Buy or Sell Seaboard Stock?

We believe there are several things to fear in SEB stock given its overall Weak operating performance and financial condition. This is aligned with the stock’s Very Low valuation because of which we think it is Fairly Priced.

Below is our assessment:

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Let’s get into details of each of the assessed factors but before that, for quick background: With $4.7 Bil in market cap, Seaboard operates six segments including power generation in the Dominican Republic, organic turkey production, cargo shipping across the Americas, commodity trading, pork, sugar, and alcohol processing.

[1] Valuation Looks Very Low

This table highlights how SEB is valued vs broader market. For more details see: SEB Valuation Ratios

[2] Growth Is Very Weak

• Seaboard has seen its top line shrink at an average rate of -4.2% over the last 3 years
• Its revenues have grown 7.1% from $9.1 Bil to $9.7 Bil in the last 12 months
• Also, its quarterly revenues declined -2.9% to $2.4 Bil in the most recent quarter from $2.5 Bil a year ago.

This table highlights how SEB is growing vs broader market. For more details see: SEB Revenue Comparison

[3] Profitability Appears Very Weak

• SEB last 12 month operating income was $239 Mil representing operating margin of 2.5%
• With cash flow margin of 5.8%, it generated nearly $568 Mil in operating cash flow over this period
• For the same period, SEB generated nearly $496 Mil in net income, suggesting net margin of about 5.1%

This table highlights how SEB profitability vs broader market. For more details see: SEB Operating Income Comparison

[4] Financial Stability Looks Strong

• SEB Debt was $1.8 Bil at the end of the most recent quarter, while its current Market Cap is $4.7 Bil. This implies Debt-to-Equity Ratio of 39.1%
• SEB Cash (including cash equivalents) makes up $1.2 Bil of $8.2 Bil in total Assets. This yields a Cash-to-Assets Ratio of 14.9%

[5] Downturn Resilience Is Weak

SEB has fared worse than the S&P 500 index during various economic downturns. We assess this based on both (a) how much the stock fell and, (b) how quickly it recovered.

2022 Inflation Shock

• SEB stock fell 21.2% from a high of $4,300.01 on 6 April 2022 to $3,389.99 on 27 September 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 24 November 2025
• Since then, the stock increased to a high of $5,587.66 on 12 February 2026 , and currently trades at $4,862.36

 
2020 Covid Pandemic

• SEB stock fell 37.5% from a high of $4,250.55 on 1 January 2020 to $2,656.64 on 20 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 31 August 2021

 
2008 Global Financial Crisis

• SEB stock fell 70.3% from a high of $2,675.00 on 20 April 2007 to $795.00 on 20 November 2008 vs. a peak-to-trough decline of 56.8% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 21 July 2011

But the risk is not limited to major market crashes. Stocks fall even when markets are good – think events like earnings, business updates, outlook changes. Read SEB Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.

The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.