HORMEL FOODS CORP (HRL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HRL - US4404521001 - Common Stock
23.63 USD
-0.22 (-0.92%)
23.69 USD
+0.06 (+0.25%)
Overall HRL gets a fundamental rating of 5 out of 10. We evaluated HRL against 86 industry peers in the Food Products industry. HRL has only an average score on both its financial health and profitability. HRL has a valuation in line with the averages, but on the other hand it scores bad on growth. HRL also has an excellent dividend rating. This makes HRL very considerable for dividend investing!
1. Profitability
1.1 Basic Checks
In the past year HRL was profitable.
In the past year HRL had a positive cash flow from operations.
Each year in the past 5 years HRL has been profitable.
In the past 5 years HRL always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 3.57%, HRL is doing good in the industry, outperforming 61.63% of the companies in the same industry.
The Return On Equity of HRL (6.04%) is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 5.99%, HRL is in the better half of the industry, outperforming 66.28% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for HRL is significantly below the industry average of 28.77%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.57% | ||
| ROE | 6.04% | ||
| ROIC | 5.99% |
ROA(3y)5.15%
ROA(5y)6.03%
ROE(3y)8.79%
ROE(5y)10.54%
ROIC(3y)6.47%
ROIC(5y)6.94%
1.3 Margins
With a decent Profit Margin value of 3.95%, HRL is doing good in the industry, outperforming 66.28% 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 7.94%. This is in the better half of the industry: HRL outperforms 70.93% of its industry peers.
In the last couple of years the Operating Margin of HRL has declined.
With a Gross Margin value of 15.70%, HRL perfoms like the industry average, outperforming 43.02% of the companies in the same industry.
HRL's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.94% | ||
| PM (TTM) | 3.95% | ||
| GM | 15.7% |
OM growth 3Y-8.39%
OM growth 5Y-6.45%
PM growth 3Y-21.05%
PM growth 5Y-16.01%
GM growth 3Y-3.32%
GM growth 5Y-3.74%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), HRL is destroying value.
HRL has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, HRL has more shares outstanding
Compared to 1 year ago, HRL has a worse debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of HRL is 5.35, which is a neutral value as it means it would take HRL, 5.35 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of HRL (5.35) is better than 80.23% 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 | 5.35 | ||
| Altman-Z | N/A |
ROIC/WACC0.76
WACC7.9%
2.3 Liquidity
A Current Ratio of 2.47 indicates that HRL has no problem at all paying its short term obligations.
The Current ratio of HRL (2.47) is better than 73.26% of its industry peers.
HRL has a Quick Ratio of 1.20. This is a normal value and indicates that HRL is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.20, HRL is doing good in the industry, outperforming 69.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.47 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
The earnings per share for HRL have decreased strongly by -13.29% in the last year.
HRL shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -3.88% yearly.
The Revenue has been growing slightly by 1.55% in the past year.
HRL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.73% yearly.
EPS 1Y (TTM)-13.29%
EPS 3Y-9.2%
EPS 5Y-3.88%
EPS Q2Q%-23.81%
Revenue 1Y (TTM)1.55%
Revenue growth 3Y-0.95%
Revenue growth 5Y4.73%
Sales Q2Q%1.52%
3.2 Future
The Earnings Per Share is expected to grow by 17.05% on average over the next years. This is quite good.
HRL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.65% yearly.
EPS Next Y7.09%
EPS Next 2Y7.64%
EPS Next 3Y8.86%
EPS Next 5Y17.05%
Revenue Next Year2.09%
Revenue Next 2Y2.42%
Revenue Next 3Y1.51%
Revenue Next 5Y3.65%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 17.25, HRL is valued on the expensive side.
HRL's Price/Earnings ratio is a bit cheaper when compared to the industry. HRL is cheaper than 61.63% of the companies in the same industry.
HRL's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.28.
HRL is valuated correctly with a Price/Forward Earnings ratio of 16.11.
HRL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. HRL is cheaper than 66.28% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.52. HRL is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.25 | ||
| Fwd PE | 16.11 |
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.
Based on the Price/Free Cash Flow ratio, HRL is valued a bit cheaper than the industry average as 62.79% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.32 | ||
| EV/EBITDA | 12.44 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates HRL does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)2.43
PEG (5Y)N/A
EPS Next 2Y7.64%
EPS Next 3Y8.86%
5. Dividend
5.1 Amount
HRL has a Yearly Dividend Yield of 4.81%, which is a nice return.
HRL's Dividend Yield is rather good when compared to the industry average which is at 5.10. HRL pays more dividend than 82.56% of the companies in the same industry.
HRL's Dividend Yield is rather good when compared to the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.81% |
5.2 History
The dividend of HRL has a limited annual growth rate of 4.90%.
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.
Dividend Growth(5Y)4.9%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
132.41% of the earnings are spent on dividend by HRL. This is not a sustainable payout ratio.
