Smithfield Foods (SFD) Is Quietly Crushing It with Strong EBITDA and Room to Grow

Smithfield Foods Inc. (NASDAQ:SFD) is one of the 20 undervalued momentum stocks that are taking off.

Smithfield Foods presents a compelling investment opportunity, backed by strong fundamentals, resilient profitability, and a clear path for growth. With $14.1 billion in FY 2024 sales and $1.4 billion in adjusted EBITDA, Smithfield has established itself as a leading U.S. food company, anchored by its high-margin packaged meats segment.

Packaged meats now account for 59% of Smithfield’s total revenue, with $8.3 billion in sales and a 13.6% adjusted operating margin. The company has outperformed its peers in profitability, supported by its brand strength, product diversification, and broad reach in retail and foodservice. Smithfield holds the No. 2 branded market share across 25 key meat categories and reaches 93% of all commodity volume (ACV) across retailers. It also serves all of the top 10 grocery/club stores and 70% of leading foodservice chains.

Smithfield Foods (SFD) Is Quietly Crushing It with Strong EBITDA and Room to Grow

A busy supermarket with shelves full of packaged foods.

On the operational side, Smithfield’s vertically integrated model enables it to ensure supply chain stability and cost control. The company is also optimizing its hog production operations, reducing commodity exposure while securing raw material needs for its packaged meats and fresh pork segments.

Smithfield’s 2025 guidance calls for continued profit growth and investments in automation, innovation, and premium offerings. With a strong balance sheet, including $3.2 billion in liquidity and a low 0.7x net debt-to-EBITDA ratio as of March 2025, the company is well-positioned to invest in strategic M&A and deliver shareholder returns, including a planned annual dividend of $1.00 per share.

Smithfield Foods Inc. (NASDAQ:SFD) is an American food company and an industry leader in value-added packaged meats and fresh pork.

While we acknowledge the potential of SFD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.