I took a look at the three major food/meat companies.
By far BRFS3 it's the best, not just because it's not indebted, but also because of its core business: 50% of net sales comes from milk and processed foodstuffs, sold in internal market. It's not a commodity like business. But it's not cheap. Cash flow is 8% of market value and, after deducting investments, I guess a 5% FCF Yield.
The other two (JBSS3 and MRFG3) are rubbish. JBS has a huge revenue, if it improves margin a little, it can generate a lot of cash. But Marfrig can't even generate a dime!
1 comments:
People usually invest in those companies, as well in companies like HYPE and DASA, because of up-down analysis. They chose a sector based on macro analysis then select the best companies.
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