Hormel Foods
Hormel Foods Corporation produces and markets various meat and food products in the United States and internationally. The last earnings update was 42 days ago. More info.
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HRL Share Price and Events
7 Day Returns
1 Year Returns
HRL Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| Hormel Foods (HRL) | 0.1% | -0.5% | 1.3% | 12.3% | 12% | 70.9% |
| US Food | -0.8% | -0.3% | 2.5% | -0.3% | -16.7% | 21.6% |
| US Market | 1.1% | 4.3% | 2.9% | 4.7% | 37.7% | 43.6% |
1 Year Return vs Industry and Market
- HRL outperformed the Food industry which returned -0.3% over the past year.
- HRL outperformed the Market in United States of America which returned 4.7% over the past year.
HRL Value
Is Hormel Foods undervalued based on future cash flows and its price relative to the stock market?
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
Hormel Foods
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Hormel Foods.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 10 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 7.5% |
| Perpetual Growth Rate | 10-Year US Government Bond Rate | 2.7% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year US Govt Bond Rate | 2.7% |
| Equity Risk Premium | S&P Global | 6% |
| Food Unlevered Beta | Simply Wall St/ S&P Global | 0.56 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.564 (1 + (1- 21%) (1.14%)) |
0.712 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
0.8 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.8 * 5.96%) |
7.5% |
Discounted Cash Flow Calculation for NYSE:HRL using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for Hormel Foods is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
| Levered FCF (USD, Millions) | Source |
Present Value Discounted (@ 7.5%) |
|
|---|---|---|---|
| 2020 | 816.53 | Analyst x4 | 759.57 |
| 2021 | 864.00 | Analyst x1 | 747.68 |
| 2022 | 895.40 | Est @ 3.63% | 720.80 |
| 2023 | 925.51 | Est @ 3.36% | 693.07 |
| 2024 | 954.87 | Est @ 3.17% | 665.19 |
| 2025 | 983.90 | Est @ 3.04% | 637.60 |
| 2026 | 1,012.90 | Est @ 2.95% | 610.61 |
| 2027 | 1,042.09 | Est @ 2.88% | 584.39 |
| 2028 | 1,071.65 | Est @ 2.84% | 559.05 |
| 2029 | 1,101.70 | Est @ 2.8% | 534.64 |
| Present value of next 10 years cash flows | $6,512.60 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2029
× (1 + g) ÷ (Discount Rate – g)
= $1,101.70 × (1 + 2.73%) ÷ (7.5% – 2.73%) |
$23,736.97 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= $23,736.97 ÷ (1 + 7.5%)10 |
$11,519.18 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= $6,512.60 + $11,519.18 |
$18,031.77 |
| Equity Value per Share (USD) |
= Total value / Shares Outstanding
= $18,031.77 / 533.84 |
$33.78 |
| Calculation | Result | |
|---|---|---|
| Value per share (USD) | From above. | $33.78 |
| Current discount | Discount to share price of
$41.23
= -1 x ($41.23 - $33.78) / $33.78 |
-22.1% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
- The current share price of Hormel Foods is above its future cash flow value.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for Hormel Foods's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
Hormel Foods's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2019-04-28) in USD | $1.87 |
| NYSE:HRL Share Price ** | NYSE (2019-07-16) in USD | $41.23 |
| United States of America Food Industry PE Ratio | Median Figure of 42 Publicly-Listed Food Companies | 25.55x |
| United States of America Market PE Ratio | Median Figure of 3,084 Publicly-Listed Companies | 17.98x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Hormel Foods.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NYSE:HRL Share Price ÷ EPS (both in USD) = 41.23 ÷ 1.87 |
22.09x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Hormel Foods is good value based on earnings compared to the US Food industry average.
- Hormel Foods is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does
Hormel Foods's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 22.09x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts |
1.2%per year |
| United States of America Food Industry PEG Ratio | Median Figure of 31 Publicly-Listed Food Companies | 1.58x |
| United States of America Market PEG Ratio | Median Figure of 2,125 Publicly-Listed Companies | 1.58x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 22.09x ÷ 1.2% |
18.93x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Hormel Foods is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on
Hormel Foods's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2019-04-28) in USD | $11.00 |
| NYSE:HRL Share Price * | NYSE (2019-07-16) in USD | $41.23 |
| United States of America Food Industry PB Ratio | Median Figure of 68 Publicly-Listed Food Companies | 2.03x |
| United States of America Market PB Ratio | Median Figure of 5,240 Publicly-Listed Companies | 1.81x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NYSE:HRL Share Price ÷ Book Value per Share (both in USD) = 41.23 ÷ 11.00 |
3.75x |
* Primary Listing of Hormel Foods.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Hormel Foods is overvalued based on assets compared to the US Food industry average.
