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PPCPilgrim's Pride Corporation
$27.63$6.6B
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  4. Financial Ratios

Pilgrim's Pride Corporation (PPC) Financial Ratios

Latest Ratios: P/E Ratio 6.1x · EV/EBITDA 4.5x · ROE 27.2%. (1996–2025 historical series)

Income StatementBalance SheetCash FlowRatios
AnnualQuarterly

PPC Valuation Multiples

Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Market Cap$6.6B$9.5B$10.9B$6.6B$5.7B$6.7B$4.8B$8.2B$3.9B$7.7B$4.8B
Enterprise Value$9.3B$12.2B$12.3B$9.5B$8.8B$9.9B$6.8B$10.6B$5.9B$9.8B$6.0B
P/E Ratio →6.098.7710.0520.347.68211.9249.6218.0215.5911.1310.99
P/S Ratio0.360.510.610.380.330.460.390.720.360.720.49
P/B Ratio1.782.572.571.962.012.601.853.251.924.172.32
P/FCF9.9514.377.2148.9631.31—12.8925.8627.1716.7610.01
P/OCF4.796.925.499.688.5420.606.5812.357.909.656.40

P/E links to full P/E history page with 30-year chart

PPC EV Ratios

Enterprise-value multiples — capital-structure-neutral measures of total business value

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
EV / Revenue—0.660.690.550.510.670.560.930.540.910.60
EV / EBITDA4.495.906.3610.065.6016.6711.6510.827.637.325.81
EV / EBIT5.767.347.8516.707.5141.4423.5614.1011.869.037.44
EV / FCF—18.488.1570.7148.42—18.3633.2241.0621.3112.32

PPC Profitability

Margins and return-on-capital ratios measuring operating efficiency

Margins

Full margin charts and quarterly trend are on the Earnings History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Gross Margin12.7%12.7%12.9%6.4%10.4%9.2%6.9%9.4%7.7%13.7%11.2%
Operating Margin8.7%8.7%8.4%3.0%6.7%1.4%2.0%6.1%4.5%10.0%8.0%
Net Profit Margin5.9%5.9%6.1%1.9%4.3%0.2%0.8%4.0%2.3%6.7%4.9%

Return on Capital

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
ROE27.2%27.2%28.6%10.4%27.4%1.2%3.7%20.0%12.8%36.4%28.7%
ROA10.3%10.3%10.6%3.4%8.2%0.4%1.3%7.0%4.1%12.7%11.5%
ROIC20.0%20.0%18.9%6.4%15.1%3.1%3.9%11.7%9.3%22.5%23.6%
ROCE20.8%20.8%19.5%7.5%17.8%3.5%4.5%13.7%10.5%24.8%25.1%

PPC Leverage & Debt

Solvency and debt-coverage ratios — lower is generally safer

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Debt / Equity0.910.910.811.081.241.381.001.031.151.450.68
Debt / EBITDA1.621.621.793.832.236.034.412.663.022.001.38
Net Debt / Equity—0.730.340.871.101.210.790.920.981.130.54
Net Debt / EBITDA1.311.310.733.091.985.313.472.402.581.561.09
Debt / FCF—4.110.9421.7517.12—5.477.3613.904.552.32
Interest Coverage10.3110.319.762.817.721.632.285.663.0410.1610.57

PPC Liquidity & Efficiency

Short-term solvency ratios and asset-utilisation metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Current Ratio1.471.472.011.681.511.381.501.581.721.731.53
Quick Ratio0.760.761.310.890.740.720.800.740.830.870.70
Cash Ratio0.220.220.800.280.160.180.280.160.260.400.25
Asset Turnover—1.791.681.771.891.661.621.611.841.721.97
Inventory Turnover7.957.958.738.187.878.518.287.478.717.418.99
Days Sales Outstanding—25.3022.0427.1626.2425.7524.5225.6720.0719.2716.61

PPC Shareholder Yields

Earnings, FCF, buyback, and dividend yields — total returns to shareholders

Dividends

Full dividend history and growth charts are on the Dividend History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Dividend Yield30.3%21.0%————————14.8%
Payout Ratio184.3%184.3%————————148.6%

Total Shareholder Return Metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Earnings Yield16.4%11.4%10.0%4.9%13.0%0.5%2.0%5.6%6.4%9.0%9.1%
FCF Yield10.0%7.0%13.9%2.0%3.2%—7.8%3.9%3.7%6.0%10.0%
Buyback Yield0.0%0.0%0.0%0.0%3.5%0.0%2.3%0.0%0.0%0.2%2.4%
Total Shareholder Yield30.3%21.0%0.0%0.0%3.5%0.0%2.3%0.0%0.0%0.2%17.2%
Shares Outstanding—$238M$238M$237M$240M$244M$246M$250M$249M$249M$254M

Key Metrics

Growth RegimeDecelerating
ProfitabilityStrained
Balance SheetHealthy
Cash FlowStable
Top Statement Risk

Margin compression from cost inflation

Verified Source

Metrics are mathematically derived from official filings.

SEC 10-K (2026Q2)

Margin Collapse Signals Cyclical Stress

Gross margin halved to 7.3% in 2026Q2 from 15.0% a year earlier, as per reported figures, while operating margin fell to 1.4%, indicating severe cost pressure and pricing weakness.

