Bullish indicating open at $55-$60, IPO prices at $37
Smithfield Foods Inc . (NASDAQ:SFD), a major player in the meat packing industry with a market capitalization of $7.77 billion and annual revenue of $14.19 billion, disclosed the approval of bonus amounts for its named executive officers (NEOs) for fiscal year 2024. According to InvestingPro analysis, the company maintains a FAIR financial health score and appears undervalued at its current trading price of $19.30. The announcement came following a decision by the Compensation Committee of the company’s Board of Directors on Monday.
The bonuses, which were determined based on the company’s performance during 2024, were paid in the first quarter of 2025. The company’s financial metrics show an EBITDA of $1.11 billion and a P/E ratio of 18.17, indicating solid operational performance. For deeper insights into Smithfield’s financial health and executive compensation trends, InvestingPro subscribers have access to over 30 additional financial metrics and exclusive analysis. According to the revised Summary Compensation Table included in the recent SEC filing, Chief Executive Officer C. Shane Smith received the highest bonus of $3,000,000, resulting in total compensation of $15,300,298 for the year. Chief Financial Officer Mark Hall was awarded a $2,500,000 bonus, with total earnings of $7,968,808.
The other NEOs, including President of Packaged Meats Steven J. France, Chief Business Officer Keller Watts, and Chief Manufacturing Officer Doug Sutton, also received significant bonuses ranging from $2,000,000 to $2,500,000. Their total compensation for 2024 varied from $7,703,947 for Sutton to $9,795,623 for France.
The filing further noted that the executives had agreed to repay a portion of their cash bonuses under certain conditions, such as resignation, breach of restrictive covenants, or termination for cause. With the company’s next earnings report scheduled for April 3, 2025, investors can access comprehensive valuation models and earnings forecasts through InvestingPro to better understand the relationship between executive compensation and company performance. The repayment would be 50% of the bonus if occurring within one year of payment, and 25% if between one and two years.
The compensation also included non-equity incentive plan compensation, changes in pension value and nonqualified deferred compensation earnings, and other compensation such as 401(k) contributions and perquisites.
Smithfield Foods’ fiscal year ends on December 29, and the company is incorporated in Virginia. The information regarding the executive compensation was based on a press release statement filed with the Securities and Exchange Commission.
In other recent news, Smithfield Foods has garnered significant attention from multiple financial institutions, each initiating coverage with a Buy rating and setting varying price targets. UBS set a target of $26, emphasizing Smithfield’s integrated business model and productivity initiatives. Citi followed with a $27 target, noting margin expansion in the Packaged Meats segment and potential profit growth in deli and lunchmeats categories. Morgan Stanley (NYSE:MS) provided an Overweight rating with a $28 target, highlighting the company’s successful restructuring and improved profitability in value-added packaged meats. Goldman Sachs set the highest target at $32, recognizing growth potential in the packaged meats sector and a cyclical recovery in hog production. BofA Securities also set a $28 target, praising Smithfield’s strong industry position and superior financial profile. These developments indicate a broad consensus among analysts on Smithfield Foods’ promising financial health and growth prospects.
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