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Hormel Foods Corp.

  • Market Cap: Small Cap
  • Industry: FMCG
  • ISIN: US4404521001
USD
24.16
0.89 (3.82%)

Dec 04

NYS

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  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
Click here to find our call on this stock
Strong Sell
Sell
Hold
Buy
Strong Buy

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Comparison
Company
Score
Quality
Valuation
Financial
Technical
Mama's Creations, Inc.
McCormick & Co., Inc.
Lifeway Foods, Inc.
Kellanova
Mondelez International, Inc.
Conagra Brands, Inc.
Hormel Foods Corp.
Tyson Foods, Inc.
Blue Star Foods Corp.
Bit Origin Ltd.
Why is Hormel Foods Corp. ?
1
Negative results in Jul 25
  • OPERATING CASH FLOW(Y) Lowest at USD 930.97 MM
  • ROCE(HY) Lowest at 9.46%
  • RAW MATERIAL COST(Y) Grown by 6.11% (YoY)
2
With ROCE of 9.54%, it has a very expensive valuation with a 1.87 Enterprise value to Capital Employed
  • The stock is trading at a discount compared to its peers' average historical valuations
  • Over the past year, while the stock has generated a return of -26.87%, its profits have fallen by -5.6%
3
Consistent Underperformance against the benchmark over the last 3 years
  • Along with generating -26.87% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods
stock-recommendationReal-Time Research Report
Verdict Report
How much should you sell?
  1. All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in FMCG)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Hormel Foods Corp. for you?

Low Risk, Low Return

Absolute
Risk Adjusted
Volatility
Hormel Foods Corp.
-24.48%
-0.93
25.67%
S&P 500
13.22%
0.64
20.20%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors
Factor
Value
Sales Growth (5y)
4.47%
EBIT Growth (5y)
-2.87%
EBIT to Interest (avg)
20.05
Debt to EBITDA (avg)
1.41
Net Debt to Equity (avg)
0.27
Sales to Capital Employed (avg)
1.09
Tax Ratio
21.73%
Dividend Payout Ratio
77.04%
Pledged Shares
0
Institutional Holding
45.69%
ROCE (avg)
12.09%
ROE (avg)
11.74%
stock-recommendationValuation
Valuation Scorecard stock-summary
stock-recommendation
Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors stock-summary
Factor
Value
P/E Ratio
22
Industry P/E
Price to Book Value
2.10
EV to EBIT
19.56
EV to EBITDA
15.43
EV to Capital Employed
1.87
EV to Sales
1.59
PEG Ratio
NA
Dividend Yield
277.97%
ROCE (Latest)
9.54%
ROE (Latest)
9.36%
stock-recommendationTechnicals
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
Bullish
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
Mildly Bullish
No Trend
OBV
No Trend
Mildly Bearish
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
Analyse All Technical Factors stock-recommendation
stock-recommendationFinancial Trend
Financial Trend Scorecard stock-summary
stock-recommendation
Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

1What is working for the Company
DIVIDEND PER SHARE(HY)

Highest at USD 15.64

-8What is not working for the Company
OPERATING CASH FLOW(Y)

Lowest at USD 930.97 MM

ROCE(HY)

Lowest at 9.46%

RAW MATERIAL COST(Y)

Grown by 6.11% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 5.81 times

OPERATING PROFIT(Q)

Lowest at USD 288.49 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 9.51 %

Here's what is working for Hormel Foods Corp.
Dividend per share
Highest at USD 15.64
in the last five years
MOJO Watch
Company is distributing higher dividend from profits generated

DPS (USD)

Here's what is not working for Hormel Foods Corp.
Operating Cash Flow
Lowest at USD 930.97 MM
in the last three years
MOJO Watch
The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Operating Profit
Lowest at USD 288.49 MM
in the last five periods
MOJO Watch
Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin
Lowest at 9.51 %
in the last five periods
MOJO Watch
Company's profit margin has deteriorated

Operating Profit to Sales

Inventory Turnover Ratio
Lowest at 5.81 times
in the last five Semi-Annual periods
MOJO Watch
Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost
Grown by 6.11% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales

Non Operating Income
Highest at USD 0.14 MM
in the last five periods
MOJO Watch
Increased income from non business activities may not be sustainable

Non Operating income

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