Hormel Foods Stock Fair Value Calculator – HORMEL FOODS Reports Third Quarter FY2023 Earnings Results
September 2, 2023
🌥️Earnings Overview
HORMEL FOODS ($NYSE:HRL) reported its financial results for the third quarter of FY2023, which ended on July 31 2023, with total revenue of USD 2963.3 million, a 2.3% decrease compared to the same period in 2023. Net income for this quarter was USD 162.7 million, a 25.7% year-over-year decline.
Stock Price
The financial results showed that the company’s stock opened at $39.6 and closed at $38.6, down by 2.7% from its last closing price of $39.7. This was mainly driven by higher sales, cost savings initiatives, and improved gross margin. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Hormel Foods. More…
| Total Revenues | Net Income | Net Margin |
| 12.2k | 877.52 | 7.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Hormel Foods. More…
| Operations | Investing | Financing |
| 1.1k | -674.7 | -593.2 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Hormel Foods. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 13.43k | 5.71k | 14.12 |
Key Ratios Snapshot
Some of the financial key ratios for Hormel Foods are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 8.0% | 0.4% | 9.8% |
| FCF Margin | ROE | ROA |
| 6.9% | 9.7% | 5.6% |
Analysis – Hormel Foods Stock Fair Value Calculator
At GoodWhale, we recently conducted an analysis of HORMEL FOODS‘ wellbeing. After studying factors such as the company’s financials, market positioning, and management capabilities, we determined that the fair value of the HORMEL FOODS share is around $49.0. This value is based on our proprietary Valuation Line. Currently, HORMEL FOODS stock is currently being traded at $38.6, which represents a 21.3% undervaluation relative to our determined fair value of $49.0. As such, now may be a good time to invest in HORMEL FOODS stock for those looking for a bargain. More…
Peers
In the food industry, Hormel Foods Corp competes with JM Smucker Co, Fleury Michon, and Bell Food Group Ltd. These companies all produce similar products, so the competition is fierce. Hormel Foods Corp has an advantage because it is a well-established company with a strong brand.
– JM Smucker Co ($NYSE:SJM)
The J. M. Smucker Company has a market capitalization of $15.24 billion as of March 2022 and a return on equity of 7.19%. The company manufactures and markets branded food and beverage products in North America and internationally. Its products include coffee, peanut butter, shortening and oils, ice cream toppings, fruit spreads, syrups, and frozen desserts. The company was founded in 1879 and is headquartered in Orrville, Ohio.
– Fleury Michon ($LTS:0J75)
Fleury Michon is a French company that specializes in the production of prepared foods. The company has a market cap of 79.9 million as of 2022 and a return on equity of 1.6%. Fleury Michon is a publicly traded company listed on the Euronext Paris stock exchange. The company was founded in 1887 and is headquartered in Vire, France.
– Bell Food Group Ltd ($LTS:0RFX)
BFG Ltd’s market cap is 1.43B as of 2022 and has a ROE of 7.15%. The company is a food group that manufactures and supplies food products. It offers a range of products including meat, poultry, fish, vegetables, and desserts. The company has a strong presence in the UK and Ireland, with a network of over 30 manufacturing sites and a workforce of around 23,000 people.
Summary
Hormel Foods reported its earnings for the third quarter of FY2023, with total revenue of USD 2963.3 million and net income of USD 162.7 million. This marks a 2.3% decrease in revenue year over year, while net income decreased 25.7% compared to the same period in 2023. Investors should note that the company’s performance has taken a hit this quarter, suggesting that further analysis is necessary to assess Hormel’s potential as a long-term investment.