Value checks
We assess Hormel Foods's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the Food industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Food industry average (and greater than 0)? (1 check) Hormel Foods has a total score of 1/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
HRL Future Performance
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- Hormel Foods's earnings growth is positive but not above the low risk savings rate of 2.7%.
Growth vs Market Checks
- Hormel Foods's earnings growth is positive but not above the United States of America market average.
- Hormel Foods's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| NYSE:HRL Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts | 1.2% |
| NYSE:HRL Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 10 Analysts | 2.7% |
| United States of America Food Industry Earnings Growth Rate | Market Cap Weighted Average | 20.3% |
| United States of America Food Industry Revenue Growth Rate | Market Cap Weighted Average | 3.2% |
| United States of America Market Earnings Growth Rate | Market Cap Weighted Average | 14.1% |
| United States of America Market Revenue Growth Rate | Market Cap Weighted Average | 7.5% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (2 months ago) | See Below |
| Future Estimates | Average of up to 10 Analyst Estimates (S&P Global) | See Below |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2021-10-31 | 10,172 | 1,170 | 1,005 | 5 |
| 2020-10-31 | 9,768 | 1,117 | 960 | 10 |
| 2019-10-31 | 9,585 | 987 | 967 | 10 |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2019-04-28 | 9,589 | 1,164 | 996 |
| 2019-01-27 | 9,575 | 1,125 | 950 |
| 2018-10-28 | 9,546 | 1,242 | 1,012 |
| 2018-07-29 | 9,514 | 1,246 | 969 |
| 2018-04-29 | 9,362 | 1,197 | 941 |
| 2018-01-28 | 9,219 | 1,143 | 915 |
| 2017-10-29 | 9,168 | 1,034 | 847 |
| 2017-07-30 | 9,303 | 903 | 873 |
| 2017-04-30 | 9,398 | 864 | 886 |
| 2017-01-29 | 9,511 | 909 | 890 |
| 2016-10-30 | 9,523 | 1,040 | 890 |
| 2016-07-24 | 9,296 | 923 | 833 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (2 months ago) | See Below |
| Future Estimates | Average of up to 10 Analyst Estimates (S&P Global) | See Below |
All data from Hormel Foods Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2021-10-31 | 1.85 | 1.99 | 1.76 | 4.00 |
| 2020-10-31 | 1.79 | 2.00 | 1.62 | 9.00 |
| 2019-10-31 | 1.78 | 1.93 | 1.72 | 7.00 |
| Date (Data in USD Millions) | EPS * |
|---|---|
| 2019-04-28 | 1.87 |
| 2019-01-27 | 1.79 |
| 2018-10-28 | 1.91 |
| 2018-07-29 | 1.83 |
| 2018-04-29 | 1.78 |
| 2018-01-28 | 1.73 |
| 2017-10-29 | 1.60 |
| 2017-07-30 | 1.65 |
| 2017-04-30 | 1.67 |
| 2017-01-29 | 1.68 |
| 2016-10-30 | 1.68 |
| 2016-07-24 | 1.57 |
*GAAP earnings excluding extraordinary items.
Future performance checks
We assess Hormel Foods's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Hormel Foods has a total score of 0/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
HRL Past Performance
How has Hormel Foods performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- Hormel Foods's year on year earnings growth rate has been positive over the past 5 years.
- Hormel Foods's 1-year earnings growth is less than its 5-year average (5.8% vs 11.2%)
- Hormel Foods's earnings growth has exceeded the US Food industry average in the past year (5.8% vs -17.8%).
