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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 36.96 (0.30% today). The market cap for Hormel Foods Corporation is 19762.29, and is in the sector Consumer Goods, and Meat Products industry. The target price for Hormel Foods Corporation is 39.75. Currently Hormel Foods Corporation is trading with a P/E of 25.48, and a forward P/E of 22.73. Average volume for Hormel Foods Corporation is 3364.42 and so far today it is 456911.

Performance in the last year for Hormel Foods Corporation has been 29.55%. For EPS growth, Hormel Foods Corporation has seen a growth of 13.70%, and is looking to grow in the next year to 1.63%. 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 0.90%, with EPS growth quarter over quarter at 18.90%. The 20-day simple moving average is 3.56%, with the 200-day simple moving average coming to -2.33%.

Since the IPO date for Hormel Foods Corporation on the 1/2/1990, Hormel Foods Corporation has seen performance year to date to be -5.74%. With Hormel Foods Corporation trading at 36.96, the dividend yield is 1.57%, and the EPS is 1.45.

So could Hormel Foods Corporation, be undervalued? Well as said before P/E is 25.48. The PEG is 2.06, P/S is 2.15 and the P/B is at 4.53. The P/cash is 52.02, with P/free cash flow at 40.21.

Hormel Foods Corporation ability to deal with debt shows that the current ratio is 2.1, and the quick ratio is 1. This is with long term debt/equity at 0.06, and total debt/equity at 0.

In terms of margins, Hormel Foods Corporation has a gross margin of 21.70%, an operating margin of 13.10% and a profit margin of 8.50%.Payout ratio for Hormel Foods Corporation is 36.40%. Return on assets come to 12.90% with return on investment coming to 15.70%.

Insider ownership for Hormel Foods Corporation, is at 0.50% and institutional ownership comes to 35.10%. Outstanding shares are at 536.29. While shares float is 270.46. The float short is currently 10.02%, and short ratio is 8.06.

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.

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Mark Hines

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