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HRL

Hormel FoodsNYSE:HRL Stock Report

Last Price

US$49.15

Market Cap

US$26.7b

7D

0.2%

1Y

9.9%

Updated

19 Jan, 2022

Data

Company Financials +
HRL fundamental analysis
Snowflake Score
Valuation2/6
Future Growth1/6
Past Performance2/6
Financial Health4/6
Dividends5/6

HRL Stock Overview

Hormel Foods Corporation develops, processes, and distributes various meat, nuts, and food products to retail, foodservice, deli, and commercial customers in the United States and internationally.

Hormel Foods Competitors

Mondelez International

NasdaqGS:MDLZ

US$94.3b

Kraft Heinz

NasdaqGS:KHC

US$45.6b

General Mills

NYSE:GIS

US$41.7b

Hershey

NYSE:HSY

US$41.1b

Price History & Performance

Summary of all time highs, changes and price drops for Hormel Foods
Historical stock prices
Current Share PriceUS$49.15
52 Week HighUS$50.86
52 Week LowUS$40.48
Beta0.062
1 Month Change1.40%
3 Month Change17.98%
1 Year Change9.88%
3 Year Change15.05%
5 Year Change34.58%
Change since IPO2,163.02%

Recent News & Updates

Jan 07

Hormel: Combining Pricing Power With Organic Growth

Growth in Q4 was a remarkable 43% and reflected pricing action, organic volume growth, and the integration of Planters into the product line. Revenue growth is likely to exceed historical levels for several years due to ongoing pricing power and improvements in operational efficiencies. I expect 5-10% stock appreciation in addition to a stable, increasing dividend.

Jan 07
Hormel Foods' (NYSE:HRL) Upcoming Dividend Will Be Larger Than Last Year's

Hormel Foods' (NYSE:HRL) Upcoming Dividend Will Be Larger Than Last Year's

The board of Hormel Foods Corporation ( NYSE:HRL ) has announced that it will be increasing its dividend on the 15th of...

Dec 24

Why Hormel Foods Is Heading To New Highs In 2022

Hormel Foods delivered blowout Q4 earnings earlier in December. This earnings release has entirely reset the narrative around the company. The company is heading for record revenues and profits in 2022. I expect the share price to follow suit.

Dec 24
Hormel Foods' (NYSE:HRL) Shareholders Will Receive A Bigger Dividend Than Last Year

Hormel Foods' (NYSE:HRL) Shareholders Will Receive A Bigger Dividend Than Last Year

Hormel Foods Corporation ( NYSE:HRL ) has announced that it will be increasing its dividend on the 15th of February to...

Shareholder Returns

HRLUS FoodUS Market
7D0.2%0.3%-4.6%
1Y9.9%13.6%7.7%

Return vs Industry: HRL underperformed the US Food industry which returned 14.3% over the past year.

Return vs Market: HRL matched the US Market which returned 10.2% over the past year.

Price Volatility

Is HRL's price volatile compared to industry and market?
HRL volatility
HRL Average Weekly Movement2.7%
Food Industry Average Movement5.2%
Market Average Movement6.6%
10% most volatile stocks in US Market15.7%
10% least volatile stocks in US Market2.4%

Stable Share Price: HRL is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: HRL's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
189120,000Jim Sneehttps://www.hormelfoods.com

Hormel Foods Corporation develops, processes, and distributes various meat, nuts, 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 provides various perishable products that include fresh meats, frozen items, refrigerated meal solutions, sausages, hams, guacamoles, and bacons; and shelf-stable products comprising canned luncheon meats, nut butters, snack nuts, chilies, shelf-stable microwaveable meals, hashes, stews, tortillas, salsas, tortilla chips, and others.

Hormel Foods Fundamentals Summary

How do Hormel Foods's earnings and revenue compare to its market cap?
HRL fundamental statistics
Market CapUS$26.67b
Earnings (TTM)US$908.84m
Revenue (TTM)US$11.39b

29.3x

P/E Ratio

2.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
HRL income statement (TTM)
RevenueUS$11.39b
Cost of RevenueUS$9.42b
Gross ProfitUS$1.96b
ExpensesUS$1.05b
EarningsUS$908.84m

Last Reported Earnings

Oct 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.68
Gross Margin17.23%
Net Profit Margin7.98%
Debt/Equity Ratio46.9%

How did HRL perform over the long term?

