PILGRIM'S PRIDE CORP (NASDAQ:PPC) appears to be flying under the radar despite its strong fundamentals.

Our stock screening tool has pinpointed PILGRIM'S PRIDE CORP (NASDAQ:PPC) as an undervalued stock. PPC maintains a solid financial footing. Furthermore, it remains attractively priced. Let's delve into the specifics below.

A Closer Look at Valuation for PPC

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. PPC has achieved a 8 out of 10:

• With a Price/Earnings ratio of 9.22, the valuation of PPC can be described as very reasonable.
• 87.91% of the companies in the same industry are more expensive than PPC, based on the Price/Earnings ratio.
• The average S&P500 Price/Earnings ratio is at 27.10. PPC is valued rather cheaply when compared to this.
• With a Price/Forward Earnings ratio of 9.83, the valuation of PPC can be described as very reasonable.
• PPC's Price/Forward Earnings ratio is rather cheap when compared to the industry. PPC is cheaper than 94.51% of the companies in the same industry.
• Compared to an average S&P500 Price/Forward Earnings ratio of 20.33, PPC is valued rather cheaply.
• Based on the Enterprise Value to EBITDA ratio, PPC is valued cheaper than 84.62% of the companies in the same industry.
• Compared to the rest of the industry, the Price/Free Cash Flow ratio of PPC indicates a rather cheap valuation: PPC is cheaper than 84.62% of the companies listed in the same industry.
• The excellent profitability rating of PPC may justify a higher PE ratio.

Analyzing Profitability Metrics

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. PPC scores a 8 out of 10:

• PPC has a Return On Assets of 10.20%. This is amongst the best in the industry. PPC outperforms 92.31% of its industry peers.
• With an excellent Return On Equity value of 25.63%, PPC belongs to the best of the industry, outperforming 94.51% of the companies in the same industry.
• Looking at the Return On Invested Capital, with a value of 16.32%, PPC belongs to the top of the industry, outperforming 95.60% of the companies in the same industry.
• Measured over the past 3 years, the Average Return On Invested Capital for PPC is above the industry average of 8.80%.
• The 3 year average ROIC (12.54%) for PPC is below the current ROIC(16.32%), indicating increased profibility in the last year.
• PPC has a Profit Margin of 6.08%. This is in the better half of the industry: PPC outperforms 78.02% of its industry peers.
• PPC's Profit Margin has improved in the last couple of years.
• With a decent Operating Margin value of 8.95%, PPC is doing good in the industry, outperforming 73.63% of the companies in the same industry.
• In the last couple of years the Operating Margin of PPC has grown nicely.
• In the last couple of years the Gross Margin of PPC has grown nicely.

How do we evaluate the Health for PPC?

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. PPC has received a 7 out of 10:

• PPC has an Altman-Z score of 4.01. This indicates that PPC is financially healthy and has little risk of bankruptcy at the moment.
• PPC's Altman-Z score of 4.01 is amongst the best of the industry. PPC outperforms 80.22% of its industry peers.
• The Debt to FCF ratio of PPC is 2.12, which is a good value as it means it would take PPC, 2.12 years of fcf income to pay off all of its debts.
• PPC's Debt to FCF ratio of 2.12 is fine compared to the rest of the industry. PPC outperforms 79.12% of its industry peers.
• Although PPC does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
• PPC has a Current Ratio of 2.01. This indicates that PPC is financially healthy and has no problem in meeting its short term obligations.
• The Current ratio of PPC (2.01) is better than 60.44% of its industry peers.
• PPC has a better Quick ratio (1.31) than 72.53% of its industry peers.

Growth Insights: PPC

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. PPC has earned a 5 for growth:

• PPC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 220.71%, which is quite impressive.
• PPC shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 27.16% yearly.
• Measured over the past years, PPC shows a quite strong growth in Revenue. The Revenue has been growing by 9.40% on average per year.

More Decent Value stocks can be found in our Decent Value screener.

Check the latest full fundamental report of PPC for a complete fundamental analysis.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.