Home Sectors Consumer Defensive Valuation Today: Hormel Foods Corporation (NYSE: HRL)

Valuation Today: Hormel Foods Corporation (NYSE: HRL)

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Hormel Foods Corporation is in the consumer packaged goods industry and consumer defensive sector. Hormel Foods Corp is engaged in manufacturing and sale of variety of food products primarily, pork and turkey and the marketing of those products throughout the United States and internationally.

Previous Intraday Trading Performance:

The HRL stock showed a previous change of 2.91% with an open at 39.16 and a close of 40.27. It reached an intraday high of 40.54 and a low of 39.07.

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Liquidity:

The stock has a market cap of $21.6b with 535.7m shares outstanding, of which the float is 530.9m shares. Trading volume reached 5,644,365 shares compared to its average volume of 3,466,189 shares. Based on the current average volume and close price, the trading liquidity is good.

Historical Trading Performance:

Over the last five trading days, Hormel Foods Corporation shares returned 1.38% and in the past 30 trading days it returned -2.14%. Over three months, it changed -4.83%. In one year it has changed 15.93% and within that year its 52-week high was 46.26 and its 52-week low was 35.17. HRL stock is 14.50% above its 52 Week Low.

Our calculations show a 200 day moving average of 41.37 and a 50 day moving average of 40.96. Currently HRL stock is trading -2.66% below its 200 day moving average and may be a good opportunity to buy, but should check other indicators to confirm a buy signal.

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Earnings:

The last annual fiscal EPS for the company was reported at 1.87 that ended on 31st of October 2018, which according to the previous close, that is a PE of 21.53. Based on 4 analyst estimates, the consensus EPS for the next quarter is 0.43. The TTM EPS is 1.78, which comes to a TTM PE of 22.62. Historically, the PE high was 36.00 and the PE low was 18.10. If the stock reached its PE low, that would represent a price of 32.22, which is a decrease of -19.98%.

Below was the last reported quarterly diluted earnings per share:

Apr19 0.52
Jan19 0.44
Oct18 0.48
Jul18 0.39
Apr18 0.44

The dividend per share is currently 0.84, which is a dividend yield of 2.09%. Also, the payout ratio is 47.19%, therefore the dividend is safe according to our calculations.

Base on our calculations, the intrinsic value per share is 32.15, which means it may be overvalued by -25.24%.

Indicators to Watch:

Based on the latest filings, there is 65.80% of institutional ownership. Short-interest was 39,769,649, which was 7.42% of shares outstanding. The short-interest ratio or days-to-cover ratio was 15.58. This stock has a moderate level of short interest, but may still be a buying opportunity depending on other indicators.

The current calculated beta is 0.12.

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Fundamental Indicators:

Based on last reported financials, the company’s return on equity is 17.79%, return on assets is 12.63%, profit margin is 10.39%, price-to-sales is 2.19 and price-to-book is 3.66.

Company Scores:

All scores are out of six:
 1  :Valuation Score
 3  :Past Performance Score
 6  :Financial Strength Score
 0  :Future Growth Score
 5  :Dividend Score
 3  :Overall Score

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John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.