NYSE:HRL

Stock Analysis Report

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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


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 +/- 3% a week.

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


Market Performance


7 Day Return

-4.7%

HRL

-1.8%

US Food

-0.06%

US Market


1 Year Return

17.0%

HRL

5.4%

US Food

19.0%

US Market

Return vs Industry: HRL exceeded the US Food industry which returned 5.4% over the past year.

Return vs Market: HRL underperformed the US Market which returned 19% over the past year.


Shareholder returns

HRLIndustryMarket
7 Day-4.7%-1.8%-0.06%
30 Day0.8%-0.4%4.4%
90 Day-2.9%-1.0%6.3%
1 Year19.3%17.0%8.0%5.4%21.7%19.0%
3 Year55.5%46.4%8.1%-0.7%46.4%36.7%
5 Year47.0%33.6%19.6%3.7%91.0%69.9%

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

Valuation

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

28.89x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HRL ($50.03) is trading above our estimate of fair value ($36.66)

Significantly Below Fair Value: HRL is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: HRL is poor value based on its PE Ratio (28.9x) compared to the US Food industry average (25.6x).

PE vs Market: HRL is poor value based on its PE Ratio (28.9x) compared to the US market (19.5x).


Price to Earnings Growth Ratio

PEG Ratio: HRL is poor value based on its PEG Ratio (5.3x)


Price to Book Ratio

PB vs Industry: HRL is overvalued based on its PB Ratio (4.3x) compared to the US Food industry average (2x).


Next Steps

Future Growth

How is Hormel Foods forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

5.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HRL's forecast earnings growth (5.5% per year) is above the savings rate (2.2%).

Earnings vs Market: HRL's earnings (5.5% per year) are forecast to grow slower than the US market (21.9% per year).

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

Revenue vs Market: HRL's revenue (2.9% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: HRL's revenue (2.9% 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 (14.3%).


Next Steps

Past Performance

How has Hormel Foods performed over the past 5 years?

6.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HRL has high quality earnings.

Growing Profit Margin: HRL's current net profit margins (9.6%) are lower than last year (10.3%).


Past Earnings Growth Analysis

Earnings Trend: HRL's earnings have grown by 6% 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 (-5.6%) over the past year, making it difficult to compare to the Food industry average (-5.6%).


Return on Equity

High ROE: HRL's Return on Equity (14.8%) is considered low.


Next Steps

Financial Health

How is Hormel Foods's financial position?


Financial Position Analysis

Short Term Liabilities: HRL's short term assets ($3.4B) exceed its short term liabilities ($1.4B).

Long Term Liabilities: HRL's short term assets ($3.4B) exceed its long term liabilities ($1.9B).


Debt to Equity History and Analysis

Debt Level: HRL's debt to equity ratio (19.8%) is considered satisfactory.

Reducing Debt: HRL's debt to equity ratio has increased from 15.1% to 19.8% over the past 5 years.

Debt Coverage: HRL's debt is well covered by operating cash flow (98.9%).

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


Balance Sheet


Next Steps

Dividend

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

1.86%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HRL's dividend (1.86%) is higher than the bottom 25% of dividend payers in the US market (1.5%).

High Dividend: HRL's dividend (1.86%) is low compared to the top 25% of dividend payers in the US market (4.15%).


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 (52.4%), 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 (58.4% payout ratio).


Next Steps

Management

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

4.1yrs

Average management tenure


CEO

Jim Snee (53 yo)

4.08yrs

Tenure

US$8,324,267

Compensation

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, 201...


CEO Compensation Analysis

Compensation vs Market: Jim's total compensation ($USD8.32M) is about average for companies of similar size in the US market ($USD10.98M).

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

NamePositionTenureCompensationOwnership
James Snee
Chairman4.08yrsUS$8.32m0.040%
$ 10.9m
James Sheehan
Executive VP & CFO4.08yrsUS$2.96m0.033%
$ 8.9m
Glenn Leitch
Executive Vice President of Supply Chain2.92yrsUS$2.55m0.022%
$ 6.0m
Nathan Annis
Director of Investor Relationsno datano datano data
Lori Marco
Senior VP of External Affairs & General Counsel9.83yrsno data0.011%
$ 2.9m
Pierre Lilly
Senior VP & Chief Compliance Officer0.083yrno data0.00090%
$ 243.0k
Wendy Watkins
Vice President of Corporate Communications5.67yrsno datano data
Fred Halvin
Vice President of Corporate Development8.08yrsno datano data
Janet Hogan
Senior Vice President of Human Resources3.67yrsno data0.00097%
$ 261.9k
Deanna Brady
Executive Vice President of Refrigerated Foodsno datano data0.0097%
$ 2.6m
Patrick Connor
Group VP & President of Consumer Products Sales9.08yrsno data0.0041%
$ 1.1m
Mark Coffey
Senior Vice President of Supply Chain & Manufacturing3.67yrsno data0.0096%
$ 2.6m

4.1yrs

Average Tenure

55.5yo

Average Age

Experienced Management: HRL's management team is considered experienced (4.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
James Snee
Chairman4.08yrsUS$8.32m0.040%
$ 10.9m
Stephen Lacy
Independent Director9.17yrsUS$279.52k0.010%
$ 2.8m
Terrell Crews
Independent Director13.08yrsUS$279.32k0.019%
$ 5.1m
Dakota Pippins
Independent Director19.83yrsUS$271.61k0.016%
$ 4.3m
Susan Nestegard
Independent Director11.08yrsUS$260.70k0.019%
$ 5.2m
Sally Smith
Independent Director6.33yrsUS$268.25k0.0085%
$ 2.3m
Christopher Policinski
Independent Lead Director4.17yrsUS$295.08k0.013%
$ 3.5m
William Newlands
Independent Director2yrsUS$329.42k0.0019%
$ 526.4k
Gary Bhojwani
Independent Director6.33yrsUS$256.52k0.0062%
$ 1.7m
Elsa Murano
Independent Director14.17yrsUS$247.02k0.018%
$ 4.7m
Steven White
Independent Director6.33yrsUS$255.21k0.0084%
$ 2.3m
Jose Prado Becerra
Independent Director1.67yrsUS$250.02k0.0017%
$ 450.8k

6.3yrs

Average Tenure

61yo

Average Age

Experienced Board: HRL's board of directors are considered experienced (6.3 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$26.997b
  • Shares outstanding: 539.61m
  • Website: https://www.hormelfoods.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HRLNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
HO7DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
HO7XTRA (XETRA Trading Platform)YesCommon StockDEEURJan 1968
0J5ZLSE (London Stock Exchange)YesCommon StockGBUSDJan 1968
HRLWBAG (Wiener Boerse AG)YesCommon StockATEURJan 1968
H1RL34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COMBRBRLDec 2019

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/23 23:59
End of Day Share Price2020/11/23 00:00
Earnings2020/07/26
Annual Earnings2019/10/27


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.