We consider Hormel Foods very steady.
Hormel Foods Corp holds Efficiency (Sharpe) Ratio of 0.0335, which attests that the entity had 0.0335% of return per unit of risk over the last 3 months. Our standpoint towards determining the volatility of a stock is to use all available market data together with stock-specific
technical indicators that cannot be
diversified away. We have found twenty-one
technical indicators for Hormel Foods Corp, which you can use to evaluate the future volatility of the firm. Please check out Hormel Foods Downside Deviation of 1.1,
risk adjusted performance of 0.0318, and Market Risk Adjusted Performance of 0.3026 to validate if the risk estimate we provide is consistent with the expected return of 0.0312%.
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
Although in the United States, the Securities and Exchange Commission has enforced strong rules to prevent insiders from engaging in insider trading, finding insiders among active shareholders of Hormel Foods is not uncomon. There are few distinct groups of Hormel Foods stakehholders that the SEC considers insiders. Investors usually gain information through their work as corporate directors, officers, or employees. If these individuals share the information with a friend, family, or business partner and the person who receives the information exchanges stock in the company, he or shie is also an insider. Let's take a look at how the ownership of Hormel is distributed among investors.
Ownership Allocation
Hormel Foods secures a total of 542.08 Million outstanding shares. Hormel Foods secures significant amount of outstanding shares owned by
insiders. An
insider is usually defined as a CEO, other corporate executive, director, or
institutional investor who own at least 10% of the company outstanding shares. Since such a large part of the company is owned by insiders, it is advisable to analyze if each of these insiders have been buying or selling the stock in recent months. Note that regardless of who owns the company, if the true value of the entity is less than the market is willing to pay for it, you may not be able to generate positive returns over time.
| Retail Investors8.32% | Insiders47.57% | Institutions44.11% |
| Retail Investors | 8.32 |
| Insiders | 47.57 |
| Institutions | 44.11 |
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 162.48 percent. This denotes that the company is making $1.62 for each dollar of assets. An increasing asset utilization means that Hormel Foods Corp is more efficient with each dollar of assets it utilizes for everyday operations.
| Current Assets2.4 B | Assets Non Current4.7 B | Goodwill2.8 B | |
| Current Assets | 2.38 Billion | 23.85 |
| Assets Non Current | 4.73 Billion | 47.43 |
| Goodwill | 2.84 Billion | 28.48 |
| Tax Assets | 25.15 Million | 0.25 |
Will price continue to hike in January 2022?
Hormel Foods new potential upside upsurges over 1.42. Hormel Foods Corp has relatively low volatility with skewness of -0.44 and kurtosis of -0.17. However, we advise all investors to independently investigate Hormel Foods Corp to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Hormel Foods' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Hormel Foods' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
Hormel Foods Implied Volatility
Hormel Foods' implied volatility exposes the market's sentiment of Hormel Foods Corp stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Hormel Foods' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Hormel Foods stock will not fluctuate a lot when Hormel Foods' options are near their expiration.
Our Conclusion on Hormel Foods
When is the right time to buy or sell Hormel Foods Corp? Buying stocks such as Hormel Foods isn't very hard. However, what challenging for most investors is doing it at the right time. Proper
market timing is something most people cannot do without
sophisticated tools, which help to isolate the right opportunities, deliver winning trades and diversify portfolios on a daily basis.
With a relatively neutral outlook on the new economy, it is better to hold off any trading of Hormel as the current risk-reward utility is not appealing enough. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Hormel Foods.
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Gabriel Shpitalnik is a Member of Macroaxis Editorial Board. Gabriel is a young entrepreneur and writes predominantly on the business, technology, and finance sector. He likes to analyze different equity instruments across a wide range of industries focusing primarily on consumer products and evolving technologies.
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 Gabriel Shpitalnik do not own shares of Hormel Foods. Please refer to our
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