This firm has 3.32
B in debt with debt to equity (D/E) ratio of 0.45, which is OK given its current industry classification.
Our trade recommendations tool can be used to complement Hormel Foods Corp advice provided by
experts. It analyzes the entity's potential to grow against your specific risk preferences and investment horizon.
We determine the current worth of Hormel Foods using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. 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 related drivers such as
dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Hormel Foods's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. 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, relevant financial multiples and ratios, and then
comparing them to Hormel Foods's related companies.
Hormel Foods Investment Alerts
Hormel investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Hormel Foods performance across your portfolios.Please check all
investment alerts for Hormel
Hormel Foods Valuation Ratios as Compared to Competition
Our valuation model uses many indicators to compare Hormel value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Hormel Foods competition to find
correlations between indicators driving the intrinsic value of Hormel.
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
The small pull down in market price for the last few months may raise some interest from stakeholders. The stock closed today at a share price of
48.19 on
2,822,399 in trading volume. The company directors and management did not add much value to Hormel Foods Corp investors in
October. However, diversifying your holdings with Hormel Foods Corp or similar stocks can still protect your portfolio during high-volatility market scenarios. The stock standard deviation of daily returns for 90 days investing horizon is currently 1.43. The below-average Stock volatility is a good sign for longer-term investment options and for buy-and-hold investors.
| 2015 | 2020 | 2021 | 2022 (projected) |
Consolidated Income | 908.35 M | 909.14 M | 1.05 B | 989.97 M | Direct Expenses | 7.78 B | 9.46 B | 8.51 B | 7.6 B |
Margins Breakdown
Hormel profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Hormel Foods itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Hormel Foods profit margins.
| Operating Margin | 8.98 |
| EBITDA Margin | 10.64 |
| Gross Margin | 15.88 |
| Profit Margin | 7.09 |
Hormel Foods Average Assets is increasing over the last 5 years. Also, Hormel Foods Revenue Per Employee is increasing over the last 5 years.
Another setback for Hormel Foods stakeholders
New Information Ratio is up to -0.06. Price may pull down again. Hormel Foods Corp exhibits very low volatility with skewness of -1.7 and kurtosis of 6.3. However, we advise investors to further study Hormel Foods Corp technical indicators to ensure that all market info is available and is reliable. 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 bullish 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.
Our Final Perspective 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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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
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 Vlad Skutelnik do not own shares of Hormel Foods. Please refer to our
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