US4404521001 - Common Stock

We assign a fundamental rating of **4** out of 10 to **HRL**. **HRL** was compared to 93 industry peers in the **Food Products** industry. **HRL** has an average financial health and profitability rating. **HRL** is valued expensive and 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!.

In the past 5 years **HRL** has always been profitable.

In the past 5 years **HRL** always reported a positive cash flow from operatings.

With a decent **Return On Assets** value of **5.42%**, **HRL** is doing good in the industry, outperforming **68.48%** of the companies in the same industry.

With a decent **Return On Equity** value of **9.72%**, **HRL** is doing good in the industry, outperforming **65.22%** of the companies in the same industry.

Industry Rank | Sector Rank | ||
---|---|---|---|

ROA | 5.42% | ||

ROE | 9.72% | ||

ROIC | 6.68% |

ROA(3y)6.86%

ROA(5y)8.36%

ROE(3y)12.19%

ROE(5y)13.45%

ROIC(3y)7.8%

ROIC(5y)9.24%

In the last couple of years the **Operating Margin** of **HRL** has declined.

The **Gross Margin** of **HRL** (**16.81%**) is comparable to the rest of the industry.

Industry Rank | Sector Rank | ||
---|---|---|---|

OM | 8.39% | ||

PM (TTM) | 6.37% | ||

GM | 16.81% |

OM growth 3Y-7.61%

OM growth 5Y-6.03%

PM growth 3Y-11.49%

PM growth 5Y-9.17%

GM growth 3Y-4.58%

GM growth 5Y-4.45%

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), **HRL** is creating some value.

Compared to 5 years ago, **HRL** has more shares outstanding

An Altman-Z score of **3.58** indicates that **HRL** is not in any danger for bankruptcy at the moment.

The Debt to FCF ratio of **HRL** is **3.85**, which is a good value as it means it would take **HRL**, **3.85** years of fcf income to pay off all of its debts.

Looking at the **Debt to FCF ratio**, with a value of **3.85**, **HRL** is in the better half of the industry, outperforming **78.26%** of the companies in the same industry.

Industry Rank | Sector Rank | ||
---|---|---|---|

Debt/Equity | 0.36 | ||

Debt/FCF | 3.85 | ||

Altman-Z | 3.58 |

ROIC/WACC0.88

WACC7.62%

A Quick Ratio of **1.00** indicates that **HRL** may have some problems paying its short term obligations.

The **Quick ratio** of **HRL** (**1.00**) is better than **60.87%** of its industry peers.

Industry Rank | Sector Rank | ||
---|---|---|---|

Current Ratio | 1.73 | ||

Quick Ratio | 1 |

The **Earnings Per Share** has been decreasing by **-1.87%** on average over the past years.

The **Revenue** has been growing slightly by **4.87%** on average over the past years.

EPS 1Y (TTM)-5.85%

EPS 3Y-1.01%

EPS 5Y-1.87%

EPS Q2Q%-5%

Revenue 1Y (TTM)-1.8%

Revenue growth 3Y8.02%

Revenue growth 5Y4.87%

Sales Q2Q%-3.03%

The **Revenue** is expected to grow by **2.52%** on average over the next years.

EPS Next Y-0.34%

EPS Next 2Y2.96%

EPS Next 3Y5.06%

EPS Next 5Y7.1%

Revenue Next Year-0.1%

Revenue Next 2Y0.93%

Revenue Next 3Y1.3%

Revenue Next 5Y2.52%

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.

With a **Price/Earnings** ratio of **18.93**, **HRL** is valued on the expensive side.

A **Price/Forward Earnings** ratio of **17.75** indicates a rather expensive valuation of **HRL**.

Industry Rank | Sector Rank | ||
---|---|---|---|

PE | 18.93 | ||

Fwd PE | 17.75 |

Compared to the rest of the industry, the **Enterprise Value to EBITDA** ratio of **HRL** is on the same level as its industry peers.

Based on the **Price/Free Cash Flow** ratio, **HRL** is valued a bit cheaper than the industry average as 70.65% of the companies are valued more expensively.

Industry Rank | Sector Rank | ||
---|---|---|---|

P/FCF | 16.89 | ||

EV/EBITDA | 15.15 |

PEG (NY)N/A

PEG (5Y)N/A

EPS Next 2Y2.96%

EPS Next 3Y5.06%

Compared to an average industry **Dividend Yield** of **3.72**, **HRL** pays a better dividend. On top of this **HRL** pays more dividend than 84.78% of the companies listed in the same industry.

Industry Rank | Sector Rank | ||
---|---|---|---|

Dividend Yield | 3.69% |

On average, the dividend of **HRL** grows each year by **8.23%**, which is quite nice.

Dividend Growth(5Y)8.23%

Div Incr Years33

Div Non Decr Years33

The dividend of **HRL** is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.

