SMITHFIELD FOODS INC
- Open
- 21.96
- Day high
- 22.00
- Day low
- 21.86
- Prev close
- 21.94
- Volume
- 1.4M
- Mkt cap
- $8.6B
- P/E (TTM)
- 8.1
- EPS (TTM)
- $2.69
- P/B
- 1.2
- P/S
- 0.6
- Yield
- 4.28%
- Per share
- $0.94
- ▼Insiders net selling -$4.4M over the last 3 months (0 open-market buys, 3 sales)
- 🏛Institutions accumulating (13F)
SMITHFIELD FOODS INC (SFD) is a Consumer Defensive company listed on NASDAQ. The stock is down 14% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 3 sales (SEC Form 4). Drillr has 1 published research article covering SFD.
SMITHFIELD FOODS INC (SFD) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 2 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
SFD earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Aug 11, 2026 | $0.60 | $0.62 | +3.5% | $3.7B | +1.4% |
| Apr 28, 2026 | $0.58 | $0.64 | +10.3% | $3.8B | +2.6% |
| Mar 24, 2026 | $0.68 | $0.83 | +22.8% | $4.2B | +1.9% |
| Aug 12, 2025 | $0.55 | $0.55 | +0.5% | $3.8B | +4.6% |
| Mar 25, 2025 | $0.53 | $0.52 | -1.9% | $14.1B | +260.6% |
| Nov 27, 2024 | — | $0.52 | — | $3.3B | — |
| Dec 31, 2023 | — | $0.01 | — | $14.6B | — |
| Oct 26, 2016 | — | $143800.00 | — | $3.5B | — |
| Aug 16, 2016 | — | $137800.00 | — | $3.5B | — |
| Apr 28, 2016 | — | $0.31 | — | $3.3B | — |
| Oct 28, 2015 | — | $0.21 | — | $3.4B | — |
| Aug 12, 2015 | — | $0.27 | — | $3.5B | — |
SFD insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jun 16, 2026 | France Stevenofficer: President, Packaged Meats | Sell | 82,825 | $26.82 |
| Jun 16, 2026 | France Stevenofficer: President, Packaged Meats | Option | 82,825 | $23.76 |
| Jun 16, 2026 | Starling Raymond Adirector | Sell | 3,960 | $26.77 |
| Jun 11, 2026 | Hall Mark L.officer: Chief Financial Officer | Sell | 78,579 | $26.36 |
| Jun 11, 2026 | Hall Mark L.officer: Chief Financial Officer | Option | 78,579 | $20.00 |
| Jun 9, 2026 | France Stevenofficer: President, Packaged Meats | Tax | 14,028 | $23.76 |
| Jun 9, 2026 | Checkovich Tennille J.officer: Chief Legal Officer | Tax | 708 | $23.65 |
| Jun 9, 2026 | Sutton Dougofficer: Chief Manufacturing Officer | Tax | 10,684 | $23.76 |
| Jun 9, 2026 | France Stevenofficer: President, Packaged Meats | Grant | 93,305 | — |
| Jun 9, 2026 | Owens Donovanofficer: President, North America Pork | Grant | 78,637 | — |
| Jun 9, 2026 | He Hank Shenghuadirector | Tax | 11,780 | $23.76 |
| Jun 9, 2026 | Smith Charles Shanedirector, officer: President & CEO | Tax | 21,978 | $23.76 |
| Jun 9, 2026 | Bennett Isham Jayofficer: Chief Human Resources Officer | Tax | 1,632 | $23.76 |
| Jun 9, 2026 | Watts Keller D.officer: Chief Business Officer | Tax | 10,684 | $23.76 |
| Jun 9, 2026 | He Hank Shenghuadirector | Grant | 78,353 | — |
Source: SFD SEC Form 4 filings, latest Jun 16, 2026. For informational purposes only — not investment advice.
