-1.00%
-3.97%
-1.39%
-6.18%
-0.81%
-36.54%
-36.26%
AI Spotlight on HRL
Company Description
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.The company operates through four segments: Grocery Products, Refrigerated Foods, Jennie-O Turkey Store, and International & Other.It provides various perishable products that include fresh meats, frozen items, refrigerated meal solutions, sausages, hams, guacamoles, and bacons; and shelf-stable products comprising canned luncheon meats, nut butters, snack nuts, chilies, shelf-stable microwaveable meals, hashes, stews, tortillas, salsas, tortilla chips, and others.
The company also engages in the processing, marketing, and sale of branded and unbranded pork, beef, poultry, and turkey products, as well as offers nutritional food products and supplements, desserts and drink mixes, and industrial gelatin products.It sells its products primarily under the SKIPPY, SPAM, Hormel, Natural Choice, Applegate, Justin's, Jennie-O, Café H, Herdez, Black Label, Sadler's, Columbus, Gatherings, Herdez, Wholly, Columbus, Planters, NUT-rition, Planters Cheez Balls, Corn Nuts, etc.brand names through sales personnel, independent brokers, and distributors.
The company was formerly known as Geo.A.Hormel & Company and changed its name to Hormel Foods Corporation in January 1995.
Hormel Foods Corporation was founded in 1891 and is headquartered in Austin, Minnesota.
Market Data
| Last Price | 30.12 |
| Change Percentage | -1.00% |
| Open | 30.24 |
| Previous Close | 30.43 |
| Market Cap ( Millions) | 16539 |
| Volume | 1112037 |
| Year High | 36.86 |
| Year Low | 28.51 |
| M A 50 | 31.25 |
| M A 200 | 31.95 |
Financial Ratios
| FCF Yield | 6.11% |
| Dividend Yield | 3.78% |
| ROE | 10.19% |
| Debt / Equity | 35.76% |
| Net Debt / EBIDTA | 154.57% |
| Price To Book | 2.07 |
| Price Earnings Ratio | 20.51 |
| Price To FCF | 16.37 |
| Price To sales | 1.39 |
| EV / EBITDA | 13.62 |
News
- Jan -30 - Hormel Foods Announces Retirement of Mark Ourada, Group Vice President, Foodservice, after 37 years of exemplary service and leadership
- Jan -29 - 10 Undervalued Dividend Growth Stocks: January 2025
- Jan -29 - My Best Dividend Aristocrats For February 2025
- Jan -25 - These Could Be The 10 Best Deep Value Dividend Aristocrat Bargains For February
- Jan -24 - What Can The Dividend Kings Deliver In 2025?
- Jan -21 - Hormel Foods To Hold Virtual 2025 Annual Meeting of Stockholders
- Jan -20 - Hormel Foods Announces Retirement of Brian Johnson, Vice President and Corporate Secretary
- Jan -17 - Hormel Foods Provides Over $2M in Products and Disaster Relief Support for California Wildfires
- Jan -15 - Buy 3 'Safer' Dividend Kings Of 25 From 53 For January
- Jan -14 - Hormel CEO Snee to Retire Later This Year
- Jan -14 - Hormel Foods' long-time CEO James Snee to retire
- Jan -14 - Hormel Foods Chairman, President and CEO James P. Snee to Retire at End of Fiscal Year
- Jan -11 - 3 Ideal Buys From 51 'Safer' Dividends In 100 January Barron's Sustainable Dogs
- Jan -11 - 11 Upcoming Dividend Increases, Including A Dividend King
- Jan -09 - Got $1,000? 3 Dividend Stocks to Buy Now While They're on Sale
- Jan -07 - Buy 1 January S&P 500 Dividend Aristocrat Out Of 38 'Safer'
- Jan -07 - Drive into Adventure: Apply Now to Become a PLANTERS® Peanutter and Join the Iconic NUTmobile Team!
- Jan -02 - 3 Dividend Growth Beasts That Have Raised Their Payouts for a Combined 165 Years
- Dec -31 - My Best Dividend Aristocrats For January 2025
- Dec -13 - Buy 6 December Dividend Kings But Watch 22 With 'Safer' Dividends
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Retail
Expected Growth : 2.5 %
What the company do ?
Retail from Hormel Foods Corporation refers to the consumer-facing division of the company, offering a range of branded food products to grocery stores and supermarkets.
Why we expect these perspectives ?