See historical performance and comparison

Dividends

2.1%

Current Dividend Yield

58%

Payout Ratio

Valuation

Is Hormel Foods undervalued compared to its fair value and its price relative to the market?

23.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HRL ($49.15) is trading below our estimate of fair value ($64.54)

Significantly Below Fair Value: HRL is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: HRL is poor value based on its PE Ratio (29.3x) compared to the US Food industry average (21.4x).

PE vs Market: HRL is poor value based on its PE Ratio (29.3x) compared to the US market (17x).


Price to Earnings Growth Ratio

PEG Ratio: HRL is poor value based on its PEG Ratio (3.4x)


Price to Book Ratio

PB vs Industry: HRL is overvalued based on its PB Ratio (3.8x) compared to the US Food industry average (2.4x).


Future Growth

How is Hormel Foods forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

8.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HRL's forecast earnings growth (8.6% per year) is above the savings rate (2%).

Earnings vs Market: HRL's earnings (8.6% per year) are forecast to grow slower than the US market (13% per year).

High Growth Earnings: HRL's earnings are forecast to grow, but not significantly.

Revenue vs Market: HRL's revenue (3% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: HRL's revenue (3% 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 (14.1%).


Past Performance

How has Hormel Foods performed over the past 5 years?

0.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HRL has high quality earnings.

Growing Profit Margin: HRL's current net profit margins (8%) are lower than last year (9.4%).


Past Earnings Growth Analysis

Earnings Trend: HRL's earnings have grown by 0.2% per year over the past 5 years.

Accelerating Growth: HRL's earnings growth over the past year (0.2%) is below its 5-year average (0.2% per year).

Earnings vs Industry: HRL earnings growth over the past year (0.2%) underperformed the Food industry 18.7%.


Return on Equity

High ROE: HRL's Return on Equity (13%) is considered low.


Financial Health

How is Hormel Foods's financial position?


Financial Position Analysis

Short Term Liabilities: HRL's short term assets ($2.9B) exceed its short term liabilities ($1.4B).

Long Term Liabilities: HRL's short term assets ($2.9B) do not cover its long term liabilities ($4.3B).


Debt to Equity History and Analysis

Debt Level: HRL's net debt to equity ratio (37.8%) is considered satisfactory.

Reducing Debt: HRL's debt to equity ratio has increased from 5.6% to 46.9% over the past 5 years.

Debt Coverage: HRL's debt is well covered by operating cash flow (30.6%).

Interest Coverage: HRL earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Hormel Foods's current dividend yield, its reliability and sustainability?

2.11%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HRL's dividend (2.12%) is higher than the bottom 25% of dividend payers in the US market (1.35%).

High Dividend: HRL's dividend (2.12%) is low compared to the top 25% of dividend payers in the US market (3.48%).


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 reasonable payout ratio (58.3%), HRL's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HRL's dividends in 3 years are forecast to be covered by earnings (50.7% payout ratio).


Next Steps

  • Explore strong dividend paying companies in the Food, Beverage & Tobacco industry.

Management

How experienced are the management team and are they aligned to shareholders interests?

6.8yrs

Average management tenure


CEO

Jim Snee (54 yo)

6.25yrs

Tenure

US$9,957,474

Compensation

Mr. James P. Snee, also known as Jim, has been the Chief Executive Officer of Hormel Foods Corporation since October 31, 2016 and its President from October 26, 2015. Mr. Snee served as the Chief Operating...


CEO Compensation Analysis

Compensation vs Market: Jim's total compensation ($USD9.96M) is about average for companies of similar size in the US market ($USD11.29M).

Compensation vs Earnings: Jim's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: HRL's management team is seasoned and experienced (6.8 years average tenure).


Board Members

Experienced Board: HRL's board of directors are considered experienced (7.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Hormel Foods Corporation's 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
  • Implied Market Cap: US$26.667b
  • Shares outstanding: 542.57m
  • Website: https://www.hormelfoods.com

Number of Employees


Location

  • Hormel Foods Corporation
  • 1 Hormel Place
  • Austin
  • Minnesota
  • 55912-3680
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/19 23:34
End of Day Share Price2022/01/19 00:00
Earnings2021/10/31
Annual Earnings2021/10/31


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.