Daily Stock Analysis: JBS S.A.

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JBS S.A. with the ticker JBSAY is a large-cap packaged foods company operating in the consumer defensive business sector. This is the fourth of five consumer candidates competing for the forty-sixth slot in my Viital folio. It is my first ever report on JBS S.A. for my Viital portfolio or any of my previous portfolios.

JBS S.A. is an international company involved in beef, lamb, and poultry processing.

It is originally from Brazil. JBS is one of the world's largest exporters of animal protein, selling to more than 150 countries.

Sales offices are in Brazil, the United States, Australia, Canada, Argentina, Uruguay, Paraguay, Mexico, Italy, Ireland, United Kingdom, France, Netherlands, China, and Russia, among others.

The company also sells hygiene and cleaning products, collagen, metal packaging, and biodiesel, among others.

Its best-known brands are Swift, Friboi, Maturatta, Cabana Las Lilas, Pilgrim's, and Gold Kist Farms.

The company was formerly known as Friboi Ltda.

JBS S.A. was founded in 1953 and is headquartered in São Paulo, Brazil.

Three key data points gauge any dividend equity or fund such as JBS S.A.:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.
 

JBSAY Price

JBS’s price per share was $12.54 as of yesterday's market close. One year ago its price was $12.01. Thus, JBS’s share price increased by $0.53 or about 4.4% in the past year.

If JBS’s stock trades in the range of $10.00 to $18.00 this next year, its recent $12.54 share price might rise by $0.66 to reach $14.20 by next year. My $0.66 upside estimate is $0.03 less than the one-year average price increase per share of JBSAY over the past 10 years.
 

JBSAY Dividends

JBS’s most recently declared a variable semi-annual dividend of $0.41 was paid June 3rd, to shareholders on record as of May 20th.

Since May 24, 2013, JBS has paid annual variable dividends. The current forward-looking semi-annual dividend of $0.41 projects an annual dividend of $1.17 yielding 9.33% as of yesterday's $12.54share price.
 

JBSAY Returns

Adding the $1.17 JBS annual dividend to my estimated one-year price upside estimate of $0.66 shows a $1.83 potential gross gain, per share, to be reduced by any costs to trade JBS shares.

At yesterday's $12.54 closing price, a little over $1000 would buy 80 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at the sale and might cost us $0.13 per share.

Subtract that maybe $0.13 brokerage cost from my estimated $1.83 gross gain estimate per share results in a net gain of $1.70 X 80 shares = $136, for a 13.6% net gain including a 9.33% forward-looking annual dividend yield.

Over the next year, our $1K investment in JBS shares should generate $93.30 in cash dividends. Of course, a single share of JBSAY stock bought at yesterday's $12.54 price is over 7 times LESS than the dividend income from our $1000.00 investment.

So, by my dogcatcher ideal, this is prime time to pick up JBS S.A. shares based on their forward-looking dividends for the year 2022. The forecast annual dividend from $1K invested is 7.44 times greater than yesterday’s single share price. Consider yourself alerted. It's a sign. Now IS the time.

All of the estimates above are speculation based on the past history of JBS S.A. Only time and money invested in this stock will determine its market value.


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Disclaimer:  This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

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