Pilgrim’s Balanced Portfolio, Mexican Operations Should Give Investors an Opportunity
With shares trading at an attractive (about 20%) discount to our $29 valuation, we believe no-moat Pilgrim’s Pride allows investors to capitalize on strong protein and fresh food demand and rising meat consumption in Mexico. Pilgrim is exposed to commodities, but we expect its balanced portfolio and growth in Mexico to act as a counterweight even as inputs normalize. Our estimate implies forward fiscal 2017 enterprise value/adjusted EBITDA of 8 and forward adjusted price/earnings of 13.Even wit...
Pilgrims Pride is primarily engaged in the production, processing, marketing and distribution of fresh, frozen chicken products to retailers, distributors and foodservice operators. The company's primary product types are fresh chicken products, prepared chicken products and export chicken products. The company's fresh chicken products consist of refrigerated (nonfrozen) whole or cut-up chicken, either pre-marinated or non-marinated and prepackaged case-ready chicken. The company's case-ready chicken includes various combinations of freshly refrigerated, whole chickens and chicken parts in trays, bags or other consumer packs labeled and priced ready for the retail grocer's fresh meat counter.
Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.
Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.
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