SFD

Smithfield Foods, Inc.

Fundamental data last updated:October 12, 2026

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company profile

SECTOR

Consumer Defensive

industry

Agricultural Farm Products

Exchange

NASDAQ

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

Smithfield Foods, Inc. manufactures and markets packaged meats and fresh pork in the United States and internationally. Its Packaged Meats segment processes fresh meat into various packaged meats products, including bacon, sausage, hot dogs, deli and lunch meats, dry sausage products, ham products, ready-to-eat products, and prepared foods, such as pre-cooked entrees, bacon, and sausage to retail and foodservice customers in the United States. This segment markets its packaged meats products under the Smithfield, Eckrich, Nathan's Famous, Farmland, Armour, Farmer John, Kretschmar, Krakus, John Morrell, Cook's, Gwaltney, Carando, Margherita, Curly's, and Smithfield Culinary brands, as well as under private labels. The company's Fresh Pork segment process live hogs into a variety of primal, sub-primal, and offal products, such as bellies, butts, hams, loins, picnics, and ribs. This segment sells its fresh pork products to retail, foodservice and industrial customers, as well as to export markets, including China, Mexico, Japan, South Korea, and Canada. Its Hog Production segment produces and raises its hogs on various company-owned farms and farms that are owned and operated by third-party contract farmers in the United States and Mexico. The Hog Production segment also sells grains to external customers. The company's bioscience operations use raw materials from hogs that process to manufacture heparin products, including an active pharmaceutical ingredient that mitigates the risk of blood clots. The company was founded in 1936 and is based in Smithfield, Virginia. Smithfield Foods, Inc. is a subsidiary of SFDS UK Holdings Limited.

 


VALUATION

P/E

10.18

Market Cap ($M USD)

$10.26B

Forward P/E

9.80

PEG

2.53

PRICE TO SALES

0.66

PRICE TO BOOK

1.49

EV / EBITDA

7.18

5-Year Average P/E

Free Cash Flow Yield

7.94%

DCF Value

$99.70

Graham Number

$31.73

Price to FCF

12.60

EV to FCF

13.83

Earnings Yield

9.82%

FCF Yield

7.94%

DIVIDEND

Yield

4.31%

Annual Payout

$1.13

Payout Ratio

39.29%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$2.56

Next Year EPS Growth Estimate

$2.66

Next Year Revenue Growth Estimate

$16.31B

Return on Equity (ROE)

15.25%

FREE CASH FLOW

Operating Margin

8.62%

Debt-to-Equity

0.35

Piotroski F-Score

6

Altman Z-Score

3.70

Return on Invested Capital (ROIC)

13.52%

Current Ratio

2.41

Quick Ratio

1.29

Net Debt to EBITDA

0.64

Interest Coverage

35.29

Gross Profit margin

13.44%

FCF PER SHARE

$2.07

REVENUE PER SHARE

$39.56

Gainseekers Quantitative Analysis

Summary

The market appears to be significantly undervaluing Smithfield Foods, Inc. Based on the data at the time of this analysis, the stock traded well below its DCF value and Graham Number, suggesting a potential deep value opportunity. With a Forward P/E of 9.75 and an Earnings Yield of 9.88%, the company offers an attractive valuation relative to its earnings potential. The Altman Z-score of 3.68 indicates financial stability, reducing the risk of distress. Overall, the combination of these metrics suggests a robust financial health and a potential mispricing by the market.

AI Exposure / Tech Reliance

Operating within the Consumer Defensive sector, Smithfield Foods is well-positioned to leverage AI and modern technology to optimize its supply chain and enhance operational efficiency. The agricultural farm products industry can benefit from AI-driven analytics to improve yield predictions and inventory management. This adaptability could provide a competitive edge in an increasingly tech-driven market landscape.

The Bull Case

For the value or GARP investor, Smithfield Foods presents a compelling case. With a ROIC of 13.52%, the company demonstrates efficient capital allocation, generating solid returns on invested capital. The FCF Yield of 7.98% indicates strong cash generation relative to its market cap, while a Piotroski F-Score of 6 suggests decent financial health. Coupled with an operating margin of 8.62%, these metrics highlight the company's pricing power and operational efficiency, making it an attractive investment.

The Bear Case

Despite its strengths, Smithfield Foods faces structural risks. The PEG Forward ratio of 2.51 raises concerns about growth relative to its valuation, suggesting the stock might be overvalued in terms of growth expectations. Additionally, the Price/Book ratio of 1.49 and Price/Sales ratio of 0.66 indicate that the market might be pricing in optimistic future growth, which could be risky if not realized. The stock's proximity to its 52-week high further suggests potential overextension, warranting caution.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$32.00

Institutional Ownership %

1-Year Beta

-0.54

Insider Buying % (6 Mo)

Distance to 52-Week High

14.24%

Distance to 52-Week Low

19.20%

EARNINGS SURPRISE %

10.34%

50-DAY SMA

$26.85

200-DAY SMA

$24.14

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.