HORMEL FOODS CORP (HRL)
US4404521001 - Common Stock
Overall HRL gets a fundamental rating of 5 out of 10. We evaluated HRL against 90 industry peers in the Food Products industry. HRL has an excellent financial health rating, but there are some minor concerns on its profitability. HRL is valued correctly, but it does not seem to be growing. HRL also has an excellent dividend rating. With these ratings, HRL could be worth investigating further for dividend investing!.
1. Profitability
1.1 Basic Checks
HRL had positive earnings in the past year.
HRL had a positive operating cash flow in the past year.
In the past 5 years HRL has always been profitable.
Each year in the past 5 years HRL had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 5.95%, HRL is doing good in the industry, outperforming 69.66% of the companies in the same industry.
HRL's Return On Equity of 9.92% is fine compared to the rest of the industry. HRL outperforms 64.04% of its industry peers.
HRL has a better Return On Invested Capital (6.84%) than 68.54% of its industry peers.
HRL had an Average Return On Invested Capital over the past 3 years of 7.80%. This is in line with the industry average of 8.93%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.95% | ||
| ROE | 9.92% | ||
| ROIC | 6.84% |
ROA(3y)6.86%
ROA(5y)8.36%
ROE(3y)12.19%
ROE(5y)13.45%
ROIC(3y)7.8%
ROIC(5y)9.24%
1.3 Margins
Looking at the Profit Margin, with a value of 6.52%, HRL is in the better half of the industry, outperforming 75.28% of the companies in the same industry.
In the last couple of years the Profit Margin of HRL has declined.
HRL has a Operating Margin of 8.61%. This is in the better half of the industry: HRL outperforms 73.03% of its industry peers.
HRL's Operating Margin has declined in the last couple of years.
HRL's Gross Margin of 16.82% is in line compared to the rest of the industry. HRL outperforms 41.57% of its industry peers.
HRL's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.61% | ||
| PM (TTM) | 6.52% | ||
| GM | 16.82% |
OM growth 3Y-7.61%
OM growth 5Y-6.03%
PM growth 3Y-11.49%
PM growth 5Y-9.17%
GM growth 3Y-4.58%
GM growth 5Y-4.45%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so HRL is still creating some value.
Compared to 1 year ago, HRL has about the same amount of shares outstanding.
The number of shares outstanding for HRL has been increased compared to 5 years ago.
HRL has a better debt/assets ratio than last year.
2.2 Solvency
HRL has an Altman-Z score of 4.04. This indicates that HRL is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.04, HRL is doing good in the industry, outperforming 79.78% of the companies in the same industry.
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.
HRL's Debt to FCF ratio of 3.17 is fine compared to the rest of the industry. HRL outperforms 75.28% of its industry peers.
HRL has a Debt/Equity ratio of 0.36. This is a healthy value indicating a solid balance between debt and equity.
HRL has a Debt to Equity ratio (0.36) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 3.17 | ||
| Altman-Z | 4.04 |
ROIC/WACC0.88
WACC7.78%
2.3 Liquidity
HRL has a Current Ratio of 2.29. This indicates that HRL is financially healthy and has no problem in meeting its short term obligations.
HRL's Current ratio of 2.29 is fine compared to the rest of the industry. HRL outperforms 74.16% of its industry peers.
HRL has a Quick Ratio of 1.03. This is a normal value and indicates that HRL is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of HRL (1.03) is better than 60.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.29 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
HRL shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -7.60%.
HRL shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.87% yearly.
HRL shows a decrease in Revenue. In the last year, the revenue decreased by -1.76%.
HRL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.87% yearly.
EPS 1Y (TTM)-7.6%
EPS 3Y-1.01%
EPS 5Y-1.87%
EPS Q2Q%-7.5%
Revenue 1Y (TTM)-1.76%
Revenue growth 3Y8.02%
Revenue growth 5Y4.87%
Sales Q2Q%-2.19%
3.2 Future
The Earnings Per Share is expected to grow by 7.10% on average over the next years.
HRL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.52% yearly.
EPS Next Y-1.27%
EPS Next 2Y2.72%
EPS Next 3Y5.43%
EPS Next 5Y7.1%
Revenue Next Year-1.77%
Revenue Next 2Y0.36%
Revenue Next 3Y1.04%
Revenue Next 5Y2.52%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 19.30, HRL is valued on the expensive side.
Based on the Price/Earnings ratio, HRL is valued a bit cheaper than 66.29% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.96, HRL is valued a bit cheaper.
A Price/Forward Earnings ratio of 17.84 indicates a rather expensive valuation of HRL.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HRL indicates a somewhat cheap valuation: HRL is cheaper than 69.66% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.82. HRL is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.3 | ||
| Fwd PE | 17.84 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HRL is on the same level as its industry peers.
HRL's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. HRL is cheaper than 66.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.53 | ||
| EV/EBITDA | 14.95 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y2.72%
EPS Next 3Y5.43%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.72%, HRL has a reasonable but not impressive dividend return.
HRL's Dividend Yield is rather good when compared to the industry average which is at 3.80. HRL pays more dividend than 83.15% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.23, HRL pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.72% |
5.2 History
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)8.23%
Div Incr Years33
Div Non Decr Years33
5.3 Sustainability
78.17% of the earnings are spent on dividend by HRL. This is not a sustainable payout ratio.
HRL's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP78.17%
EPS Next 2Y2.72%
EPS Next 3Y5.43%
HORMEL FOODS CORP
NYSE:HRL (11/21/2024, 8:04:00 PM)
After market: 30.5 0 (0%)30.5
+0.28 (+0.93%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap16.72B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.72% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.3 | ||
| Fwd PE | 17.84 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.95% | ||
| ROE | 9.92% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.61% | ||
| PM (TTM) | 6.52% | ||
| GM | 16.82% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.91
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.29 | ||
| Quick Ratio | 1.03 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-7.6%
EPS 3Y-1.01%
EPS 5Y
EPS Q2Q%
EPS Next Y-1.27%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-1.76%
Revenue growth 3Y8.02%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y