BRF SA

“BRF trades at ~3.5x EV/EBITDA on record 2024 earnings with dominant domestic and Halal export positions, a pristine balance sheet (0.75x ND/EBITDA), and genuine operational improvement — but the Marfrig full-absorption merger at a 1.39% minority premium, a decade-long history of capital destruction, documented food safety bribery fraud, and a 5-year median ROIC of just 6.5% collectively cap conviction. The business is cheap enough to protect against cyclical downside, but the real risk — that Marfrig re-levers the combined MBRF entity at minority expense — is a permanent impairment scenario, not merely uncertainty. TRACK until post-merger governance and capital allocation policy is established.”