Balancing Dividends and Fundamentals: The Case of HORMEL FOODS CORP (NYSE:HRL).

Our stock screener has singled out HORMEL FOODS CORP (NYSE:HRL) as a promising choice for dividend investors. HRL not only scores well in profitability, solvency, and liquidity but also offers a decent dividend. We'll explore this further.

Evaluating Dividend: 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. HRL has been awarded a 7 for its dividend quality:

• HRL's Dividend Yield is rather good when compared to the industry average which is at 3.92. HRL pays more dividend than 83.52% of the companies in the same industry.
• Compared to an average S&P500 Dividend Yield of 2.39, HRL pays a better dividend.
• 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.

Health Analysis for HRL

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. HRL scores a 6 out of 10:

• An Altman-Z score of 3.94 indicates that HRL is not in any danger for bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 3.94, HRL belongs to the top of the industry, outperforming 80.22% of the companies in the same industry.
• HRL has a debt to FCF ratio of 3.21. This is a good value and a sign of high solvency as HRL would need 3.21 years to pay back of all of its debts.
• HRL has a Debt to FCF ratio of 3.21. This is in the better half of the industry: HRL outperforms 73.63% 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.
• A Current Ratio of 2.45 indicates that HRL has no problem at all paying its short term obligations.
• With a decent Current ratio value of 2.45, HRL is doing good in the industry, outperforming 72.53% of the companies in the same industry.
• HRL has a Quick ratio of 1.31. This is in the better half of the industry: HRL outperforms 73.63% of its industry peers.

Profitability Analysis for HRL

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For HRL, the assigned 5 is a significant indicator of profitability:

• With a decent Return On Assets value of 5.65%, HRL is doing good in the industry, outperforming 69.23% of the companies in the same industry.
• The Return On Equity of HRL (9.43%) is better than 64.84% of its industry peers.
• With a decent Return On Invested Capital value of 6.37%, HRL is doing good in the industry, outperforming 63.74% of the companies in the same industry.
• Looking at the Profit Margin, with a value of 6.35%, HRL is in the better half of the industry, outperforming 78.02% of the companies in the same industry.
• HRL has a better Operating Margin (8.28%) than 70.33% of its industry peers.

Every day, new Best Dividend stocks can be found on ChartMill 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.