JBS S.A. Fundamental Analysis
JBS S.A. (JBSAY) shows moderate financial fundamentals with a PE ratio of 12.70, profit margin of 2.29%, and ROE of 19.50%. The company generates $543.5B in annual revenue with moderate year-over-year growth of 5.85%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 36.6/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze JBSAY's fundamental strength across five key dimensions:
Efficiency Score
ExcellentJBSAY demonstrates superior asset utilization.
Valuation Score
ExcellentJBSAY trades at attractive valuation levels.
Growth Score
ExcellentJBSAY delivers strong and consistent growth momentum.
Financial Health Score
ModerateJBSAY shows balanced financial health with some risks.
Profitability Score
ModerateJBSAY maintains healthy but balanced margins.
Key Financial Metrics
Is JBSAY Expensive or Cheap?
P/E Ratio
JBSAY trades at 12.70 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, JBSAY's PEG of 0.02 indicates potential undervaluation.
Price to Book
The market values JBS S.A. at 9.34 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 6.44 times EBITDA. This is generally considered low.
How Well Does JBSAY Make Money?
Net Profit Margin
For every $100 in sales, JBS S.A. keeps $2.29 as profit after all expenses.
Operating Margin
Core operations generate 4.70 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $19.50 in profit for every $100 of shareholder equity.
ROA
JBS S.A. generates $14.80 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
JBS S.A. generates limited operating cash flow of $13.78B, signaling weaker underlying cash strength.
Free Cash Flow
JBS S.A. generates weak or negative free cash flow of $2.71B, restricting financial flexibility.
FCF Per Share
Each share generates $1.22 in free cash annually.
FCF Yield
JBSAY converts 0.86% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
12.70
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.02
vs 25 benchmark
P/B Ratio
Price to book value ratio
9.34
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.58
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.53
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.54
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.19
vs 25 benchmark
ROA
Return on assets percentage
0.15
vs 25 benchmark
ROCE
Return on capital employed
0.40
vs 25 benchmark
How JBSAY Stacks Against Its Sector Peers
| Metric | JBSAY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 12.70 | 21.43 | Better (Cheaper) |
| ROE | 19.50% | 1134.00% | Weak |
| Net Margin | 2.29% | -2810.00% (disorted) | Weak |
| Debt/Equity | 2.53 | 0.81 | Weak (High Leverage) |
| Current Ratio | 1.54 | 2.39 | Neutral |
| ROA | 14.80% | -540348.00% (disorted) | Strong |
JBSAY outperforms its industry in 2 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews JBS S.A.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-54.66%
Industry Style: Defensive, Dividend, Low Volatility
DecliningEPS CAGR
-65.02%
Industry Style: Defensive, Dividend, Low Volatility
DecliningFCF CAGR
-63.09%
Industry Style: Defensive, Dividend, Low Volatility
Declining