Operating Margin

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Price: 41.37 USD -0.62% Market Closed

Market Cap: 9.8B USD

9.5%

Improving

by 3.1%

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

9.5%

Operating Income

$1.7B

Revenue

$18.4B

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

9.5%

Operating Income

$1.7B

Revenue

$18.4B

Peer Comparison

Country		Company	Market Cap	Operating Margin
US		Pilgrims Pride Corp NASDAQ:PPC	9.8B USD	Loading...
JP	G	Goyo Foods Industry Co Ltd TSE:2230	53.2T JPY	Loading...
CH		Nestle SA SIX:NESN	189.6B CHF	Loading...
US		Mondelez International Inc NASDAQ:MDLZ	73.9B USD	Loading...
FR		Danone SA PAR:BN	47.8B EUR	Loading...
ZA	T	Tiger Brands Ltd JSE:TBS	53.6B Zac	Loading...
MY	O	Ocb Bhd KLSE:OCB	204B MYR	Loading...
US		Hershey Co NYSE:HSY	40.1B USD	Loading...
CN		Muyuan Foods Co Ltd SZSE:002714	258.5B CNY	Loading...
ZA	A	Avi Ltd JSE:AVI	35.8B Zac	Loading...
CH		Chocoladefabriken Lindt & Spruengli AG SIX:LISN	26.4B CHF	Loading...

Market Distribution

Min	-4 087 900%
30th Percentile	-5.1%
Median	6%
70th Percentile	14.8%
Max	1 032 600%

Other Profitability Ratios

Pilgrims Pride Corp
Glance View

Economic Moat

None

Market Cap

9.8B USD

Industry

Food Products

Pilgrim’s Pride Corporation began its journey in the heartland of American agricultural prowess, establishing itself as a significant player in the global food sector. Emerging from its humble roots, the company evolved into one of the largest poultry producers in the world. Pilgrim’s operations span the entire poultry production process, from breeding to distribution, showcasing an impressive vertically integrated model. This comprehensive approach allows the company to exercise significant control over its supply chain, providing a consistent and quality product while optimizing cost efficiencies. Pilgrim’s Pride processes millions of chickens weekly, supplying fresh, frozen, and value-added poultry products to a diverse range of customers, including major retailers, foodservice distributors, and restaurants across the globe. The company’s strategic focus on operational efficiency and product innovation keeps it competitive in the crowded meat production market. Pilgrim's Pride generates revenue by leveraging its extensive portfolio of branded and private label offerings. This portfolio includes premium fresh chicken, prepared foods, and additional protein sources, such as pork, through its acquisition of multiple processing facilities worldwide. By catering to varying consumer preferences and maintaining rigorous safety and quality standards, Pilgrim's successfully taps into both domestic and international markets. Their ability to adapt to changing consumer trends, alongside vast distribution capabilities, sustains their business model, making them a formidable name in the poultry industry.

View PPC Analysis

PPC Intrinsic Value

Undervaluation 20%

Intrinsic Value

Price

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

Pilgrims Pride Corp
NASDAQ:PPC

Peer Comparison

Market Distribution

Other Profitability Ratios

Pilgrims Pride Corp
Glance View

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Pilgrims Pride Corp NASDAQ:PPC