The dividend of HRL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP132.41%
EPS Next 2Y7.64%
EPS Next 3Y8.86%
23.63
-0.22 (-0.92%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners91.41%
Inst Owner Change2.09%
Ins Owners0.16%
Ins Owner Change0.04%
Market Cap13.00B
Revenue(TTM)12.11B
Net Income(TTM)478.20M
Analysts68
Price Target28.61 (21.07%)
Short Float %5.69%
Short Ratio3.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.81% |
Yearly Dividend1.15
Dividend Growth(5Y)4.9%
DP132.41%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-5.19%
Min EPS beat(2)-15.34%
Max EPS beat(2)4.95%
EPS beat(4)2
Avg EPS beat(4)-4.26%
Min EPS beat(4)-15.34%
Max EPS beat(4)4.95%
EPS beat(8)5
Avg EPS beat(8)1.16%
EPS beat(12)6
Avg EPS beat(12)-1.1%
EPS beat(16)8
Avg EPS beat(16)-0.87%
Revenue beat(2)1
Avg Revenue beat(2)-0.76%
Min Revenue beat(2)-2.28%
Max Revenue beat(2)0.76%
Revenue beat(4)2
Avg Revenue beat(4)-0.5%
Min Revenue beat(4)-2.28%
Max Revenue beat(4)0.8%
Revenue beat(8)3
Avg Revenue beat(8)-0.95%
Revenue beat(12)3
Avg Revenue beat(12)-1.83%
Revenue beat(16)5
Avg Revenue beat(16)-1.37%
PT rev (1m)-4.29%
PT rev (3m)-4.19%
EPS NQ rev (1m)-0.13%
EPS NQ rev (3m)-8.33%
EPS NY rev (1m)-2.17%
EPS NY rev (3m)-18.73%
Revenue NQ rev (1m)-0.55%
Revenue NQ rev (3m)-0.77%
Revenue NY rev (1m)-0.26%
Revenue NY rev (3m)-0.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.25 | ||
| Fwd PE | 16.11 | ||
| P/S | 1.07 | ||
| P/FCF | 24.32 | ||
| P/OCF | 15.38 | ||
| P/B | 1.64 | ||
| P/tB | 9.67 | ||
| EV/EBITDA | 12.44 |
EPS(TTM)1.37
EY5.8%
EPS(NY)1.47
Fwd EY6.21%
FCF(TTM)0.97
FCFY4.11%
OCF(TTM)1.54
OCFY6.5%
SpS22.01
BVpS14.39
TBVpS2.44
PEG (NY)2.43
PEG (5Y)N/A
Graham Number21.06
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.57% | ||
| ROE | 6.04% | ||
| ROCE | 8% | ||
| ROIC | 5.99% | ||
| ROICexc | 6.36% | ||
| ROICexgc | 15.18% | ||
| OM | 7.94% | ||
| PM (TTM) | 3.95% | ||
| GM | 15.7% | ||
| FCFM | 4.41% |
ROA(3y)5.15%
ROA(5y)6.03%
ROE(3y)8.79%
ROE(5y)10.54%
ROIC(3y)6.47%
ROIC(5y)6.94%
ROICexc(3y)6.91%
ROICexc(5y)7.44%
ROICexgc(3y)17.7%
ROICexgc(5y)19.44%
ROCE(3y)8.65%
ROCE(5y)9.27%
ROICexgc growth 3Y-13.48%
ROICexgc growth 5Y-10.67%
ROICexc growth 3Y-10.55%
ROICexc growth 5Y-11.83%
OM growth 3Y-8.39%
OM growth 5Y-6.45%
PM growth 3Y-21.05%
PM growth 5Y-16.01%
GM growth 3Y-3.32%
GM growth 5Y-3.74%
F-Score5
Asset Turnover0.9
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 5.35 | ||
| Debt/EBITDA | 2.33 | ||
| Cap/Depr | 117.81% | ||
| Cap/Sales | 2.57% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 69.03% | ||
| Profit Quality | 111.74% | ||
| Current Ratio | 2.47 | ||
| Quick Ratio | 1.2 | ||
| Altman-Z | N/A |
F-Score5
WACC7.9%
ROIC/WACC0.76
Cap/Depr(3y)107.99%
Cap/Depr(5y)106.38%
Cap/Sales(3y)2.32%
Cap/Sales(5y)2.25%
Profit Quality(3y)111.74%
Profit Quality(5y)101.1%
High Growth Momentum
Growth
EPS 1Y (TTM)-13.29%
EPS 3Y-9.2%
EPS 5Y-3.88%
EPS Q2Q%-23.81%
EPS Next Y7.09%
EPS Next 2Y7.64%
EPS Next 3Y8.86%
EPS Next 5Y17.05%
Revenue 1Y (TTM)1.55%
Revenue growth 3Y-0.95%
Revenue growth 5Y4.73%
Sales Q2Q%1.52%
Revenue Next Year2.09%
Revenue Next 2Y2.42%
Revenue Next 3Y1.51%
Revenue Next 5Y3.65%
EBIT growth 1Y-5.53%
EBIT growth 3Y-9.26%
EBIT growth 5Y-2.02%
EBIT Next Year33.83%
EBIT Next 3Y10.79%
EBIT Next 5Y14.86%
FCF growth 1Y-47.11%
FCF growth 3Y-14.54%
FCF growth 5Y-6.82%
OCF growth 1Y-33.27%
OCF growth 3Y-9.36%
OCF growth 5Y-5.61%
HORMEL FOODS CORP / HRL FAQ
What is the ChartMill fundamental rating of HORMEL FOODS CORP (HRL) stock?
ChartMill assigns a fundamental rating of 5 / 10 to HRL.
What is the valuation status of HORMEL FOODS CORP (HRL) stock?
ChartMill assigns a valuation rating of 4 / 10 to HORMEL FOODS CORP (HRL). This can be considered as Fairly Valued.
How profitable is HORMEL FOODS CORP (HRL) stock?
HORMEL FOODS CORP (HRL) has a profitability rating of 5 / 10.
Can you provide the financial health for HRL stock?
The financial health rating of HORMEL FOODS CORP (HRL) is 5 / 10.
Is the dividend of HORMEL FOODS CORP sustainable?
The dividend rating of HORMEL FOODS CORP (HRL) is 8 / 10 and the dividend payout ratio is 132.41%.