Hormel Foods
Market Cap
US$25.0b
Last Updated
2021/04/10 22:06 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. More Details
Rewards
Risk Analysis
Snowflake Analysis
Excellent 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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: HRL's weekly volatility (4%) has been stable over the past year.
Market Performance
7 Day Return
-2.6%
HRL
0.6%
US Food
1.6%
US Market
1 Year Return
-2.5%
HRL
23.5%
US Food
55.3%
US Market
Return vs Industry: HRL underperformed the US Food industry which returned 23.5% over the past year.
Return vs Market: HRL underperformed the US Market which returned 55.3% over the past year.
Shareholder returns
| HRL | Industry | Market | |
|---|---|---|---|
| 7 Day | -2.6% | 0.6% | 1.6% |
| 30 Day | -2.9% | 3.2% | 4.1% |
| 90 Day | 2.0% | 8.1% | 5.5% |
| 1 Year | -0.5%-2.5% | 26.5%23.5% | 58.1%55.3% |
| 3 Year | 40.5%32.3% | 27.9%17.5% | 63.8%53.3% |
| 5 Year | 29.7%17.5% | 25.3%8.2% | 120.2%95.7% |
Long-Term 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
6 days ago | Simply Wall St
Should Income Investors Look At Hormel Foods Corporation (NYSE:HRL) Before Its Ex-Dividend?1 week ago | Simply Wall St
Is Hormel Foods Corporation's (NYSE:HRL) Recent Performance Tethered To Its Attractive Financial Prospects?3 weeks ago | Simply Wall St
How Much Are Hormel Foods Corporation (NYSE:HRL) Insiders Taking Off The Table?Valuation
Is Hormel Foods undervalued compared to its fair value and its price relative to the market?
13.3%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: HRL ($46.35) is trading below our estimate of fair value ($53.44)
Significantly Below Fair Value: HRL is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: HRL is poor value based on its PE Ratio (28.2x) compared to the US Food industry average (25.2x).
PE vs Market: HRL is poor value based on its PE Ratio (28.2x) compared to the US market (22.3x).
Price to Earnings Growth Ratio
PEG Ratio: HRL is poor value based on its PEG Ratio (3.7x)
Price to Book Ratio
PB vs Industry: HRL is overvalued based on its PB Ratio (3.8x) compared to the US Food industry average (2.2x).
Future Growth
How is Hormel Foods forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
7.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: HRL's forecast earnings growth (7.6% per year) is above the savings rate (2%).
Earnings vs Market: HRL's earnings (7.6% per year) are forecast to grow slower than the US market (18.7% per year).
High Growth Earnings: HRL's earnings are forecast to grow, but not significantly.
Revenue vs Market: HRL's revenue (3.1% per year) is forecast to grow slower than the US market (9.9% per year).
High Growth Revenue: HRL's revenue (3.1% 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 high in 3 years time (27.2%)
Past Performance
How has Hormel Foods performed over the past 5 years?
3.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: HRL has high quality earnings.
Growing Profit Margin: HRL's current net profit margins (9.2%) are lower than last year (10.3%).
Past Earnings Growth Analysis
Earnings Trend: HRL's earnings have grown by 3.2% 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 (-9.5%) over the past year, making it difficult to compare to the Food industry average (10.3%).
Return on Equity
High ROE: HRL's Return on Equity (13.5%) is considered low.
Financial Health
How is Hormel Foods's financial position?
Financial Position Analysis
Short Term Liabilities: HRL's short term assets ($3.6B) exceed its short term liabilities ($1.4B).
Long Term Liabilities: HRL's short term assets ($3.6B) exceed its long term liabilities ($2.0B).
Debt to Equity History and Analysis
Debt Level: HRL's debt to equity ratio (18.1%) is considered satisfactory.
Reducing Debt: HRL's debt to equity ratio has increased from 6% to 18.1% over the past 5 years.
Debt Coverage: HRL's debt is well covered by operating cash flow (96.6%).
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 (2.11%) is higher than the bottom 25% of dividend payers in the US market (1.27%).
High Dividend: HRL's dividend (2.11%) is low compared to the top 25% of dividend payers in the US market (3.5%).
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 (57.3%), 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 (56.9% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.5yrs
Average management tenure
CEO
Jim Snee (53 yo)
4.5yrs
Tenure
US$10,280,130
Compensation
Mr. James P. Snee, also known as Jim, has been the Chief Executive Officer of Hormel Foods Corporation since October 31, 2016 and its President from October 26, 2015. Mr. Snee served as the Chief Operating...
CEO Compensation Analysis
Compensation vs Market: Jim's total compensation ($USD10.28M) is about average for companies of similar size in the US market ($USD10.94M).
Compensation vs Earnings: Jim's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
Experienced Management: HRL's management team is considered experienced (4.5 years average tenure).
Board Members
Experienced Board: HRL's board of directors are considered experienced (6.8 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: HRL insiders have sold more shares than they have bought 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 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$25.036b
- Shares outstanding: 540.15m
- Website: https://www.hormelfoods.com
Number of Employees
Location
- Hormel Foods Corporation
- 1 Hormel Place
- Austin
- Minnesota
- 55912-3680
- United States
Listings
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 fo...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/04/10 22:06 |
| End of Day Share Price | 2021/04/09 00:00 |
| Earnings | 2021/01/24 |
| Annual Earnings | 2020/10/25 |
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.