Is NYSE:HRL a Good Fit for Dividend Investing?

Last update: Jun 3, 2024

Take a closer look at HORMEL FOODS CORP (NYSE:HRL), a stock of interest to dividend investors uncovered by our stock screener. NYSE:HRL excels in fundamentals and provides a decent dividend, all while maintaining a reasonable valuation. Let's break it down further.

Evaluating Dividend: NYSE:HRL

ChartMill assigns a Dividend Rating to every stock. This score ranges from 0 to 10 and evaluates the different dividend aspects, including the yield, the growth and sustainability. NYSE:HRL scores a 7 out of 10:

HRL's Dividend Yield is rather good when compared to the industry average which is at 3.65. HRL pays more dividend than 84.62% of the companies in the same industry.
HRL's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
On average, the dividend of HRL grows each year by 8.23%, which is quite nice.
HRL has paid a dividend for at least 10 years, which is a reliable track record.
HRL has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.

Evaluating Health: NYSE:HRL

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NYSE:HRL has earned a 5 out of 10:

An Altman-Z score of 3.61 indicates that HRL is not in any danger for bankruptcy at the moment.
HRL has a Altman-Z score of 3.61. This is in the better half of the industry: HRL outperforms 75.82% of its industry peers.
HRL has a debt to FCF ratio of 3.85. This is a good value and a sign of high solvency as HRL would need 3.85 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 3.85, HRL is doing good in the industry, outperforming 78.02% of the companies in the same industry.
A Debt/Equity ratio of 0.36 indicates that HRL is not too dependend on debt financing.

Analyzing Profitability Metrics

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:HRL, the assigned 5 is a significant indicator of profitability:

HRL's Return On Assets of 5.42% is fine compared to the rest of the industry. HRL outperforms 67.03% of its industry peers.
With a decent Return On Equity value of 9.72%, HRL is doing good in the industry, outperforming 64.84% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 6.68%, HRL is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
HRL has a better Profit Margin (6.37%) than 73.63% of its industry peers.
HRL has a better Operating Margin (8.39%) than 72.53% of its industry peers.

Every day, new Best Dividend stocks can be found on ChartMill in our Best Dividend screener.

For an up to date full fundamental analysis you can check the fundamental report of HRL

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.