Hormel Foods Financials

HRL Stock  USD 34.89  0.04  0.11%   
Based on the key indicators related to Hormel Foods' liquidity, profitability, solvency, and operating efficiency, Hormel Foods may be sliding down financialy. It has an above-average probability of going through some form of financial hardship next quarter. At this time, Hormel Foods' Net Debt is quite stable compared to the past year. Retained Earnings is expected to rise to about 9 B this year, although the value of Non Currrent Assets Other will most likely fall to about 232.7 M. Key indicators impacting Hormel Foods' financial strength include:
Current ValueLast YearChange From Last Year 10 Year Trend
Net Profit Margin0.0410.0798
Way Down
Very volatile
Return On Assets0.0720.0716
Slightly Up
Slightly volatile
Return On Equity0.120.1302
Significantly Down
Slightly volatile
Debt Equity Ratio0.50.4763
Sufficiently Up
Slightly volatile
Operating Income1.3 B1.2 B
Sufficiently Up
Slightly volatile
Current Ratio2.452.0823
Fairly Up
Pretty Stable
The financial analysis of Hormel Foods is a critical element in measuring its lifeblood. The essential information of the day-to-day investment outlook for Hormel Foods includes many different criteria found on its balance sheet. For example, investors should never minimize Hormel Foods' ability to pay suppliers or employees on time, making sure interest payments are not accumulating or correctly timing where and how to re-invest extra cash. Any individual investor needs to monitor Hormel Foods' cash flow, debt, and profitability to effectively and accurately make more informed decisions on whether to invest in Hormel Foods.

Cash And Equivalents

833.05 Million

With this module, you can analyze Hormel financials for your investing period. You should be able to track the changes in Hormel Foods individual financial statements over time to develop the understanding of its risk, liquidity, profitability, or other critical and vital indicators.
  
Understanding current and past Hormel Foods Financials, including the trends in assets, liabilities, equity and income are directly related to making proper and timely investing decisions. All of Hormel Foods' financial statements are interrelated, with each one affecting the others. For example, an increase in Hormel Foods' assets may result in an increase in income on the income statement.
Evaluating Hormel Foods' financials involves analyzing a range of financial metrics and ratios to gain insights into the company's financial health and performance. However, considering all of Hormel Foods' profitability, liquidity ratios, and efficiency indicators at the same time could be an enormous task, and our Financial Distress score can provide you with a snapshot of the Hormel Foods' relative financial performance

Chance Of Distress

Less than 9

 
100  
 
Zero
Low
Hormel Foods has less than 9 (%) percent chance of experiencing financial distress in the next two years of operations. The calculation of odds of distress for Hormel Foods stock is tightly coupled with the Probability of Bankruptcy. It complements the equity performance score by supplying investors with insight into company financials without requiring them to know too much about all of the complex accounting and financial indicators surrounding the entity.
Please note, Hormel Foods' odds of distress score SHOULD NOT be confused with the real chance of Hormel Foods filing for bankruptcy protection for chapters 7, 11, 12, or 13. We define Financial Distress as an operational condition where an entity such as Hormel is having difficulty meeting its current financial obligations towards its creditors or delivering on the expectations of its investors. Macroaxis derives these conditions daily from public financial statements and analysis of stock prices reacting to market conditions or economic downturns, including short-term and long-term historical volatility. Other factors considered include Hormel Foods' liquidity analysis, revenue patterns, R&D expenses, and commitments, as well as public headlines and social sentiment.
More Info
The data published in Hormel Foods' official financial statements usually reflect Hormel Foods' business processes, product offerings, services, and other fundamental events. But there are other numbers, ratios, or fundamental indicators derived from these statements that are easier to understand and visualize within the underlying realities that drive quantitative information of Hormel Foods. For example, before you start analyzing numbers published by Hormel accountants, it's critical to develop an understanding of what Hormel Foods' liquidity, profitability, and earnings quality are in the context of the Food Products space in which it operates.
Please note, the presentation of Hormel Foods' financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Hormel Foods' management is honest, while the outside auditors are strict and uncompromising. Whatever the case, the imprecision that can be found in Hormel Foods' accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Hormel Foods. Please utilize our Beneish M Score to check the likelihood of Hormel Foods' management manipulating its earnings.

