📊 SFD Key Takeaways
Is Smithfield Foods Inc. (SFD) a Good Investment?
Smithfield Foods displays a fundamental disconnect between reported earnings and cash generation, with negative operating cash flow (-$65M) and negative free cash flow (-$153M) despite 9.8% revenue growth, signaling serious quality-of-earnings concerns and operational stress. While the balance sheet remains strong with low leverage (0.20x debt/equity), the company's inability to convert growing revenue into operating cash flow is unsustainable and outweighs top-line growth.
Smithfield Foods Inc. Key Strengths (SFD)
- Solid revenue growth of 9.8% YoY demonstrates market demand
- Strong balance sheet with low debt-to-equity ratio (0.20x) and $1.4B cash provides financial flexibility
- Healthy liquidity position with 2.41x current ratio and 1.29x quick ratio
SFD Stock Risks: Smithfield Foods Inc. Investment Risks
- Negative operating cash flow (-$65M) indicates core business unable to generate cash despite positive net income, suggesting poor working capital management or operational deterioration
- Negative free cash flow (-$153M) with -4.0% FCF margin means company is burning cash and cannot sustain capex or shareholder returns
- Quality of earnings concern: net income growth (2.9%) significantly lags revenue growth (9.8%) and EPS is flat YoY, indicating margin compression and potential accounting adjustments masking operational weakness
Key Metrics to Watch
- Operating cash flow trend - critical to reverse from negative territory
- Accounts receivable and inventory levels - potential working capital drain
- Operating margin sustainability - monitor for continued compression versus revenue growth
Smithfield Foods Inc. (SFD) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.41x current ratio provides a solid financial cushion.
SFD Profit Margin, ROE & Profitability Analysis
SFD vs Market Sector: How Smithfield Foods Inc. Compares
How Smithfield Foods Inc. compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Smithfield Foods Inc. Stock Overvalued? SFD Valuation Analysis 2026
Based on fundamental analysis, Smithfield Foods Inc. has mixed fundamental signals relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Smithfield Foods Inc. Balance Sheet: SFD Debt, Cash & Liquidity
SFD Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Smithfield Foods Inc.'s revenue has remained relatively flat over the 5-year period, with a 4% decline. The most recent EPS of $0.05 reflects profitable operations.
SFD Revenue Growth, EPS Growth & YoY Performance
SFD Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $3.8B | $224.0M | $0.57 |
| Q3 2025 | $3.3B | $248.0M | $0.63 |
| Q2 2025 | $3.4B | $188.0M | $0.48 |
| Q1 2025 | $3.4B | $156.0M | $0.41 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Smithfield Foods Inc. Dividends, Buybacks & Capital Allocation
SFD SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Smithfield Foods Inc. (CIK: 0000091388)
📋 Recent SEC Filings
❓ Frequently Asked Questions about SFD
What is the AI rating for SFD?
Smithfield Foods Inc. (SFD) has an AI grade of C with 72% confidence, based on fundamental analysis of SEC EDGAR filings.
What are SFD's key strengths?
Claude: Solid revenue growth of 9.8% YoY demonstrates market demand. Strong balance sheet with low debt-to-equity ratio (0.20x) and $1.4B cash provides financial flexibility.
What are the risks of investing in SFD?
Claude: Negative operating cash flow (-$65M) indicates core business unable to generate cash despite positive net income, suggesting poor working capital management or operational deterioration. Negative free cash flow (-$153M) with -4.0% FCF margin means company is burning cash and cannot sustain capex or shareholder returns.
What is SFD's revenue and growth?
Smithfield Foods Inc. reported revenue of $3.8B.
Does SFD pay dividends?
Smithfield Foods Inc. pays dividends, with $396.0M distributed to shareholders in the trailing twelve months.
Where can I find SFD SEC filings?
Official SEC filings for Smithfield Foods Inc. (CIK: 0000091388) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is SFD's EPS?
Smithfield Foods Inc. has a diluted EPS of $0.62.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is SFD's fundamental grade?
Based on our AI fundamental analysis in May 2026, Smithfield Foods Inc. has a C grade with 72% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is SFD stock overvalued or undervalued?
Valuation metrics for SFD: ROE of 3.6% (sector avg: 15%), net margin of 6.5% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is SFD's AI grade for 2026?
Our dual AI analysis gives Smithfield Foods Inc. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is SFD's free cash flow?
Smithfield Foods Inc.'s operating cash flow is $-65.0M, with capital expenditures of $88.0M. FCF margin is -4.0%.
How does SFD compare to other Market stocks?
Vs Default sector averages: Net margin 6.5% (avg: 12%), ROE 3.6% (avg: 15%), current ratio 2.41 (avg: 1.8).