| Snowflake Score | |
|---|---|
| Valuation | 2/6 |
| Future Growth | 1/6 |
| Past Performance | 2/6 |
| Financial Health | 4/6 |
| Dividends | 5/6 |
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.
Rewards
Risk Analysis
No risks detected for HRL from our risk checks.
Hormel Foods Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$49.15 |
| 52 Week High | US$50.86 |
| 52 Week Low | US$40.48 |
| Beta | 0.062 |
| 1 Month Change | 1.40% |
| 3 Month Change | 17.98% |
| 1 Year Change | 9.88% |
| 3 Year Change | 15.05% |
| 5 Year Change | 34.58% |
| Change since IPO | 2,163.02% |
Recent News & Updates
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.
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...
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.
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
| HRL | US Food | US Market | |
|---|---|---|---|
| 7D | 0.2% | 0.3% | -4.6% |
| 1Y | 9.9% | 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
| HRL volatility | |
|---|---|
| HRL Average Weekly Movement | 2.7% |
| Food Industry Average Movement | 5.2% |
| Market Average Movement | 6.6% |
| 10% most volatile stocks in US Market | 15.7% |
| 10% least volatile stocks in US Market | 2.4% |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1891 | 20,000 | Jim Snee | https://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
| HRL fundamental statistics | |
|---|---|
| Market Cap | US$26.67b |
| Earnings (TTM) | US$908.84m |
| Revenue (TTM) | US$11.39b |
29.3x
P/E Ratio2.3x
P/S RatioIs HRL overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| HRL income statement (TTM) | |
|---|---|
| Revenue | US$11.39b |
| Cost of Revenue | US$9.42b |
| Gross Profit | US$1.96b |
| Expenses | US$1.05b |
| Earnings | US$908.84m |
Last Reported Earnings
Oct 31, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 1.68 |
| Gross Margin | 17.23% |
| Net Profit Margin | 7.98% |
| Debt/Equity Ratio | 46.9% |
How did HRL perform over the long term?
See historical performance and comparisonDividends
2.1%
Current Dividend Yield58%
Payout RatioValuation
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
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/19 23:34 |
| End of Day Share Price | 2022/01/19 00:00 |
| Earnings | 2021/10/31 |
| Annual Earnings | 2021/10/31 |
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.