HORMEL FOODS CORP (HRL)
US4404521001 - Common Stock
HRL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 92 industry peers in the Food Products industry. HRL has only an average score on both its financial health and profitability. HRL does not seem to be growing, but still is valued expensively. HRL also has an excellent dividend rating. This makes HRL very considerable for dividend investing!
1. Profitability
1.1 Basic Checks
In the past year HRL was profitable.
In the past year HRL had a positive cash flow from operations.
HRL had positive earnings in each of the past 5 years.
HRL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of HRL (5.42%) is better than 67.03% of its industry peers.
Looking at the Return On Equity, with a value of 9.72%, HRL is in the better half of the industry, outperforming 63.74% of the companies in the same industry.
With a decent Return On Invested Capital value of 6.68%, HRL is doing good in the industry, outperforming 69.23% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for HRL is in line with the industry average of 8.76%.
| 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%
1.3 Margins
HRL has a Profit Margin of 6.37%. This is in the better half of the industry: HRL outperforms 73.63% of its industry peers.
HRL's Profit Margin has declined in the last couple of years.
HRL has a Operating Margin of 8.39%. This is in the better half of the industry: HRL outperforms 70.33% of its industry peers.
In the last couple of years the Operating Margin of HRL has declined.
HRL has a Gross Margin of 16.81%. This is comparable to the rest of the industry: HRL outperforms 41.76% of its industry peers.
In the last couple of years the Gross Margin of HRL has declined.
| 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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), HRL is creating some value.
Compared to 1 year ago, HRL has about the same amount of shares outstanding.
Compared to 5 years ago, HRL has more shares outstanding
HRL has a better debt/assets ratio than last year.
2.2 Solvency
HRL has an Altman-Z score of 3.66. This indicates that HRL is financially healthy and has little risk of bankruptcy at the moment.
HRL has a Altman-Z score of 3.66. This is in the better half of the industry: HRL outperforms 78.02% of its industry peers.
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.
With a decent Debt to FCF ratio value of 3.85, HRL is doing good in the industry, outperforming 78.02% of the companies in the same industry.
HRL has a Debt/Equity ratio of 0.36. This is a healthy value indicating a solid balance between debt and equity.
HRL has a Debt to Equity ratio of 0.36. This is in the better half of the industry: HRL outperforms 60.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 3.85 | ||
| Altman-Z | 3.66 |
ROIC/WACC0.87
WACC7.71%
2.3 Liquidity
A Current Ratio of 1.73 indicates that HRL should not have too much problems paying its short term obligations.
HRL has a Current ratio of 1.73. This is comparable to the rest of the industry: HRL outperforms 59.34% of its industry peers.
HRL has a Quick Ratio of 1.73. This is a bad value and indicates that HRL is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of HRL (1.00) is better than 60.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.73 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
HRL shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.85%.
HRL shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.87% yearly.
The Revenue has decreased by -1.80% in the past year.
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%
3.2 Future
Based on estimates for the next years, HRL will show a small growth in Earnings Per Share. The EPS will grow by 7.10% on average per year.
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%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 19.88, which indicates a rather expensive current valuation of HRL.
Based on the Price/Earnings ratio, HRL is valued a bit cheaper than 64.84% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 24.41, HRL is valued at the same level.
Based on the Price/Forward Earnings ratio of 18.64, the valuation of HRL can be described as rather expensive.
64.84% of the companies in the same industry are more expensive than HRL, based on the Price/Forward Earnings ratio.
HRL is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 20.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.88 | ||
| Fwd PE | 18.64 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as HRL.
HRL's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. HRL is cheaper than 67.03% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.74 | ||
| EV/EBITDA | 15.79 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y2.96%
EPS Next 3Y5.06%
5. Dividend
5.1 Amount
HRL has a Yearly Dividend Yield of 3.51%.
Compared to an average industry Dividend Yield of 3.74, HRL pays a better dividend. On top of this HRL pays more dividend than 81.32% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.30, HRL pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.51% |
5.2 History
On average, the dividend of HRL grows each year by 8.23%, which is quite nice.
HRL has been paying a dividend for at least 10 years, so it has 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.
Dividend Growth(5Y)8.23%
Div Incr Years33
Div Non Decr Years33
5.3 Sustainability
HRL pays out 78.95% of its income as dividend. This is not a sustainable payout ratio.
HRL's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP78.95%
EPS Next 2Y2.96%
EPS Next 3Y5.06%
HORMEL FOODS CORP
NYSE:HRL (7/26/2024, 7:04:00 PM)
After market: 32.01 0 (0%)32.01
+0.17 (+0.53%)
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 Cap17.55B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.51% |
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)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
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 | 19.88 | ||
| Fwd PE | 18.64 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
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