Hormel Foods Company Summary

Hormel Foods competes with Natural Alternatives, Natures Sunshine, Nocera, Borealis Foods, and Central Garden. Hormel Foods Corporation develops, processes, and distributes various meat, nuts, and food products to retail, foodservice, deli, and commercial customers in the United States and internationally. Hormel Foods Corporation was founded in 1891 and is headquartered in Austin, Minnesota. Hormel Foods operates under Packaged Foods classification in the United States and is traded on New York Stock Exchange. It employs 20000 people.
Specialization
Consumer Defensive, Food, Beverage & Tobacco
InstrumentUSA Stock View All
ExchangeNew York Stock Exchange
CIK Number0000048465
ISINUS4404521001
CUSIP440452100
RegionNorth America
LocationMinnesota; U.S.A
Business Address1 Hormel Place,
SectorFood Products
IndustryConsumer Staples
BenchmarkNYSE Composite
Websitewww.hormelfoods.com
Phone507 437 5611
CurrencyUSD - US Dollar
You should never invest in Hormel Foods without having analyzed its financial statements. Do not rely on someone else's analysis or guesses about the future performance of Hormel Stock, because this is throwing your money away. Analyzing the key information contained in Hormel Foods' financial statements can give you an edge over other investors and help to ensure that your investments perform well for you.

Hormel Foods Key Financial Ratios

Generally speaking, Hormel Foods' financial ratios allow both analysts and investors to convert raw data from Hormel Foods' financial statements into concise, actionable information that can be used to evaluate the performance of Hormel Foods over time and compare it to other companies across industries. There are many critical financial ratios that investors are exposed to on a daily basis, but they are usually grouped into few meaningful categories from each financial statement that Hormel Foods reports annually and quarterly.

Hormel Foods Key Balance Sheet Accounts

201920202021202220232024 (projected)
Total Assets9.9B12.7B13.3B13.4B15.5B16.2B
Other Current Liab600.7M613.6M172.7M(1K)(1.2K)(1.1K)
Net Debt(410.7M)2.7B2.3B2.6B3.0B3.1B
Retained Earnings6.5B6.9B7.3B7.5B8.6B9.0B
Cash1.7B613.5M982.1M736.5M847.0M889.4M
Net Receivables743.9M904.0M874.8M824.6M948.3M995.7M
Inventory1.1B1.4B1.7B1.7B1.9B2.0B
Other Current Assets12.4M14.9M(1K)39.0M44.9M24.4M
Total Liab3.5B5.7B5.8B5.7B6.6B6.9B
Total Current Assets3.6B2.9B3.6B3.3B3.8B4.0B
Short Term Debt258.7M8.8M8.8M950.5M1.1B1.1B
Intangible Assets1.1B1.8B1.8B1.8B2.0B2.1B
Accounts Payable644.6M793.3M816.6M771.4M887.1M931.5M
Good Will2.6B4.9B4.9B4.9B5.7B6.0B
Common Stock7.9M7.9M8.0M8.0M7.2M6.5M
Other Liab885.9M987.2M1.0B930.1M1.1B637.8M
Other Assets4.8M5.5M4.9M443.0M509.5M262.9M
Long Term Debt1.0B3.3B3.3B2.4B2.7B2.8B
Net Tangible Assets2.7B221.5M811.4M1.0B944.3M1.3B

Hormel Foods Key Income Statement Accounts

An income statement is very similar to a cash flow statement, but instead of showing net revenue minus expenses, it only includes earnings before interest and taxes (EBIT). This number does not have all of the same line items that are on a cash flow statement, but it leaves out non-cash expenses like depreciation and amortization. For example, if you bought $100 worth of goods from Walmart (WMT) using your debit card that has an interest rate of 20%, then paid off the balance at the end of the month with a credit card that charges 30% interest, you would have an income statement showing EBIT of $80 because your expenses are lower than the amount that went into your pocket. The other reason investors look at the income statement is to determine what Hormel Foods' earnings per share (EPS) will be in order to see if they want to buy more shares or not. For example, if a company earned $20 million in the last quarter and has 100,000 shares outstanding, its EPS is 20 cents. If you find that this number beats analysts' forecasts or is higher than it was from the same period last year, then you might want to buy more of this stock even though its price per share may not have changed.
201920202021202220232024 (projected)
Interest Expense21.1M43.3M62.5M73.4M84.4M80.2M
Total Revenue9.6B11.4B12.5B12.1B13.9B14.6B
Gross Profit1.8B1.9B2.2B2.0B2.3B1.3B
Operating Income1.1B1.1B1.3B1.1B1.2B1.3B
Ebit1.1B1.1B1.3B1.1B1.3B1.3B
Ebitda1.3B1.4B1.6B1.4B1.6B1.7B
Cost Of Revenue7.8B9.5B10.3B10.1B11.6B12.2B
Income Before Tax1.1B1.1B1.3B1.0B1.2B1.2B
Net Income908.1M908.8M1000.0M793.6M912.6M958.2M
Income Tax Expense206.4M217.0M277.9M220.6M253.6M169.7M
Research Development32.5M31.9M33.6M33.7M38.8M28.2M
Minority Interest272K301K(239K)653K587.7K558.3K
Tax Provision206.4M217.0M277.9M220.6M198.5M233.1M
Interest Income14.5M3.6M34.5M14.8M17.1M13.4M
Net Interest Income14.5M3.6M(34.5M)(58.6M)(52.7M)(50.1M)

