Pilgrim’s Pride shares have fallen 30.4% over the past six months to $27.77, driven by soft quarterly results and raising concerns about the company’s outlook. The poultry producer’s revenue grew at a sluggish 2.2% compound annual rate over the last three years, while its gross margin averaged just 12.7% over the past two years, signaling weak pricing power in a competitive market. Free cash flow margin declined by 4.8 percentage points to 2.9% over the trailing twelve months, pointing to rising capital intensity. The stock now trades at 8 times forward earnings, but analysts caution that shaky fundamentals could mean further downside.
Pilgrims Pride CorpWeak quarterly results, declining margins, and rising capital intensity signal poor fundamentals.