HORMEL FOODS CORP (HRL) Stock Fundamental Analysis
USA - NYSE:HRL - US4404521001 - Common Stock
23.74 USD
-0.09 (-0.38%)
23.74 USD
0 (0%)
HRL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 86 industry peers in the Food Products industry. Both the profitability and the financial health of HRL get a neutral evaluation. Nothing too spectacular is happening here. HRL has a valuation in line with the averages, but it does not seem to be growing. Finally 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.
In the past year HRL had a positive cash flow from operations.
In the past 5 years HRL has always been profitable.
In the past 5 years HRL always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of HRL (5.59%) is better than 76.74% of its industry peers.
HRL's Return On Equity of 9.33% is fine compared to the rest of the industry. HRL outperforms 69.77% of its industry peers.
HRL has a Return On Invested Capital of 6.50%. This is in the better half of the industry: HRL outperforms 69.77% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HRL is significantly below the industry average of 28.75%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.59% | ||
| ROE | 9.33% | ||
| ROIC | 6.5% |
ROA(3y)6.47%
ROA(5y)7.15%
ROE(3y)11.2%
ROE(5y)12.15%
ROIC(3y)7.49%
ROIC(5y)7.95%
1.3 Margins
The Profit Margin of HRL (6.26%) is better than 75.58% of its industry peers.
HRL's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 8.40%, HRL is doing good in the industry, outperforming 70.93% of the companies in the same industry.
In the last couple of years the Operating Margin of HRL has declined.
With a Gross Margin value of 16.36%, HRL perfoms like the industry average, outperforming 45.35% of the companies in the same industry.
HRL's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.4% | ||
| PM (TTM) | 6.26% | ||
| GM | 16.36% |
OM growth 3Y-3.33%
OM growth 5Y-6.88%
PM growth 3Y-5.43%
PM growth 5Y-8.11%
GM growth 3Y0.06%
GM growth 5Y-3.09%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), HRL is creating some value.
The number of shares outstanding for HRL has been increased compared to 1 year ago.
HRL has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, HRL has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.57 indicates that HRL is not in any danger for bankruptcy at the moment.
HRL has a better Altman-Z score (3.57) than 76.74% of its industry peers.
The Debt to FCF ratio of HRL is 4.55, which is a neutral value as it means it would take HRL, 4.55 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 4.55, HRL is doing good in the industry, outperforming 79.07% of the companies in the same industry.
A Debt/Equity ratio of 0.35 indicates that HRL is not too dependend on debt financing.
HRL has a Debt to Equity ratio (0.35) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 4.55 | ||
| Altman-Z | 3.57 |
ROIC/WACC0.88
WACC7.35%
2.3 Liquidity
HRL has a Current Ratio of 2.47. This indicates that HRL is financially healthy and has no problem in meeting its short term obligations.
HRL has a better Current ratio (2.47) than 75.58% of its industry peers.
A Quick Ratio of 1.12 indicates that HRL should not have too much problems paying its short term obligations.
HRL has a better Quick ratio (1.12) than 65.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.47 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
The earnings per share for HRL have decreased by -6.96% in the last year.
The Earnings Per Share has been decreasing by -1.91% on average over the past years.
Looking at the last year, HRL shows a small growth in Revenue. The Revenue has grown by 0.65% in the last year.
HRL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.65% yearly.
EPS 1Y (TTM)-6.96%
EPS 3Y-2.98%
EPS 5Y-1.91%
EPS Q2Q%-5.41%
Revenue 1Y (TTM)0.65%
Revenue growth 3Y1.54%
Revenue growth 5Y4.65%
Sales Q2Q%4.64%
3.2 Future
Based on estimates for the next years, HRL will show a small growth in Earnings Per Share. The EPS will grow by 4.18% on average per year.
Based on estimates for the next years, HRL will show a small growth in Revenue. The Revenue will grow by 2.28% on average per year.
EPS Next Y-7.97%
EPS Next 2Y-0.45%
EPS Next 3Y2.93%
EPS Next 5Y4.18%
Revenue Next Year1.65%
Revenue Next 2Y2.17%
Revenue Next 3Y2.36%
Revenue Next 5Y2.28%
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 16.15, HRL is valued correctly.
Based on the Price/Earnings ratio, HRL is valued a bit cheaper than 65.12% of the companies in the same industry.
HRL is valuated rather cheaply when we compare the Price/Earnings ratio to 27.08, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 15.16, the valuation of HRL can be described as correct.
HRL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. HRL is cheaper than 70.93% of the companies in the same industry.
HRL's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.09.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.15 | ||
| Fwd PE | 15.16 |
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 68.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.8 | ||
| EV/EBITDA | 11.97 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-0.45%
EPS Next 3Y2.93%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.88%, HRL is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.10, HRL pays a better dividend. On top of this HRL pays more dividend than 82.56% of the companies listed in the same industry.
HRL's Dividend Yield is rather good when compared to the S&P500 average which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.88% |
5.2 History
The dividend of HRL is nicely growing with an annual growth rate of 6.53%!
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)6.53%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
83.32% 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.
