Pilgrim's Pride PPC...What am I not seeing?

Discussion in 'Stocks' started by Cabin111, May 14, 2018.

  1. Cabin111

    Cabin111

    I bought some earlier...It still looks cheap to me. What am I not seeing?? Is it the debt?? Too many shares outstanding? Is it because it's a boring/mature industry? Is it younger people are becoming vegetarians? Here are the stats...Any insight I would like to hear.

    PPC...Stock closed at $20.80

    Valuation Measures
    Market Cap (intraday) 5 5.18B
    Enterprise Value 3 8.15B
    Trailing P/E 7.46
    Forward P/E 1 7.05
    PEG Ratio (5 yr expected) 1 -2.26
    Price/Sales (ttm) 0.48
    Price/Book (mrq) 2.80
    Enterprise Value/Revenue 3 0.76
    Enterprise Value/EBITDA 6 5.95
    Financial Highlights
    Fiscal Year
    Fiscal Year Ends ‎Dec‎ ‎31‎, ‎2017
    Most Recent Quarter (mrq) ‎Dec‎ ‎31‎, ‎2017
    Profitability
    Profit Margin 6.45%
    Operating Margin (ttm) 10.18%
    Management Effectiveness
    Return on Assets (ttm) 12.16%
    Return on Equity (ttm) 35.25%
    Income Statement
    Revenue (ttm) 10.77B
    Revenue Per Share (ttm) 43.29
    Quarterly Revenue Growth (yoy) 15.70%
    Gross Profit (ttm) 1.47B
    EBITDA 1.37B
    Net Income Avi to Common (ttm) 694.58M
    Diluted EPS (ttm) 2.79
    Quarterly Earnings Growth (yoy) 90.20%
    Balance Sheet
    Total Cash (mrq) 581.51M
    Total Cash Per Share (mrq) 2.34
    Total Debt (mrq) 2.74B
    Total Debt/Equity (mrq) 147.62
    Current Ratio (mrq) 1.73
    Book Value Per Share (mrq) 7.42
    Cash Flow Statement
    Operating Cash Flow (ttm) 801.32M
    Levered Free Cash Flow (ttm) 384.5M
    Trading Information
    Stock Price History
    Beta -0.14
    52-Week Change 3 -10.83%
    S&P500 52-Week Change 3 13.55%
    52 Week High 3 38.39
    52 Week Low 3 20.23
    50-Day Moving Average 3 23.00
    200-Day Moving Average 3 28.25
    Share Statistics
    Avg Vol (3 month) 3 1.37M
    Avg Vol (10 day) 3 1.62M
    Shares Outstanding 5 248.98M
    Float 52.98M
    % Held by Insiders 1 0.32%
    % Held by Institutions 1 26.24%
    Shares Short 3 16.54M
    Short Ratio 3 16.15
    Short % of Float 3 31.39%
    Shares Short (prior month) 3 16.37M
    Dividends & Splits
    Forward Annual Dividend Rate 4 N/A
    Forward Annual Dividend Yield 4 N/A
    Trailing Annual Dividend Rate 3 N/A
    Trailing Annual Dividend Yield 3 N/A
    5 Year Average Dividend Yield 4 N/A
    Payout Ratio 4 0.00%
    Dividend Date 3 ‎May‎ ‎18‎, ‎2016
    Ex-Dividend Date 4 ‎May‎ ‎6‎, ‎2016
    Last Split Factor (new per old) 2 3/2
    Last Split Date 3 ‎Aug‎ ‎2‎, ‎1999
     
  2. vanzandt

    vanzandt

    Hey not an answer to your question... but where did you get that data? I'm pretty sure that short interest is way off. Actually its the float that is way off, it should be about 248M.

    That being said, the whole sub-sector of consumer goods (foods) is down about 8% ytd. And in that 8%, there are some real dogs pulling it down. Campbell's soup hit a 4 year low today. Mondelez, Kraft Heinze (albeit they bounced a bit on earnings) was at an all-time low for the stock last week.

    All the big names are down. Input costs and transportation costs are the reason. And chicken processing is heavily dependent on low wage (illegal) labor. And we know whats going on there.

    Pilgrim's is only at a 52 week low. For real, it could test $17.50. So be careful. Sell the calls on strength if you want to keep it.
     
  3. Cabin111

    Cabin111

    I'm thinking cheap chicken...McDonalds Nuggets, KFC, school lunch programs. There will always be a market for that junk!! Also frozen chicken to China...Yeah, I know it's on thin ice with trade there. Christians, Muslims, Jews, agnostics, atheist eat this stuff. Throughout all of asia, latin america, even europe people will eat it. I know there was talks of Bunge BG and ADM combining (merger)...But it never happened. Both are really being hurt by the low commodity prices. With cheap grain prices, it should aid the chicken industry...No?? I'll keep my holdings and wait it out. Hate to double down on something...For me it usually goes bad (example GE). I'll wait for blood in the streets (Warren Buffet style) before I add to my position...
     
  4. Buying stocks in a downtrend carries additional risk regardless of any fundamental considerations.
     
  5. truetype

    truetype

    Who knew? Thanks for the insight!