JBS N.V. (JBS): A Bull Case Theory

Core Thesis - JBS N.V. presents a compelling long-term investment opportunity driven by structural tailwinds in the U.S. beef industry and a diversified global portfolio [2] Industry Overview - The U.S. cattle herd has fallen to its lowest levels since the 1950s, creating a multi-year supply constraint that supports higher beef prices [2] - The North American beef segment is currently experiencing negative margins due to high livestock costs, but JBS's poultry, pork, and international operations consistently generate strong profits [2] Company Strategy - JBS is actively investing in modernizing U.S. facilities and expanding higher-margin, value-added products such as ready-to-eat bacon [3] - The dual listing on the NYSE increases visibility and institutional interest for JBS [3] Valuation Comparison - JBS trades at a significant discount compared to peers like Tyson Foods, with a P/E ratio of 7.5x–15x versus Tyson's 24x, indicating potential upside if the market re-rates the stock closer to its intrinsic value [3] Risks and Catalysts - Near-term risks include narrow profit margins in the beef segment, regulatory and political uncertainties, and potential delays in herd recovery due to droughts or macroeconomic factors [3][4] - Key catalysts to monitor include herd growth, performance in non-beef segments, and analyst sentiment, which could position JBS for a rerating and substantial upside potential over a multi-year horizon [4]