Hormel Foods
Market Cap
US$24.8b
Last Updated
2020/01/18 23:36 UTC
Data Sources
Company Financials +
Executive Summary
Hormel Foods Corporation produces and markets various meat and food products to retail, foodservice, deli, and commercial customers in the United States and internationally.
Rewards
Risk Analysis
No risks detected for HRL from our risk checks.
Snowflake Analysis
Flawless balance sheet established dividend payer.
Similar Companies
Share Price & News
How has Hormel Foods's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: HRL has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
3.1%
HRL
1.7%
US Food
2.0%
US Market
1 Year Return
5.6%
HRL
12.9%
US Food
23.6%
US Market
Return vs Industry: HRL underperformed the US Food industry which returned 13.9% over the past year.
Return vs Market: HRL underperformed the US Market which returned 24.7% over the past year.
Shareholder returns
| HRL | Industry | Market | |
|---|---|---|---|
| 7 Day | 3.1% | 1.7% | 2.0% |
| 30 Day | 3.6% | 0.7% | 3.9% |
| 90 Day | 13.5% | 6.3% | 12.0% |
| 1 Year | 7.8%5.6% | 16.1%12.9% | 26.2%23.6% |
| 3 Year | 35.7%27.7% | 1.7%-6.4% | 53.2%43.3% |
| 5 Year | 90.7%73.6% | 41.8%24.5% | 75.7%56.3% |
Price Volatility Vs. Market
How volatile is Hormel Foods's share price compared to the market and industry in the last 5 years?
Simply Wall St News
5 days ago | Simply Wall St
Hormel Foods Corporation (NYSE:HRL) Earns Among The Best Returns In Its Industry2 weeks ago | Simply Wall St
Was Hormel Foods Corporation's (NYSE:HRL) Earnings Decline Part Of A Broader Industry Downturn?3 weeks ago | Simply Wall St
Boasting A 17% Return On Equity, Is Hormel Foods Corporation (NYSE:HRL) A Top Quality Stock?Valuation
Is Hormel Foods undervalued compared to its fair value and its price relative to the market?
25.29x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: HRL ($45.45) is trading above our estimate of fair value ($38.89)
Significantly Below Fair Value: HRL is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: HRL is good value based on its PE Ratio (25.3x) compared to the Food industry average (25.4x).
PE vs Market: HRL is poor value based on its PE Ratio (24.8x) compared to the US market (18.9x).
Price to Earnings Growth Ratio
PEG Ratio: HRL is poor value based on its PEG Ratio (10.9x)
Price to Book Ratio
PB vs Industry: HRL is overvalued based on its PB Ratio (4.1x) compared to the US Food industry average (2.1x).
Next Steps
Future Growth
How is Hormel Foods forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?
2.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: HRL's forecast earnings growth (2.3% per year) is above the savings rate (1.7%).
Earnings vs Market: HRL's earnings (2.3% per year) are forecast to grow slower than the US market (14.3% per year).
High Growth Earnings: HRL's earnings are forecast to grow, but not significantly.
Revenue vs Market: HRL's revenue (2.7% per year) is forecast to grow slower than the US market (7.5% per year).
High Growth Revenue: HRL's revenue (2.7% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: HRL's Return on Equity is forecast to be low in 3 years time (15.2%).
Next Steps
Past Performance
How has Hormel Foods performed over the past 5 years?
9.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: HRL has high quality earnings.
Growing Profit Margin: HRL's current net profit margins (10.3%) are lower than last year (10.6%).
Past Earnings Growth Analysis
Earnings Trend: HRL's earnings have grown by 9.5% per year over the past 5 years.
Accelerating Growth: HRL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: HRL had negative earnings growth (-3.2%) over the past year, making it difficult to compare to the Food industry average (-12.1%).
Return on Equity
High ROE: HRL's Return on Equity (16.5%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Hormel Foods's financial position?
Financial Position Analysis
Short Term Liabilities: HRL's short term assets ($2.4B) exceed its short term liabilities ($1.1B).
Long Term Liabilities: HRL's short term assets ($2.4B) exceed its long term liabilities ($1.1B).
Debt to Equity History and Analysis
Debt Level: HRL's debt to equity ratio (4.2%) is considered satisfactory.
Reducing Debt: HRL's debt to equity ratio has reduced from 6.9% to 4.2% over the past 5 years.
Debt Coverage: HRL's debt is well covered by operating cash flow (369.2%).
Interest Coverage: HRL earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
Inventory Level: HRL has a high level of physical assets or inventory.
Debt Coverage by Assets: HRL's debt is covered by short term assets (assets are 9.4x debt).
Next Steps
Dividend
What is Hormel Foods's current dividend yield, its reliability and sustainability?
2.01%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: HRL's dividend (2.05%) is higher than the bottom 25% of dividend payers in the US market (1.4%).
High Dividend: HRL's dividend (2.05%) is low compared to the top 25% of dividend payers in the US market (3.66%).
Stability and Growth of Payments
Stable Dividend: HRL's dividends per share have been stable in the past 10 years.
Growing Dividend: HRL's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (45.9%), HRL's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: HRL's dividends in 3 years are forecast to be covered by earnings (54.1% payout ratio).
Next Steps
Management
What is the CEO of Hormel Foods's salary, the management and board of directors tenure and is there insider trading?
4.0yrs
Average management tenure
CEO
Jim Snee (52yo)
3.3yrs
Tenure
US$8,324,267
Compensation
Mr. James P. Snee, also known as Jim, has been the Chief Executive Officer of Hormel Foods Corporation from October 31, 2016 to November 19, 2017 and its President from October 26, 2015 to November 19, 201Â ...
