As of July 17, 2023, Industrias Bachoco SAB de CV (IBAAY, Financial) witnessed a significant change in its stock price. The company's stock price stands at $60, marking a 28.26% change for the day. With a market cap of $3 billion and sales of $4.9 billion, the company's GF Value is estimated at $64.43, indicating that the stock is fairly valued.
Industrias Bachoco SAB de CV operates in the Consumer Packaged Goods industry, primarily dealing with the production, processing, marketing, and sales of poultry in Mexico and the United States. The company also deals with feed, swine, beef, turkey, and other products on a smaller scale. It operates its own feed mills and has several production facilities and distribution centers spread across Mexico and the United States. The majority of its revenue comes from the Poultry segment.
Understanding the GF Value of Industrias Bachoco SAB de CV
The GF Value is a unique indicator that provides an estimation of a stock's intrinsic worth. It is calculated based on historical trading multiples, an adjustment factor from GuruFocus, and estimates of future business performance. In the case of Industrias Bachoco SAB de CV, the GF Value stands at $64.43, suggesting that the stock is fairly valued at its current price of $60 per share.
Given that Industrias Bachoco SAB de CV is fairly valued, the long-term return of its stock is likely to be close to the rate of its business growth.
Financial Strength of Industrias Bachoco SAB de CV
Investing in companies with strong financial strength reduces the risk of permanent loss of capital. Industrias Bachoco SAB de CV has a strong financial profile, as evidenced by its cash-to-debt ratio of 4.78, which is better than 79.54% of companies in the Consumer Packaged Goods industry. Its overall financial strength is ranked 9 out of 10 by GuruFocus.
Profitability and Growth of Industrias Bachoco SAB de CV
Industrias Bachoco SAB de CV has demonstrated consistent profitability over the past 10 years, with revenues of $4.9 billion and EPS of $6.1 in the past 12 months. Its operating margin of 8.51% is better than 69.2% of companies in the Consumer Packaged Goods industry. The 3-year average annual revenue growth rate of Industrias Bachoco SAB de CV is 17.1%, which ranks better than 77.98% of companies in the industry.
ROIC vs WACC
The comparison of return on invested capital (ROIC) and the weighted average cost of capital (WACC) is another way to assess a company's profitability. For the past 12 months, Industrias Bachoco SAB de CV's ROIC stood at 15.89, and its WACC was 8.92, indicating that the company is creating value for shareholders.
Conclusion
Industrias Bachoco SAB de CV (IBAAY, Financial) appears to be a fairly valued stock. The company's strong financial condition, consistent profitability, and above-average growth make it an attractive investment. For more detailed financial information about Industrias Bachoco SAB de CV, you can check out its 30-Year Financials here.
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