Stock Updates

Is this Large Market Cap Stock target price reasonable for Hormel Foods Corporation (NYSE:HRL)?

The company in question is, Hormel Foods Corporation (NYSE:HRL) currently with a stock price of 36.56 (0.18% today). The market cap for Hormel Foods Corporation is 20114.75, and is in the sector Consumer Goods, and Meat Products industry. The target price for Hormel Foods Corporation is 41.63. Currently Hormel Foods Corporation is trading with a P/E of 23.76, and a forward P/E of 21.89. Average volume for Hormel Foods Corporation is 2661.4 and so far today it is 195010.

Performance in the last year for Hormel Foods Corporation has been 20.05%. For EPS growth, Hormel Foods Corporation has seen a growth of 13.70%, and is looking to grow in the next year to 2.14%. More long term stats show that EPS growth has been 11.70% over the last five years and could be 12.40% for the next five years. Hormel Foods Corporation has seen sales growth quarter over quarter at 5.20%, with EPS growth quarter over quarter at 32.90%. The 20-day simple moving average is -1.43%, with the 200-day simple moving average coming to -5.31%.

Since the IPO date for Hormel Foods Corporation on the 1/2/1990, Hormel Foods Corporation has seen performance year to date to be -6.66%. With Hormel Foods Corporation trading at 36.56, the dividend yield is 1.59%, and the EPS is 1.54.

So could Hormel Foods Corporation, be undervalued? Well as said before P/E is 23.76. The PEG is 1.92, P/S is 2.16 and the P/B is at 4.4. The P/cash is 52.99, with P/free cash flow at 47.38.

Hormel Foods Corporation ability to deal with debt shows that the current ratio is 1.8, and the quick ratio is 0.9. This is with long term debt/equity at 0.06, and total debt/equity at 0.09.

In terms of margins, Hormel Foods Corporation has a gross margin of 22.10%, an operating margin of 13.50% and a profit margin of 9.00%.Payout ratio for Hormel Foods Corporation is 35.60%. Return on assets come to 13.50% with return on investment coming to 15.70%.

Insider ownership for Hormel Foods Corporation, is at 0.30% and institutional ownership comes to 36.00%. Outstanding shares are at 551.24. While shares float is 269.8. The float short is currently 10.29%, and short ratio is 10.44.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

About the author

Stephen Butters

Leave a Comment