CEO Compensation Analysis
Compensation vs Market: Jim's total compensation ($USD8.32M) is about average for companies of similar size in the US market ($USD10.76M).
Compensation vs Earnings: Jim's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Management Age and Tenure
4.0yrs
Average Tenure
57yo
Average Age
Experienced Management: HRL's management team is considered experienced (4 years average tenure).
Board Age and Tenure
9.3yrs
Average Tenure
62yo
Average Age
Experienced Board: HRL's board of directors are considered experienced (9.3 years average tenure).
Insider Trading
Insider Buying: HRL insiders have only sold shares in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Chief Legal Officer Senior VP of External Affairs & General Counsel |
| Shares | 11,000 |
| Max Price | US$45.08 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 3,128 |
| Max Price | US$43.65 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 3,363 |
| Max Price | US$43.50 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 3,940 |
| Max Price | US$43.50 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 3,962 |
| Max Price | US$43.01 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 14,695 |
| Max Price | US$41.00 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 4,000 |
| Max Price | US$40.29 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 7,000 |
| Max Price | US$40.64 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 18,000 |
| Max Price | US$40.00 |
| Entity | Individual |
| Role | Senior Key Executive Executive Vice President of Refrigerated Foods |
| Shares | 6,000 |
| Max Price | US$41.91 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 10,000 |
| Max Price | US$44.33 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 4,695 |
| Max Price | US$43.00 |
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Management Team
Jim Sheehan (64yo)
Executive VP & CFO
- Tenure: 3.3yrs
- Compensation: US$2.96m
Tom Day (61yo)
Executive Vice President of Refrigerated Foods
- Tenure: 1.9yrs
- Compensation: US$3.43m
Jim Splinter (57yo)
Group Vice President of Corporate Strategy
- Tenure: 16.6yrs
- Compensation: US$2.27m
Wendy Watkins
Vice President of Corporate Communications
- Tenure: 4.8yrs
Fred Halvin
Vice President of Corporate Development
- Tenure: 7.3yrs
Jim Snee (52yo)
Chairman
- Tenure: 3.3yrs
- Compensation: US$8.32m
Lori Marco (52yo)
Senior VP of External Affairs & General Counsel
- Tenure: 9yrs
Glenn Leitch (59yo)
Executive Vice President of Supply Chain
- Tenure: 2.1yrs
- Compensation: US$2.55m
Jana Haynes (47yo)
VP & Controller
Nathan Annis
Director of Investor Relations
Board Members
Steve Lacy (65yo)
Independent Director
- Tenure: 8.3yrs
- Compensation: US$279.52k
Terry Crews (64yo)
Independent Director
- Tenure: 12.3yrs
- Compensation: US$279.32k
Robert Nakasone (71yo)
Independent Director
- Tenure: 13.3yrs
- Compensation: US$305.92k
Dakota Pippins (71yo)
Independent Director
- Tenure: 19yrs
- Compensation: US$271.61k
Susan Nestegard (59yo)
Independent Director
- Tenure: 10.3yrs
- Compensation: US$260.70k
Chris Policinski (60yo)
Lead Director
- Tenure: 3.3yrs
- Compensation: US$295.08k
Gary Bhojwani (51yo)
Independent Director
- Tenure: 5.5yrs
- Compensation: US$256.52k
Elsa Murano (60yo)
Independent Director
- Tenure: 13.3yrs
- Compensation: US$247.02k
Glenn Forbes (72yo)
Independent Director
- Tenure: 8.3yrs
- Compensation: US$249.13k
Jim Snee (52yo)
Chairman
- Tenure: 3.3yrs
- Compensation: US$8.32m
Company Information
Hormel Foods Corporation's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Hormel Foods Corporation
- Ticker: HRL
- Exchange: NYSE
- Founded: 1891
- Industry: Packaged Foods and Meats
- Sector: Food, Beverage & Tobacco
- Market Cap: US$24.758b
- Shares outstanding: 534.74m
- Website: https://www.hormelfoods.com
Number of Employees
Location
- Hormel Foods Corporation
- 1 Hormel Place
- Austin
- Minnesota
- 55912
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| HRL | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Jan 1968 |
| HO7 | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jan 1968 |
| 0J5Z | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Jan 1968 |
| HRL | WBAG (Wiener Boerse AG) | Yes | Common Stock | AT | EUR | Jan 1968 |
| H1RL34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH REPR 1 COM | BR | BRL | Dec 2019 |
Biography
Hormel Foods Corporation produces and markets various meat and food products to retail, foodservice, deli, and commercial customers in the United States and internationally. The company operates through four segments: Grocery Products, Refrigerated Foods, Jennie-O Turkey Store, and International & Other. It offers various perishable meat products, including fresh meats, frozen items, refrigerated meal solutions, sausages, hams, guacamoles, and bacons; and shelf-stable products, such as canned luncheon meats, peanut butters, chilies, shelf-stable microwaveable meals, hashes, stews, meat spreads, flour and corn tortillas, salsas, tortilla chips, and other products. The company also provides turkey products; nutritional food products and supplements; dessert and drink mixes; and industrial gelatin products. It sells its products under the SKIPPY, SPAM, Hormel, Natural Choice, Applegate, Justin's, Wholly, Hormel, Black Label, Columbus, etc. brand names through sales personnel, as well as through independent brokers and distributors. The company was formerly known as Geo. A. Hormel & Company and changed its name to Hormel Foods Corporation in January 1995. Hormel Foods Corporation was founded in 1891 and is headquartered in Austin, Minnesota.Â
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/01/18 23:36 |
| End of Day Share Price | 2020/01/17 00:00 |
| Earnings | 2019/10/27 |
| Annual Earnings | 2019/10/27 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.