The sequential deterioration from 9.5% gross margin in 2025Q4 to 7.3% in 2026Q2 suggests that input cost inflation, particularly feed grains, is outpacing the company's ability to pass through prices. The operating margin of 1.4% is the lowest in the series, down from 10.8% in 2025Q2, implying that fixed cost absorption has weakened as volumes decline. This margin compression appears cyclical rather than structural, but investors should monitor whether the branded and value-added mix can restore profitability as commodity costs stabilize.

Return on Capital Decays Sharply

ROIC dropped to 0.8% in 2026Q2 from 7.1% a year earlier, based on reported figures, while ROE fell to 0.4%, indicating a severe erosion of capital efficiency.

The collapse in ROIC from 7.1% in 2025Q2 to 0.8% in 2026Q2 reflects both margin compression and a rising capital base, as net PPE increased to $4.0B. The spread over cost of capital has likely turned negative, suggesting that recent investments in capacity are not generating adequate returns under current market conditions. This may be a temporary cyclical trough, but if margins do not recover, the company risks destroying value despite its scale advantages.

Working Capital Efficiency Holds Steady

Cash conversion cycle remained stable at 33 days in 2026Q2, as per the data, with DSO at 21 days and DPO at 31 days, indicating no deterioration in working capital management.

Despite the sharp profit decline, the company has maintained its cash conversion cycle at 33 days, consistent with the prior year's 36 days, suggesting that working capital is not a source of strain. The slight improvement in DSO from 23 to 21 days may indicate tighter receivables collection, while DPO has remained around 30 days, reflecting stable supplier terms. This stability provides some offset to the margin pressure, but the low quick ratio of 0.62 in 2026Q2 highlights reliance on inventory to meet short-term obligations.

Leverage Creeps Higher as Earnings Fall

Debt-to-EBITDA rose to 16.13 in 2026Q2 from 5.38 a year earlier, as reported, while interest coverage fell to 1.50, indicating a significant deterioration in debt service capacity.

The D/EBITDA ratio of 16.13 is a dramatic increase from 5.38 in 2025Q2, driven by the collapse in EBITDA rather than a surge in debt, as total debt remained near $3.1B. Interest coverage of 1.50 is barely above the minimum threshold, suggesting that if earnings remain depressed, the company could face refinancing challenges. However, the absolute debt level is moderate relative to equity (D/E of 0.81), and the company's cash position of $398M provides a buffer, but investors should monitor whether EBITDA recovers to restore comfortable coverage.

Liquidity Buffer Thins Rapidly

Current ratio fell to 1.36 in 2026Q2 from 1.63 a year earlier, with cash down 38% to $398M, as per the balance sheet, indicating a reduced cushion against short-term shocks.

The quick ratio of 0.62 in 2026Q2 is particularly concerning, as it suggests that excluding inventory, the company has limited liquid assets to cover current liabilities. The decline in cash from $640M to $398M over the quarter, combined with the earnings miss, points to a tightening liquidity position. While the company has access to credit markets, the combination of low interest coverage and a thin quick ratio warrants close monitoring if the margin environment does not improve.

Misapplied Metric: P/E on Cyclical Earnings

The trailing P/E of 7.10 appears cheap, but it is based on depressed earnings; using forward P/E of 11.67 or EV/EBITDA of 5.02 provides a more accurate valuation, as per reported figures.

The market often misapplies trailing P/E to cyclical protein processors like PPC, where current earnings are at a cyclical trough, making the multiple appear artificially low. A more appropriate metric is EV/EBITDA, which at 5.02 is still low but reflects the company's debt-adjusted value. Additionally, the dividend yield of 25.9% is misleading because it is based on special dividends, not a sustainable regular payout. Investors should focus on normalized earnings power and the feed-to-meat spread to assess true valuation.

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Includes 30+ ratios · 30 years · Updated daily

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PPC — Frequently Asked Questions

Quick answers to the most common questions about buying PPC stock.

What is Pilgrim's Pride Corporation's P/E ratio?

Pilgrim's Pride Corporation's current P/E ratio is 6.1x. The historical average is 15.1x. This places it at the 8th percentile of its historical range.

What is Pilgrim's Pride Corporation's EV/EBITDA?

Pilgrim's Pride Corporation's current EV/EBITDA is 4.5x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 7.3x.

What is Pilgrim's Pride Corporation's ROE?

Pilgrim's Pride Corporation's return on equity (ROE) is 27.2%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 8.8%.

Is PPC stock overvalued?

Based on historical data, Pilgrim's Pride Corporation is trading at a P/E of 6.1x. This is at the 8th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.

What is Pilgrim's Pride Corporation's dividend yield?

Pilgrim's Pride Corporation's current dividend yield is 30.27% with a payout ratio of 184.3%.

What are Pilgrim's Pride Corporation's profit margins?

Pilgrim's Pride Corporation has 12.7% gross margin and 8.7% operating margin.

How much debt does Pilgrim's Pride Corporation have?

Pilgrim's Pride Corporation's Debt/EBITDA ratio is 1.6x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.