>>raising their 4th QTR outlook because of favorable grain prices.
I thought higher grain prices were part of the problem Tyson and Sanderson faced recently:
Shares of Tyson fell $1.47 to close at $16.26.
The fourth quarter will be "more difficult, primarily due to unfavorable results from grain hedging activity, combined with weaker than expected demand in our chicken and beef segments," said Chief Executive John Tyson. Additionally, raw material costs for our prepared foods products did not decline as we expected."
The warning and stock drop came less than a week after competitor Sanderson Farms (SAFM: news, chart, profile) was hammered when it missed Wall Street profit estimates and warned of higher grain costs and sagging chicken prices.
marketwatch.com
I didn't see any mention of this in your link on Pilgrim; it read to me as an insurance benefit re: some deli meat recalls. Regardless, I've been long SAFM a few weeks now, mainly based on its fundies. It stacks up well vs. its competition in growth, margins, and valuation:
finance.yahoo.com
SAFM VALUATION MEASURES
Market Cap (intraday): 661.54M
Enterprise Value (18-Oct-04)³: 591.91M
Trailing P/E (ttm, intraday): 6.19
Forward P/E (fye 31-Oct-05)¹: 7.81
PEG Ratio (5 yr expected)¹: N/A
Price/Sales (ttm): 0.63
Price/Book (mrq): 2.31
Enterprise Value/Revenue (ttm)³: 0.56
Enterprise Value/EBITDA (ttm)³: 2.93
FINANCIAL HIGHLIGHTS
Fiscal Year
Fiscal Year Ends: 31-Oct
Most Recent Quarter (mrq): 31-Jul-04
Profitability
Profit Margin (ttm): 10.20%
Operating Margin (ttm): 16.82%
Management Effectiveness
Return on Assets (ttm): 32.57%
Return on Equity (ttm): 47.05%
Income Statement
Revenue (ttm): 1.05B
Revenue Per Share (ttm): 52.61
Revenue Growth (lfy)³: 17.30%
Gross Profit (ttm)²: 130.82M
EBITDA (ttm): 202.18M
Net Income Avl to Common (ttm): 106.87M
Diluted EPS (ttm): 5.358
Earnings Growth (lfy)³: 87.50%
Balance Sheet
Total Cash (mrq): 84.18M
Total Cash Per Share (mrq): 4.22
Total Debt (mrq)²: 15.55M
Total Debt/Equity (mrq): 0.054
Current Ratio (mrq): 3.606
Book Value Per Share (mrq): 14.372
Cash Flow Statement
From Operations (ttm)³: 117.18M
Free Cashflow (ttm)³: 96.98M
VALUATION MEASURES
Market Cap (intraday): 661.54M
Enterprise Value (18-Oct-04)³: 591.91M
Trailing P/E (ttm, intraday): 6.19
Forward P/E (fye 31-Oct-05)¹: 7.81
PEG Ratio (5 yr expected)¹: N/A
Price/Sales (ttm): 0.63
Price/Book (mrq): 2.31
Enterprise Value/Revenue (ttm)³: 0.56
Enterprise Value/EBITDA (ttm)³: 2.93
FINANCIAL HIGHLIGHTS
Fiscal Year
Fiscal Year Ends: 31-Oct
Most Recent Quarter (mrq): 31-Jul-04
Profitability
Profit Margin (ttm): 10.20%
Operating Margin (ttm): 16.82%
Management Effectiveness
Return on Assets (ttm): 32.57%
Return on Equity (ttm): 47.05%
Income Statement
Revenue (ttm): 1.05B
Revenue Per Share (ttm): 52.61
Revenue Growth (lfy)³: 17.30%
Gross Profit (ttm)²: 130.82M
EBITDA (ttm): 202.18M
Net Income Avl to Common (ttm): 106.87M
Diluted EPS (ttm): 5.358
Earnings Growth (lfy)³: 87.50%
Balance Sheet
Total Cash (mrq): 84.18M
Total Cash Per Share (mrq): 4.22
Total Debt (mrq)²: 15.55M
Total Debt/Equity (mrq): 0.054
Current Ratio (mrq): 3.606
Book Value Per Share (mrq): 14.372
Cash Flow Statement
From Operations (ttm)³: 117.18M
Free Cashflow (ttm)³: 96.98M
finance.yahoo.com |
