HORMEL FOODS CORP (HRL) Stock Fundamental Analysis
USA - NYSE:HRL - US4404521001 - Common Stock
22.64 USD
-0.02 (-0.09%)
22.64 USD
0 (0%)
Overall HRL gets a fundamental rating of 5 out of 10. We evaluated HRL against 86 industry peers in the Food Products industry. HRL has an average financial health and profitability rating. HRL has a valuation in line with the averages, but on the other hand it scores bad on growth. Finally HRL also has an excellent dividend rating. These ratings would make HRL suitable for dividend investing!
1. Profitability
1.1 Basic Checks
In the past year HRL was profitable.
HRL had a positive operating cash flow in the past year.
Each year in the past 5 years HRL has been profitable.
HRL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
HRL has a Return On Assets of 5.59%. This is in the better half of the industry: HRL outperforms 76.74% of its industry peers.
With a decent Return On Equity value of 9.33%, HRL is doing good in the industry, outperforming 69.77% of the companies in the same industry.
With a decent Return On Invested Capital value of 6.50%, HRL is doing good in the industry, outperforming 69.77% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for HRL is significantly below the industry average of 29.14%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.59% | ||
| ROE | 9.33% | ||
| ROIC | 6.5% |
ROA(3y)6.47%
ROA(5y)7.15%
ROE(3y)11.2%
ROE(5y)12.15%
ROIC(3y)7.49%
ROIC(5y)7.95%
1.3 Margins
The Profit Margin of HRL (6.26%) is better than 75.58% of its industry peers.
In the last couple of years the Profit Margin of HRL has declined.
With a decent Operating Margin value of 8.40%, HRL is doing good in the industry, outperforming 70.93% of the companies in the same industry.
In the last couple of years the Operating Margin of HRL has declined.
HRL has a Gross Margin of 16.36%. This is comparable to the rest of the industry: HRL outperforms 45.35% of its industry peers.
In the last couple of years the Gross Margin of HRL has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.4% | ||
| PM (TTM) | 6.26% | ||
| GM | 16.36% |
OM growth 3Y-3.33%
OM growth 5Y-6.88%
PM growth 3Y-5.43%
PM growth 5Y-8.11%
GM growth 3Y0.06%
GM growth 5Y-3.09%
2. Health
2.1 Basic Checks
HRL has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
HRL has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, HRL has more shares outstanding
Compared to 1 year ago, HRL has an improved debt to assets ratio.
2.2 Solvency
HRL has an Altman-Z score of 3.50. This indicates that HRL is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of HRL (3.50) is better than 77.91% of its industry peers.
The Debt to FCF ratio of HRL is 4.55, which is a neutral value as it means it would take HRL, 4.55 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of HRL (4.55) is better than 79.07% of its industry peers.
HRL has a Debt/Equity ratio of 0.35. This is a healthy value indicating a solid balance between debt and equity.
HRL has a Debt to Equity ratio of 0.35. This is comparable to the rest of the industry: HRL outperforms 55.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 4.55 | ||
| Altman-Z | 3.5 |
ROIC/WACC0.88
WACC7.37%
2.3 Liquidity
HRL has a Current Ratio of 2.47. This indicates that HRL is financially healthy and has no problem in meeting its short term obligations.
HRL has a Current ratio of 2.47. This is in the better half of the industry: HRL outperforms 74.42% of its industry peers.
HRL has a Quick Ratio of 1.12. This is a normal value and indicates that HRL is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.12, HRL is doing good in the industry, outperforming 66.28% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.47 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
The earnings per share for HRL have decreased by -6.96% in the last year.
Measured over the past years, HRL shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.91% on average per year.
The Revenue has been growing slightly by 0.65% in the past year.
Measured over the past years, HRL shows a small growth in Revenue. The Revenue has been growing by 4.65% on average per year.
EPS 1Y (TTM)-6.96%
EPS 3Y-2.98%
EPS 5Y-1.91%
EPS Q2Q%-5.41%
Revenue 1Y (TTM)0.65%
Revenue growth 3Y1.54%
Revenue growth 5Y4.65%
Sales Q2Q%4.64%
3.2 Future
The Earnings Per Share is expected to grow by 3.52% on average over the next years.
