Smithfield Foods, Inc. (SFD) AI Stock Analysis

Smithfield Foods, Inc. produces packaged meats and fresh pork products across the United States and internationally. It operates through four segments: Packaged Meats, Fresh Pork, Hog Production, and Other. Packaged Meats processes fresh meat into items like bacon, sausage, hot dogs, deli meats, and prepared foods under brands including Smithfield, Eckrich, Nathan's Famous, and Farmland. Fresh Pork processes live hogs into primal and sub-primal cuts for domestic customers and export markets such as China and Mexico. Hog Production raises hogs on company-owned and contract farms, while the Other segment includes bioscience operations manufacturing heparin products.

Revenue expanded from $15.01B in FY2021 to $15.53B in FY2025, representing a 5-year revenue CAGR of 1.5% from FY2015 to FY2025. After dipping to $14.64B in FY2023 with an operating margin of -0.4%, profitability improved as operating margins reached 7.9% in FY2024 and 8.3% in FY2025. Net income was $987.0M in FY2025, compared to $17.0M in FY2023. Over the trailing twelve months, revenue totaled $15.47B, operating margin stood at 8.4%, and diluted EPS was $2.69. For the quarter ended June 30, 2026, revenue fell 2.3% year-over-year, while quarterly earnings grew 25.5%.

As of June 30, 2026, Smithfield Foods held $1.35B in cash and short-term investments against $2.40B in total debt, resulting in net debt of $1.05B. Shareholders' equity was $7.00B, supporting a debt-to-equity ratio of 0.34 and a current ratio of 2.56. During FY2025, the company delivered $1.06B in operating cash flow and $718.0M in free cash flow. Cash deployment in FY2025 included $341.0M in capital expenditures and $396.0M paid in dividends.

At a share price of $18.64, Smithfield Foods holds an enterprise value of $8.51B and trades at a trailing P/E of 6.9x and a forward P/E of 10.5x, below the median of its US-listed Consumer Defensive peers of 18.6x and 14.3x, respectively. Its EV-to-EBITDA stands at 5.0x, compared to the peer median of 11.7x, while its price-to-sales multiple is 0.5x compared to 0.7x for peers. Over the past year, the stock declined 9.9%, trailing the S&P 500 (SPY) return of 16.8%.

Smithfield Foods pays a quarterly dividend totaling an annualized $1.25 per share, representing a forward dividend yield of 6.71%. The payout ratio is 44.5%, supported by $718.0M in FY2025 free cash flow. The company has paid dividends for 2 consecutive years, with the last ex-dividend date on August 13, 2026.

Wall Street coverage includes 3 Strong Buy, 1 Buy, and 3 Hold ratings. The mean price target is $24.93, indicating 33.7% upside relative to the last close of $18.64. For the fiscal year ending December 31, 2026, consensus expectations project revenue of $15.46B and EPS of $2.13, which represents a 16.6% decline. Smithfield Foods beat EPS estimates in each of the last 4 quarters, and the next earnings date is October 27, 2026.

This page is an AI-written research summary of Smithfield Foods, Inc. (SFD). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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