(SFD) Smithfield Foods Common - Ratings and Ratios

Smithfield Foods, Inc. (NASDAQ:SFD) is a leading global food company with a diversified portfolio spanning packaged meats, fresh pork, and hog production. As one of the largest pork processors and hog producers in the world, Smithfield operates across the entire value chain, from raising hogs to processing and distributing a wide range of meat products. Its Packaged Meats segment transforms fresh pork into consumer-ready products like bacon, sausages, and ham, sold under well-known brands such as Smithfield, Eckrich, and Nathans Famous, as well as private labels. This segment serves both retail and foodservice markets in the U.S., ensuring broad distribution and brand recognition.

Smithfields Fresh Pork segment focuses on producing primal cuts like bellies, loins, and hams, which are sold to retailers, foodservice providers, and industrial customers. A significant portion of its fresh pork is also exported to key markets such as China, Mexico, Japan, and South Korea, highlighting the companys global reach. The Hog Production segment is vertically integrated, with Smithfield owning farms in the U.S. and Mexico, as well as contracting with third-party farmers. This vertical integration provides cost efficiencies and ensures a stable supply of hogs for its processing operations. Additionally, the company generates revenue by selling grains produced as a byproduct of its hog farming activities.

Beyond its core meat business, Smithfield has a bioscience division that leverages hog byproducts to produce pharmaceutical-grade heparin, an anticoagulant used to prevent blood clots. This diversification into bioscience adds a high-margin revenue stream and underscores the companys commitment to maximizing the value of its raw materials. Founded in 1936 and headquartered in Smithfield, Virginia, the company is a subsidiary of SFDS UK Holdings Limited. With a market capitalization of approximately $8.35 billion, Smithfield Foods operates at a scale that allows it to negotiate favorable terms with suppliers and customers alike. Its current P/E ratio of 19.30 reflects its stable earnings and growth prospects in the food and agriculture sectors.