DP78.95%

EPS Next 2Y2.96%

EPS Next 3Y5.06%

**HORMEL FOODS CORP**

NYSE:HRL (6/20/2024, 3:24:29 PM)

After market: 30.48 0 (0%)**30.48**

**+0.11 (+0.36%) **

Chartmill FA Rating

GICS SectorConsumer Staples

GICS IndustryGroupFood, Beverage & Tobacco

GICS IndustryFood Products

Earnings (Last)

Earnings (Next)

Inst Owners

Inst Owner Change

Ins Owners

Ins Owner Change

Market Cap16.71B

Analysts

Price Target

Dividend

Industry Rank | Sector Rank | ||
---|---|---|---|

Dividend Yield | 3.69% |

Dividend Growth(5Y)

DP

Div Incr Years

Div Non Decr Years

Ex-Date

Surprises & Revisions

EPS beat(2)

Avg EPS beat(2)

Min EPS beat(2)

Max EPS beat(2)

EPS beat(4)

Avg EPS beat(4)

Min EPS beat(4)

Max EPS beat(4)

EPS beat(8)

Avg EPS beat(8)

EPS beat(12)

Avg EPS beat(12)

EPS beat(16)

Avg EPS beat(16)

Revenue beat(2)

Avg Revenue beat(2)

Min Revenue beat(2)

Max Revenue beat(2)

Revenue beat(4)

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Min Revenue beat(4)

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Revenue beat(8)

Avg Revenue beat(8)

Revenue beat(12)

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Revenue beat(16)

Avg Revenue beat(16)

PT rev (1m)

PT rev (3m)

EPS NQ rev (1m)

EPS NQ rev (3m)

EPS NY rev (1m)

EPS NY rev (3m)

Revenue NQ rev (1m)

Revenue NQ rev (3m)

Revenue NY rev (1m)

Revenue NY rev (3m)

Valuation

Industry Rank | Sector Rank | ||
---|---|---|---|

PE | 18.93 | ||

Fwd PE | 17.75 | ||

P/S | |||

P/FCF | |||

P/OCF | |||

P/B | |||

P/tB | |||

EV/EBITDA |

EPS(TTM)

EY

EPS(NY)

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FCF(TTM)

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OCF(TTM)

OCFY

SpS

BVpS

TBVpS

PEG (NY)N/A

PEG (5Y)N/A

Profitability

Industry Rank | Sector Rank | ||
---|---|---|---|

ROA | 5.42% | ||

ROE | 9.72% | ||

ROCE | |||

ROIC | |||

ROICexc | |||

ROICexgc | |||

OM | 8.39% | ||

PM (TTM) | 6.37% | ||

GM | 16.81% | ||

FCFM |

ROA(3y)

ROA(5y)

ROE(3y)

ROE(5y)

ROIC(3y)

ROIC(5y)

ROICexc(3y)

ROICexc(5y)

ROICexgc(3y)

ROICexgc(5y)

ROCE(3y)

ROCE(5y)

ROICexcg growth 3Y

ROICexcg growth 5Y

ROICexc growth 3Y

ROICexc growth 5Y

OM growth 3Y

OM growth 5Y

PM growth 3Y

PM growth 5Y

GM growth 3Y

GM growth 5Y

F-Score

Asset Turnover0.85

Health

Industry Rank | Sector Rank | ||
---|---|---|---|

Debt/Equity | 0.36 | ||

Debt/FCF | |||

Debt/EBITDA | |||

Cap/Depr | |||

Cap/Sales | |||

Interest Coverage | |||

Cash Conversion | |||

Profit Quality | |||

Current Ratio | 1.73 | ||

Quick Ratio | 1 | ||

Altman-Z |

F-Score

WACC

ROIC/WACC

Cap/Depr(3y)

Cap/Depr(5y)

Cap/Sales(3y)

Cap/Sales(5y)

Profit Quality(3y)

Profit Quality(5y)

High Growth Momentum

Growth

EPS 1Y (TTM)-5.85%

EPS 3Y-1.01%

EPS 5Y

EPS Q2Q%

EPS Next Y-0.34%

EPS Next 2Y

EPS Next 3Y

EPS Next 5Y

Revenue 1Y (TTM)-1.8%

Revenue growth 3Y8.02%

Revenue growth 5Y

Sales Q2Q%

Revenue Next Year

Revenue Next 2Y

Revenue Next 3Y

Revenue Next 5Y

EBIT growth 1Y

EBIT growth 3Y

EBIT growth 5Y

EBIT Next Year

EBIT Next 3Y

EBIT Next 5Y

FCF growth 1Y

FCF growth 3Y

FCF growth 5Y

OCF growth 1Y

OCF growth 3Y

OCF growth 5Y