4 views left Get unlimited views with a free account

Get a 360 degree view on a company powered by live data from the GlobalData Intelligence Center.

JBS SA – Risk Profile

Industry: Meat
Current: Company Performance

As per GlobalData's proprietary risk methodology, JBS' overall risk score is 3.12, signifying medium risk
Country and operational have boosted the overall risk profile of the company
Although the company's liquidity ratios are better than average; remaining leverage, cash flows and interest coverage ratios negatively impacted the financial risk score.

JBS SA (JBS) has a good risk profile and is one of the leading companies based on our proprietary risk assessment of the food sector in the consumer industry. Due to its diversified operational network, the company's operational risk score fares better than the sector's average. However, high debt is a cause for concern, affecting the financial risk scores.

About the Company

JBS is a food processing company that processes beef, pork, poultry and lamb, chicken, and other convenience food products. The company markets its products under Swift, Gourmet, Rezende, LeBon, Moy Park, O'Kane, Rigamonti, Frangosul, Friboi, Seara, Maturatta, Plumrose, Pilgrim's Pride, Gold'n Plump, Novaprom, JBS Ambiental, JBS Trading, Cambre, and JBS Natural Casings brands.

JBS is one of the leaders in the food industry, with reported revenue of $52 billion in 2021, an annual growth of 1.13%. Net income declined 41.98% in 2021 in comparison to that in 2020.

Risk Pillars

Our proprietary risk assessment uses a combination of four risk pillars – Country, Industry, Operational, and Financial. Scores are based on a scale of 1 to 5, 1 being the lowest risk and 5 being the highest.

JBS's overall risk score is at par with the sector's overall score. Dali Foods Group Co Ltd, Calbee Inc, and Foshan Haitian Flavoring Food Co., Ltd. are the leaders in the sector.

Country Risk: JBS has a country risk score of 4.38. The company derives most of its revenues from the United States (74.37%) and the rest from South America (24.67%).

Industry Risk:

The company's primary exposure is to the food sector. It generates 84% of its revenue from the food sector, followed by agricultural products (15%). The food sector is characterized by low-profit margins and weak growth projections compared to other sectors, resulting in an average industry risk score of 3.

Operational Risk:

The company has an operational score of 3.26, primarily attributed to its scale and business positioning. JBS has a strong distribution network, which helps it gain operational synergies and serve its customers efficiently. It has over 14 brands and serves over 275,000 customers in 190 countries. A good inventory turnover ratio positively impacted the operational score, but low single-digit margins remain a cause for concern.

Financial Risk:

JBS's financial risk score of 2.36 is less than the industry's average. While the company has healthy liquidity ratios due to better inventory management, the company's high proportion of debt on the balance sheet has negatively impacted the overall financial risk scores.

About our Methodology:

GlobalData risk scorecard for a sector provides the analysis of various risks a company is vulnerable to. Our risk framework comprises four pillars – country, industry, operational and financial. The country risk for an entity signifies the risk of operating in a particular country. GlobalData's proprietary country risk assessment framework is used to calculate the risk for individual countries. Industry risk is an integral part of risk analysis, and it implies the riskiness and stability of the industries in which a company operates. The operational and financial risk profile comprises a company's risk and returns potential based on its critical operational and financial metrics. Our scores are based on an average of the latest three fiscal year data.

Get a 360 degree view on a company powered by live data from the GlobalData Intelligence Center. Get a 360 degree view on a company powered by live data from the GlobalData Intelligence Center. Explore Company Solutions