Is Hormel Foods Stock a Good Investment?
Hormel Foods Investment Advice | HRL |
- Examine Hormel Foods' financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Hormel Foods' leadership team and their track record. Good management can help Hormel Foods navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Packaged Foods & Meats space and any emerging trends that could impact Hormel Foods' business and its evolving consumer preferences.
- Compare Hormel Foods' performance and market position to its competitors. Analyze how Hormel Foods is positioned in terms of product offerings, innovation, and market share.
- Check if Hormel Foods pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Hormel Foods' stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Hormel Foods stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Hormel Foods is a good investment.
Sell | Buy |
Sell
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Fairly Valued | Details | |
Odds Of Distress | Very Low | Details | |
Economic Sensitivity | Barely shadows the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Hold | Details | |
Financial Strenth (F Score) | Strong | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Possible Manipulator | Details |
Examine Hormel Foods Stock
Researching Hormel Foods' stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 88.0% of the company shares are owned by institutional investors. The book value of Hormel Foods was currently reported as 14.35. The company has Price/Earnings To Growth (PEG) ratio of 2.58. Hormel Foods last dividend was issued on the 15th of October 2024. The entity had 2:1 split on the 10th of February 2016.
To determine if Hormel Foods is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Hormel Foods' research are outlined below:
| Hormel Foods generated a negative expected return over the last 90 days | |
| Hormel Foods has a strong financial position based on the latest SEC filings | |
| Over 88.0% of the company shares are owned by institutional investors | |
| On 15th of November 2024 Hormel Foods paid $ 0.2825 per share dividend to its current shareholders | |
| Latest headline from bizjournals.com: Local Foods Market opens Rice University location |
Hormel Foods Quarterly Cash And Short Term Investments |
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Hormel Foods uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Hormel Foods. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Hormel Foods' previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 7th of March 2024 Upcoming Quarterly Report | View | |
| 6th of June 2024 Next Financial Report | View | |
| 31st of January 2024 Next Fiscal Quarter End | View | |
| 4th of December 2024 Next Fiscal Year End | View | |
| 31st of October 2023 Last Quarter Report | View | |
| 31st of October 2023 Last Financial Announcement | View |
Earnings surprises can significantly impact Hormel Foods' stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Hormel Foods' investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2004-08-19 | 2004-07-31 | 0.09 | 0.08 | -0.01 | 11 | ||
2004-05-20 | 2004-04-30 | 0.08 | 0.09 | 0.01 | 12 | ||
2003-08-21 | 2003-07-31 | 0.07 | 0.06 | -0.01 | 14 | ||
2003-02-20 | 2003-01-31 | 0.09 | 0.08 | -0.01 | 11 | ||
2001-08-16 | 2001-07-31 | 0.07 | 0.06 | -0.01 | 14 | ||
2001-02-15 | 2001-01-31 | 0.07 | 0.08 | 0.01 | 14 | ||
2000-08-17 | 2000-07-31 | 0.06 | 0.05 | -0.01 | 16 | ||
2000-05-18 | 2000-04-30 | 0.06 | 0.07 | 0.01 | 16 |
Know Hormel Foods' Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Hormel Foods is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Hormel Foods backward and forwards among themselves. Hormel Foods' institutional investor refers to the entity that pools money to purchase Hormel Foods' securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Stifel Financial Corp | 2024-06-30 | 3.1 M | Millennium Management Llc | 2024-06-30 | 3.1 M | Northern Trust Corp | 2024-09-30 | 2.7 M | Holocene Advisors, Lp | 2024-09-30 | 2.2 M | Gates Bill & Melinda Foundation | 2024-09-30 | 2.2 M | Legal & General Group Plc | 2024-06-30 | 2.2 M | First Trust Advisors L.p. | 2024-06-30 | 2.2 M | Goldman Sachs Group Inc | 2024-06-30 | 2.1 M | Ubs Asset Mgmt Americas Inc | 2024-09-30 | 2 M | Vanguard Group Inc | 2024-09-30 | 37 M | Blackrock Inc | 2024-06-30 | 25.5 M |
Hormel Foods' market capitalization trends
The company currently falls under 'Large-Cap' category with a total capitalization of 16.82 B.Market Cap |
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Hormel Foods' profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.15 | 0.10 | |
| Return On Capital Employed | 0.10 | 0.20 | |
| Return On Assets | 0.07 | 0.07 | |
| Return On Equity | 0.13 | 0.12 |
Determining Hormel Foods' profitability involves analyzing its financial statements and using various financial metrics to determine if Hormel Foods is a good buy. For example, gross profit margin measures Hormel Foods' profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Hormel Foods' profitability and make more informed investment decisions.
