BRFS - BRF: Poor Capital Allocation Dangerous Leverage Makes It A Hold

2024-01-30 09:37:49 ET

Summary

• BRF's stock is not recommended due to poor past capital allocation decisions, high leverage levels, and lack of business diversification.
• JBS and Minerva are preferred investment opportunities over BRF.
• BRF's operational performance has been weaker compared to its peers, with slower growth and declining margins.
• The company's current situation is dangerous, given its operational losses and high leverage.

BRF S.A. ( BRFS ) is a Brazilian company and one of the world's leaders in poultry and swine processing. The company's integrated supply chain also extends downstream to processed products and upstream to feedstock....

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