Pilgrim's Pride PPC
United StatesConsumer Defensive · Packaged FoodsUSD
33.29 USD (+18.4%)
7 analysts
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Pilgrim's Pride is one of the largest chicken processors in the United States and Mexico: it raises, processes, and markets fresh and frozen chicken, primarily to restaurant chains, supermarkets, and the foodservice channel.
Key points
from its scores- ✓Favourable backdrop8.9
- ✓Attractive valuation8.4
- ✕Little or no dividend1.5
- ✕Weak growth1.8
- ✕Poor share-price trend2.1
AI analysis
bottom line, main risk, context and newsWait for a sustained recovery in operating margin before considering entry; the cheap valuation does not compensate for current operational weakness.
Pilgrim's Pride trades at a P/E of 12.28 and EV/EBITDA of 5.32, an attractive valuation, but the business shows weakness: operating margin of only 1.62%, earnings down 96.2%, and an ROIC of 4.35% reflecting a limited moat. Financial health is acceptable (net debt/EBITDA of 1.54), but profitability and growth are the weak points.
The main risk is margin compression in a food processing business with a low gross margin (9.74%) and high sensitivity to corn and soybean prices (animal feed), which could continue to erode profitability.
Context and risks
No recent relevant news and no material exposure to current macro factors (rates, oil, tariffs) that is not already reflected in its metrics. The chicken processing business is defensive and its net debt/EBITDA of 1.54 is moderate, so the rise in rates does not pose a significant risk to its balance sheet.
Is Pilgrim's Pride stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades 44% below the Consumer Defensive median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 12.3 | 19.8 | −38% |
| EV / EBITDA | 5.3 | 10.8 | −51% |
| Price / book | 1.8 | 2.7 | −34% |
| Price / sales | 0.4 | 1.2 | −71% |
Sector: median of the 124 Consumer Defensive companies analysed. In bold, the multiples used for the comparison.
Valuation score: 8.4 out of 10 (median for Consumer Defensive: 6.3).
Average analyst target: 33.29 USD, +18.4% versus the price.
A discount may reflect more risk or slower growth than its sector: Financial health 5.6 (sector 5.5), Growth 1.8 (sector 5.3).
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Consumer Defensive medianValuation
- P/E
- 12.3
- Forward P/E
- 10.2
- EV / EBITDA
- 5.3
- Price / book
- 1.8
- Price / sales
- 0.4
- PEG
- 0.61
- Market cap
- 6.7B USD
- Enterprise value
- 9.4B USD
Profitability
- ROE
- 14.5%
- ROA
- 8.0%
- ROIC (approx.)
- 4.3%
- Gross margin
- 9.7%
- Operating margin
- 1.6%
- Net margin
- 3.0%
- Free cash flow
- 508.5M USD
- FCF yield
- 7.6%
- Cash conversion
- 29%
Solvency
- Total debt
- 3.1B USD
- Net debt
- 2.7B USD
- Cash
- 388.8M USD
- EBITDA
- 1.8B USD
- Net debt / EBITDA
- 1.54
- Debt / equity
- 82.72
- Current ratio
- 1.35
- Quick ratio
- 0.50
Growth
- Revenue growth
- −2.8%
- Earnings growth
- −96.2%
- EPS (TTM)
- 2.29 USD
- EPS (forward)
- 2.75 USD
Dividend
- Dividend yield
- 0.0%
- Payout
- 0.0%
Risk and market
- Beta
- 0.33
- Analyst consensus
- none (7)
- Target price
- 33.29 USD
- 52-week range
- 25.00 – 44.84
Recent news
All PPC news →Compare it with its sector
All 124 in Consumer Defensive →Frequently asked questions about Pilgrim's Pride
Is Pilgrim's Pride stock cheap or expensive?
On P/E and EV / EBITDA, it trades 44% below the Consumer Defensive median on average. Valuation score: 8.4 out of 10 (median for Consumer Defensive: 6.3). Average analyst target: 33.29 USD, +18.4% versus the price. This is not investment advice.
What score does Pilgrim's Pride get on MeridIAn Screener?
It scores 5.1 out of 10, rank 1,664 of 2,130 (better than 21% of the companies analysed). Its strongest category is Risk & Context (8.9) and its weakest, Dividend (1.5). Analysis of 08/10/2026.
What is Pilgrim's Pride's P/E ratio?
Its P/E is 12.3: the share price equals 12.3 times earnings per share over the last 12 months. The Consumer Defensive median is 19.8. Based on the earnings analysts expect, the forward P/E is 10.2.
How much is Pilgrim's Pride worth on the stock market?
Its market capitalisation is 6.7B USD and its enterprise value, debt included, is 9.4B USD.
How much debt does Pilgrim's Pride have?
Its net debt (debt minus cash) is 2.7B USD. That is 1.54 times its EBITDA; the Consumer Defensive median is 2.38.
Does Pilgrim's Pride pay a dividend?
It pays no dividend, or almost none.
How has Pilgrim's Pride stock performed over the last year?
It has fallen 27.5% over the last year, excluding dividends. Over the last 52 weeks it has traded between 25.00 and 44.84 USD. Past performance does not guarantee future results.
What do analysts think of Pilgrim's Pride?
7 analysts cover it; their average recommendation is “none” and their average target is 33.29 USD (+18.4% versus the price). It is an estimate, not market data.