Evaluate Hormel Foods' management efficiency
Hormel Foods has Return on Asset of 0.0516 % which means that on every $100 spent on assets, it made $0.0516 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.1001 %, implying that it generated $0.1001 on every 100 dollars invested. Hormel Foods' management efficiency ratios could be used to measure how well Hormel Foods manages its routine affairs as well as how well it operates its assets and liabilities. At this time, Hormel Foods' Return On Capital Employed is quite stable compared to the past year. Return On Assets is expected to rise to 0.07 this year, although the value of Return On Tangible Assets will most likely fall to 0.1. At this time, Hormel Foods' Net Tangible Assets are quite stable compared to the past year. Intangibles To Total Assets is expected to rise to 0.56 this year, although the value of Other Assets will most likely fall to about 262.9 M.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 12.91 | 13.55 | |
| Tangible Book Value Per Share | 0.43 | 0.41 | |
| Enterprise Value Over EBITDA | 18.56 | 19.49 | |
| Price Book Value Ratio | 3.33 | 2.30 | |
| Enterprise Value Multiple | 18.56 | 19.49 | |
| Price Fair Value | 3.33 | 2.30 | |
| Enterprise Value | 2.2 B | 1.3 B |
The strategic initiatives led by Hormel Foods' management are central to its market success. By analyzing these initiatives, we provide a clear picture of the stock's growth prospects.
Dividend Yield 0.0368 | Forward Dividend Yield 0.0368 | Forward Dividend Rate 1.13 | Beta 0.254 |
Basic technical analysis of Hormel Stock
As of the 24th of November, Hormel Foods retains the Market Risk Adjusted Performance of (1.76), risk adjusted performance of (0.02), and Standard Deviation of 1.41. Hormel Foods technical analysis makes it possible for you to employ historical prices and volume momentum with the intention to determine a pattern that calculates the direction of the firm's future prices. Please check out Hormel Foods market risk adjusted performance, information ratio, as well as the relationship between the Information Ratio and skewness to decide if Hormel Foods is priced fairly, providing market reflects its last-minute price of 30.67 per share. Given that Hormel Foods has information ratio of (0.12), we strongly advise you to confirm Hormel Foods's regular market performance to make sure the company can sustain itself at a future point.Hormel Foods' insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Hormel Foods insiders, such as employees or executives, is commonly permitted as long as it does not rely on Hormel Foods' material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Hormel Foods insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Schoneman Debbra L. over two months ago Insider Trading | ||
Losness-larson Katherine M over three months ago Acquisition by Losness-larson Katherine M of 830 shares of Hormel Foods at 30.12 subject to Rule 16b-3 | ||
Jacinth Smiley over three months ago Disposition of 6822 shares by Jacinth Smiley of Hormel Foods at 30.98 subject to Rule 16b-3 | ||
Mark Coffey over six months ago Disposition of 15400 shares by Mark Coffey of Hormel Foods at 26.38 subject to Rule 16b-3 | ||
Steven White over a year ago Acquisition by Steven White of 1587 shares of Hormel Foods subject to Rule 16b-3 | ||
Steven White over a year ago Bona fide gift to Steven White of 6783 shares of Hormel Foods subject to Section 16 |
Hormel Foods' Outstanding Corporate Bonds
Hormel Foods issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Hormel Foods uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Hormel bonds can be classified according to their maturity, which is the date when Hormel Foods has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| HORMEL FOODS PORATION Corp BondUS440452AH36 | View | |
| HORMEL FOODS PORATION Corp BondUS440452AF79 | View | |
| HRL 305 03 JUN 51 Corp BondUS440452AJ91 | View |
Understand Hormel Foods' technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Hormel Foods' various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | (0.02) | |||
| Market Risk Adjusted Performance | (1.76) | |||
| Mean Deviation | 0.9276 | |||
| Coefficient Of Variation | (3,686) | |||
| Standard Deviation | 1.41 | |||
| Variance | 1.98 | |||
| Information Ratio | (0.12) | |||
| Jensen Alpha | (0.05) | |||
| Total Risk Alpha | (0.27) | |||
| Treynor Ratio | (1.77) | |||
| Maximum Drawdown | 8.25 | |||
