down arrow

Hormel Foods Corp.

  • Market Cap: Small Cap
  • Industry: FMCG
  • ISIN: US4404521001
  • NYSE: HRL
USD
19.84
-0.08 (-0.4%)

Sep 24

NYS

 View all stocks in this country
  • 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

Comparison

Company
Score
Quality
Valuation
Financial
Technical
McCormick & Co., Inc.
Mama's Creations, Inc.
Mondelez International, Inc.
Lifeway Foods, Inc.
Kellanova
Tyson Foods, Inc.
Conagra Brands, Inc.
Blue Star Foods Corp.
Hormel Foods Corp.
Bit Origin Ltd.

Why 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
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.
-19.71%
-0.87
25.74%
S&P 500
16.06%
0.70
20.15%
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)
4.63%
EBIT Growth (5y)
-3.57%
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
57.90%
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
23
Industry P/E
Price to Book Value
1.60
EV to EBIT
16.13
EV to EBITDA
12.49
EV to Capital Employed
1.48
EV to Sales
1.21
PEG Ratio
NA
Dividend Yield
5.03%
ROCE (Latest)
9.18%
ROE (Latest)
7.00%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
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

2What is working for the Company
DIVIDEND PAYOUT RATIO(Y)

Highest at 270.58%

RAW MATERIAL COST(Y)

Fallen by 0.67% (YoY

-20What is not working for the Company
PRE-TAX PROFIT(Q)

At USD 76.17 MM has Fallen at -67.74%

NET PROFIT(Q)

At USD 44 MM has Fallen at -76.01%

ROCE(HY)

Lowest at 4.3%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,221.35

INVENTORY TURNOVER RATIO(HY)

Lowest at 5.67 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 15.12 times

NET SALES(Q)

Lowest at USD 2,961.33 MM

OPERATING PROFIT(Q)

Lowest at USD 242.83 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 8.2 %

Here's what is working for Hormel Foods Corp.

Dividend Payout Ratio
Highest at 270.58%
in the last five years
MOJO Watch
Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost
Fallen by 0.67% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Hormel Foods Corp.

Pre-Tax Profit
At USD 76.17 MM has Fallen at -67.74%
Year on Year (YoY)
MOJO Watch
Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit
At USD 44 MM has Fallen at -76.01%
Year on Year (YoY)
MOJO Watch
Near term Net Profit trend is very negative

Net Profit (USD MM)

Interest Coverage Ratio
Lowest at 1,221.35
in the last five periods
MOJO Watch
The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales
Lowest at USD 2,961.33 MM
in the last five periods
MOJO Watch
Near term sales trend is negative

Net Sales (USD MM)

Operating Profit
Lowest at USD 242.83 MM
in the last five periods
MOJO Watch
Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin
Lowest at 8.2 %
in the last five periods
MOJO Watch
Company's profit margin has deteriorated

Operating Profit to Sales

Inventory Turnover Ratio
Lowest at 5.67 times
in the last five Semi-Annual periods
MOJO Watch
Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio
Lowest at 15.12 times
in the last five Semi-Annual periods
MOJO Watch
Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Footer loading