Hormel Foods produces and markets various meat and food products worldwide. The company operates in five segments: Grocery Products, Refrigerated Foods, Jennie-O Turkey Store, Specialty Foods, and International & Other. The company was founded in 1891 and is based in Austin, Minnesota.
HRL Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for HRL, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Hormel Foods Corp ranked in the 20th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. In terms of the factors that were most noteworthy in this DCF analysis for HRL, they are:
The company's compound free cash flow growth rate over the past 5.5 years comes in at -0.01%; that's greater than merely 23.62% of US stocks we're applying DCF forecasting to.
HRL's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 3%; for context, that number is higher than 43.04% of tickers in our DCF set.
Relative to other stocks in its sector (Consumer Defensive), Hormel Foods Corp has a reliance on debt greater than only 15.85% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Hormel Foods Corp? See BF.B, PEP, MGPI, PPC, and ATGE.
The Oncology Nutrition Market is expected to have a highly positive outlook over the forecast period 2020-2027 according to a Oncology Nutrition Market research report. The Oncology Nutrition report stresses the most recent advancements, development, new chances, and lethargic traps.