Seaboard Corporation (SEB) | Investment Case

1. Company Snapshot

1.a. Company Description

Seaboard Corporation operates as an agribusiness and transportation company worldwide.It operates through six segments: Pork, Commodity Trading and Milling (CT&M), Marine, Sugar and Alcohol, Power, and Turkey.The Pork segment produces and sells fresh and frozen pork products to further processors, foodservice operators, grocery stores, and distributors; hogs; and biodiesel.

The CT&M segment sources, transports, and markets wheat, corn, soybeans, soybean meal, and other commodities; and produces wheat flour, maize meal, manufactured feed, and oilseed crush commodities.The Marine segment provides cargo shipping services in the United States, as well as in 26 countries in the Caribbean, and Central and South America; dry, refrigerated, and specialized containers, as well as other related equipment; and operates a terminal and an off-port warehouse for cargo consolidation and temporary storage.As of December 31, 2021, this segment operated through a fleet of 20 chartered and 4 owned vessels.

The Sugar and Alcohol segment produces and sells sugar and alcohol; and generates and sells energy through its 51-megawatt cogeneration power plant that is fueled by sugarcane by-products, natural gas, and other biomass.The Power segment operates as an independent power producer that generates electricity for the power grid in the Dominican Republic.The Turkey segment produces and processes organic turkey products to retail stores, foodservice outlets, and industrial entities, as well as exports products to Mexico and internationally.

The company also processes and sells jalapeño peppers.Seaboard Corporation was founded in 1918 and is headquartered in Merriam, Kansas.

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1.b. Last Insights on SEB

Seaboard Corporation's recent performance has been positively driven by several factors. The company's diversified business model and low debt position have been highlighted as key strengths, with a current valuation ratio of 0.65 indicating potential for value unlocking. The integration of five new vessels into its marine operations has also contributed to growth. Additionally, Creative Planning has increased its stake in the company by 19.4%, demonstrating confidence from institutional investors. The company's solid financial position, with more current assets than total liabilities, has also been noted.

1.c. Company Highlights

Last Price	4480
Change Percentage	-0.22%
Open	4405
Previous Close	4489.82
Market Cap ( Millions)	4292
Volume	838
Year High	4800
Year Low	2365
M A 50	3877.51
M A 200	3241.71

FCF Yield	2.67%
Dividend Yield	0.20%
ROE	8.27%
Debt / Equity	38.55%
Net Debt / EBIDTA	250.81%
Price To Book	0.87
Price Earnings Ratio	10.83
Price To FCF	37.45
Price To sales	0.44
EV / EBITDA	8.85

2. Transcript Summary

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3. NewsRoom

Seaboard Corporation $SEB Stock Holdings Lifted by American Century Companies Inc.

Dec -03

Source: defenseworld.net

Creative Planning Boosts Stock Holdings in Seaboard Corporation $SEB

Nov -25

Source: defenseworld.net

Seaboard: Diversification, Low Debt, And Commodity Cycles Will Unlock Value

Oct -31

Source: seekingalpha.com

SEABOARD CORPORATION REPORT OF EARNINGS AND DIVIDEND DECLARATION

Oct -28

Source: prnewswire.com

Seaboard (SEB) Q2 EPS Jumps 68%

Jul -30

Source: fool.com

SEABOARD CORPORATION REPORT OF EARNINGS AND DIVIDEND DECLARATION

Jul -29

Source: prnewswire.com

Seaboard: With A Stable Net Income, Low Debt, And Trading Below Book Value, Is It Undervalued?

Jun -29

Source: seekingalpha.com

Seaboard Corporation Announces a $100 million Share Repurchase Program

May -21

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.50%)

6. Segments

Commodity Trading and Milling

Expected Growth: 4.5%

Growing demand for food and feed products, increasing global trade, and advancements in processing technologies drive the Commodity Trading and Milling segment's growth.

Pork

Expected Growth: 4.5%

Growing demand for protein-rich food, increasing popularity of value-added pork products, and expansion into new markets drive the growth of Seaboard Corporation's pork segment.

Marine

Expected Growth: 4.5%

Growing demand for cargo shipping services, increasing global trade, and expansion of logistics services drive the marine segment's growth, supported by Seaboard Corporation's diversified fleet and ship management capabilities.

Power

Expected Growth: 4.5%

Increasing demand for renewable energy, government incentives for wind power, and diversification of energy sources drive growth in Seaboard Corporation's Power segment.

