Latest Ratios: P/E Ratio 7.5x · EV/EBITDA 5.1x · ROE 14.0%. (1989–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2015 | FY 2014 | FY 2012 | FY 2011 | FY 2010 | FY 2009 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $7.4B | — | — | — | — | — | — | — | — | — | — |
| Enterprise Value | $8.3B | — | — | — | — | — | — | — | — | — | — |
| P/E Ratio → | 7.54 | — | — | — | — | — | — | — | — | — | — |
| P/S Ratio | 0.48 | — | — | — | — | — | — | — | — | — | — |
| P/B Ratio | 1.05 | 1.29 | — | — | — | — | — | — | — | — | — |
| P/FCF | 10.37 | — | — | — | — | — | — | — | — | — | — |
| P/OCF | 7.03 | — | — | — | — | — | — | — | — | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2015 | FY 2014 | FY 2012 | FY 2011 | FY 2010 | FY 2009 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | — | — | — | — | — | — | — | — | — | — |
| EV / EBITDA | 5.11 | — | — | — | — | — | — | — | — | — | — |
| EV / EBIT | 9.88 | — | — | — | — | — | — | — | — | — | — |
| EV / FCF | — | — | — | — | — | — | — | — | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2015 | FY 2014 | FY 2012 | FY 2011 | FY 2010 | FY 2009 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 13.5% | — | 13.4% | 6.1% | 9.2% | 12.2% | 11.8% | 10.0% | 11.8% | 14.0% | 6.5% |
| Operating Margin | 8.3% | — | 7.9% | -0.4% | 6.9% | 5.5% | 6.2% | 3.9% | 5.5% | 9.0% | 0.6% |
| Net Profit Margin | 6.4% | — | 6.7% | 0.1% | 5.4% | 3.1% | 3.7% | 1.4% | 2.8% | 4.3% | -0.9% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2015 | FY 2014 | FY 2012 | FY 2011 | FY 2010 | FY 2009 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 14.0% | — | 14.1% | 0.2% | 14.0% | 9.6% | 14.4% | 5.7% | 10.4% | 16.5% | -3.8% |
| ROA | 8.1% | — | 7.8% | 0.1% | 7.3% | 4.5% | 6.2% | 2.4% | 4.8% | 6.8% | -1.4% |
| ROIC | 12.2% | 8.2% | 10.0% | -0.4% | 10.5% | 8.9% | 11.5% | 7.5% | 10.5% | 15.5% | 0.9% |
| ROCE | 12.4% | 8.5% | 11.1% | -0.5% | 11.4% | 9.3% | 12.7% | 8.5% | 11.4% | 17.0% | 1.0% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2015 | FY 2014 | FY 2012 | FY 2011 | FY 2010 | FY 2009 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.34 | 0.34 | 0.39 | 0.33 | 0.33 | 0.47 | 0.59 | 0.81 | 0.58 | 0.60 | 1.09 |
| Debt / EBITDA | 1.48 | 2.03 | 1.62 | 6.64 | 1.59 | 2.23 | 2.35 | 3.30 | 2.03 | 1.60 | 9.86 |
| Net Debt / Equity | — | 0.12 | 0.23 | 0.24 | 0.25 | 0.32 | 0.50 | 0.71 | 0.48 | 0.49 | 0.93 |
| Net Debt / EBITDA | 0.53 | 0.73 | 0.97 | 4.79 | 1.23 | 1.54 | 1.97 | 2.89 | 1.70 | 1.32 | 8.38 |
| Debt / FCF | — | 1.19 | 1.80 | 2.81 | 10.74 | 3.75 | 4.48 | — | 5.87 | 3.98 | 30.62 |
| Interest Coverage | 31.98 | 15.87 | 17.08 | -0.70 | 13.03 | 5.84 | 5.85 | 2.36 | 4.02 | 4.09 | 0.19 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2015 | FY 2014 | FY 2012 | FY 2011 | FY 2010 | FY 2009 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.97 | 2.97 | 2.46 | 2.01 | 2.14 | 2.42 | 2.55 | 2.03 | 2.90 | 2.72 | 2.79 |
| Quick Ratio | 1.63 | 1.63 | 1.05 | 0.97 | 1.01 | 1.06 | 1.05 | 0.69 | 1.08 | 1.07 | 1.23 |
| Cash Ratio | 0.88 | 0.88 | 0.55 | 0.28 | 0.21 | 0.46 | 0.30 | 0.18 | 0.29 | 0.31 | 0.38 |
| Asset Turnover | — | — | 1.28 | 1.10 | 1.17 | 1.46 | 1.48 | 1.71 | 1.76 | 1.60 | 1.45 |
| Inventory Turnover | 5.77 | — | 5.08 | 5.42 | 5.01 | 6.04 | 6.01 | 5.07 | 5.57 | 5.19 | 5.63 |
| Days Sales Outstanding | — | — | 14.40 | 14.39 | 17.03 | 19.21 | 20.98 | 18.31 | 17.41 | 21.23 | 20.25 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2015 | FY 2014 | FY 2012 | FY 2011 | FY 2010 | FY 2009 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 5.3% | 4.4% | — | — | — | — | — | — | — | — | — |
| Payout Ratio | 40.1% | — | 30.2% | 1900.0% | 57.0% | 6.6% | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2015 | FY 2014 | FY 2012 | FY 2011 | FY 2010 | FY 2009 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 13.3% | — | — | — | — | — | — | — | — | — | — |
| FCF Yield | 9.6% | — | — | — | — | — | — | — | — | — | — |
| Buyback Yield | 0.0% | — | — | — | — | — | — | — | — | — | — |
| Total Shareholder Yield | 5.3% | — | — | — | — | — | — | — | — | — | — |
| Shares Outstanding | — | $0 | $380M | $393M | $380M | $380M | $380M | $146M | $164M | $167M | $157M |
Includes 30+ ratios · 30 years · Updated daily
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10-year return with dividends reinvested.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying SFD stock.
