Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on Hormel Foods Corporation (NYSE:HRL) due to its excellent fundamentals in more than one area. HRL is a dependable dividend-paying company that has been able to sustain great financial health over the past. In the following section, I expand a bit more on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on Hormel Foods here.
Excellent balance sheet established dividend payer
HRL’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that HRL has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. HRL appears to have made good use of debt, producing operating cash levels of 1.8x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
For those seeking income streams from their portfolio, HRL is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 2.0%.
For Hormel Foods, I’ve put together three fundamental factors you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for HRL’s future growth? Take a look at our free research report of analyst consensus for HRL’s outlook.
- Historical Performance: What has HRL’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of HRL? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.