Uncovering Dividend Opportunities with HORMEL FOODS CORP (NYSE:HRL).

Take a closer look at HORMEL FOODS CORP (NYSE:HRL), a stock of interest to dividend investors uncovered by our stock screener. HRL excels in fundamentals and provides a decent dividend, all while maintaining a reasonable valuation. Let's break it down further.

Analyzing Dividend Metrics

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 4.44. HRL pays more dividend than 81.82% of the companies in the same industry.
• Compared to an average S&P500 Dividend Yield of 2.57, HRL pays a better dividend.
• On average, the dividend of HRL grows each year by 6.53%, 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.

Health Analysis for HRL

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. HRL was assigned a score of 6 for health:

• HRL has an Altman-Z score of 3.97. This indicates that HRL is financially healthy and has little risk of bankruptcy at the moment.
• With a decent Altman-Z score value of 3.97, HRL is doing good in the industry, outperforming 79.55% of the companies in the same industry.
• The Debt to FCF ratio of HRL is 3.21, which is a good value as it means it would take HRL, 3.21 years of fcf income to pay off 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 75.00% of its industry peers.
• A Debt/Equity ratio of 0.36 indicates that HRL is not too dependend on debt financing.
• HRL has a Current Ratio of 2.45. This indicates that HRL is financially healthy and has no problem in meeting its short term obligations.
• HRL has a better Current ratio (2.45) than 72.73% of its industry peers.
• HRL has a Quick ratio of 1.31. This is in the better half of the industry: HRL outperforms 73.86% of its industry peers.

A Closer Look at Profitability for HRL

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, HRL has achieved a 5:

• HRL has a Return On Assets of 5.65%. This is in the better half of the industry: HRL outperforms 68.18% of its industry peers.
• HRL has a Return On Equity of 9.43%. This is in the better half of the industry: HRL outperforms 61.36% of its industry peers.
• HRL has a better Return On Invested Capital (6.37%) than 64.77% of its industry peers.
• With a decent Profit Margin value of 6.35%, HRL is doing good in the industry, outperforming 78.41% of the companies in the same industry.
• With a decent Operating Margin value of 8.28%, HRL is doing good in the industry, outperforming 71.59% of the companies in the same industry.

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

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.