Smithfield Foods Inc (SFD) stock analysis

P/E against its history

Not enough price and earnings history to compare.

P/E below the industry

Smithfield Foods's P/E of 8.4 is below the Food and Kindred Products median of 21.0.

EV/EBITDA against its history

Needs positive EBITDA and price history.

P/B below the industry

Smithfield Foods's price-to-book of 1.07 is below the Food and Kindred Products median of 2.12.

Trading below fair value

The share price of $19.14 is below our fair value estimate of $42.84.

Margin of safety over 20%

The price is 55.3% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew -1.4% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew 3.1% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew 4.2% over the last twelve months, against a 5-year average of 40.0% a year.

Growing slower than the industry

Revenue grew -0.6% over the last twelve months; the Food and Kindred Products median is 0.6%.

Guidance raised

Smithfield Foods raised its fiscal 2026 Total Company adjusted operating profit outlook on Aug 11, 2026.

Gross margin slipping

Gross margin was 12.6% over the last twelve months, against 13.2% a year earlier.

Return on equity under 15%

Return on equity was 13.4% over the last twelve months and averaged 12.0% over five years; we look for 15% on both.

Return on capital over 10%

Return on invested capital was 11.6%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Smithfield Foods's return on equity of 13.4% is above the Food and Kindred Products median of 6.2%.

Earnings grew over 5 years

Net income grew 40.0% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 5.9% over the last twelve months, against a 5-year average of 4.3%.

Net margin above the industry

Smithfield Foods's net margin of 5.9% is above the Food and Kindred Products median of 2.3%.

Low debt

Debt is 28.6% of shareholders' equity, under the 40% we consider low.

Debt falling against equity

Debt to equity fell from 80.9% five years ago to 28.6%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 65.0% of total debt.

Interest well covered

Operating income covers interest expense 38.3 times.

Short-term assets cover short-term debts

Current assets are 2.39 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 3.19; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Smithfield Foods paid dividends worth 7.8% of the share price over the last twelve months.

Yield above Treasuries

The 7.8% yield is above the 4.4% on a 1-year Treasury.

Yield in the top quarter

The top quarter of US dividend payers yield 3.8% or more; Smithfield Foods yields 7.8%.

Dividend stability

Fewer than five years of dividend history.

Earnings cover

Needs dividends paid and net income.

Cash-flow cover

Needs dividends paid and free cash flow.