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Analyzing NYSE:HRL's Dividend Potential.

By Mill Chart

Last update: Apr 5, 2024

HORMEL FOODS CORP (NYSE:HRL) is a hidden gem unveiled by our stock screening tool, featuring a promising dividend outlook alongside solid fundamentals. NYSE:HRL demonstrates decent financial health and profitability while ensuring a sustainable dividend. Let's break it down further.

Evaluating Dividend: NYSE:HRL

ChartMill assigns a Dividend Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing various dividend elements, such as yield, historical performance, dividend growth, and sustainability. NYSE:HRL has been awarded a 7 for its dividend quality:

  • Compared to an average industry Dividend Yield of 3.33, HRL pays a better dividend. On top of this HRL pays more dividend than 80.22% of the companies listed in the same industry.
  • HRL's Dividend Yield is a higher than the S&P500 average which is at 2.31.
  • The dividend of HRL is nicely growing with an annual growth rate of 8.23%!
  • 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.
  • The dividend of HRL is growing, but earnings are growing more, so the dividend growth is sustainable.

Evaluating Health: NYSE:HRL

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NYSE:HRL, the assigned 5 reflects its health status:

  • An Altman-Z score of 4.07 indicates that HRL is not in any danger for bankruptcy at the moment.
  • HRL's Altman-Z score of 4.07 is amongst the best of the industry. HRL outperforms 81.32% of its industry peers.
  • HRL has a debt to FCF ratio of 3.42. This is a good value and a sign of high solvency as HRL would need 3.42 years to pay back of all of its debts.
  • HRL has a better Debt to FCF ratio (3.42) than 75.82% of its industry peers.
  • A Debt/Equity ratio of 0.30 indicates that HRL is not too dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.30, HRL is in the better half of the industry, outperforming 60.44% of the companies in the same industry.

Understanding NYSE:HRL's Profitability

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:HRL scores a 5 out of 10:

  • HRL's Return On Assets of 5.88% is fine compared to the rest of the industry. HRL outperforms 69.23% of its industry peers.
  • HRL has a Return On Equity of 10.13%. This is in the better half of the industry: HRL outperforms 65.93% of its industry peers.
  • The Return On Invested Capital of HRL (7.32%) is better than 74.73% of its industry peers.
  • With a decent Profit Margin value of 6.55%, HRL is doing good in the industry, outperforming 71.43% of the companies in the same industry.
  • HRL has a Operating Margin of 8.67%. This is in the better half of the industry: HRL outperforms 72.53% of its industry peers.

More Best Dividend stocks can be found in our Best Dividend screener.

For an up to date full fundamental analysis you can check the fundamental report of HRL

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.

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HORMEL FOODS CORP

NYSE:HRL (5/29/2024, 7:09:13 PM)

Premarket: 33.95 -0.15 (-0.44%)

34.1

-0.6 (-1.73%)

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