Hormel Foods Corporation Fundamental Analysis (XETRA: HO7.DE)
Hormel Foods Corporation Fundamental Analysis (XETRA: HO7.DE)
Hormel Foods Corporation (XETRA: HO7.DE) shows weak financial fundamentals with a PE ratio of 35.91, profit margin of 6.75%, and ROE of 10.23%. The company generates $11.9B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 55.4/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze HO7.DE's fundamental strength across five key dimensions:
Efficiency Score
WeakHO7.DE struggles to generate sufficient returns from assets.
Valuation Score
ModerateHO7.DE shows balanced valuation metrics.
Growth Score
ModerateHO7.DE shows steady but slowing expansion.
Financial Health Score
ExcellentHO7.DE maintains a strong and stable balance sheet.
Profitability Score
WeakHO7.DE struggles to sustain strong margins.
Key Financial Metrics
Is HO7.DE Expensive or Cheap?
P/E Ratio
HO7.DE trades at 35.91 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, HO7.DE's PEG of -5.68 indicates potential undervaluation.
Price to Book
The market values Hormel Foods Corporation at 3.62 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 19.58 times EBITDA. This signals the market has high growth expectations.
How Well Does HO7.DE Make Money?
Net Profit Margin
For every $100 in sales, Hormel Foods Corporation keeps $6.75 as profit after all expenses.
Operating Margin
Core operations generate 8.96 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.23 in profit for every $100 of shareholder equity.
ROA
Hormel Foods Corporation generates $5.99 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Hormel Foods Corporation produces operating cash flow of $1.26B, showing steady but balanced cash generation.
Free Cash Flow
Hormel Foods Corporation produces free cash flow of $1.01B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.84 in free cash annually.
FCF Yield
HO7.DE converts 3.50% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
35.91
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-5.68
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.62
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.42
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.38
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.32
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How HO7.DE Stacks Against Its Sector Peers
| Metric | HO7.DE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 35.91 | 20.86 | Worse (Expensive) |
| ROE | 10.23% | 624.00% | Weak |
| Net Margin | 6.75% | -2493.00% (disorted) | Weak |
| Debt/Equity | 0.38 | 0.83 | Strong (Low Leverage) |
| Current Ratio | 2.32 | 2.25 | Strong Liquidity |
| ROA | 5.99% | 299.00% | Weak |
HO7.DE outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Hormel Foods Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Defensive, Dividend, Low Volatility
EPS CAGR
N/A
Industry Style: Defensive, Dividend, Low Volatility
FCF CAGR
N/A
Industry Style: Defensive, Dividend, Low Volatility