Last Updated: 08 Nov 2024
Executive Summary
Hormel Foods Corporation (HRL) is a leading American food company with a strong track record of growth and profitability. The company has a diversified portfolio of products, including packaged and refrigerated foods, meat products, and food ingredients. Hormel Foods has a strong balance sheet and generates consistent cash flow. The company's stock is currently trading at $30.27, below its 52-week high of $36.19.
Company Overview
Hormel Foods Corporation was founded in 1891 in Austin, Minnesota. The company originally focused on the packaging and selling of ham, Spam, sausage and other pork, chicken, beef and lamb products to consumers. By the 1980s, Hormel began offering a wider range of packaged and refrigerated foods. Today, Hormel Foods is one of the largest food companies in the United States. The company's products are sold in over 80 countries.
Fundamental Analysis
Hormel Foods has a strong financial profile. The company has a market capitalization of $16.8 billion and an enterprise value of $27.3 billion. Hormel Foods has a debt-to-equity ratio of 0.54 and a current ratio of 1.23. The company's EBITDA margin is 11.3% and its net profit margin is 6.5%. Hormel Foods has a strong track record of earnings growth. The company's EPS has grown at an average annual rate of 10% over the past five years.
Technical Analysis
Hormel Foods' stock price has been in a downtrend since reaching a 52-week high of $36.19 in April 2023. The stock is currently trading below its 50-day and 200-day moving averages. The stock's relative strength index (RSI) is 45.5, which indicates that the stock is oversold.
Short Term Outlook
Hormel Foods' stock is likely to remain in a downtrend in the short term. The stock is trading below its 50-day and 200-day moving averages and its RSI is oversold. However, the stock's fundamentals are strong and the company is expected to continue to grow its earnings.
Long Term Outlook
Hormel Foods' stock is likely to perform well in the long term. The company has a strong financial profile and a diversified portfolio of products. The company is also expected to benefit from the growing demand for food products in emerging markets.
Analyst Recommendations
Analysts have a mixed view on Hormel Foods' stock. Of the 11 analysts who cover the stock, 1 has a strong buy rating, 8 have a hold rating, and 2 have a sell rating. The average analyst target price is $32.18.