Hormel Foods Key Cash Accounts

Cash flow analysis captures how much money flows into and out of Hormel Foods. It measures of how well Hormel is doing because it can show the actual money that comes into and out of the Company from sales instead of measuring expenses against revenue to determine earnings. You have to read the cash flow statement in three sections. The first section shows how much money Hormel Foods brought in, usually known as net revenue or sales. This is different from earnings because it does not include expenses when determining net revenue for use on this part of the cash flow statement. Next, are operating activities, which show how much money Hormel had leftover after paying for its expenses. This number can be calculated in two ways: by subtracting the total of all operating expenses from net revenue or by adding up changes to cash and other assets or liabilities on this part of the statement. The third section is about investing activities, which shows what Hormel Foods has done with the money that it received from the sale of assets or what it spent to acquire new ones. This section can be broken down into two parts: investing in existing businesses (in other words, buying more stock) and investing in non-business activities like paying off debt or making acquisitions.
201920202021202220232024 (projected)
Change To Inventory(1.8M)(145.2M)(351.7M)35.7M32.1M33.7M
Change In Cash1.0B(1.1B)368.6M(245.6M)(282.4M)(268.3M)
Free Cash Flow760.5M771.7M857.3M777.6M894.3M939.0M
Depreciation205.8M228.4M262.8M253.3M291.3M305.9M
Other Non Cash Items(11.6M)(23.2M)41.8M70.5M63.5M66.6M
Dividends Paid487.4M523.1M557.8M592.9M681.9M716.0M
Capital Expenditures367.5M230.2M277.7M270.2M310.7M163.6M
Net Income908.4M909.1M1.0B792.9M911.9M477.9M
End Period Cash Flow1.7B613.5M982.1M736.5M847.0M889.4M
Investments(2.6M)(4.4M)(258.0M)(689.5M)(620.6M)(589.6M)
Change Receivables(11.1M)(119.5M)(191.6M)28.4M25.5M26.8M
Change To Netincome42.9M30.2M244.0M125.7M144.6M151.8M
Net Borrowings992.4M2.3B(8.7M)(6.8M)(7.9M)(7.5M)

Hormel Financial Ratios Relationships

Comparative valuation techniques use various fundamental indicators to help in determining Hormel Foods's current stock value. Our valuation model uses many indicators to compare Hormel Foods value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Hormel Foods competition to find correlations between indicators driving Hormel Foods's intrinsic value. More Info.
Hormel Foods is rated # 3 in beta category among related companies. It is one of the top stocks in price to earnings to growth category among related companies producing about  11.40  of Price To Earnings To Growth per Beta. . Comparative valuation analysis is a catch-all model that can be used if you cannot value Hormel Foods by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Hormel Foods' Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Hormel Foods' earnings, one of the primary drivers of an investment's value.

Hormel Foods Systematic Risk

Hormel Foods' systematic risk plays a vital role in portfolio allocation when considering its stock to be added to a well-diversified portfolio. Hormel Foods volatility which cannot be eliminated through diversification, requires returns over the risk-free rate. Over the long run, a well-diversified portfolio provides returns that match its exposure to systematic risk. In this case, investors face a trade-off between expected returns and systematic risk and, therefore, can only reduce a portfolio's exposure to systematic risk by sacrificing expected returns on the portfolio.
Incorrect Input. Please change your parameters or increase the time horizon required for running this function. The output start index for this execution was zero with a total number of output elements of zero. The Beta measures systematic risk based on how returns on Hormel Foods correlated with the market. If Beta is less than 0 Hormel Foods generally moves in the opposite direction as compared to the market. If Hormel Foods Beta is about zero movement of price series is uncorrelated with the movement of the benchmark. if Beta is between zero and one Hormel Foods is generally moves in the same direction as, but less than the movement of the market. For Beta = 1 movement of Hormel Foods is generally in the same direction as the market. If Beta > 1 Hormel Foods moves generally in the same direction as, but more than the movement of the benchmark.

About Hormel Foods Financials

What exactly are Hormel Foods Financials? Typically, a company's financial statements are the reports that show the financial position of the company. Three primary documents fall into the category of financial statements. These documents include Hormel Foods' income statement, its balance sheet, and the statement of cash flows. Potential Hormel Foods investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Hormel Foods investors may use each financial statement separately, they are all related. The changes in Hormel Foods's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Hormel Foods's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.

