Hormel Foods Corporation
Find Ratings ReportsHORMEL FOODS CORP's gross profit margin for the first quarter of its fiscal year 2024 is essentially unchanged when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the subsector, the net income growth has not. HORMEL FOODS CORP has weak liquidity. Currently, the Quick Ratio is 0.77 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.
At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 3.02% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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Income Statement | Q1 FY24 | Q1 FY23 |
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Net Sales ($mil) | 2996.91 | 2970.99 |
EBITDA ($mil) | 332.42 | 335.4 |
EBIT ($mil) | 268.35 | 273.89 |
Net Income ($mil) | 218.86 | 217.72 |
Balance Sheet | Q1 FY24 | Q1 FY23 |
---|---|---|
Cash & Equiv. ($mil) | 981.92 | 617.58 |
Total Assets ($mil) | 13512.98 | 13283.05 |
Total Debt ($mil) | 3311.21 | 3301.49 |
Equity ($mil) | 7844.11 | 7613.9 |
Profitability | Q1 FY24 | Q1 FY23 |
---|---|---|
Gross Profit Margin | 19.11 | 18.76 |
EBITDA Margin | 11.09 | 11.28 |
Operating Margin | 8.95 | 9.22 |
Sales Turnover | 0.9 | 0.93 |
Return on Assets | 5.88 | 7.36 |
Return on Equity | 10.13 | 12.85 |
Debt | Q1 FY24 | Q1 FY23 |
---|---|---|
Current Ratio | 1.49 | 2.33 |
Debt/Capital | 0.3 | 0.3 |
Interest Expense | 18.33 | 18.35 |
Interest Coverage | 14.64 | 14.93 |
Share Data | Q1 FY24 | Q1 FY23 |
---|---|---|
Shares outstanding (mil) | 547.6 | 546.47 |
Div / share | 0.28 | 0.28 |
EPS | 0.4 | 0.4 |
Book value / share | 14.32 | 13.93 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 3254278.0 | 3388021.0 |
HOLD. This stock's P/E ratio indicates a premium compared to an average of 18.98 for the Food Manufacturing subsector and a discount compared to the S&P 500 average of 27.95. Conducting a second comparison, its price-to-book ratio of 2.35 indicates a significant discount versus the S&P 500 average of 4.68 and a discount versus the subsector average of 3.20. The current price-to-sales ratio is well below the S&P 500 average and is also below the subsector average, indicating a discount.
Price/Earnings |
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Price/Cash Flow |
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HRL 23.10 | Peers 18.98 | HRL 14.78 | Peers 15.41 | |||||||||||||||||||||
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations. HRL is trading at a premium to its peers. |
Average. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. HRL is trading at a valuation on par to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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HRL 19.95 | Peers 17.75 | HRL 2.39 | Peers 2.43 | |||||||||||||||||||||
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations. HRL is trading at a premium to its peers. |
Average. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. HRL trades at a valuation on par to its peers. |
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Price/Book |
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Earnings Growth |
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HRL 2.35 | Peers 3.20 | HRL -18.44 | Peers 16.04 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. HRL is trading at a significant discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, HRL is expected to significantly trail its peers on the basis of its earnings growth rate. |
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Price/Sales |
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Sales Growth |
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HRL 1.52 | Peers 1.93 | HRL -2.02 | Peers 6.04 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. HRL is trading at a discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. HRL significantly trails its peers on the basis of sales growth. |
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