Industrias Bachoco, S.A.B. de C.V. (IBA) Company Bio
Industrias Bachoco S.A.B operates as a poultry producer in Mexico and the United States. The company primarily engages in breeding, processing, and marketing of chicken, eggs, swine, and balanced animal feed. The company was founded in 1952 and is based in Celaya, Mexico.
IBA Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Industrias Bachoco SAB de CV with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Industrias Bachoco SAB de CV ranked in the 16th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 82.83%. In terms of the factors that were most noteworthy in this DCF analysis for IBA, they are:
The company's compound free cash flow growth rate over the past 5.01 years comes in at -0.19%; that's greater than only 9.76% of US stocks we're applying DCF forecasting to.
The business' balance sheet reveals debt to be 1% of the company's capital (with equity being the remaining amount). Approximately only 5.94% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
The company's cost of debt, derived from its interest coverage, tax rate, and market capitalization, is greater than only 23.34% of stocks in its sector (Consumer Defensive).
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
CWGL, SAM, SDI, EPC, and PEP can be thought of as valuation peers to IBA, in the sense that they are in the Consumer Defensive sector and have a similar price forecast based on DCF valuation.
Industrias Bachoco (IBA) gets approval to invest in processed pig business in Mexico.Post approval from Mexican Antitrust Authorities, the agreement on investing in the company Sonora Agropecuaria has been closed. The beginning of this process was first announced at the end of 2019.The agreement states that Bachoco will acquire the 54.8%...
Industrias Bachoco S.A.B. de C.V. ("Bachoco" or "the Company") (NYSE: IBA; BMV: Bachoco), announced today, after Mexican Antitrust Authorities approval (COFECE) that the agreement on investing in the company Sonora Agropecuaria S.A. de C.V. "SASA", a swine processing and distributor company with operations in the states of Sonora and Jalisco, has been closed. The beginning of this process was first announced at the end of 2019.