Earnings and Revenue History
All data from Hormel Foods Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2019-04-28 | 9,588.94 | 995.50 | 743.60 | 33.80 |
| 2019-01-27 | 9,574.76 | 950.46 | 778.08 | 33.80 |
| 2018-10-28 | 9,545.70 | 1,012.14 | 804.41 | 33.80 |
| 2018-07-29 | 9,513.61 | 968.89 | 795.19 | 34.20 |
| 2018-04-29 | 9,361.84 | 941.15 | 761.10 | 34.20 |
| 2018-01-28 | 9,218.59 | 914.70 | 737.56 | 34.20 |
| 2017-10-29 | 9,167.52 | 846.74 | 727.90 | 34.20 |
| 2017-07-30 | 9,302.85 | 872.52 | 777.19 | 34.70 |
| 2017-04-30 | 9,397.85 | 885.67 | 807.41 | 34.70 |
| 2017-01-29 | 9,510.78 | 890.14 | 837.54 | 34.70 |
| 2016-10-30 | 9,523.22 | 890.05 | 837.27 | 34.70 |
| 2016-07-24 | 9,296.14 | 833.34 | 775.92 | 32.00 |
| 2016-04-24 | 9,182.35 | 784.63 | 753.67 | 32.00 |
| 2016-01-24 | 9,161.46 | 749.43 | 732.26 | 32.00 |
| 2015-10-25 | 9,263.86 | 686.09 | 711.61 | 32.00 |
| 2015-07-26 | 9,406.78 | 670.12 | 685.90 | 29.90 |
| 2015-04-26 | 9,503.14 | 661.16 | 654.31 | 29.90 |
| 2015-01-25 | 9,468.66 | 621.05 | 630.36 | 29.90 |
| 2014-10-26 | 9,316.26 | 602.68 | 616.25 | 29.90 |
| 2014-07-27 | 9,095.69 | 588.75 | 594.85 | 29.90 |
| 2014-04-27 | 8,970.27 | 564.41 | 592.82 | 29.90 |
| 2014-01-26 | 8,878.09 | 549.84 | 600.10 | 29.90 |
| 2013-10-27 | 8,751.65 | 526.21 | 589.74 | 29.90 |
| 2013-07-28 | 8,598.64 | 501.47 | 609.78 | 29.80 |
| 2013-04-28 | 8,447.30 | 499.00 | 603.80 | 29.80 |
| 2013-01-27 | 8,307.47 | 501.37 | 579.42 | 29.80 |
| 2012-10-28 | 8,230.67 | 500.05 | 576.07 | 29.80 |
| 2012-07-29 | 8,164.38 | 484.76 | 573.48 | 29.40 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- Hormel Foods has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
- Hormel Foods used its assets more efficiently than the US Food industry average last year based on Return on Assets.
- Hormel Foods's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
Past performance checks
We assess Hormel Foods's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Food industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
Hormel Foods has a total score of 3/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
HRL Health
How is Hormel Foods's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up Hormel Foods's finances.
The net worth of a company is the difference between its assets and liabilities.
- Hormel Foods is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
- Hormel Foods's cash and other short term assets cover its long term commitments.
Balance sheet
Assets
Liabilities and shares
- High level of physical assets or inventory.
- Debt is covered by short term assets, assets are 9x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from Hormel Foods Company Filings, last reported 2 months ago.
| Date (Data in USD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2019-04-28 | 5,901.78 | 250.00 | 646.00 |
| 2019-01-27 | 5,705.78 | 624.88 | 512.69 |
| 2018-10-28 | 5,604.82 | 624.84 | 459.14 |
| 2018-07-29 | 5,395.77 | 719.80 | 268.98 |
| 2018-04-29 | 5,291.63 | 809.76 | 261.57 |
| 2018-01-28 | 5,155.37 | 879.73 | 385.78 |
| 2017-10-29 | 4,939.70 | 250.00 | 444.12 |
| 2017-07-30 | 4,753.18 | 250.00 | 633.34 |
| 2017-04-30 | 4,686.43 | 250.00 | 548.90 |
| 2017-01-29 | 4,575.30 | 250.00 | 609.82 |
| 2016-10-30 | 4,451.41 | 250.00 | 415.14 |
| 2016-07-24 | 4,393.95 | 395.00 | 379.60 |
| 2016-04-24 | 4,309.64 | 250.00 | 379.88 |
| 2016-01-24 | 4,163.51 | 250.00 | 375.22 |
| 2015-10-25 | 4,001.39 | 435.00 | 347.24 |
| 2015-07-26 | 3,936.01 | 600.00 | 349.17 |
| 2015-04-26 | 3,843.82 | 250.00 | 624.40 |
| 2015-01-25 | 3,732.32 | 250.00 | 527.10 |
| 2014-10-26 | 3,612.06 | 250.00 | 334.17 |
| 2014-07-27 | 3,579.58 | 250.00 | 530.98 |
| 2014-04-27 | 3,513.14 | 250.00 | 499.33 |
| 2014-01-26 | 3,424.43 | 250.00 | 639.84 |
| 2013-10-27 | 3,316.58 | 250.00 | 434.01 |
| 2013-07-28 | 3,053.88 | 250.00 | 329.50 |
| 2013-04-28 | 3,017.83 | 250.00 | 262.75 |
| 2013-01-27 | 2,933.95 | 250.00 | 887.68 |
| 2012-10-28 | 2,824.93 | 250.00 | 759.78 |
| 2012-07-29 | 2,896.20 | 250.00 | 610.23 |
- Hormel Foods's level of debt (4.2%) compared to net worth is satisfactory (less than 40%).