See the full SFD insider & 13F page →SMITHFIELD FOODS INC company profile
Overview
Smithfield Foods, Inc. (NYSE:SFD) is one of the largest pork processors and producers in the United States, founded in 1936 and headquartered in Smithfield, Virginia. The company has evolved from a regional meat packer into a vertically integrated protein company that raises hogs, processes fresh pork, and manufactures packaged meat products. Smithfield operates as a subsidiary of SFDS UK Holdings Limited and went public in January 2025. The company has undergone significant strategic transformation in recent years, shifting from commodity-focused operations toward higher-margin value-added products while reducing its internal hog production capacity.
Business
Smithfield Foods operates in the meat processing and protein production industry, which involves converting live animals into food products for retail and foodservice customers. The company's business is organized into three primary segments that represent different stages of the meat production value chain. The Packaged Meats segment represents approximately 59% of total revenue and processes fresh meat into branded consumer products including bacon, sausage, hot dogs, deli and lunch meats, dry sausage products, ham products, and ready-to-eat prepared foods. These products are sold under well-known brands such as Smithfield, Eckrich, Nathan's Famous, Farmland, Armour, Farmer John, and others, as well as private label products for retailers. This segment serves both retail grocery stores and foodservice establishments like restaurants and institutions. The Fresh Pork segment accounts for approximately 56% of revenue and processes live hogs into various cuts of fresh pork including bellies (used for bacon), butts, hams, loins, picnics, and ribs. These products are sold to retail customers, foodservice operators, industrial food manufacturers, and export markets including China, Mexico, Japan, South Korea, and Canada. Fresh pork represents the commodity portion of the business with lower margins than packaged products. The Hog Production segment generates about 7% of revenue and involves raising live hogs on company-owned farms and through contracts with third-party farmers in the United States and Mexico. This segment also includes grain sales to external customers. The company has been strategically reducing its hog production capacity from 17.6 million hogs in 2019 to an expected 11.5 million in 2025, targeting 30% vertical integration in the medium term. Additionally, Smithfield operates bioscience operations that use raw materials from hog processing to manufacture heparin products, including active pharmaceutical ingredients used to prevent blood clots in medical applications.
Revenue model
Smithfield Foods generates revenue primarily through product sales across its three business segments, with different margin profiles and customer bases for each segment. The Packaged Meats segment operates on a branded consumer goods model, selling value-added products to retail grocery chains and foodservice customers. This segment commands premium pricing due to brand recognition, convenience, and product differentiation, generating operating margins around 13%. Revenue drivers include brand strength, product innovation, distribution expansion, and the ability to pass through input cost increases to customers. The segment benefits from consumer preference for convenient, ready-to-eat products but faces pressure from private label competition and consumer trading down during economic stress. The Fresh Pork segment operates as a commodity business, selling fresh meat cuts to various customers including retailers, foodservice operators, food manufacturers, and export markets. Operating margins are typically lower at around 4% due to the commodity nature of the products and competitive pricing. Revenue is heavily influenced by hog prices, processing capacity utilization, and export demand, particularly from key markets like China. The segment benefits from strong export demand but is vulnerable to trade tensions, currency fluctuations, and global supply-demand imbalances. The Hog Production segment generates revenue through live hog sales to external customers and internal transfer to the company's processing facilities, plus grain sales. This segment has been the most volatile, experiencing significant losses during oversupply periods. Profitability depends heavily on feed costs (primarily corn and soybean meal), hog market prices, disease management, and operational efficiency. The company's strategy to reduce internal production aims to minimize exposure to this cyclical segment. Factors that increase margins include successful product mix optimization toward higher-value packaged products, operational efficiency improvements, favorable commodity cost environments, strong export demand, and effective brand management. Margin pressures come from rising feed costs, labor inflation, increased competition, trade disruptions, disease outbreaks, consumer trading down to lower-priced alternatives, and regulatory compliance costs.
