Smithfield Foods Inc. (SFD) exhibits 13.5% gross margins and 13.1% return on invested capital within Consumer Staples (Meat/Poultry/Fish), balanced against a 4.4x enterprise multiple and 6.5% implied options volatility.
Sustained 13.5% gross profitability converts into 8.3% operating margin and 13.1% ROIC, outpacing sector cost of capital.
ROIC: 13.1% // GM: 13.5%YoY revenue trajectory of +9.8% paired with 5.84% free cash flow yield supports self-funded R&D and capital return.
REV YOY: +9.8% // FCF YLD: 5.84%Altman Z-Score of 3.15 and Piotroski F-Score of 8/9 indicate low near-term refinancing stress.
ALTMAN Z: 3.15 // F-SCORE: 8/9Trading at 7.4x trailing P/E (6.9x Fwd P/E) leaves valuation vulnerable if real 10Y TIPS yields spike.
P/E: 7.4x // EV/EBITDA: 4.4xOptions market prices a ±6.5% implied move with a 0.68 put/call ratio around $18.00 max pain.
IMPL MOVE: ±6.5% // P/C: 0.68Elevated industry capital intensity and customer concentration in Meat/Poultry/Fish require continuous execution to defend 6.4% net margins.
NET MARGIN: 6.4% // D/E: 0.36x| FILER | SIDE | $ VALUE |
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| INSPECT FULL OWNERSHIP LEDGER IN OWN <GO> | ||
| STRIKE / EXP | TYPE | PREMIUM |
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| INSPECT GEX & CHAIN IN OPT <GO> | ||
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