- The level of debt compared to net worth has been reduced over the past 5 years (7.1% vs 4.2% today).
- Debt is well covered by operating cash flow (465.6%, greater than 20% of total debt).
- Interest payments on debt are well covered by earnings (EBIT is 123.6x coverage).
Financial health checks
We assess Hormel Foods's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Hormel Foods has a total score of 6/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
HRL Dividends
What is Hormel Foods's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
$2,000 of
Hormel Foods
shares you are expected to receive
$41
in your first year as a dividend.
Dividend Amount
- Hormel Foods's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.42%).
- Hormel Foods's dividend is below the markets top 25% of dividend payers in United States of America (3.73%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 10 Analyst Estimates (S&P Global) | See Below |
| United States of America Food Industry Average Dividend Yield | Market Cap Weighted Average of 30 Stocks | 2.7% |
| United States of America Market Average Dividend Yield | Market Cap Weighted Average of 2017 Stocks | 2.4% |
| United States of America Minimum Threshold Dividend Yield | 10th Percentile | 0.8% |
| United States of America Bottom 25% Dividend Yield | 25th Percentile | 1.4% |
| United States of America Top 25% Dividend Yield | 75th Percentile | 3.7% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in $) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2021-10-31 | 1.00 | 5.00 |
| 2020-10-31 | 0.91 | 9.00 |
| 2019-10-31 | 0.83 | 9.00 |
| Date (Data in $) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2019-05-21 | 0.840 | 2.057 |
| 2019-03-25 | 0.840 | 2.057 |
| 2018-11-19 | 0.840 | 1.946 |
| 2018-09-24 | 0.750 | 1.792 |
| 2018-05-21 | 0.750 | 2.001 |
| 2018-03-26 | 0.750 | 2.117 |
| 2017-11-20 | 0.750 | 2.168 |
| 2017-09-25 | 0.680 | 2.154 |
| 2017-05-22 | 0.680 | 2.047 |
| 2017-03-31 | 0.680 | 1.966 |
| 2016-11-21 | 0.680 | 1.924 |
| 2016-09-26 | 0.580 | 1.558 |
| 2016-05-23 | 0.580 | 1.598 |
| 2016-03-29 | 0.580 | 1.468 |
| 2015-11-23 | 0.580 | 1.431 |
| 2015-09-28 | 0.500 | 1.509 |
| 2015-05-18 | 0.500 | 1.700 |
| 2015-03-23 | 0.500 | 1.775 |
| 2014-11-25 | 0.500 | 1.863 |
| 2014-09-22 | 0.400 | 1.522 |
| 2014-05-19 | 0.400 | 1.646 |
| 2014-03-24 | 0.400 | 1.664 |
| 2013-11-26 | 0.400 | 1.755 |
| 2013-09-23 | 0.340 | 1.580 |
| 2013-05-20 | 0.340 | 1.651 |
| 2013-03-25 | 0.340 | 1.651 |
| 2012-11-20 | 0.340 | 1.983 |
| 2012-09-24 | 0.300 | 2.032 |
| 2012-05-21 | 0.300 | 2.069 |
| 2012-03-26 | 0.300 | 2.073 |
| 2011-11-21 | 0.300 | 2.068 |
| 2011-09-26 | 0.255 | 1.777 |
| 2011-05-23 | 0.255 | 1.790 |
| 2011-03-28 | 0.255 | 1.774 |
| 2010-11-22 | 0.255 | 1.971 |
| 2010-09-28 | 0.210 | 1.850 |
| 2010-05-24 | 0.210 | 1.973 |
| 2010-03-22 | 0.210 | 2.041 |
| 2009-11-24 | 0.210 | 2.132 |
| 2009-10-05 | 0.190 | 2.062 |
| 2009-05-19 | 0.190 | 2.130 |
| 2009-03-24 | 0.190 | 2.402 |
| 2008-11-25 | 0.190 | 2.518 |
| 2008-09-23 | 0.185 | 2.427 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Dividends per share have been stable in the past 10 years.
- Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of
Hormel Foods's earnings are
paid
to the shareholders as a dividend.
- Dividends paid are well covered by earnings (2.3x coverage).
- Dividends after 3 years are expected to be covered by earnings (1.9x coverage).
Income/ dividend checks
We assess Hormel Foods's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can Hormel Foods afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) Hormel Foods has a total score of 5/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
HRL Management
CEO
| COMPENSATION | $6,353,255 |
| AGE | 52 |
| TENURE AS CEO | 2.8 years |
CEO Bio
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, 2017. Mr. Snee served as the Chief Operating Officer at Hormel Foods Corporation since October 26, 2015 until October 30, 2016. He served as the President of Hormel Foods International Corporation, a subsidiary of Hormel Foods Corp. from October 2012 to October 2015 and previously served as its Senior Vice President from September 30, 2011 to October 28, 2012. He served as Group Vice President of Hormel Foods at Hormel Foods Corporation from October 29, 2012 to October 25, 2015. In addition to his executive leadership experience, Mr. Snee has broad sales, marketing, supply chain and international business expertise. He served as Vice President of Affiliated Business Units, Refrigerated Foods Segment of Hormel Foods Corp. from October 27, 2008 to October 30, 2011. He joined Hormel Foods in 1989 in its foodservice division and served as its Director of Purchasing from February 13, 2006 to October 26, 2008. He served as a Regional Sales Manager of West and Corporate National Accounts Manager for Foodservice Sales of Hormel Foods Corp. from January 11, 1999 to December 2, 2006 and also served as its Foodservice Area Manager since 1996. Jim served as a Manager of inventory and distribution for the Refrigerated Foods segment of Hormel Foods Corp. since 1995. He has been the Chairman of the Board at Hormel Foods Corporation from November 20, 2017. He has been a Director of Republic Services Inc. since July 17, 2018. He has been a Director at Hormel Foods Corporation since October 26, 2015. Mr. Snee earned a Bachelor of Arts degree in marketing from New Mexico State University (Las Cruces, N.M.). He received his master’s degree in business administration from the University of St. Thomas in St. Paul, Minn.
CEO Compensation
- Jim's compensation has been consistent with company performance over the past year, both up more than 20%.
- Jim's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the Hormel Foods management team in years:
- The tenure for the Hormel Foods management team is about average.
Management Team
Jim Snee
Chairman
$6M
52
2.8 yrs
Jim Sheehan
Executive VP & CFO
$2M
64
2.8 yrs
Tom Day
Executive Vice President of Refrigerated Foods
$2M
61
1.4 yrs
Glenn Leitch
Executive Vice President of Supply Chain
$2M
59
1.6 yrs
Jim Splinter
Group Vice President of Corporate Strategy
$2M
57
16.1 yrs
Nathan Annis
Director of Investor Relations
Lori Marco
Senior VP of External Affairs & General Counsel
52
8.5 yrs
Wendy Watkins
Vice President of Corporate Communications
4.3 yrs
Fred Halvin
Vice President of Corporate Development
6.8 yrs
Janet Hogan
Senior Vice President of Human Resources
55
Board of Directors Tenure
Average tenure and age of the Hormel Foods board of directors in years:
- The tenure for the Hormel Foods board of directors is about average.