DP83.32%
EPS Next 2Y-0.45%
EPS Next 3Y2.93%
23.74
-0.09 (-0.38%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners90.9%
Inst Owner Change0.27%
Ins Owners0.16%
Ins Owner Change0.04%
Market Cap13.06B
Revenue(TTM)12.06B
Net Income(TTM)754.53M
Analysts67.5
Price Target29.89 (25.91%)
Short Float %5.15%
Short Ratio3.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.88% |
Yearly Dividend1.12
Dividend Growth(5Y)6.53%
DP83.32%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-7.16%
Min EPS beat(2)-15.34%
Max EPS beat(2)1.03%
EPS beat(4)1
Avg EPS beat(4)-5.94%
Min EPS beat(4)-15.34%
Max EPS beat(4)1.03%
EPS beat(8)4
Avg EPS beat(8)-0.26%
EPS beat(12)6
Avg EPS beat(12)-1.4%
EPS beat(16)8
Avg EPS beat(16)-1.1%
Revenue beat(2)1
Avg Revenue beat(2)-0.25%
Min Revenue beat(2)-1.27%
Max Revenue beat(2)0.76%
Revenue beat(4)2
Avg Revenue beat(4)-0.22%
Min Revenue beat(4)-1.27%
Max Revenue beat(4)0.8%
Revenue beat(8)3
Avg Revenue beat(8)-1.03%
Revenue beat(12)3
Avg Revenue beat(12)-1.95%
Revenue beat(16)6
Avg Revenue beat(16)-0.84%
PT rev (1m)0%
PT rev (3m)-10.93%
EPS NQ rev (1m)-1.38%
EPS NQ rev (3m)-21.37%
EPS NY rev (1m)-0.13%
EPS NY rev (3m)-10.74%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-0.49%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)0.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.15 | ||
| Fwd PE | 15.16 | ||
| P/S | 1.08 | ||
| P/FCF | 20.8 | ||
| P/OCF | 14.03 | ||
| P/B | 1.62 | ||
| P/tB | 9.08 | ||
| EV/EBITDA | 11.97 |
EPS(TTM)1.47
EY6.19%
EPS(NY)1.57
Fwd EY6.6%
FCF(TTM)1.14
FCFY4.81%
OCF(TTM)1.69
OCFY7.13%
SpS21.92
BVpS14.7
TBVpS2.62
PEG (NY)N/A
PEG (5Y)N/A
Graham Number22.05
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.59% | ||
| ROE | 9.33% | ||
| ROCE | 8.34% | ||
| ROIC | 6.5% | ||
| ROICexc | 6.86% | ||
| ROICexgc | 16.2% | ||
| OM | 8.4% | ||
| PM (TTM) | 6.26% | ||
| GM | 16.36% | ||
| FCFM | 5.21% |
ROA(3y)6.47%
ROA(5y)7.15%
ROE(3y)11.2%
ROE(5y)12.15%
ROIC(3y)7.49%
ROIC(5y)7.95%
ROICexc(3y)8.08%
ROICexc(5y)8.91%
ROICexgc(3y)21.3%
ROICexgc(5y)22.65%
ROCE(3y)9.6%
ROCE(5y)10.2%
ROICexgc growth 3Y-7.22%
ROICexgc growth 5Y-11.81%
ROICexc growth 3Y-3.68%
ROICexc growth 5Y-13.2%
OM growth 3Y-3.33%
OM growth 5Y-6.88%
PM growth 3Y-5.43%
PM growth 5Y-8.11%
GM growth 3Y0.06%
GM growth 5Y-3.09%
F-Score5
Asset Turnover0.89
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 4.55 | ||
| Debt/EBITDA | 2.24 | ||
| Cap/Depr | 116.21% | ||
| Cap/Sales | 2.51% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 73.07% | ||
| Profit Quality | 83.2% | ||
| Current Ratio | 2.47 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z | 3.57 |
F-Score5
WACC7.35%
ROIC/WACC0.88
Cap/Depr(3y)104.11%
Cap/Depr(5y)118.53%
Cap/Sales(3y)2.21%
Cap/Sales(5y)2.5%
Profit Quality(3y)103.03%
Profit Quality(5y)95.5%
High Growth Momentum
Growth
EPS 1Y (TTM)-6.96%
EPS 3Y-2.98%
EPS 5Y-1.91%
EPS Q2Q%-5.41%
EPS Next Y-7.97%
EPS Next 2Y-0.45%
EPS Next 3Y2.93%
EPS Next 5Y4.18%
Revenue 1Y (TTM)0.65%
Revenue growth 3Y1.54%
Revenue growth 5Y4.65%
Sales Q2Q%4.64%
Revenue Next Year1.65%
Revenue Next 2Y2.17%
Revenue Next 3Y2.36%
Revenue Next 5Y2.28%
EBIT growth 1Y-1.83%
EBIT growth 3Y-1.84%
EBIT growth 5Y-2.55%
EBIT Next Year15.4%
EBIT Next 3Y9.49%
EBIT Next 5Y9.03%
FCF growth 1Y-25.48%
FCF growth 3Y9.5%
FCF growth 5Y9.93%
OCF growth 1Y-15.41%
OCF growth 3Y8.13%
OCF growth 5Y6.54%
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 6 / 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 83.32%.