U.S. Markets closed

Why Fundamental Investors Might Love Hormel Foods Corporation (NYSE:HRL)

As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of Hormel Foods Corporation (NYSE:HRL), it is a dependable dividend payer that has been able to sustain great financial health over the past. Below is a brief commentary on these key aspects. If you’re interested in understanding beyond my high-level commentary, take a look at the report on Hormel Foods here.

Excellent balance sheet established dividend payer

HRL’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that HRL manages its cash and cost levels well, which is a crucial insight into the health of the company. HRL’s has produced operating cash levels of 1.99x total debt over the past year, which implies that HRL’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.

NYSE:HRL Historical Debt December 10th 18

For those seeking income streams from their portfolio, HRL is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 1.9%.

NYSE:HRL Historical Dividend Yield December 10th 18

Next Steps:

For Hormel Foods, I’ve compiled three relevant aspects you should further research:

  1. Future Outlook: What are well-informed industry analysts predicting for HRL’s future growth? Take a look at our free research report of analyst consensus for HRL’s outlook.
  2. Historical Performance: What has HRL’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of HRL? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.