ScoreWhy is Hormel Foods Corp. ?
1
- 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 -28.43%, its profits have fallen by -5.6%
3
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -28.43% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods
Real-Time Research ReportHow much should you sell?
- 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.
-21.22%
-0.87
25.74%
S&P 500
13.68%
0.70
20.15%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
4.73%
EBIT Growth (5y)
-4.29%
EBIT to Interest (avg)
20.05
Debt to EBITDA (avg)
1.41
Net Debt to Equity (avg)
0.27
Sales to Capital Employed (avg)
1.10
Tax Ratio
21.73%
Dividend Payout Ratio
133.53%
Pledged Shares
0
Institutional Holding
48.61%
ROCE (avg)
12.09%
ROE (avg)
11.74%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
23
Industry P/E
Price to Book Value
1.58
EV to EBIT
16.75
EV to EBITDA
12.87
EV to Capital Employed
1.46
EV to Sales
1.21
PEG Ratio
NA
Dividend Yield
5.11%
ROCE (Latest)
8.69%
ROE (Latest)
6.79%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bullish
Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
No Trend
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend3What is working for the Company
INVENTORY TURNOVER RATIO(HY)
Highest at 6.16 times
DIVIDEND PER SHARE(HY)
Highest at USD 13.84
NET SALES(Q)
Highest at USD 3,185.66 MM
-28What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at USD 845.26 MM
ROCE(HY)
Lowest at 6.02%
INTEREST COVERAGE RATIO(Q)
Lowest at 1,316.55
DIVIDEND PAYOUT RATIO(Y)
Lowest at 0%
RAW MATERIAL COST(Y)
Grown by 21.56% (YoY
DEBTORS TURNOVER RATIO(HY)
Lowest at 13.84 times
OPERATING PROFIT(Q)
Lowest at USD 261.28 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 8.2 %
PRE-TAX PROFIT(Q)
Lowest at USD 38.4 MM
NET PROFIT(Q)
Lowest at USD 3.89 MM
EPS(Q)
Lowest at USD -0.1
Here's what is working for Hormel Foods Corp.
Net Sales
Highest at USD 3,185.66 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Inventory Turnover Ratio
Highest at 6.16 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Dividend per share
Highest at USD 13.84
in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Depreciation
Highest at USD 69.37 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Here's what is not working for Hormel Foods Corp.
Pre-Tax Profit
At USD 38.4 MM has Fallen at -86.63%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (USD MM)
Net Profit
At USD 3.89 MM has Fallen at -98.28%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (USD MM)
Interest Coverage Ratio
Lowest at 1,316.55
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Operating Cash Flow
Lowest at USD 845.26 MM
in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (USD MM)
Operating Profit
Lowest at USD 261.28 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (USD MM)
Operating Profit Margin
Lowest at 8.2 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at USD 38.4 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (USD MM)
Net Profit
Lowest at USD 3.89 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (USD MM)
EPS
Lowest at USD -0.1
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (USD)
Debtors Turnover Ratio
Lowest at 13.84 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Dividend Payout Ratio
Lowest at 0%
in the last five yearsMOJO Watch
Company is distributing lower proportion of profits generated as dividend
DPR (%)
Raw Material Cost
Grown by 21.56% (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
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