Sugar and Alcohol

Expected Growth: 4.5%

Growing demand for biofuels, increasing ethanol production, and rising sugar prices driven by supply chain disruptions and weather-related events are expected to drive growth in Seaboard Corporation's Sugar and Alcohol segments.

All Other

Expected Growth: 4.5%

The All Other segment of Seaboard Corporation, comprising biodiesel production and other investments, is expected to grow steadily driven by increasing demand for renewable energy sources, government incentives, and strategic investments in diversified industries.

7. Detailed Products

Pork

Seaboard Corporation is a leading producer and processor of pork products, including fresh pork, frozen pork, and value-added pork products.

Commodity Trading

Seaboard Corporation engages in commodity trading, including grains, oilseeds, and freight, to optimize logistics and supply chain management.

Marine Services

Seaboard Corporation provides marine services, including cargo shipping, vessel management, and logistics, to support global trade.

Sugar and Bioenergy

Seaboard Corporation produces sugar and bioenergy products, including ethanol, from sugarcane and other biomass sources.

Flour Milling

Seaboard Corporation operates flour mills that produce wheat flour and other milled products for baking and food processing industries.

Grain Processing

Seaboard Corporation processes grains, including corn, soybeans, and wheat, into various products for animal feed, human consumption, and industrial uses.

8. Seaboard Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Seaboard Corporation operates in the transportation and logistics industry, which has a moderate threat of substitutes. While there are alternative modes of transportation, such as air and trucking, Seaboard's focus on ocean transportation and logistics services provides a unique value proposition.

Bargaining Power Of Customers

Seaboard Corporation's customers are primarily large corporations and governments, which have limited bargaining power due to their reliance on Seaboard's specialized services.

Bargaining Power Of Suppliers

Seaboard Corporation's suppliers, including fuel providers and equipment manufacturers, have a moderate level of bargaining power due to the availability of alternative suppliers.

Threat Of New Entrants

The threat of new entrants in the transportation and logistics industry is low due to the high barriers to entry, including significant capital requirements and regulatory hurdles.

Intensity Of Rivalry

The transportation and logistics industry is highly competitive, with several established players competing for market share. Seaboard Corporation must continually innovate and improve its services to maintain its market position.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	26.60%
Debt Cost	3.95%
Equity Weight	73.40%
Equity Cost	5.87%
WACC	5.36%
Leverage	36.24%

11. Quality Control: Seaboard Corporation passed 5 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Inefficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Seaboard

A-Score: 5.9/10

Value: 7.6

Growth: 5.1

Quality: 5.4

Yield: 0.0

Momentum: 9.0

Volatility: 8.0

1-Year Total Return ->

MDU Resources

A-Score: 5.6/10

Value: 3.0

Growth: 2.1

Quality: 5.7

Yield: 6.0

Momentum: 7.5

Volatility: 9.3

1-Year Total Return ->

Donaldson

A-Score: 5.6/10

Value: 2.6

Growth: 5.8

Quality: 6.7

Yield: 2.0

Momentum: 7.0

Volatility: 9.3

1-Year Total Return ->

Griffon

A-Score: 5.5/10

Value: 3.4

Growth: 7.3

Quality: 4.8

Yield: 5.0

Momentum: 6.5

Volatility: 5.7

1-Year Total Return ->

Valmont

A-Score: 5.3/10

Value: 3.0

Growth: 7.3

Quality: 5.9

Yield: 1.0

Momentum: 8.0

Volatility: 6.7

1-Year Total Return ->

Icahn Enterprises

A-Score: 4.8/10

Value: 6.8

Growth: 4.4

Quality: 1.1

Yield: 10.0

Momentum: 0.5

Volatility: 5.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

14.52%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

5.36%

Seaboard Corporation - US8115431079

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on SEB

1.c. Company Highlights

Weak Momentum

Less Volatile

Average Quality

Lower Quality

Higher Growth

Cheaper

Medium Volatility

Stable Momentum

Fairly Valued

Average Yield

Strong Momentum

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.50%)

6. Segments

Commodity Trading and Milling

Expected Growth: 4.5%

Pork

Expected Growth: 4.5%

Marine

Expected Growth: 4.5%

Power

Expected Growth: 4.5%

Sugar and Alcohol

Expected Growth: 4.5%

All Other

Expected Growth: 4.5%

7. Detailed Products

Pork

Commodity Trading

Marine Services

Sugar and Bioenergy

Flour Milling

Grain Processing

8. Seaboard Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Seaboard Corporation passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

4480.0$

Current Price

4480$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA