July 03, 2025 a 08:00 am
HRL: Fundamental Ratio Analysis - Hormel Foods Corporation
Hormel Foods Corporation, known for its diverse range of meat and food products, operates across multiple segments with a strong international presence. The company's stability in earnings and consistent product demand in the consumer defensive sector make it an attractive proposition for conservative investors. However, competitive pressures and market saturation in certain areas pose a challenge to growth.
Fundamental Rating
The company's fundamental rating reflects a stable financial performance, underpinned by disciplined cost management and a diverse product portfolio.
| Category | Score | Visualization |
|---|---|---|
| Discounted Cash Flow | 4 | |
| Return on Equity | 3 | |
| Return on Assets | 4 | |
| Debt to Equity | 3 | |
| Price to Earnings | 2 | |
| Price to Book | 3 |
Historical Rating
Examining historical scores indicates a consistent performance trajectory, reflecting the company's resilient market position.
| Date | Overall | DCF | ROE | ROA |
|---|---|---|---|---|
| 2025-07-02 | 3 | 4 | 3 | 4 |
| 0 | 4 | 3 | 4 |
Analyst Price Targets
Consensus estimates indicate a stable outlook, with minimal deviation across high, low, and median price targets, suggesting limited upside.
| High | Low | Median | Consensus |
|---|---|---|---|
| 35 | 35 | 35 | 35 |
Analyst Sentiment
The analyst sentiment presents a predominantly 'Hold' consensus, reflecting cautious optimism about the company's near-term prospects.
| Recommendation | Count | Visualization |
|---|---|---|
| Strong Buy | 0 | |
| Buy | 6 | |
| Hold | 15 | |
| Sell | 8 | |
| Strong Sell | 0 |
Conclusion
Hormel Foods Corporation is positioned as a steady performer in the consumer defensive sector, appealing to risk-averse investors with its robust brand portfolio and consistent earnings. Despite its solid fundamentals, the stock exhibits limited growth potential due to high market competition and margins under pressure. Analyst consensus predominantly suggests holding the stock, indicating stable expectations with little volatility. Potential invetsors should weigh the company's defensive attributes against the backdrop of industry challenges and evolving consumer preferences.