Hormel Foods Valuation
| HRL Stock | USD 29.42 0.19 0.65% |
At this time, the firm appears to be undervalued. Hormel Foods retains a regular Real Value of $31.09 per share. The prevalent price of the firm is $29.42. Our model calculates the value of Hormel Foods from evaluating the firm fundamentals such as Return On Asset of 0.0511, return on equity of 0.1, and Current Valuation of 18.37 B as well as inspecting its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Hormel Foods' valuation include:
Price Book 2.0365 | Enterprise Value | Enterprise Value Ebitda 13.3692 | Price Sales 1.3462 | Forward PE 18.5185 |
Undervalued
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 29.42 | Real 31.09 | Target 32.03 | Hype 29.53 | Naive 29.93 |
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: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Hormel Foods' intrinsic value based on its ongoing forecasts of Hormel Foods' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Hormel Foods' closest peers.
Hormel Foods Cash |
|
Hormel Valuation Trend
Knowing Hormel Foods' actual value is paramount for traders when making sound investment determinations. Using both Hormel Foods' enterprise value as well as its market capitalization is the best way to estimate the value of the company and is usually enough for investors to make market timing decisions.
Hormel Revenue by Product
Hormel Foods Total Value Analysis
Hormel Foods is currently projected to have company total value of 18.37 B with market capitalization of 16.05 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 |
18.37 B | 16.05 B | 2.86 B | 982.11 M |
Hormel Foods Investor Information
About 90.0% of the company shares are owned by institutional investors. The book value of Hormel Foods was currently reported as 14.57. The company has Price/Earnings To Growth (PEG) ratio of 2.97. Hormel Foods last dividend was issued on the 13th of January 2025. The entity 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 may be sliding down financialy. It has an above-average probability of going through some form of financial hardship next quarter.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Operating Profit Margin | 0.0628 | 0.0986 |
|
| |||||
| Total Cash From Operating Activities | 1.5 B | 1.5 B |
|
| |||||
| Operating Income | 1.3 B | 1.2 B |
|
|
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 549.01 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 2.03 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.| Last Reported | Projected for Next Year | ||
| Gross Profit | 2.3 B | 1.3 B | |
| Pretax Profit Margin | 0.10 | 0.06 | |
| Operating Profit Margin | 0.10 | 0.06 | |
| Net Profit Margin | 0.08 | 0.04 | |
| Gross Profit Margin | 0.17 | 0.24 |
Hormel Foods Quarterly Retained Earnings |
|
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
At this time, Hormel Foods' Dividend Payout Ratio is quite stable compared to the past year. Dividend Paid And Capex Coverage Ratio is expected to rise to 1.38 this year, although the value of Dividends Paid is projected to rise to (671.8 M). . At this time, Hormel Foods' Retained Earnings are quite stable compared to the past year. Earnings Yield is expected to rise to 0.06 this year, although the value of Retained Earnings Total Equity will most likely fall to about 5.3 B.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | -707.2 M | -671.8 M | |
| Dividend Yield | 0.02 | 0.02 | |
| Dividend Payout Ratio | 0.58 | 0.60 | |
| Dividend Paid And Capex Coverage Ratio | 1.33 | 1.38 |
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 | 0.116 | |
| Forward Price Earnings | 18.5185 |
Hormel Foods Current Valuation Indicators
Hormel Foods' valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Hormel Foods' valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Hormel Foods, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Hormel Foods' valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Hormel Foods' worth.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 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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 0.116 | Dividend Share 1.13 | Earnings Share 1.47 | Revenue Per Share | 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.
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.