Smithfield Foods, Inc.'s current P/E ratio is 7.5x. This places it at the 50th percentile of its historical range.
Smithfield Foods, Inc.'s current EV/EBITDA is 5.1x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA.
Smithfield Foods, Inc.'s return on equity (ROE) is 14.0%. The historical average is 12.2%.
Based on historical data, Smithfield Foods, Inc. is trading at a P/E of 7.5x. This is at the 50th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Smithfield Foods, Inc.'s current dividend yield is 5.33% with a payout ratio of 40.1%.
Smithfield Foods, Inc. has 13.5% gross margin and 8.3% operating margin.
Smithfield Foods, Inc.'s Debt/EBITDA ratio is 1.5x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Margin compression from feed costs
Metrics are mathematically derived from official filings.
Deep Value Discount vs. Peers
Smithfield trades at a significant discount to peers, with a P/E of 8.74 and EV/EBITDA of 5.84, suggesting the market is pricing in severe cyclical risk or structural concerns related to its parent company.
The valuation multiples are well below the peer average, with Tyson's P/E at 40.74 and Hormel's at 24.77, indicating the market is not assigning any premium for SFD's vertical integration or brand portfolio. This deep discount appears to reflect the 'China discount' applied to parent WH Group and potential concerns about the sustainability of its 6.36% net margin in a volatile commodity environment. The P/B of 1.22 is also modest, suggesting the market is not fully valuing the company's substantial asset base and retained earnings growth.
Margin Volatility Masks Core Earning Power
Gross margin has swung from 7.1% to 14.2% over the last ten quarters, indicating that the reported 8.32% operating margin is highly sensitive to commodity cycles and may not reflect the true earning power of the branded packaged meats segment.
The extreme volatility in gross margin, driven by feed costs and livestock prices, obscures the underlying profitability of the higher-margin packaged meats business. The 2023Q4 trough, with a negative operating margin, demonstrates the severe downside risk in the Hog Production segment. While the company has recovered, the recent compression from 10.4% in 2025Q4 to 7.0% in 2026Q2 suggests that margin expansion is not yet structural and remains vulnerable to input cost shocks.
Low Returns Reflect Capital-Intensive Model
ROIC has averaged just 2.7% over the last eight quarters, significantly below the cost of capital, indicating that the company's vertically integrated model is not generating adequate returns on the substantial invested capital required.
The consistently low ROIC, which peaked at only 4.1% in 2025Q4, suggests that the capital-intensive nature of hog production and processing facilities is a drag on overall returns. This is in stark contrast to peers like Pilgrim's Pride, which achieves a 20.0% ROIC, highlighting a potential structural disadvantage in SFD's business model. The low ROE of 3.3% in 2026Q2 further confirms that the company is not effectively compounding shareholder equity.
Working Capital Swings Dominate Cash Cycle
The cash conversion cycle has fluctuated between 60 and 81 days, driven primarily by volatile inventory levels, with days inventory outstanding ranging from 60 to 85 days, indicating inconsistent operational efficiency.
The erratic CCC, which widened to 81 days in 2024Q3 before contracting to 64 days in 2025Q4, reveals that working capital management is a key driver of cash flow volatility. The high DIO reflects the biological nature of the inventory and the need to maintain large hog populations, which ties up capital and exposes the company to price risk. The relatively stable DSO and DPO suggest that customer and supplier terms are not the primary source of this volatility.
Conservative Leverage Masks Parent Structure
The reported debt-to-equity ratio of 0.33 is exceptionally low for a capital-intensive manufacturer, suggesting either a very conservative strategy or that true leverage is obscured by intercompany financing with parent WH Group.
The low leverage, with interest coverage of 32x in 2026Q2, provides a significant cushion against rising rates and operational downturns. However, this conservative profile may not reflect the company's true standalone financial risk, as intercompany loans or guarantees from WH Group could be masking market-rate debt obligations. The stability of the debt balance at $2.4B over several quarters suggests a strategic, rather than cyclical, approach to capital structure.
The Misleading Net Margin in a Cyclical Business
The 6.36% net margin is the ratio most commonly misapplied to this business model, as it obscures the extreme cyclicality and volatility of the underlying Hog Production segment, which can swing from highly profitable to deeply unprofitable within a single year.
Investors often use net margin to assess the profitability of packaged food companies, but for SFD, this metric is heavily distorted by the commodity-driven swings in the upstream Hog Production business. A more appropriate metric would be the segmented operating margin for the Packaged Meats division, which would provide a clearer view of the sustainable, branded earning power. Relying on the consolidated net margin fails to capture the true risk profile and the potential for severe margin compression during unfavorable commodity cycles, as evidenced by the 2023Q4 loss.