Board of Directors
Jim Snee
Chairman
$6M
52
1.7 yrs
Robert Nakasone
Independent Director
$288K
71
12.8 yrs
Terry Crews
Independent Director
$262K
64
11.8 yrs
Steve Lacy
Independent Director
$270K
65
7.8 yrs
Chris Policinski
Lead Director
$278K
60
2.8 yrs
Dakota Pippins
Independent Director
$254K
71
18.5 yrs
Elsa Murano
Independent Director
$237K
60
12.8 yrs
Susan Nestegard
Independent Director
$247K
59
9.8 yrs
Glenn Forbes
Independent Director
$238K
72
7.8 yrs
Gary Bhojwani
Independent Director
$244K
51
5 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price ($) | Value ($) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 06. Jun 19 | Sell | Robert Nakasone | Individual | 04. Jun 19 | 05. Jun 19 | -14,695 | $41.00 | $-598,195 | ||
| 05. Jun 19 | Sell | Dakota Pippins | Individual | 04. Jun 19 | 04. Jun 19 | -4,000 | $40.29 | $-161,179 | ||
| 05. Jun 19 | Sell | Elsa Murano | Individual | 04. Jun 19 | 04. Jun 19 | -7,000 | $40.64 | $-284,495 | ||
| 04. Jun 19 | Sell | Robert Nakasone | Individual | 03. Jun 19 | 03. Jun 19 | -18,000 | $40.00 | $-718,000 | ||
| 08. Apr 19 | Sell | Thomas Day | Individual | 04. Apr 19 | 04. Apr 19 | -6,000 | $41.91 | $-251,435 | ||
| 28. Mar 19 | Sell | Susan Nestegard | Individual | 26. Mar 19 | 26. Mar 19 | -10,000 | $44.33 | $-443,302 | ||
| 07. Mar 19 | Sell | Glenn Forbes | Individual | 05. Mar 19 | 05. Mar 19 | -4,695 | $43.00 | $-201,885 | ||
| 11. Dec 18 | Sell | Dakota Pippins | Individual | 10. Dec 18 | 10. Dec 18 | -4,000 | $44.59 | $-178,360 | ||
| 28. Nov 18 | Sell | Robert Nakasone | Individual | 26. Nov 18 | 26. Nov 18 | -9,034 | $45.70 | $-411,878 | ||
| 20. Sep 18 | Sell | Dakota Pippins | Individual | 19. Sep 18 | 19. Sep 18 | -1,750 | $39.59 | $-69,290 | ||
Management checks
We assess Hormel Foods's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) Hormel Foods has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
HRL News
Simply Wall St News
Hormel Foods Corporation (NYSE:HRL)'s Could Be A Buy For Its Upcoming Dividend
That said, even highly profitable companies sometimes might not generate enough cash to pay the dividend, which is why we should always check if the dividend is covered by cash flow. … The Bottom Line Should investors buy Hormel Foods for the upcoming dividend? … Hormel Foods has been growing earnings at a rapid rate, and has a conservatively low payout ratio, implying that it is reinvesting heavily in its business; a sterling combination.
Simply Wall St - – Full articleHere's Why I Think Hormel Foods (NYSE:HRL) Is An Interesting Stock
I discovered that the median total compensation for the CEOs of companies like Hormel Foods, with market caps over US$8.0b, is about US$11m. … Although Hormel Foods certainly looks good to me, I would like it more if insiders were buying up shares. … If you like to see insider buying, too, then this free list of growing companies that insiders are buying, could be exactly what you're looking for.
Simply Wall St - – Full articleDoes This Valuation Of Hormel Foods Corporation (NYSE:HRL) Imply Investors Are Overpaying?
A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 10-year free cash flow (FCF) forecast 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF ($, Millions) $624.65 $816.53 $864.00 $895.40 $925.51 $954.87 $983.90 $1.01k $1.04k $1.07k Growth Rate Estimate Source Analyst x2 Analyst x4 Analyst x1 Est @ 3.63% Est @ 3.36% Est @ 3.17% Est @ 3.04% Est @ 2.95% Est @ 2.88% Est @ 2.84% Present Value ($, Millions) Discounted @ 7.5% $581.08 $706.59 $695.52 $670.52 $644.73 $618.79 $593.13 $568.02 $543.63 $520.05 Present Value of 10-year Cash Flow (PVCF)= $6.14b "Est" = FCF growth rate estimated by Simply Wall St We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = US$1.1b × (1 + 2.7%) ÷ (7.5% – 2.7%) = US$23b Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = $US$23b ÷ ( 1 + 7.5%)10 = $11.20b The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is $17.35b. … NYSE:HRL Intrinsic value, June 25th 2019 Important assumptions Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows.
Simply Wall St - – Full articleCan You Imagine How Hormel Foods's (NYSE:HRL) Shareholders Feel About The 67% Share Price Increase?
For example, the Hormel Foods Corporation (NYSE:HRL) share price is up 67% in the last 5 years, clearly besting than the market return of around 38% (ignoring dividends). … During five years of share price growth, Hormel Foods achieved compound earnings per share (EPS) growth of 12% per year. … We note that for Hormel Foods the TSR over the last 5 years was 82%, which is better than the share price return mentioned above.
