Smithfield Foods, Inc.
SFD Consumer Defensive Packaged Foods
Smithfield Foods, Inc.’s revenue for fiscal 2025 (year ended December 2025) was $15.5 billion, up 9.82% from fiscal 2024. In the quarter to June 2026, revenue fell 2.27%, EPS grew 27.1%, free cash flow fell 1.54% and total debt was flat, each against the same quarter a year earlier. Operating cash flow growth for three consecutive years.
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Smithfield Foods, Inc. (SFD) Altman Z-score
Smithfield Foods, Inc.'s Altman Z-score for fiscal 2025 is 3.37, in the safe zone (above 2.99).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2025 | 3.37 | — |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.28 | — | 0.34 | |
| Retained earnings / total assets | 0.31 | — | 0.43 | |
| EBIT / total assets | 0.11 | — | 0.35 | |
| Market value of equity / total liabilities | 1.63 | — | 0.98 | |
| Sales / total assets | 1.28 | — | 1.28 | |
| Altman Z-score | Safe zone | 3.37 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Safe zone | 4.90 | ||
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| INGR Ingredion Incorporated compare | 3.8× |
| PPC Pilgrim's Pride Corporation compare | 3.6× |
| SFD Smithfield Foods, Inc. | 3.4× |
| HRL Hormel Foods Corporation compare | 3.3× |
| LW Lamb Weston compare | 2.5× |
| MICC The Magnum Ice Cream Company N.V. compare | 2.0× |
| DAR Darling Ingredients Inc. compare | 1.9× |
| CPB The Campbell's Company compare | 1.5× |
| CAG Conagra Brands compare | 1.0× |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets