Uncovering Dividend Opportunities with NYSE:HRL.

Our stock screening tool has identified HORMEL FOODS CORP (NYSE:HRL) as a strong dividend contender with robust fundamentals. NYSE:HRL exhibits commendable financial health and profitability, all while offering a sustainable dividend. Let's delve into each aspect below.

A Closer Look at Dividend for 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 3.61. HRL pays more dividend than 85.87% of the companies in the same industry.
• Compared to an average S&P500 Dividend Yield of 2.26, HRL pays a better dividend.
• 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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.

Deciphering NYSE:HRL's Health Rating

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:HRL has earned a 7 out of 10:

• HRL has an Altman-Z score of 4.18. This indicates that HRL is financially healthy and has little risk of bankruptcy at the moment.
• The Altman-Z score of HRL (4.18) is better than 82.61% of its industry peers.
• HRL has a debt to FCF ratio of 3.17. This is a good value and a sign of high solvency as HRL would need 3.17 years to pay back of all of its debts.
• With a decent Debt to FCF ratio value of 3.17, HRL is doing good in the industry, outperforming 76.09% of the companies in the same industry.
• A Debt/Equity ratio of 0.36 indicates that HRL is not too dependend on debt financing.
• A Current Ratio of 2.29 indicates that HRL has no problem at all paying its short term obligations.
• Looking at the Current ratio, with a value of 2.29, HRL is in the better half of the industry, outperforming 72.83% of the companies in the same industry.
• With a decent Quick ratio value of 1.03, HRL is doing good in the industry, outperforming 64.13% of the companies in the same industry.

What does the Profitability looks like for NYSE:HRL

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:HRL was assigned a score of 5 for profitability:

• HRL has a Return On Assets of 5.95%. This is in the better half of the industry: HRL outperforms 70.65% of its industry peers.
• HRL's Return On Equity of 9.92% is fine compared to the rest of the industry. HRL outperforms 65.22% of its industry peers.
• With a decent Return On Invested Capital value of 6.84%, HRL is doing good in the industry, outperforming 69.57% of the companies in the same industry.
• Looking at the Profit Margin, with a value of 6.52%, HRL is in the better half of the industry, outperforming 72.83% of the companies in the same industry.
• The Operating Margin of HRL (8.61%) is better than 73.91% of its industry peers.

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Our latest full fundamental report of HRL contains the most current fundamental analsysis.

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.