Hormel Foods Corporation's Retail segment growth of 2.5% is driven by increasing demand for convenient and protein-rich products, particularly in the deli and meat snacks categories. Strong brand recognition, innovative product launches, and strategic pricing also contribute to growth. Additionally, the company's focus on e-commerce and digital marketing helps to expand its customer base and increase sales.
Segment n°2 -> Food Service
Expected Growth : 1.8 %
What the company do ?
Hormel Foods Corporation's Food Service segment provides branded food products to foodservice distributors, restaurants, and other institutions.
Why we expect these perspectives ?
Hormel Foods Corporation's Food Service segment growth of 1.8% is driven by increasing demand for convenient, portable, and protein-rich food products, particularly in the education and healthcare channels. Additionally, strategic acquisitions, product innovation, and expanded distribution networks have contributed to the segment's growth.
Segment n°3 -> International
Expected Growth : 2.2 %
What the company do ?
Hormel Foods Corporation's International segment includes exports of various meat products, including SPAM, to over 40 countries worldwide.
Why we expect these perspectives ?
Hormel Foods' international segment growth of 2.2% is driven by increasing demand for protein-rich products, particularly in Asia and Latin America. Strong sales of Spam and Skippy peanut butter in these regions, coupled with strategic acquisitions and partnerships, have contributed to the segment's growth. Additionally, the company's focus on e-commerce and digital marketing has helped expand its international presence.
Hormel Foods Corporation Products
| Product Range | What is it ? |
|---|---|
| Refrigerated Foods | Hormel Foods' Refrigerated Foods segment offers a variety of products, including hams, bacon, sausages, and deli meats. |
| Jennie-O Turkey Store | Jennie-O Turkey Store offers a range of turkey-based products, including whole turkeys, turkey breasts, and turkey sausages. |
| Grocery Products | Hormel Foods' Grocery Products segment includes a variety of canned goods, such as SPAM, Dinty Moore stew, and Hormel chili. |
| International & Other | This segment includes Hormel Foods' international business, as well as other products and services, such as nutritional products and foodservice offerings. |
| Skippy Peanut Butter | Skippy peanut butter is a popular brand of creamy and crunchy peanut butter. |
| MegaMex Foods | MegaMex Foods offers a range of Mexican-inspired foods, including Wholly Guacamole and La Tortilla Factory. |
Hormel Foods Corporation's Porter Forces
Threat Of Substitutes
Hormel Foods Corporation faces moderate threat from substitutes due to the presence of alternative protein sources such as plant-based meat alternatives and other packaged meat products.
Bargaining Power Of Customers
Hormel Foods Corporation has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's strong brand portfolio and wide distribution network make it difficult for customers to negotiate prices.
Bargaining Power Of Suppliers
Hormel Foods Corporation relies on a network of suppliers for raw materials such as pork, beef, and poultry. While the company has some bargaining power due to its scale, suppliers may still exert some pressure on prices and quality.
Threat Of New Entrants
The threat of new entrants is low in the packaged meat industry due to high barriers to entry, including significant capital requirements, regulatory hurdles, and the need for established distribution networks.
Intensity Of Rivalry
The packaged meat industry is highly competitive, with several established players competing for market share. Hormel Foods Corporation faces intense rivalry from companies such as Tyson Foods, Cargill, and JBS USA.
Capital Structure
| Value | |
|---|---|
| Debt Weight | 29.95% |
| Debt Cost | 3.95% |
| Equity Weight | 70.05% |
| Equity Cost | 5.31% |
| WACC | 4.90% |
| Leverage | 42.76% |
Hormel Foods Corporation : Quality Control
Hormel Foods Corporation passed 4 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| LANC | Lancaster Colony Corporation manufactures and markets food products for the retail and foodservice markets in the United States. The company operates in two segments, Retail and Foodservice. It offers frozen … |
| SMPL | The Simply Good Foods Company operates as a consumer packaged food and beverage company in North America and internationally. The company develops, markets, and sells snacks and meal replacements. It … |
| MKC | McCormick & Company, Incorporated manufactures, markets, and distributes spices, seasoning mixes, condiments, and other flavorful products to the food industry. It operates in two segments, Consumer and Flavor Solutions. The … |
| FRPT | Freshpet, Inc. manufactures and markets natural fresh meals and treats for dogs and cats in the United States, Canada, and Europe. The company sells its products under the Freshpet brand; … |
| BRBR | BellRing Brands, Inc., together with its subsidiaries, provides various nutrition products in the United States and internationally. It offers ready-to-drink shake and powder protein products primarily under the Premier Protein … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
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Hormel Foods
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McCormick
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Lancaster Colony
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4
BellRing Brands
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5
Simply Good Foods
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6