HRL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.69% yearly.
EPS Next Y-10.4%
EPS Next 2Y-2.57%
EPS Next 3Y1.07%
EPS Next 5Y3.52%
Revenue Next Year1.78%
Revenue Next 2Y2.03%
Revenue Next 3Y2.16%
Revenue Next 5Y1.69%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 15.40 indicates a correct valuation of HRL.
66.28% of the companies in the same industry are more expensive than HRL, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 25.89. HRL is valued slightly cheaper when compared to this.
HRL is valuated correctly with a Price/Forward Earnings ratio of 15.10.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HRL indicates a somewhat cheap valuation: HRL is cheaper than 69.77% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of HRL to the average of the S&P500 Index (34.59), we can say HRL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.4 | ||
| Fwd PE | 15.1 |
4.2 Price Multiples
HRL's Enterprise Value to EBITDA ratio is in line with the industry average.
HRL's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. HRL is cheaper than 66.28% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.84 | ||
| EV/EBITDA | 11.5 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-2.57%
EPS Next 3Y1.07%
5. Dividend
5.1 Amount
HRL has a Yearly Dividend Yield of 5.34%, which is a nice return.
In the last 3 months the price of HRL has falen by -20.51%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 5.22, HRL pays a better dividend. On top of this HRL pays more dividend than 84.88% of the companies listed in the same industry.
HRL's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.34% |
5.2 History
The dividend of HRL is nicely growing with an annual growth rate of 6.53%!
HRL has been paying a dividend for at least 10 years, so it has a reliable track record.
HRL has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)6.53%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
83.32% of the earnings are spent on dividend by HRL. This is not a sustainable payout ratio.
HRL's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP83.32%
EPS Next 2Y-2.57%
EPS Next 3Y1.07%
22.64
-0.02 (-0.09%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners90.9%
Inst Owner Change1.23%
Ins Owners0.16%
Ins Owner Change0.04%
Market Cap12.45B
Revenue(TTM)12.06B
Net Income(TTM)754.53M
Analysts68
Price Target29.89 (32.02%)
Short Float %5.15%
Short Ratio3.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.34% |
Yearly Dividend1.12
Dividend Growth(5Y)6.53%
DP83.32%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-7.16%
Min EPS beat(2)-15.34%
Max EPS beat(2)1.03%
EPS beat(4)1
Avg EPS beat(4)-5.94%
Min EPS beat(4)-15.34%
Max EPS beat(4)1.03%
EPS beat(8)4
Avg EPS beat(8)-0.26%
EPS beat(12)6
Avg EPS beat(12)-1.4%
EPS beat(16)8
Avg EPS beat(16)-1.1%
Revenue beat(2)1
Avg Revenue beat(2)-0.25%
Min Revenue beat(2)-1.27%
Max Revenue beat(2)0.76%
Revenue beat(4)2
Avg Revenue beat(4)-0.22%
Min Revenue beat(4)-1.27%
Max Revenue beat(4)0.8%
Revenue beat(8)3
Avg Revenue beat(8)-1.03%