Simply Wall St - – Full articleWhy Hormel Foods Corporation (NYSE:HRL) Is A Financially Healthy Company
Additionally, HRL has generated cash from operations of US$1.2b in the last twelve months, leading to an operating cash to total debt ratio of 466%, signalling that HRL’s current level of operating cash is high enough to cover debt. … Looking at HRL’s US$1.1b in current liabilities, it appears that the company has maintained a safe level of current assets to meet its obligations, with the current ratio last standing at 2.14x. … Next Steps: HRL’s high cash coverage and low debt levels indicate its ability to utilise its borrowings efficiently in order to generate ample cash flow.
Simply Wall St - – Full articleWas Hormel Foods Corporation's (NYSE:HRL) Earnings Growth Better Than The Industry's?
Today I will take a look at Hormel Foods Corporation's (NYSE:HRL) most recent earnings update (28 April 2019) and compare these latest figures against its performance over the past few years, as well as how the rest of the food industry performed. … View our latest analysis for Hormel Foods Did HRL beat its long-term earnings growth trend and its industry? … However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 11%, indicating the rate at which HRL is growing has slowed down.
Simply Wall St - – Full articleWhy Hormel Foods Corporation (NYSE:HRL) Is A Star In A Falling Market
Check out our latest analysis for Hormel Foods Hormel Foods Corporation produces and markets various meat and food products in the United States and internationally. … Generally, large-cap stocks are well-resourced and well-established meaning that a bear market will cause it to rejig some short-term capital allocations, but stock market volatility is hardly detrimental to its financial health and business operations. … Therefore large-cap stocks are a safe bet to buy more of when the wider market is going down and down.
Simply Wall St - – Full articleShould You Worry About Hormel Foods Corporation's (NYSE:HRL) CEO Salary Level?
At the time of writing our data says that Hormel Foods Corporation has a market cap of US$21b, and is paying total annual CEO compensation of US$6.4m. … Hormel Foods Corporation has increased its earnings per share (EPS) by an average of 7.4% a year, over the last three years (using a line of best fit). … With a total shareholder return of 5.9% over three years, Hormel Foods Corporation has done okay by shareholders.
Simply Wall St - – Full articleIs Hormel Foods Corporation (NYSE:HRL) A High Quality Stock To Own?
This article is for those who would like to learn about Return On Equity (ROE). … Our data shows Hormel Foods has a return on equity of 17% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity
Simply Wall St - – Full articleHave Insiders Been Selling Hormel Foods Corporation (NYSE:HRL) Shares?
So before you buy or sell Hormel Foods Corporation (NYSE:HRL), you may well want to know whether insiders have been buying or selling. … The Last 12 Months Of Insider Transactions At Hormel Foods. … So what is clear is that an insider saw fit to sell at around the current price of US$39.24.
Simply Wall St - – Full articleHRL Company Info
Description
Hormel Foods Corporation produces and markets various meat and food products in the United States and internationally. The company operates through five 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 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.
Details
| Name: | Hormel Foods Corporation |
| HRL | |
| Exchange: | NYSE |
| Founded: | 1891 |
| $22,010,410,260 | |
| 533,844,537 | |
| Website: | http://www.hormelfoods.com |
| Address: |
Hormel Foods Corporation 1 Hormel Place, Austin, Minnesota, 55912, United States |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| NYSE | HRL | Common Stock | New York Stock Exchange | US | USD | 02. Jan 1968 | |
| DB | HO7 | Common Stock | Deutsche Boerse AG | DE | EUR | 02. Jan 1968 | |
| LSE | 0J5Z | Common Stock | London Stock Exchange | GB | USD | 02. Jan 1968 | |
| WBAG | HRL | Common Stock | Wiener Boerse AG | AT | EUR | 02. Jan 1968 |
Number of employees
Current staff
Industry
| Packaged Foods and Meats | |
| Food, Beverage & Tobacco |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/07/16 23:40 |
| End of day share price update: | 2019/07/16 00:00 |
| Last estimates confirmation: | 2019/07/15 |
| Last earnings filing: | 2019/06/04 |
| Last earnings reported: | 2019/04/28 |
| Last annual earnings reported: | 2018/10/28 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
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.
