LW - Pilgrim's Pride: Recent Economic Value Well-Captured At Current Multiples
2024-07-08 13:05:11 ET
Summary
- Pilgrim's Pride Corporation is a major poultry producer with a global presence and a strong track record of supplying poultry demand.
- Despite positive industry growth projections, PPC's cyclical earnings and lack of strong return on capital drivers cloud visibility.
- Valuations for PPC have increased following a recent stock price surge, but the company's limited reinvestment opportunities and cyclical nature suggest it may be fully captured at the current range.
Investment Thesis
Based in Greeley, Colorado, Pilgrim's Pride Corporation ( PPC ) stands as one of the world's largest poultry producers, operating across the US, UK, Mexico, and continental Europe. The company's portfolio encompasses a broad spectrum of the poultry production 'value chain', with assets positioned at multiple points including breeding, hatching, feed manufacturing, and processing....
Pilgrim's Pride: Recent Economic Value Well-Captured At Current Multiples