These numbers and more can be founds by looking at a recent 8-K filing. Record diluted earnings per share were posted as $0.45, up 29 percent from 2015 GAAP earnings per share of $0.35. Record net earnings came in at $244 million, which is up 30 percent from 2015 GAAP net earnings of $187 million. These are solid numbers that current and potential investors alike want to see. This is only a quarters worth of numbers and it certainly would be worth looking at the year as a whole.
Taking a look at the chart, price is making lower highs, but catching support around the $33.75 level, which makes it look like it may squeeze. These figures are taken from the monthly chart. Right now, for long term investing, I would watch that support level and see if it can hold a third time, as this could prove pivotal in where price wants to head. If it breaks, we could see price fall quite a bit. However, use the fundamental data along side the chart to determine your opinion, because the price could be low for what the company is earning, which means there still could be value.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that 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.
The goal of Hormel Foods
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Hormel Foods performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Hormel Foods shares is the value that is considered the true value of the share. If
the intrinsic value of Hormel is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Hormel Foods. Please read more on our
fundamental analysis page.
How effective is Hormel Foods in utilizing its assets?
Hormel Foods reports assets on its Balance Sheet. It represents the amount of Hormel resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, Hormel Foods aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Packaged Foods & Meats space. To get a better handle on how balance sheet or income statements item affect Hormel volatility, please check the breakdown of all its
fundamentals.
Are Hormel Foods Earnings Expected to grow?
The
future earnings power of Hormel Foods involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Hormel Foods factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Hormel Foods
stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Hormel
expected earnings.
And What about dividends?
A dividend is the distribution of a portion of Hormel Foods earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Hormel Foods dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Hormel one year expected dividend income is about USD0.72 per share.
At this time, Hormel Foods'
Dividends Paid is quite stable compared to the past year.
Dividend Payout Ratio is expected to rise to 0.60 this year, although the value of
Dividend Yield will most likely fall to 0.02.
Investing in dividend-paying stocks, such as Hormel Foods is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Hormel Foods must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Hormel Foods. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.
Hormel Foods Gross Profit
Hormel Foods Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Hormel Foods previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Hormel Foods Gross Profit growth over the last 10 years. Please check Hormel Foods'
gross profit and other
fundamental indicators for more details.
A Deeper Perspective
Risks
You can take a look at their most recent 10-K filing to get a full view of what the risks are, but here are some to keep in mind before investing. When dealing in the food industry, the company has to maintain a level of quality that the consumer expects, otherwise they will have no problem switching over to a competitor. To go along with that, they have to ensure their brand image remains clean because when people shop, they tend to go back to brands they know and trust, and once that is lost, it is difficult to bring back.
Conclusion
Hormel Foods could be a great addition to your portfolio and I recommend giving the company more of your time and research. The stock has grown nicely over the years and it could still provide healthy returns for investors. However, if you have any questions, consult and investing professional as they can point you in the right direction.
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Nathan Young is a Senior Member of Macroaxis Editorial Board - US Equity Analysis. With years of experience in the financial sector, Nathan brings a diverse base of knowledge. Specifically, he has in-depth understanding of application of technical and fundamental analysis across different equity instruments. Utilizing SEC filings and technical indicators, Nathan provides a reputable analysis of companies trading in the United States.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Nathan Young do not own shares of Hormel Foods. Please refer to our
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