Pilgrim's Pride engages in the production, processing, marketing, and distribution of fresh, frozen, and value-added chicken products to retailers, distributors, and foodservice operators in the United States, Mexico, and Puerto Rico. The company was founded in 1946 and is based in Greeley, Colorado.
PPC Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for PPC, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Pilgrims Pride Corp ranked in the 20th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 73%. As for the metrics that stood out in our discounted cash flow analysis of Pilgrims Pride Corp, consider:
The company's compound free cash flow growth rate over the past 5.72 years comes in at -0.16%; that's greater than merely 10.13% of US stocks we're applying DCF forecasting to.
Pilgrims Pride Corp's weighted average cost of capital (WACC) is 8%; for context, that number is higher than merely 13.41% of tickers in our DCF set.
Relative to other stocks in its sector (Consumer Defensive), Pilgrims Pride Corp has a reliance on debt greater than 67.73% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
IPAR, KO, ALCO, KOF, and LWAY can be thought of as valuation peers to PPC, in the sense that they are in the Consumer Defensive sector and have a similar price forecast based on DCF valuation.
Pilgrim's Pride ([[PPC]] -2.5%) says that current CFO Fabio Sandri will serve as President and Chief Executive Officer from the previously announced role of Interim President and CEO.The Company has initiated search process to identify a new Chief Financial Officer.Jayson Penn, have been on a paid leave of absence from his...
This article was highlighted for PRO subscribers, Seeking Alpha’s service for professional investors. Find out how you can get the best content on Seeking Alpha here. Source: Bachoco 2019 annual report Bachoco (IBA) is Mexico's leading producer of chicken and second-largest producer of eggs. It also has a significant presence...