Hormel Foods Corp

Consumer Staples
Meat/Poultry/Fish
www.hormelfoods.com

Earnings Score
Moat Score
Safety Score

Market Cap $17.77B
PE 22
Debt $2.87B
Cash $741.88M
EV $19.90B
FCF $1.01B

Earnings

loading chart...

Sales & Net Margins

loading chart...

Earnings	$804.63M
EBIT	$1.07B
ROE	10%
ROA	8%
FCF	$1.01B
Equity	$8.00B
Growth Stability	84%
PE	22.09
PEG	-6.53
PB	2.22
P/FCF	17.59
P/S	1.49
Price/Cash	0.04
Debt/Equity	0.36
Debt/FCF	2.84
Net Margins	7%
Gross Margins	17%
Op. Margins	9%
Earnings CAGR	-0%
Sales Growth YoY	-2%
Sales Growth QoQ	8%
Sales CAGR	4%
FCF CAGR	2%
Equity CAGR	8%
Earnings Stability	0
Earnings Growth YoY	13%
Earnings Growth QoQ	24%
Earnings CAGR 5Y	-3%

Sales CAGR 5Y	6%
FCF CAGR 5Y	7%
Equity CAGR 5Y	6%
Earnings CAGR 3Y	-1%
Sales CAGR 3Y	-1%
FCF CAGR 3Y	2%
Equity CAGR 3Y	4%
Market Cap	$17.77B
Revenue	$11.92B
Dividend Yield	3%
Payout Ratio	76%
Assets	$13.43B
Total Debt	$2.87B
Cash	$741.88M
Shares Outstanding	547.37M
EV	19.9B
Earnings Score	6%
Moat Score	87%
Safety Score	91%
Final Score	61%
Working Capital	1.85B
Current Ratio	2.32
Gross Profit	$2.02B
Shares Growth 3y	0%
Equity Growth QoQ	2%
Equity Growth YoY	3%

Assets & ROA

loading chart...

Stockholders Equity & ROE

loading chart...

Hormel Foods is a protein-focused branded food company. Its brands include its namesake Hormel, Spam, Jennie-O, Dinty Moore, Applegate, Wholly Guacamole, and Skippy. The vast majority of the company's revenue is U.S.-based: 64% U.S. retail, 28% U.S. food service, and 8% international. By product type, in fiscal 2021, 23% of revenue was shelf-stable foods, 18% was poultry (branded and commodity), 55% was other perishable food, and 3% was other, primarily nutritional products. The company holds the number-one market position in shelf-stable meat, shelf-stable ready meals, pepperoni, natural/organic deli meat, and guacamole and the number-two position in turkey, bacon, chilled ready meals, and peanut butter.

SEC Filings

Direct access to Hormel Foods Corp (HRL) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-K Oct 27
- 10-Q Jul 28
- 10-Q Apr 28
- 10-Q Jan 28
2023
- 10-K Oct 29
- 10-Q Jul 30
- 10-Q Apr 30
- 10-Q Jan 29
2022
- 10-K Oct 30
- 10-Q Jul 31
- 10-Q May 01
- 10-Q Jan 30

Sector Comparison

How does Hormel Foods Corp compare to its competitors?

Loading chart...

Peter Lynch's Chart

This chart shows the current pricing of Hormel Foods Corp compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR -0%

Stability 0%

loading chart...

Hormel Foods Corp Discounted Cash Flow

Fully customizable DCF calculator online for Hormel Foods Corp .

Years

Calculation mode

= $12B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$1B	$1B	$1.1B	$1.1B	$1.1B	$1.1B	$1.1B	$1.2B	$1.2B	$1.2B	$1.2B	$12B
DCF		$937M	$868M	$805M	$747M	$692M	$642M	$595M	$552M	$511M	$474M	$4.7B
Value	$12B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	10/2015	10/2016	10/2017	10/2018	10/2019	10/2020	10/2021	10/2022	10/2023	10/2024	TTM
Net Margins	7%	9%	9%	11%	10%	9%	8%	8%	7%	7%	7%
ROA	-	21%	18%	15%	15%	11%	9%	10%	8%	8%	8%
ROE	-	20%	17%	18%	17%	14%	13%	13%	10%	10%	10%

Bad Net Margins (6.75%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	10/2015	10/2016	10/2017	10/2018	10/2019	10/2020	10/2021	10/2022	10/2023	10/2024	TTM
Debt over FCF	-	0.34	0.32	0.73	0.4	2.05	4.33	3.86	5.48	2.84	2.84
Debt over Equity	0.11	0.06	0.05	0.11	0.04	0.24	0.48	0.44	0.55	0.36	0.36
Growth Stability	-	-	-	100%	100%	96%	94%	100%	84%	89%	84%

Neutral Debt/FCF ratio (2.84)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Good Debt/Equity ratio (0.36)

The company is not overleveraged and has a good balance between equity and debt.

Neutral Graham’s Stability (84%)

The company has a stability in its earnings that is not too good nor too bad.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	10/2015	10/2016	10/2017	10/2018	10/2019	10/2020	10/2021	10/2022	10/2023	10/2024	CAGR 5Y
Revenue YoY growth	-	3%	-4%	4%	-1%	1%	19%	9%	-3%	-2%	6%
Earnings YoY growth	-	30%	-5%	20%	-3%	-7%	0%	10%	-21%	1%	-3%
Equity YoY growth	-	11%	11%	13%	6%	9%	9%	8%	3%	3%	6%
FCF YoY growth	-	-13%	7%	8%	-26%	21%	1%	11%	-9%	30%	7%