Why HORMEL FOODS CORP (NYSE:HRL) provides a good dividend, while having solid fundamentals.

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

Dividend Analysis for HRL

ChartMill employs its own Dividend Rating system for all stocks. This score, on a scale of 0 to 10, is determined by evaluating different dividend factors, such as yield, historical performance, dividend growth, and sustainability. HRL has been assigned a 7 for dividend:

• HRL's Dividend Yield is rather good when compared to the industry average which is at 4.57. HRL pays more dividend than 82.22% of the companies in the same industry.
• HRL's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
• 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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.

Evaluating Health: HRL

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. HRL has earned a 6 out of 10:

• HRL has an Altman-Z score of 3.91. This indicates that HRL is financially healthy and has little risk of bankruptcy at the moment.
• HRL has a Altman-Z score of 3.91. This is in the better half of the industry: HRL outperforms 80.00% of its industry peers.
• 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's Debt to FCF ratio of 3.21 is fine compared to the rest of the industry. HRL outperforms 75.56% of its industry peers.
• A Debt/Equity ratio of 0.36 indicates that HRL is not too dependend on debt financing.
• A Current Ratio of 2.45 indicates that HRL has no problem at all paying its short term obligations.
• HRL's Current ratio of 2.45 is fine compared to the rest of the industry. HRL outperforms 72.22% of its industry peers.
• With a decent Quick ratio value of 1.31, HRL is doing good in the industry, outperforming 74.44% of the companies in the same industry.

Profitability Examination for HRL

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. HRL has earned a 5 out of 10:

• With a decent Return On Assets value of 5.65%, HRL is doing good in the industry, outperforming 67.78% of the companies in the same industry.
• HRL has a Return On Equity of 9.43%. This is in the better half of the industry: HRL outperforms 61.11% of its industry peers.
• The Return On Invested Capital of HRL (6.37%) is better than 64.44% of its industry peers.
• HRL has a better Profit Margin (6.35%) than 77.78% of its industry peers.
• HRL's Operating Margin of 8.28% is fine compared to the rest of the industry. HRL outperforms 72.22% of its industry peers.

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

Check the latest full fundamental report of HRL for a complete fundamental analysis.

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.