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BRF SA (BRFS)
NYSE:BRFS
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BRF SA
(NYSE:BRFS)
72Outperform
BRF SA (BRFS) vs. S&P 500 (SPY)
Market Cap
$5.61B
Dividend Yield2.67%
Average Volume (3M)1.88M
Price to Earnings (P/E)9.6
Beta (1Y)0.45
Revenue Growth5.85%
EPS GrowthN/A
CountryUS
Employees100,000
SectorConsumer Cyclical
Sector Strength61
IndustryPackaged Foods
Share Statistics
EPS (TTM)0.36
Shares Outstanding1,082,473,300
10 Day Avg. Volume1,392,311
30 Day Avg. Volume1,882,648
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)2.33
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$4.98Price Target Upside51.83% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
BRF SA Business Overview & Revenue Model
Company DescriptionBRF S.A. is a leading global food company based in Brazil, primarily engaged in the production and sale of fresh and frozen protein products. The company's core offerings include poultry, pork, and beef, as well as processed foods such as margarine, pasta, and ready-to-eat meals. Operating in both domestic and international markets, BRF S.A. is recognized for its strong brand portfolio and commitment to quality and sustainability in the food industry.
How the Company Makes MoneyBRF S.A. generates revenue through the sale of its diverse range of protein and processed food products. The company's key revenue streams include fresh and frozen poultry, pork, and beef products, which are sold to retail, foodservice, and industrial customers worldwide. In addition to its protein offerings, BRF also earns income from its processed food segment, which includes branded products like margarine, pasta, and ready-to-eat meals. The company's earnings are further supported by its strategic partnerships and extensive distribution network that enhance market access and operational efficiency. BRF's focus on innovation, quality, and sustainability also plays a crucial role in maintaining its competitive edge and driving revenue growth.
BRF SA Financial Statement Overview
Summary
BRF SA exhibits strong financial performance with notable improvements in revenue growth and profitability. The company has effectively managed its leverage and improved its cash flow generation. However, continued focus is needed on improving return on equity and maintaining leverage ratios for long-term stability.Income Statement
BRF SA shows strong revenue growth, with a significant increase in total revenue from the previous year. The gross profit margin has improved, indicating better cost management. The net profit margin has turned positive, reflecting enhanced profitability. The EBIT and EBITDA margins have also improved, showcasing increased operational efficiency.78
Positive
Balance Sheet
The balance sheet shows improvement in the debt-to-equity ratio, which has decreased, indicating better leverage management. However, the return on equity, although positive, still reflects room for growth. The equity ratio has improved, reflecting a stronger capital base.65
Positive
Cash Flow
Operating cash flow has significantly increased, leading to a strong free cash flow growth. The ratio of operating cash flow to net income is favorable, indicating efficient cash generation from operations. The free cash flow to net income ratio also highlights strong cash flow relative to earnings.82
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 61.38B | 53.62B | 53.81B | 48.34B | 39.47B | Gross Profit |
| 15.84B | 8.83B | 8.13B | 10.17B | 9.47B | EBIT |
| 6.63B | 487.66M | 484.11M | 3.01B | 2.85B | EBITDA |
| 9.13B | 4.13B | 3.42B | 4.85B | 5.55B | Net Income Common Stockholders |
| 3.21B | -2.03B | -3.09B | 419.45M | 1.52B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 12.06B | 9.71B | 8.55B | 7.88B | 7.89B | Total Assets |
| 62.68B | 57.27B | 57.85B | 55.90B | 49.66B | Total Debt |
| 24.73B | 23.82B | 26.56B | 27.94B | 24.94B | Net Debt |
| 13.57B | 14.55B | 18.43B | 20.41B | 17.36B | Total Liabilities |
| 46.18B | 41.63B | 46.03B | 47.08B | 40.85B | Stockholders Equity |
| 15.09B | 14.92B | 11.27B | 8.46B | 8.59B |
| Cash Flow | Free Cash Flow | |||
| 8.51B | 1.52B | 194.92M | 2.19B | 3.52B | Operating Cash Flow |
| 10.78B | 3.94B | 1.88B | 3.92B | 4.42B | Investing Cash Flow |
| -3.50B | -2.11B | -3.26B | -3.55B | -1.43B | Financing Cash Flow |
| -6.73B | -861.84M | 2.26B | -572.48M | -587.04M |
BRF SA Technical Analysis
Negative
3.28
Price Trends
3.43
Negative
3.80
Negative
3.97
Negative
Market Momentum
0.02
Negative
57.38
Neutral
53.53
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BRFS, the sentiment is Negative. The current price of 3.28 is below the 20-day moving average (MA) of 3.37, below the 50-day MA of 3.43, and below the 200-day MA of 3.97, indicating a bearish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 57.38 is Neutral, neither overbought nor oversold. The STOCH value of 53.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BRFS.
