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About The Company

CEO

Mr. James P. Snee

Market Cap

18.83 Billion USD

Sector

Consumer Defensive

Website

https://www.hormelfoods.com

Last Update

2/22/2024, 12:00:00 PM

Description

Hormel Foods Corporation develops, processes, and distributes various meat, nuts, and food products to retail, foodservice, deli, and commercial customers in the United States and internationally.

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Overview

Value

43

Growth

39

Health

53

Management

51

Analyst Opinion

80

Total

53

All Scores Out Of 100

Best Features

  • Has a low level of debt
  • Low risk of bankruptcy
  • Liked by analysts
  • Has strong dividend growth

Risk Factors

  • Earnings have declined recently
  • There is a history of diluting shareholders
  • Disliked by Twitter users
  • Poor earnings and cashflow growth
  • Price-to-earnings ratio of 23.1 is higher than the market average (19.6x)
  • High preportion of income is paid as dividend

Market Peers

HRL

Key Figures

PE Ratio (TTM)

23.13

Margin Of Safety (DCF)

40.85%

Revenue Growth (5 Year Average)

6.78%

Ratings Consensus

Buy

Share Buybacks

-0.62%

Dividend Yeild (TTM)

3.21%

Valuation

Value Score

43

  • Margin-of-safety of 40.85% is better than the market average (17.95%)
  • Estimated intrinsic-value of 47.57 USD is higher than current price ( 34.38 USD)
  • Price-to-earnings ratio of 23.1 is higher than the market average (19.6x)
  • Free-cashflow-yeild of 4.24% is worse than the market average (4.7%)

Desired Margin Of Safety

0%

Tip: Set your desired Margin Of Safety

Free Cash Flow Type

Annual Cashflow Growth

0%

Discount Rate

0%

Buy Target: < 47.9 USD

Current Price: 33.8 USD

How Does This Work?

Show Advanced Options

This calculator helps investors estimate the Intrinsic Value of a company based on the current value of future cash flows. To use the tool, simply input a desired Margin Of Safety, which is an additional discount applied to the present value of the expected future cash flows. The tool calculates the present value using a discount rate that reflects the risk and time value of money, and provides an estimated target price for the company based on the selected margin of safety. The calculator defaults to using 5 Year Free Cash Flow Growth % and a discount rate based on the US 10-year treasury bond coupon rate. Use our performance analyser to get a feel the impact this has on longterm investment returns and discover a margin of safety you are comfortable with. This can be a useful tool for investors looking to make informed decisions about whether to buy or sell shares of a particular company.

Price/Earnings

23.13x

Free Cashflow Yeild

4.24%

PE/Earnings Growth

2.43

Price/Book

2.39x

Growth

Growth Score

39

  • 5 Year Average Revenue growth of 6.78% is lower than the market average (10.97%)
  • Revenue growth has slowed this year
  • 5 Year Average Earnings growth of 4.46% is lower than the market average (14.48%)
  • Earnings growth has slowed this year
  • 5 Year Average Free Cashflow growth of 9.63% is lower than the market average (12.35%)
  • Free Cashflow growth has slowed this year

Revenue Growth

6.78%

Earnings Growth

4.46%

Cashflow Growth

9.63%

Health

Health Score

53

  • Low risk of bankruptcy
  • Has a low level of debt
  • Assets cover liabilities
  • Normal operation does not require debt to be sustainable
  • Debt repayments do not significantly impact cashflow

Altman Z Score

3.82

Piostroski Score

6.00

Debt/Equity

0.44x

Current Assets/Liabilities

2.47x

Free Cashflow/Total Debt

0.26x

Debt/Capital

0.91x

Dividend

Secure Dividend Score

49

  • Dividend yeild of 3.21% is more than the market average (1.85%)
  • At risk of being unsafe
  • Long term dividend payout ratio of 48.48% is considered good
  • Dividends have shown growth over the last 5 years
  • Payout ratio (TTM) of 74.72% is higher than the average (40%)
  • Dividend growth has been slowing recently
  • Spending a higher percentage of their income on dividends than last 5 years

Dividend Yeild

3.21%

Dividend Growth

6.64%

Payout Ratio (Earnings)

74.72%

Payout Ratio (Cashflow)

75.73%

Management

Management Score

51

  • Has issued new shares to finance growth when share price is high
  • Has returned higher dividends when earnings have risen
  • Return-on-capital-employed of 12.62% is higher than the market average (10%)
  • Has a history of diluting shareholders to finance activity
  • Return-on-equity of 13.35% is lower than the market average (15%)

Average Buybacks/Dilution

-0.62%

Recent Buybacks/Dilution

0.35%

5 Year Price Volitility

10.75%

Return On Assets

7.56%

Return On Capital Employed

12.62%

Return On Equity

13.35%

Return On Free Cashflow

N/A

Return On Investments

350.33%

Social Sentiment

Social Sentiment Score

0

Twitter Sentiment

N/A

Stocktwits Sentiment

N/A

Analysts

Analyst Opinion

80

  • Ratings consensus is Buy

SEC Filings

Find yearly (10-K), quaterly (10-Q) and disclosure (8-K) report here, on the Securities and Exchange Commission's EDGAR database. If reading through reports isn't your cup of tea, don't worry. We've made it easy for you by summarizing all the important bits.

Other Information

Company Name

Hormel Foods Corporation

Currency

USD

Beta

0.186475

Vol Avg

2156322

Ceo

Mr. James P. Snee

Cik

0000048465

Cusip

440452100

Exchange

New York Stock Exchange

Full Time Employees

20000

Industry

Packaged Foods

Sector

Consumer Defensive

Ipo Date

1980-03-17

Address

1 Hormel Place

City

Austin

State

MN

Country

US

Zip

55912-3680

Phone

507 437 5611

Analysis Last Updated

2/22/2024, 12:00:00 PM

All financial data provided by FMP

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