Competitive moat
Smithfield Foods operates in a competitive industry with limited sustainable competitive advantages, though the company does possess some defensive characteristics that provide modest protection. The company's strongest moat elements include its extensive brand portfolio with well-established names like Smithfield, Eckrich, and Nathan's Famous that have built consumer loyalty over decades. These brands command premium pricing in packaged meat categories and provide distribution advantages with retailers. Additionally, Smithfield's scale as one of the largest pork processors in the United States creates operational efficiencies, purchasing power with suppliers, and the ability to serve large national retail and foodservice customers that smaller competitors cannot match. The company's vertically integrated model, while being reduced, still provides some supply chain control and cost advantages during certain market cycles. Smithfield's processing infrastructure and distribution network represent significant capital investments that create barriers to entry for new competitors. The company also benefits from established relationships with major retail chains and foodservice operators that value reliable supply and consistent quality. However, these moats are relatively weak compared to other industries. The meat processing business is inherently commodity-oriented, with limited product differentiation possible in fresh pork. Consumer brand loyalty in packaged meats can be eroded by private label alternatives and price competition. The industry faces ongoing consolidation pressure, with large competitors like Tyson Foods and JBS having similar scale advantages. Additionally, the business is subject to significant regulatory oversight, potential animal disease outbreaks, and changing consumer preferences toward plant-based alternatives. The company's competitive position is further challenged by its exposure to volatile commodity cycles, trade tensions affecting export markets, and the capital-intensive nature of the business that limits flexibility. While Smithfield has market leadership in certain categories, the overall industry structure suggests modest moats at best, with success largely dependent on operational execution rather than sustainable competitive advantages.
Risks & safety
Smithfield Foods demonstrates a reasonable margin of safety with solid financial fundamentals, though some concerns exist around cash flow timing and commodity cycle exposure. **Overall Assessment:** Moderate margin of safety with strong balance sheet but cyclical cash flow patterns. **Debt and Solvency:** - Net debt to EBITDA ratio of 0.8x indicates conservative leverage - Total debt-to-equity ratio of 0.40x shows manageable debt levels - Strong current ratio of 3.1x provides ample liquidity coverage - $928 million in cash and short-term investments offers financial flexibility **Cash Flow and Operations:** - Negative free cash flow of -$245 million in Q1 2025 due to seasonal working capital needs - Strong full-year 2024 operating cash flow of $1.1 billion demonstrates underlying cash generation - Quarterly cash flow volatility typical for agricultural/food processing businesses - Capital expenditures of $400-500 million annually for maintenance and efficiency improvements **Valuation Metrics:** - P/E ratio of 8.8x appears reasonable for a cyclical food processor - EV/EBITDA of 5.9x suggests fair valuation relative to industry peers - Price-to-book ratio of 1.3x indicates modest premium to book value - Graham number analysis suggests potential undervaluation **Other Considerations:** - Dividend yield provides income component with 50% payout ratio target - Exposure to commodity price volatility creates earnings unpredictability - Strategic shift toward higher-margin products should improve stability over time
Recent development
Over the past few years, Smithfield Foods has undergone a significant strategic transformation aimed at shifting from a commodity-focused business model toward higher-margin, value-added products. The most notable change has been the deliberate reduction of internal hog production capacity from 17.6 million hogs in 2019 to an expected 11.5 million in 2025, targeting 30% vertical integration in the medium term. This strategic pivot reduces exposure to the volatile and capital-intensive hog production business while maintaining sufficient supply chain control. The company has prioritized optimizing its product mix within the Packaged Meats segment, focusing on expanding higher-margin categories such as lunch meats and dry sausage products. Management has emphasized innovation across both retail and foodservice channels, developing new products and expanding distribution of existing brands. The company is also investing heavily in automation and operational efficiency improvements to reduce labor costs and improve productivity across its processing facilities. Smithfield has been strengthening its brand portfolio management, leveraging its diverse collection of well-known brands to capture consumers across different price points and economic conditions. This strategy proved valuable during recent periods of consumer economic stress, as the company could maintain market share through both premium brands and private label offerings. The company has also been exploring potential opportunistic mergers and acquisitions in North America to further expand its market presence and capabilities. Recent operational improvements include completing a five-year genetics transformation project in hog production expected to deliver full benefits in 2025-2026, implementing supply chain optimizations, and focusing on export market diversification to reduce dependence on any single international market. The company has maintained flexibility across its 30+ export markets to mitigate trade-related disruptions, particularly with China representing only 3% of total revenue.
SFD company profile · for informational purposes only — not investment advice.
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