- Industrias Bachoco is offsetting higher feed prices with higher poultry prices, and a post-pandemic economic recovery in Mexico should ultimately restore volume growth in late '21/early '22.
- With healthy cash flow and a liquid balance sheet, Bachoco has multiple options to drive future growth, including investments to broaden the protein platform and/or expand into more processed/packaged foods.
- Long-term revenue growth around 4% can support a double-digit return on the shares, and the forward EV/EBITDA multiple likewise looks too low relative to margins.
For further details see:
Industrias Bachoco Looks Undervalued On Demand Recovery And Pricing Power