Steps to analyze Hormel Foods Financials for Investing

There are several different ways that investors can use financial statements to try and predict whether a stock price will go up or down. Unfortunately, there is no surefire formula, but there are some general guidelines you should consider when looking at the numbers. First, realize what kind of company it is so you know if its revenues are more likely to grow or shrink over time. For example, a software company's revenue is expected to increase yearly due to new products and services that its customers will want to buy. At the same time, a car manufacturer might not be able to sell as many cars when the economy slows down, so it would have less net income during those times. Second, pay attention to its debt-to-equity ratio because this number will tell you how much risk it has. If a company such as Hormel Foods is not taking on any additional risks, its debt-to-equity should be less than one. As a general rule of thumb, if the market value or book value (which can be found in the footnotes) of assets exceeds the company's liabilities, then it is probably in good shape. Finally, use other financial statements to determine if a stock price will go up or down because investors are always looking for growth opportunities when they buy new stocks. For example, if you see that the net revenue of Hormel has grown by more than 25% over the last five years, then there is a good chance that it will continue growing by at least 20% or more each year. On the other hand, if you see that net revenue has only increased by about 15%, which is barely above inflation levels, then chances are it will not grow much faster than this over time, and investors may shy away from buying it.
In summary, you can determine if Hormel Foods' financials are consistent with your investment objective using the following steps:
  • Review Hormel Foods' balance sheet accounts, such as liabilities and equity, to understand its overall financial position.
  • Analyze the income statement and examine the company's revenue, expenses, and profits over time to determine its financial performance.
  • Study the cash flow inflows and outflows to understand Hormel Foods' liquidity and solvency.
  • Look at the growth rates in revenue, earnings, and cash flow over time to determine its potential for future growth.
  • Compare Hormel Foods' financials to those of its peers to see how it stacks up and identify any potential red flags.
  • Use valuation ratios to evaluate the company's financials using commonly used ratios such as the price-to-earnings (P/E) ratio, price-to-sales (P/S) ratio, and enterprise value-to-earnings before interest, taxes, depreciation, and amortization (EV/EBITDA) ratio to determine if Hormel Foods' stock is overvalued or undervalued.
Remember, these are just guidelines and should not be the only basis for investment decisions. It is always important to analyze the leading stock market indicators., conduct additional research and seek professional advice if needed.

Hormel Foods Thematic Clasifications

Hormel Foods is part of several thematic ideas from Corona Opportunity to Food Products. If you are a theme-oriented, socially responsible, and at the same time, a result-driven investor, you can align your investing habits with your values without jeopardizing your expectations about returns. You can easily create an optimal portfolio of stocks, ETFs, funds, or cryptocurrencies based on a specific theme of your liking. Get More Thematic Ideas
Today, most investors in Hormel Foods Stock are looking for potential investment opportunities by analyzing not only static indicators but also various Hormel Foods' growth ratios. Consistent increases or decreases in fundamental ratios usually indicate a possible pattern that can be successfully translated into profits. However, when comparing two companies, knowing each company's growth growth rates may not be enough to decide which company is a better investment. That's why investors frequently use static breakdown of Hormel Foods growth as a starting point in their analysis.

Price Earnings To Growth Ratio

(41.06)

At this time, Hormel Foods' Price Earnings To Growth Ratio is quite stable compared to the past year.

Hormel Foods March 29, 2024 Opportunity Range

Along with financial statement analysis, the daily predictive indicators of Hormel Foods help investors to analyze its daily demand and supply, volume, patterns, and price swings to determine the real value of Hormel Foods. We use our internally-developed statistical techniques to arrive at the intrinsic value of Hormel Foods based on widely used predictive technical indicators. In general, we focus on analyzing Hormel Stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build Hormel Foods's daily price indicators and compare them against related drivers.
When determining whether Hormel Foods is a strong investment it is important to analyze Hormel Foods' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Hormel Foods' future performance. For an informed investment choice regarding Hormel Stock, refer to the following important reports:
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 tightly coupled 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.

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When running Hormel Foods' price analysis, check to measure Hormel Foods' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Hormel Foods is operating at the current time. Most of Hormel Foods' value examination focuses on studying past and present price action to predict the probability of Hormel Foods' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Hormel Foods' price. Additionally, you may evaluate how the addition of Hormel Foods to your portfolios can decrease your overall portfolio volatility.
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Is Hormel Foods' industry 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
0.004
Dividend Share
1.108
Earnings Share
1.45
Revenue Per Share
22.203
Quarterly Revenue Growth
0.009
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.
Please note, there is a significant difference between Hormel Foods' value and its price as these two are different measures arrived at by different 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.