investing in growth initiatives, including a new prepared facility in Georgia and expansion of its facility in Porvenir, Mexico. The company expects exports to remain strong and well diversified across markets, with pricing remaining high relative to historical levels. The USDA estimates moderate production growth of 1% in 2026, with challenges in beef production partially compensated by higher beef imports.

Valuation and Financials

With a P/E Ratio of 9.51 and EV/EBITDA of 4.95, the company's valuation appears reasonable. Pilgrim's Pride has a strong balance sheet, with a net debt of approximately $2.45 billion and a leverage ratio of less than 1.1 times adjusted EBITDA. Liquidity remains strong, with over $1.8 billion in total cash and available credit. Analysts estimate next year's revenue growth at 1.5%. As Fabio Sandri noted, the company's focus on team member safety, product quality, and sustainability will drive efforts to achieve its vision and create a better future for its team members and communities.

Market Dynamics

The company sees a positive trend for chicken demand, driven by consumer preferences for affordable and available protein. The spread between chicken and beef prices is at a record high, with chicken prices down 1% in retail while beef prices have increased. The company expects this trend to continue, with USDA projecting a 1% growth in chicken supply for 2026.

3. NewsRoom

Card image cap

Here is What to Know Beyond Why Pilgrim's Pride Corporation (PPC) is a Trending Stock

Mar -19

Source: zacks.com

Card image cap

Pilgrim's Pride (PPC) Surpasses Market Returns: Some Facts Worth Knowing

Mar -17

Source: zacks.com

Card image cap

Pilgrim's Pride: Attractively Priced Near Its Lows

Mar -17

Source: seekingalpha.com

Card image cap

Here Are Friday’s Top Wall Street Analyst Research Calls: Adobe, Alcoa, Alphabet, Celanese, Knight-Swift, Linde Plc, Ollie’s Bargain Outlet, Tyson Foods, and More

Mar -13

Source:

Card image cap

Pilgrim's Pride (PPC) Declines More Than Market: Some Information for Investors

Mar -11

Source: zacks.com

Card image cap

Pilgrim's Pride (PPC) Registers a Bigger Fall Than the Market: Important Facts to Note

Mar -05

Source: zacks.com

Card image cap

Jupiter Asset Management Ltd. Takes Position in Pilgrim’s Pride Corporation $PPC

Feb -23

Source: defenseworld.net

Card image cap

Advisors Preferred LLC Invests $1.86 Million in Pilgrim’s Pride Corporation $PPC

Feb -22

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.84%)

6. Segments

Fresh Products

Expected Growth: 1.8%

Pilgrim's Pride Corporation's Fresh Products segment growth of 1.8% is driven by increasing demand for protein-rich foods, strategic acquisitions, and expansion into new markets. Additionally, the company's focus on operational efficiency, cost savings, and investments in technology have contributed to the growth. Furthermore, the rising popularity of organic and premium products has also boosted sales.

Prepared Products

Expected Growth: 1.9%

Pilgrim's Pride Corporation's Prepared Products segment growth of 1.9% is driven by increasing demand for convenient and protein-rich foods, strategic acquisitions, and expansion into new markets. Additionally, the company's focus on innovation, product diversification, and operational efficiencies have contributed to the growth.

Exports

Expected Growth: 2.1%

Pilgrim's Pride Corporation's 2.1% export growth is driven by increasing global demand for protein, particularly in Asia and Latin America. Strong operational efficiency, competitive pricing, and strategic partnerships also contribute to the growth. Furthermore, the company's diversified product portfolio, including chicken, beef, and pork, helps to mitigate risks and capitalize on market opportunities.

Other Products

Expected Growth: 1.7%

Pilgrim's Pride Corporation's 1.7% growth in Other Products is driven by increasing demand for value-added products, expansion into new markets, and strategic acquisitions. Additionally, the company's focus on innovation, quality, and customer satisfaction has led to market share gains and pricing power. Furthermore, cost savings initiatives and operational efficiencies have also contributed to the segment's growth.

7. Detailed Products

Chicken Products

Pilgrim's Pride Corporation offers a wide range of chicken products, including fresh and frozen whole birds, parts, and value-added products such as breaded and marinated chicken.

Prepared Foods

The company's prepared foods segment includes a variety of products such as chicken nuggets, chicken strips, and other value-added products.

Export Products

Pilgrim's Pride exports a range of chicken products to countries around the world, including whole birds, parts, and value-added products.

Feed and Ingredients

The company's feed and ingredients segment includes a range of products such as poultry feed, pet food, and animal nutrition products.

8. Pilgrim's Pride Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Pilgrim's Pride Corporation faces moderate threat from substitutes, as consumers have limited alternatives to chicken products. However, the increasing popularity of plant-based meat alternatives and other protein sources poses a moderate threat to the company's market share.

Bargaining Power Of Customers

Pilgrim's Pride Corporation has a diverse customer base, including retailers, distributors, and foodservice providers, which reduces the bargaining power of individual customers. Additionally, the company's strong brand recognition and product offerings limit the ability of customers to negotiate prices.

Bargaining Power Of Suppliers

Pilgrim's Pride Corporation relies on a network of suppliers for feed, transportation, and other essential services. While the company has some bargaining power due to its scale, suppliers may still exert some pressure on prices and terms, particularly in times of high demand or supply chain disruptions.

Threat Of New Entrants

The poultry industry has significant barriers to entry, including high capital requirements, complex regulatory compliance, and established relationships with suppliers and customers. These barriers limit the threat of new entrants and provide Pilgrim's Pride Corporation with a relatively stable market position.

Intensity Of Rivalry

The poultry industry is highly competitive, with several large players vying for market share. Pilgrim's Pride Corporation faces intense competition from rivals such as Tyson Foods, Sanderson Farms, and Perdue Farms, which can lead to pricing pressure and advertising wars.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 50.56%
Debt Cost 5.70%
Equity Weight 49.44%
Equity Cost 7.76%
WACC 6.72%
Leverage 102.27%

11. Quality Control: Pilgrim's Pride Corporation passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Conagra Brands

A-Score: 6.5/10

Value: 6.4

Growth: 4.4

Quality: 4.6

Yield: 9.0

Momentum: 5.5

Volatility: 9.0

1-Year Total Return ->

View Full Report
Stock-Card
Pilgrim's Pride

A-Score: 6.5/10

Value: 7.6

Growth: 7.3

Quality: 6.9

Yield: 8.0

Momentum: 1.0

Volatility: 8.0

1-Year Total Return ->

View Full Report
Stock-Card
Flowers Foods

A-Score: 5.8/10

Value: 7.3

Growth: 4.7

Quality: 4.8

Yield: 9.0

Momentum: 0.0

Volatility: 9.0

1-Year Total Return ->

View Full Report
Stock-Card
Campbell Soup

A-Score: 5.8/10

Value: 6.0

Growth: 3.3

Quality: 4.3

Yield: 7.0

Momentum: 6.0

Volatility: 8.0

1-Year Total Return ->

View Full Report
Stock-Card
Post Holdings

A-Score: 4.6/10

Value: 6.2

Growth: 4.9

Quality: 3.9

Yield: 0.0

Momentum: 3.5

Volatility: 9.0

1-Year Total Return ->

View Full Report
Stock-Card
Central Garden & Pet

A-Score: 4.3/10

Value: 7.6

Growth: 5.1

Quality: 5.2

Yield: 0.0

Momentum: 2.0

Volatility: 6.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

35.23$

Current Price

35.23$

Potential

-0.00%

Expected Cash-Flows