Analyzing NYSE:HRL's Dividend Potential.

Our stock screener has spotted HORMEL FOODS CORP (NYSE:HRL) as a good dividend stock with solid fundamentals. NYSE:HRL shows decent health and profitability. At the same time it gives a good and sustainable dividend. We'll dive into each aspect below.

Understanding NYSE:HRL's Dividend Score

ChartMill provides a Dividend Rating for every stock, ranging from 0 to 10. This rating assesses various dividend aspects, including yield, growth, and sustainability. NYSE:HRL earns a 7 out of 10:

• HRL's Dividend Yield is rather good when compared to the industry average which is at 3.73. HRL pays more dividend than 84.78% of the companies in the same industry.
• HRL's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.
• The dividend of HRL is nicely growing with an annual growth rate of 8.23%!
• HRL has been paying a dividend for at least 10 years, so it has a reliable track record.
• HRL has not decreased their dividend for at least 10 years, which is a reliable track record.

Looking at the Health

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:HRL scores a 5 out of 10:

• HRL has an Altman-Z score of 3.69. This indicates that HRL is financially healthy and has little risk of bankruptcy at the moment.
• The Altman-Z score of HRL (3.69) is better than 77.17% 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.
• Looking at the Debt to FCF ratio, with a value of 3.85, HRL is in the better half of the industry, outperforming 77.17% of the companies in the same industry.
• A Debt/Equity ratio of 0.36 indicates that HRL is not too dependend on debt financing.
• With a decent Quick ratio value of 1.00, HRL is doing good in the industry, outperforming 61.96% of the companies in the same industry.

Profitability Examination for NYSE:HRL

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:HRL has achieved a 5:

• HRL's Return On Assets of 5.42% is fine compared to the rest of the industry. HRL outperforms 68.48% of its industry peers.
• HRL's Return On Equity of 9.72% is fine compared to the rest of the industry. HRL outperforms 66.30% of its industry peers.
• HRL has a Return On Invested Capital of 6.68%. This is in the better half of the industry: HRL outperforms 69.57% of its industry peers.
• Looking at the Profit Margin, with a value of 6.37%, HRL is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
• HRL has a Operating Margin of 8.39%. This is in the better half of the industry: HRL outperforms 73.91% of its industry peers.

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Check the latest full fundamental report of HRL for a complete fundamental analysis.

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.