| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 95 | 7.6x | 17.8x | Top tier | |
Growth | 39 | 4.3% | 7.1% | Bottom tier | |
Quality | 51 | 11.6% | 4.5% | Around median | |
Safety | 82 | 0.6x | 2.6x | Top tier | |
Capital Return | 71 | 4.94% | 2.12% | Top tier | |
Momentum | 26 | -2.3% | 2.9% | Bottom tier | |
Sentiment | 37 | 4 | 3 | Bottom tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Smithfield Foods operates through a vertically integrated model combining Packaged Meats, Fresh Pork, and Hog Production. Packaged Meats is the primary earnings driver, relying on brands such as Smithfield, Eckrich, Nathan's Famous, and Prime Fresh, and on a mix of branded and private-label products and retail and foodservice channels; meanwhile, the Fresh Pork business seeks to maximize the value of each animal through retail, exports, pharmaceuticals, and pet food, while Hog Production supplies part of the requirements and supports cost control.
In fiscal 2026 Q2, consolidated revenue was $3.7 billion, down 2.3% year over year, and gross profit according to EDGAR filings was approximately $478 million, equivalent to a gross margin of about 12.9%, while net income was $238 million and earnings per share were $0.60. On an adjusted basis, the company achieved a record second-quarter operating profit of $300 million, with adjusted operating margin rising to 8.1% from 7.9%, while adjusted net income increased 13% to $245 million and adjusted earnings per share rose 13% to $0.62.
Packaged Meats sales were $2 billion and generated operating profit of $265 million and a margin of 13.1%, confirming the segment's importance to earnings despite a 5.5% volume decline. Fresh Pork sales were $2 billion, but operating profit was limited to $14 million at a margin of 0.7%, while Hog Production recorded sales of $772 million and operating profit of $64 million, up $42 million year over year. For the twelve months ended in fiscal 2026, EDGAR data showed revenue of $15.6 billion, net income of $1 billion, and earnings per share of approximately $2.56.
Automated analysis for informational purposes only — not investment advice.
The average analyst target is $31.50, within a narrow range of $31 to $32, and the consensus rating is “Buy”; the average target is also above the 52-week range high of $29.805, while the range low is $21.08. No reported price-to-earnings multiple is available in the data, so the valuation assessment is based on analyst targets and earnings per share of approximately $2.56 for the twelve months ended in fiscal 2026, balanced against the reduced revenue outlook, Fresh Pork margin pressures, and hog prices.
Figures in the text are as of 2026-08-30; the live price is shown at the top of the page.
Packaged Meats remains the primary earnings driver, generating operating profit of $265 million and a margin of 13.1% in fiscal 2026 Q2. Segment sales were $2 billion, despite a 5.5% decline in volumes and a 2.9% increase in average selling price. The Smithfield, Eckrich, Nathan's Famous, and Prime Fresh brands support this business across retail, foodservice, and private-label channels. Management expects the segment to remain highly profitable and lead growth in fiscal 2026 Q4.
Management lowered its sales growth outlook from a low-single-digit rate to approximately flat because of consumer caution and continued inflation affecting demand and inputs. It also assumed weaker commodity markets, particularly in Hog Production and, to a lesser extent, Fresh Pork. The consolidated adjusted operating profit range for fiscal 2026 is now $1.225–$1.375 billion, while the Packaged Meats range is $1.075–$1.15 billion. The company set the Fresh Pork range at $180–$240 million and Hog Production at $75–$125 million.
Prime Fresh volume increased 18.4% in fiscal 2026 Q2, supported by a 24.3% increase in its distribution points and the addition of Prime Fresh Pepperoni & Salami. Nathan's Grass Fed was launched on May 1, 2026, and ended the quarter as the leading product in the grass-fed beef hot dog category, with penetration exceeding 40%. Volume of value-added prepared and seasoned fresh meats also increased 4% following the launch of Smithfield Meal Ready Cuts in April 2026. Across digital channels, the company's e-commerce volume rose 21.7%, and its volume share increased in 22 of 25 categories.
Net debt to adjusted EBITDA was 0.4 times at the end of fiscal 2026 Q2, compared with an internal policy targeting a level below 2 times. Liquidity was $3.6 billion, including $1.4 billion in cash and cash equivalents, compared with a cash policy threshold of $1 billion. The business generated $204 million in operating cash flow in the first half of fiscal 2026, compared with $108 million in the same period of the previous year. Operating cash flow also exceeded $1.1 billion during the twelve months ended in that quarter.
The primary risk is hog price volatility because management stated that the segment's results in the second half of fiscal 2026 will be determined largely by market prices. The segment generated $64 million in operating profit in Q2, compared with $22 million a year earlier, benefiting from a 9% increase in the average selling price, including the impact of hedging. However, the futures curve used by the company indicated prices 3% to 8% below fiscal 2025 and a decline of approximately 13% in fiscal 2026 Q4. Management therefore expects profitability to slow in Q3 and the segment to record a loss in Q4 despite improvements in herd health, feed efficiency, and cost structure.
Smithfield expects to complete the transaction in the second half of fiscal 2026, but closing remains subject to CFIUS review and customary closing conditions. If completed, it will secure the company's long-term rights to the Nathan's Famous brand and support its growth in retail and foodservice. The brand has clear operating momentum, as Nathan's Grass Fed became the leading product in its category during fiscal 2026 Q2 and its penetration exceeded 40%. Nevertheless, the transaction's benefits should not be treated as certain before the stated review and conditions are satisfied.
