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Hormel Foods Corporation (NYSE: HRL) – Is this large market cap stock undervalued?

Hormel Foods Corporation (NYSE: HRL), is firmly in the large market cap category with market cap of 20305.4. To be considered a large market cap stock companies have to be valued at more than $10 billion. The current price for Hormel Foods Corporation is 38.37 (with a change from open of 0.18%), this in conjunction with a target price of 41.22. Volume today has so far reached 2101800, with an average volume of about 2464. The GAP for this stock, is 0.13%.

The P/E ratio is 24.98, bringing the forward P/E to a value of 23.05. The current EPS for Hormel Foods Corporation, is 1.54, with a EPS growth for this year coming to a value of 13.70%. Performance has been interesting with performance year to date coming to -1.85%.

Looking further into the growth statistics for Hormel Foods Corporation, EPS is looking like it will grow 2.08% in the next year. Looking even further it is projected to be 10.20%. Quarter over quarter is 32.90% for EPS growth and for sales growth quarter over quarter it is 5.20%. Looking at past EPS growth statistics we see that for the past five years it has been 11.70%. Sales growth for the past five years has in fact been 5.10%.

Looking at the ownership, we see that the insider ownership is at 0.30% and institutional ownership is 36.00%. Shares outstanding is 529.2, while shares float is at a value of 269.79. Float short for Hormel Foods Corporation is 9.92% and the short ratio is 10.86.

In terms of debt, long term debt/equity is 0.06, while the total debt/equity comes to 0.09. The ability to meet these debts, means that the current ratio is 1.8, and the quick ratio is 0.9. The most recent gross margin is 22.10% and their operating margin is 13.50%. The profit margin is 9.00%.

Hormel Foods Corporation has seen returns on assets of 13.50%, and on investment, 15.70%. Return on equity is 19.80%. Price/Earnings to growth ratio is 2.45. Price/Sales ratio is at a value of 2.18, with Price/book ratio coming to 4.63 and Price/cash is 53.49, and finally Price/Free cash Flow is 47.83.

The simple moving averages are 3.07% and -0.53% for 20 day and 200 day simple moving average respectively. For the 52 week high and low the 52 week high is -15.43% and the 52 week low is 27.75%.

Hormel Foods Corporation has a dividend yield of 1.51%, with a current price of 38.37. The ability to pay this means the payout ratio is 35.60%. This is in an industry, Meat Products, with equally high dividends from other companies in this sector, which it is Consumer Goods. Hormel Foods Corporation is based in USA.

Performance in the Meat Products industry means that Hormel Foods Corporation has seen performance for the past week of 2.68%, with performance for the month coming to -0.08%. Looking at the data for the quarter it is at a value of 9.07%, and for the half year the performance is 26.12%. Volatility for this week is 1.33% and for the month this is 1.57%.

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

Peter Clarke

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