Linked here is a detailed quantitative analysis of Hormel Foods Corp. (HRL). Below are some highlights from the above linked analysis: Company Description: Hormel Foods Corp. is a multinational manufacturer and marketer of consumer-branded food and meat products. HRL's brands include Hormel, Spam, Jennie-O, Country Crock, Lloyd's, and Chi-Chi's. In addition, HRL has expanded into a non-meat category with the acquisition of the Skippy brand from Unilever. The company has defined a niche on which it converts commodity meats to value-added packaged products. This has allowed the company to achieve superior results when compared with other meat processors.
The company has a relatively strong balance sheet, with minimal debt and generates strong cash flows (even during the recession). Like most in the industry, the company has a high sensitivity to changes in commodity costs. The company should enjoy above average long-term growth and stability of earnings and dividends, with HRL's non-U.S. sales taking a more prominent role. The stock is currently trading at a 32.6% premium to my calculated fair value price of $35.35. In addition, its dividend yield is below my desired minimum, so I will continue to watch this stock from the sidelines.
Source: Dividend Growth Stocks
Related Articles:
________________________________________________________________
Subscribe to:
Post Comments (Atom)
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.