Hormel Foods Valuation
| HRL Stock | USD 29.94 0.02 0.07% |
At this time, the firm appears to be fairly valued. Hormel Foods retains a regular Real Value of $31.02 per share. The prevalent price of the firm is $29.94. Our model calculates the value of Hormel Foods from evaluating the firm fundamentals such as Return On Equity of 0.0952, current valuation of 18.24 B, and Return On Asset of 0.0491 as well as inspecting its technical indicators and probability of bankruptcy.
Fairly Valued
Today
Please note that Hormel Foods' price fluctuation is very steady at this time. Calculation of the real value of Hormel Foods is based on 3 months time horizon. Increasing Hormel Foods' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Hormel stock is determined by what a typical buyer is willing to pay for full or partial control of Hormel Foods. Since Hormel Foods is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Hormel Stock. However, Hormel Foods' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 29.94 | Real 31.02 | Hype 29.94 | Naive 29.94 |
The intrinsic value of Hormel Foods' stock can be calculated using various methods such as discounted cash flow or dividend analysis. That value may differ from its market price, which is determined by factors such as investor sentiment, market trends, headlines, and other external factors that may influence Hormel Foods' stock price.
Estimating the potential upside or downside of Hormel Foods helps investors to forecast how Hormel stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Hormel Foods more accurately as focusing exclusively on Hormel Foods' fundamentals will not take into account other important factors: Hormel Foods Total Value Analysis
Hormel Foods is currently projected to have company total value of 18.24 B with market capitalization of 16.48 B, debt of 2.86 B, and cash on hands of 982.11 M. Please note that company total value may be misleading and is a subject to accounting gimmicks. We encourage investors to carefully check all of the Hormel Foods fundamentals before making security assessment based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
18.24 B | 16.48 B | 2.86 B | 982.11 M |
Hormel Foods Investor Information
About 89.0% of the company shares are owned by institutional investors. The book value of Hormel Foods was currently reported as 14.6. The company last dividend was issued on the 13th of January 2025. Hormel Foods had 2:1 split on the 10th of February 2016. Based on the key indicators related to Hormel Foods' liquidity, profitability, solvency, and operating efficiency, Hormel Foods is not in a good financial situation at this time. It has a very high probability of going through financial hardship in April.Hormel Foods Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Hormel Foods has an asset utilization ratio of 88.73 percent. This suggests that the Company is making $0.89 for each dollar of assets. An increasing asset utilization means that Hormel Foods is more efficient with each dollar of assets it utilizes for everyday operations.Hormel Foods Ownership Allocation
Hormel Foods has a total of 549.91 Million outstanding shares. The majority of Hormel Foods outstanding shares are owned by outside corporations. These institutional investors are usually referred to as non-private investors looking to purchase positions in Hormel Foods to benefit from reduced commissions. Consequently, third-party entities are subject to a different set of regulations than regular investors in Hormel Foods. Please pay attention to any change in the institutional holdings of Hormel Foods as this could imply that something significant has changed or is about to change at the company. Please note that on October 8, 2024, Representative Ro Khanna of US Congress acquired under $15k worth of Hormel Foods's common stock.Hormel Foods Profitability Analysis
The company reported the last year's revenue of 11.92 B. Total Income to common stockholders was 804.63 M with profit before taxes, overhead, and interest of 1.99 B.Hormel Foods Past Distributions to stockholders
About Hormel Foods Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Hormel Foods. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Hormel Foods based exclusively on its fundamental and basic technical indicators. By analyzing Hormel Foods's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Hormel Foods's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Hormel Foods. We calculate exposure to Hormel Foods's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Hormel Foods's related companies.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.
A single share of Hormel Foods represents a small ownership stake in the entity. As a stockholder of Hormel, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Hormel Foods Dividends Analysis For Valuation
There are various types of dividends Hormel Foods can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Hormel shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Hormel Foods directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Hormel pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Hormel Foods by the value of the dividends paid out.
Hormel Foods Growth Indicators
Investing in growth stocks can be very risky. If the company such as Hormel Foods does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 548.8 M | |
| Quarterly Earnings Growth Y O Y | -0.225 | |
| Forward Price Earnings | 19.0476 |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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.
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.