Hormel Foods Corporation produces and markets various meat and food products to retail, foodservice, deli, and commercial customers in the United States and internationally.
No risks detected for HRL from our risk checks.
Flawless balance sheet with proven track record and pays a dividend.
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 has not had significant price volatility in the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: HRL exceeded the US Food industry which returned -4.7% over the past year.
Return vs Market: HRL exceeded the US Market which returned -15.1% over the past year.
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
1 day ago | Simply Wall StHormel Foods Corporation (NYSE:HRL) Looks Like A Good Stock, And It's Going Ex-Dividend Soon
3 weeks ago | Simply Wall StHormel Foods (NYSE:HRL) Has A Pretty Healthy Balance Sheet
1 month ago | Simply Wall StHave Insiders Sold Hormel Foods Corporation (NYSE:HRL) Shares Recently?
Is Hormel Foods undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: HRL ($48.38) is trading above our estimate of fair value ($41.26)
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 (26.4x) compared to the Food industry average (19.4x).
PE vs Market: HRL is poor value based on its PE Ratio (26.4x) compared to the US market (12.4x).
Price to Earnings Growth Ratio
PEG Ratio: HRL is poor value based on its PEG Ratio (5.4x)
Price to Book Ratio
PB vs Industry: HRL is overvalued based on its PB Ratio (4.3x) compared to the US Food industry average (1.6x).
How is Hormel Foods forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: HRL's forecast earnings growth (4.9% per year) is above the savings rate (1.7%).
Earnings vs Market: HRL's earnings (4.9% per year) are forecast to grow slower than the US market (13.4% 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 (7.1% 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 low in 3 years time (15%).
How has Hormel Foods performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: HRL has high quality earnings.
Growing Profit Margin: HRL's current net profit margins (10.3%) are higher than last year (9.9%).
Past Earnings Growth Analysis
Earnings Trend: HRL's earnings have grown by 8.5% per year over the past 5 years.
Accelerating Growth: HRL's earnings growth over the past year (3.1%) is below its 5-year average (8.5% per year).
Earnings vs Industry: HRL earnings growth over the past year (3.1%) exceeded the Food industry 0.4%.
Return on Equity
High ROE: HRL's Return on Equity (16.1%) is considered low.
How is Hormel Foods's financial position?
Financial Position Analysis
Short Term Liabilities: HRL's short term assets ($2.4B) exceed its short term liabilities ($1.0B).
Long Term Liabilities: HRL's short term assets ($2.4B) exceed its long term liabilities ($1.2B).
Debt to Equity History and Analysis
Debt Level: HRL's debt to equity ratio (4.1%) is considered satisfactory.
Reducing Debt: HRL's debt to equity ratio has reduced from 6.7% to 4.1% over the past 5 years.
Debt Coverage: HRL's debt is well covered by operating cash flow (369.6%).
Interest Coverage: HRL earns more interest than it pays, so coverage of interest payments is not a concern.
Inventory Level: HRL has a high level of physical assets or inventory.
Debt Coverage by Assets: HRL's debt is covered by short term assets (assets are 9.6x debt).
What is Hormel Foods's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: HRL's dividend (1.92%) isn’t notable compared to the bottom 25% of dividend payers in the US market (2.05%).
High Dividend: HRL's dividend (1.92%) is low compared to the top 25% of dividend payers in the US market (5.71%).
Stability and Growth of Payments
Stable Dividend: HRL's dividends per share have been stable in the past 10 years.
Growing Dividend: HRL's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (47%), HRL's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: HRL's dividends in 3 years are forecast to be covered by earnings (55% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Jim Snee (52yo)
Mr. James P. Snee, also known as Jim, has been the Chief Executive Officer of Hormel Foods Corporation from October 31, 2016 to November 19, 2017 and its President from October 26, 2015 to November 19, 201 ...
CEO Compensation Analysis
Compensation vs Market: Jim's total compensation ($USD8.32M) is below average for companies of similar size in the US market ($USD11.95M).
Compensation vs Earnings: Jim's compensation has increased by more than 20% in the past year.
|Executive VP & CFO||3.5yrs||US$2.96m||0.033% $8.6m|
|Executive Vice President of Supply Chain||2.33yrs||US$2.55m||0.017% $4.4m|
|Group Vice President of Corporate Strategy||16.83yrs||US$2.27m||0.023% $6.1m|
|Director of Investor Relations||no data||no data||no data|
|Senior VP of External Affairs & General Counsel||9.25yrs||no data||0.0082% $2.1m|
|Vice President of Corporate Communications||5.08yrs||no data||no data|
|Vice President of Corporate Development||7.5yrs||no data||no data|
|Senior Vice President of Human Resources||3.08yrs||no data||0.00097% $252.4k|
|Group VP & President of Hormel Foods International Corporation||no data||no data||0.026% $6.8m|
Experienced Management: HRL's management team is considered experienced (4.3 years average tenure).
|Independent Director||8.58yrs||US$279.52k||0.010% $2.7m|
|Independent Director||12.5yrs||US$279.32k||0.019% $4.9m|
|Independent Director||19.25yrs||US$271.61k||0.016% $4.2m|
|Independent Director||10.5yrs||US$260.70k||0.017% $4.5m|
|Independent Director||5.75yrs||US$268.25k||0.0082% $2.1m|
|Lead Director||3.58yrs||US$295.08k||0.013% $3.3m|
|Independent Director||5.75yrs||US$256.52k||0.0060% $1.6m|
|Independent Director||13.58yrs||US$247.02k||0.019% $4.8m|
|Independent Director||5.75yrs||US$255.21k||0.0082% $2.1m|
Experienced Board: HRL's board of directors are considered experienced (7.2 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: HRL insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Hormel Foods Corporation's company bio, employee growth, exchange listings and data sources
- Name: Hormel Foods Corporation
- Ticker: HRL
- Exchange: NYSE
- Founded: 1891
- Industry: Packaged Foods and Meats
- Sector: Food, Beverage & Tobacco
- Market Cap: US$26.018b
- Shares outstanding: 537.78m
- Website: https://www.hormelfoods.com
Number of Employees
- Hormel Foods Corporation
- 1 Hormel Place
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|HRL||NYSE (New York Stock Exchange)||Yes||Common Stock||US||USD||Jan 1968|
|HO7||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Jan 1968|
|0J5Z||LSE (London Stock Exchange)||Yes||Common Stock||GB||USD||Jan 1968|
|HO7||BRSE (Berne Stock Exchange)||Yes||Common Stock||CH||CHF||Jan 1968|
|HRL||WBAG (Wiener Boerse AG)||Yes||Common Stock||AT||EUR||Jan 1968|
|H1RL34||BOVESPA (Bolsa de Valores de Sao Paulo)||BDR EACH REPR 1 COM||BR||BRL||Dec 2019|
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 four 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 under the SKIPPY, SPAM, Hormel, Natural Choice, Applegate, Justin's, Wholly, Hormel, Black Label, Columbus, etc. brand names 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.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/04/06 01:01|
|End of Day Share Price||2020/04/03 00:00|
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.