Revenue beat(12)3
Avg Revenue beat(12)-1.95%
Revenue beat(16)6
Avg Revenue beat(16)-0.84%
PT rev (1m)0%
PT rev (3m)-10.93%
EPS NQ rev (1m)-17.91%
EPS NQ rev (3m)-34.57%
EPS NY rev (1m)-2.77%
EPS NY rev (3m)-13.09%
Revenue NQ rev (1m)0.21%
Revenue NQ rev (3m)0.09%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.4 | ||
| Fwd PE | 15.1 | ||
| P/S | 1.03 | ||
| P/FCF | 19.84 | ||
| P/OCF | 13.38 | ||
| P/B | 1.54 | ||
| P/tB | 8.66 | ||
| EV/EBITDA | 11.5 |
EPS(TTM)1.47
EY6.49%
EPS(NY)1.5
Fwd EY6.62%
FCF(TTM)1.14
FCFY5.04%
OCF(TTM)1.69
OCFY7.48%
SpS21.92
BVpS14.7
TBVpS2.62
PEG (NY)N/A
PEG (5Y)N/A
Graham Number22.05
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.59% | ||
| ROE | 9.33% | ||
| ROCE | 8.34% | ||
| ROIC | 6.5% | ||
| ROICexc | 6.86% | ||
| ROICexgc | 16.2% | ||
| OM | 8.4% | ||
| PM (TTM) | 6.26% | ||
| GM | 16.36% | ||
| FCFM | 5.21% |
ROA(3y)6.47%
ROA(5y)7.15%
ROE(3y)11.2%
ROE(5y)12.15%
ROIC(3y)7.49%
ROIC(5y)7.95%
ROICexc(3y)8.08%
ROICexc(5y)8.91%
ROICexgc(3y)21.3%
ROICexgc(5y)22.65%
ROCE(3y)9.6%
ROCE(5y)10.2%
ROICexgc growth 3Y-7.22%
ROICexgc growth 5Y-11.81%
ROICexc growth 3Y-3.68%
ROICexc growth 5Y-13.2%
OM growth 3Y-3.33%
OM growth 5Y-6.88%
PM growth 3Y-5.43%
PM growth 5Y-8.11%
GM growth 3Y0.06%
GM growth 5Y-3.09%
F-Score5
Asset Turnover0.89
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 4.55 | ||
| Debt/EBITDA | 2.24 | ||
| Cap/Depr | 116.21% | ||
| Cap/Sales | 2.51% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 73.07% | ||
| Profit Quality | 83.2% | ||
| Current Ratio | 2.47 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z | 3.5 |
F-Score5
WACC7.37%
ROIC/WACC0.88
Cap/Depr(3y)104.11%
Cap/Depr(5y)118.53%
Cap/Sales(3y)2.21%
Cap/Sales(5y)2.5%
Profit Quality(3y)103.03%
Profit Quality(5y)95.5%
High Growth Momentum
Growth
EPS 1Y (TTM)-6.96%
EPS 3Y-2.98%
EPS 5Y-1.91%
EPS Q2Q%-5.41%
EPS Next Y-10.4%
EPS Next 2Y-2.57%
EPS Next 3Y1.07%
EPS Next 5Y3.52%
Revenue 1Y (TTM)0.65%
Revenue growth 3Y1.54%
Revenue growth 5Y4.65%
Sales Q2Q%4.64%
Revenue Next Year1.78%
Revenue Next 2Y2.03%
Revenue Next 3Y2.16%
Revenue Next 5Y1.69%
EBIT growth 1Y-1.83%
EBIT growth 3Y-1.84%
EBIT growth 5Y-2.55%
EBIT Next Year15.4%
EBIT Next 3Y9.49%
EBIT Next 5Y9.03%
FCF growth 1Y-25.48%
FCF growth 3Y9.5%
FCF growth 5Y9.93%
OCF growth 1Y-15.41%
OCF growth 3Y8.13%
OCF growth 5Y6.54%
HORMEL FOODS CORP / HRL FAQ
What is the ChartMill fundamental rating of HORMEL FOODS CORP (HRL) stock?
ChartMill assigns a fundamental rating of 5 / 10 to HRL.
What is the valuation status of HORMEL FOODS CORP (HRL) stock?
ChartMill assigns a valuation rating of 4 / 10 to HORMEL FOODS CORP (HRL). This can be considered as Fairly Valued.
How profitable is HORMEL FOODS CORP (HRL) stock?
HORMEL FOODS CORP (HRL) has a profitability rating of 5 / 10.
Can you provide the financial health for HRL stock?
The financial health rating of HORMEL FOODS CORP (HRL) is 6 / 10.
Is the dividend of HORMEL FOODS CORP sustainable?
The dividend rating of HORMEL FOODS CORP (HRL) is 8 / 10 and the dividend payout ratio is 83.32%.