| Value At Risk | (2.70) | |||
| Potential Upside | 1.65 | |||
| Skewness | (1.57) | |||
| Kurtosis | 6.53 |
| Risk Adjusted Performance | (0.02) | |||
| Market Risk Adjusted Performance | (1.76) | |||
| Mean Deviation | 0.9276 | |||
| Coefficient Of Variation | (3,686) | |||
| Standard Deviation | 1.41 | |||
| Variance | 1.98 | |||
| Information Ratio | (0.12) | |||
| Jensen Alpha | (0.05) | |||
| Total Risk Alpha | (0.27) | |||
| Treynor Ratio | (1.77) | |||
| Maximum Drawdown | 8.25 | |||
| Value At Risk | (2.70) | |||
| Potential Upside | 1.65 | |||
| Skewness | (1.57) | |||
| Kurtosis | 6.53 |
Consider Hormel Foods' intraday indicators
Hormel Foods intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Hormel Foods stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Hormel Foods Corporate Filings
F3 | 29th of October 2024 The report used by insiders such as officers, directors, and major shareholders (beneficial owners holding more than 10% of any class of the company's equity securities) to declare their ownership of a company's stock | ViewVerify |
F4 | 11th of October 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
8K | 23rd of September 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
| 23rd of May 2024 Other Reports | ViewVerify |
Hormel Stock media impact
Far too much social signal, news, headlines, and media speculation about Hormel Foods that are available to investors today. That information is available publicly through Hormel media outlets and privately through word of mouth or via Hormel internal channels. However, regardless of the origin, that massive amount of Hormel data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Hormel Foods news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Hormel Foods relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Hormel Foods' headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Hormel Foods alpha.
Hormel Foods Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Hormel Foods can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Hormel Foods Historical Investor Sentiment
Investor biases related to Hormel Foods' public news can be used to forecast risks associated with an investment in Hormel. The trend in average sentiment can be used to explain how an investor holding Hormel can time the market purely based on public headlines and social activities around Hormel Foods. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Hormel Foods' market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Hormel Foods and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Hormel Foods news discussions. The higher the estimate score, the more favorable the investor's outlook on Hormel Foods.
Hormel Foods Corporate Directors
| Terrel Crews | Independent Director | Profile | |
| Christopher Policinski | Lead Independent Director | Profile | |
| Sally Smith | Independent Director | Profile | |
| Gary Bhojwani | Independent Director | Profile |
Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Hormel Foods. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in metropolitan statistical area. For more information on how to buy Hormel Stock please use our How to buy in Hormel Stock guide.You can also try the FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Is Packaged Foods & Meats space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Hormel Foods. If investors know Hormel will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Hormel Foods listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.075 | Dividend Share 1.123 | Earnings Share 1.43 | Revenue Per Share 21.882 | Quarterly Revenue Growth (0.02) |
The market value of Hormel Foods is measured differently than its book value, which is the value of Hormel that is recorded on the company's balance sheet. Investors also form their own opinion of Hormel Foods' value that differs from its market value or its book value, called intrinsic value, which is Hormel Foods' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Hormel Foods' market value can be influenced by many factors that don't directly affect Hormel Foods' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Hormel Foods' value and its price, as these two are different measures arrived at by various means. Investors typically determine if Hormel Foods is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Hormel Foods' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.