JBS SA

“JBS is the world's largest protein processor trading at a steep discount to peers, but the discount is structural and deserved: a controlling family with a proven track record of fraud and insider trading against minority shareholders, $14-15B of net debt on a thin-margin commodity business where EBIT fell below interest expense at the last cycle trough, near-zero tangible book value, and ROIC that barely clears WACC over a full cycle collectively make this uninvestible for long-term capital — the cattle cycle will eventually recover, but the governance risk is permanent, and the Batista family has demonstrated the willingness and ability to extract value from public shareholders at their discretion.”