BRF SA Risk Analysis
BRF SA disclosed 64 risk factors in its most recent earnings report. BRF SA reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
BRF SA Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $11.85B | 10.94 | 28.70% | ― | 2.93% | 237.51% | |
75 Outperform | $6.67B | 19.76 | 10.01% | ― | 7.32% | 34.44% | |
72 Outperform | $5.61B | 9.62 | 21.60% | 2.67% | 5.85% | ― | |
71 Outperform | $17.29B | 22.82 | 9.54% | 3.70% | -1.84% | -5.14% | |
70 Outperform | $12.78B | 39.19 | 3.67% | 5.25% | -3.15% | -65.38% | |
61 Neutral | $12.25B | 22.22 | -3.55% | 3.73% | 7.07% | -181.54% | |
59 Neutral | $11.22B | 10.13 | -1.22% | 3.96% | 1.32% | -18.57% |
* Consumer Cyclical Sector Average
Performance Comparison
BRFS
BRF SA
3.28
-0.01
-0.30%
CAG
Conagra Brands
26.68
-3.12
-10.47%
HRL
Hormel Foods
30.74
-3.13
-9.24%
SJM
JM Smucker
115.16
3.60
3.23%
PPC
Pilgrim's Pride
49.97
18.74
60.01%
POST
Post Holdings
117.52
15.54
15.24%
BRF SA Earnings Call Summary
Earnings Call Date: Feb 26, 2025 | % Change Since: -0.91% | Next Earnings Date: May 15, 2025
Earnings Call Sentiment Positive
The earnings call highlighted BRF's record-breaking financial performance in 2024, driven by efficiency improvements and strong market execution. Despite some cost challenges and exchange rate impacts, the company is well-positioned for continued growth. The overall outlook is positive, with a focus on capturing new market opportunities and sustaining operational efficiencies.Highlights
Record-Breaking EBITDA
BRF reported an EBITDA of BRL10.5 billion in 2024, marking the highest in its history and more than double the performance of the previous year.
Strong Net Revenue Growth
Net revenue reached BRL61.4 billion, a 14% increase from 2023, driven by efficiency gains and market share growth.
Improved Financial Position
Leverage reduced to 0.75 times EBITDA from 2 times in 2023, with a record free cash flow of BRL6.5 billion.
International Market Success
The international segment achieved an EBITDA margin exceeding 20%, with strong performance in Turkiye and the Gulf area.
Sustainability Achievements
BRF reached 100% traceability of grain suppliers, reduced water consumption by over 11%, and met 50% of electricity needs from renewable sources.
Increased Market Share
BRF gained market share in value-added products and maintained leadership in the Brazilian Christmas season products.
Lowlights
Non-Recurrent Cost Impact
The fourth quarter saw non-recurrent costs related to profit sharing and variable compensation, impacting margins.
Potential Cost Challenges in 2025
The company anticipates a challenging cost scenario in 2025 due to inflation and cost pressures.
Exchange Rate and Price Variability
Exchange rates affected international pricing, and poultry prices saw some decreases in certain regions.
Company Guidance
During the fiscal year 2024 teleconference, BRF reported its most successful financial performance to date, with key metrics highlighting significant growth and efficiency improvements. The company achieved a record EBITDA of BRL 10.5 billion, more than doubling the previous year's performance. Net revenue rose by 14% to BRL 61.4 billion, while net profit reached BRL 3.7 billion. Free cash flow was recorded at an all-time high of BRL 6.5 billion. The company also managed to reduce its leverage, achieving a ratio of 0.75 times EBITDA compared to 2 times in 2023. BRF's operational efficiency was evident in the reduction of feed conversion rates for poultry and pigs by 2.1% and 1%, respectively, and an increase in manufacturing yield by 1.5% and 2.4%. Additionally, the international segment saw an EBITDA margin exceeding 20%, bolstered by strong performance in regions like Turkiye and the Gulf area. The company continued to focus on sustainability and social responsibility, with notable achievements such as a reduction of over 11% in water consumption and 50% of electricity sourced from renewables. BRF's strategic direction and operational improvements set a strong foundation for continued growth in 2025.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.